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V E N T U R E C A P I T A L R E P O R T
VENTURE CAPITAL REPORT
The following report presents Dow Jones VentureSource’s quarterly findings for European venture capital fundraising, investment, valuation,
and liquidity. The included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market.
Highlights for 1Q 2017 include:
• The amount raised by European venture capital funds increased compared to the previous quarter but was still well below 1Q 2016 levels;
• Venture capital investment into European companies declined from 4Q 2016 in terms of both amount raised and number of deals;
• The number of mergers and acquisitions (M&As) and the amount raised through M&As both decreased significantly compared to the previous
quarter’s figures;
• While the total amount raised via initial public offerings (IPOs) increased, the number of IPOs experienced a notable drop-off compared to 4Q 2016.
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V E N T U R E C A P I T A L R E P O R T
EUROPEAN VENTURE CAPITAL FUNDRAISING CONTINUES ITS REBOUND IN 1Q 2017
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FUNDRAISING
European VC Fundraising Based on multiple closings (2014–2017) 15 European venture capital funds raised
€2.23 billion during 1Q 2017. Compared with 4Q 2016, total
capital raised experienced a 32% increase, while the number
of fund closings decreased by 29%.
• Compared with the same quarter last year, euros raised
decreased by 23%, while the number of fund closings
decreased by 42%.
• Atomico’s Atomico Ventures IV fund, which raised
€723.30 million, was the largest fund of the quarter,
accounting for 32% of the total amount raised in 1Q 2017.
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Amount Raised (€B) € 1.07 € 1.63 € 1.10 € 1.97 € 1.37 € 2.09 € 1.34 € 1.87 € 2.90 € 2.77 € 1.42 € 1.68 € 2.23
Number of Funds 24 22 21 29 24 25 19 26 26 25 24 21 15
€ 1.07
€ 1.63
€ 1.10
€ 1.97
€ 1.37
€ 2.09
€ 1.34
€ 1.87
€ 2.90 € 2.77
€ 1.42
€ 1.68
€ 2.23
0
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15
20
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35
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V E N T U R E C A P I T A L R E P O R T
LARGEST EUROPEAN VC FUNDS RAISED IN 1Q 2017
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FUNDRAISING
Firm Name Fund Name Amount (€M) Location Offering Status
Fund Type Fund Category Closing Type
Atomico Atomico Ventures IV LP € 723.30 London,
United Kingdom Closed
Early-stage venture capital
Venture Capital Final
Rocket Internet AG Rocket Internet Capital Partners
SCS € 546.30 Berlin, Germany Closed
Multi-stage venture capital
Venture Capital Final
Edmond de Rothschild Investment Partners
BioDiscovery V € 170.00 Paris, France Open Multi-stage venture
capital Venture Capital
First
Project A Ventures GmbH & Co. KG Project A Ventures II GmbH & Co.
KG € 140.00 Berlin, Germany Closed
Early-stage venture capital
Venture Capital
Final
Sofinnova Partners Sofinnova Industrial Biotech I €106.00 Paris, France Open Early-stage venture
capital Venture Capital First
V E N T U R E C A P I T A L R E P O R T
INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES DECREASED IN 1Q 2017
European companies raised approximately €2.83 billion from 548
deals in 1Q 2017, an 8% decrease in the amount raised and a 2%
decrease in the number of deals when compared to the previous
quarter.
• Compared with the same period last year, the amount
companies raised increased by 4% and the number of deals
grew by 10%.
• Business and Financial Services was the strongest sector of
the quarter in terms of both amount raised and number of
deals. It netted €877.92 million across 163 transactions.
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FINANCING Equity Financings into Europe-based,
VC-backed Companies (2014–2017)
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Amount Raised (€B) € 1.66 € 2.43 € 2.37 € 2.12 € 2.87 € 3.97 € 3.43 € 3.55 € 2.73 € 3.14 € 2.18 € 3.06 € 2.83
Number of Deals 439 473 388 445 464 479 448 553 498 547 511 558 548
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V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2014–2017) – NUMBER OF DEALS
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FINANCING
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Seed 46 42 36 46 37 53 43 48 49 41 44 52 60
First 232 235 194 220 237 213 215 290 230 286 255 262 235
Second 64 96 68 80 82 78 85 97 102 96 102 116 134
Later 62 77 62 60 80 108 78 81 86 93 75 95 74
Restart 0 0 1 0 0 1 0 0 0 1 0 1 0
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160
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V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2014–2017) – AMOUNT RAISED (€M)
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FINANCING
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Seed € 25 € 27 € 17 € 32 € 33 € 40 € 36 € 36 € 42 € 29 € 33 € 55 € 66
First € 491 € 608 € 500 € 479 € 643 € 588 € 862 € 796 € 741 € 904 € 717 € 1,097 € 884
Second € 292 € 496 € 223 € 781 € 441 € 913 € 610 € 606 € 774 € 557 € 450 € 577 € 708
Later € 708 € 1,122 € 903 € 768 € 1,682 € 2,287 € 1,874 € 1,653 € 1,079 € 1,606 € 904 € 1,251 € 885
Restart € 0 € 0 € 1 € 0 € 0 € 1 € 0 € 0 € 0 € 2 € 0 € 1 € 0
€ 0
€ 500
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V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES (2014–2017) – MEDIAN EQUITY DEAL SIZE (€M)
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FINANCING
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Median Equity Deal Size (€M) € 1.22 € 1.50 € 1.50 € 1.75 € 1.60 € 2.00 € 1.90 € 1.96 € 2.00 € 1.80 € 2.00 € 2.12 € 2.35
€ 0.00
€ 0.50
€ 1.00
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€ 2.50
V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (1Q 2017)
Business and Financial Services received the largest allocation of investment
during 1Q 2017, raising €877.92 million through 163 deals. The sector attracted 31%
of the total amount invested into European VC-backed companies as well as a
30% share of all deals completed in the quarter.
Consumer Services ranked second in terms of euros invested. The sector
garnered €650.57 million across 130 deals. This represented 24% of all
transactions and 23% of the total amount invested into European VC-backed
companies for the quarter.
Healthcare placed third, receiving €645.10 million via 73 deals. The sector’s
investment figures represent 23% of the total equity financing into European VC-
backed companies for 1Q 2017 and 13% of the transactions for the quarter.
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FINANCING 1Q'17 Industry Breakdown By Number of Deals
1Q’17 Industry Breakdown By Amount Raised
30%
3%
24% 1%
13%
1%
27%
Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
31%
1%
23% 0%
23%
1%
21% Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
V E N T U R E C A P I T A L R E P O R T
TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (1Q 2017)
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Co. Name Location Industry
Code Industry Segment
Industry Group
Brief Description
Close Date
Round Type
Raised (€M)
Round Investors (* denotes lead)
Picnic B.V. Amsterdam, Netherlands
Logistics / Delivery Services
Wholesale Trade and Shipping
Business and Financial Services
Provider of grocery delivery services.
28/03/2017 1st € 100.00 De Hoge Dennen Capital PE BV, Finci, Hoyberg,
NPM Capital NV
Funding Circle Ltd.
London, United
Kingdom Lending
Financial Institutions and Services
Business and Financial Services
Provider of a lending platform for small businesses.
12/01/2017 7th € 94.43
Accel Partners*, Baillie Gifford & Co. Ltd., DST Global, Index Ventures, Ribbit Capital LP, Rocket
Internet AG, Sands Capital Management, Temasek Holdings Pvt. Ltd., Union Square Ventures
Cell Medica Ltd. London, United
Kingdom
Biotechnology Therapeutics
Biopharmaceuticals Healthcare Provider of antigen-specific T-cell
immunotherapy treatments for infectious diseases and cancer.
16/03/2017 5th € 68.64 Invesco Perpetual, Touchstone Innovations Group
PLC, Woodford Investment Management LLP
Vestiaire Collective SA
Paris, France Shopping
Facilitators Consumer
Information Services Consumer Services
Operator of an online marketplace for fashion.
24/01/2017 5th € 58.00 Eurazeo SA, Idinvest Partners, Vitruvian Partners
LLP*
Breath Therapeutics
Munich, Germany
Therapeutic Devices
(Minimally Invasive /
Noninvasive)
Medical Devices and Equipment
Healthcare Developer of advanced drug-
aerosol therapeutics in pulmonary orphan indications.
08/03/2017 1st € 43.50 Gilde Healthcare Partners, Gimv NV*, Sofinnova
Partners*
FINANCING
V E N T U R E C A P I T A L R E P O R T
MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (1Q 2017) BY DEALS COMPLETED
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FINANCING
12
9 9 9
8 8 8 8
0
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Index Ventures Sunstone Capital A/S
Enterprise Ireland Bpifrance Investissement SAS
ALMI Invest AB 500 Startups Management Co.
LLC
Global Founders Capital
High-Tech Gründerfonds
Management GmbH
V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (1Q 2017)
During 1Q 2017, the United Kingdom was once again the most favored
destination for equity financing, receiving €970.28 million across 150 deals. The
amount invested increased by 27% and the deal flow by 11% compared to last
quarter.
France held onto second place, with €398.02 million raised through 78 deals.
Despite a 35% decrease in capital invested compared to last quarter, it
experienced a 22% increase in the number of deals.
Germany came in third, raising €371.04 million in 59 deals. Transaction volume
dropped 30% from the previous quarter and the amount raised was down 38%.
The Netherlands, helped along by a big round for Picnic N.V., placed fourth
based on the €177.34 million it received from 23 deals. These figures represent
increases of 64% and 28%, respectively, compared to 4Q 2016. However, both
Sweden (58 deals) and Spain (32 deals) had larger deal counts.
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FINANCING Number of Deals in 1Q 2017 by Country (Top 4)
Amount Raised in 1Q 2017 by Country (Top 4)
23%
19%
27%
14%
11% 11%
37%
United Kingdom
France
Germany
Sweden
Rest of Europe
34%
14% 13%
6%
33%
United Kingdom
France
Germany
Netherlands
Rest of Europe
V E N T U R E C A P I T A L R E P O R T
EUROPE 1Q 2017 VENTURE EXIT ACTIVITY
During the quarter, 61 venture-backed M&As took place
in Europe, a 38% drop compared to 4Q 2016 and a 29%
decrease relative to 1Q 2016.
The total amount raised through European VC-backed
M&As in 1Q 2017 was €2.52 billion. This represents a
58% decrease from the previous quarter and a 51%
decrease from the same quarter last year.
10 venture-backed IPOs took place during 1Q 2017, a
33% drop from 4Q 2016 but a 43% increase over 1Q
2016.
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LIQUIDITY
Exit Opportunities for European VC–backed Companies (2014–2017)
0 10 20 30 40 50 60 70
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
2Q'15
3Q'15
4Q'15
1Q'16
2Q'16
3Q'16
4Q'16
1Q'17
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
IPOs 9 21 16 10 12 17 8 15 7 11 13 15 10
M&As 66 49 61 60 62 51 61 44 86 87 98 99 61
V E N T U R E C A P I T A L R E P O R T
TOP 3 M&As IN EUROPE (1Q 2017)
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Company Name Location Brief
Description Industry
Code Industry Segment Industry Group
Close Date
Round Type
Amount Paid (€M)
Acquirer
CMC Biologics A/S Gladsaxe, Denmark
Provider of contract-based biotechnology services.
Medical / Lab Services
Healthcare Services Healthcare 01/02/2017 Acquisition € 495.02 Asahi Glass Co.
Social Point SL Barcelona, Spain Provider of free-to-play mobile
games. Entertainment
Consumer Information Services
Consumer Services 31/01/2017 Acquisition € 236.37 Take-Two Interactive
Software Inc.
GenKyoTex SA Plan-Les-Ouates,
Switzerland
Developer of small molecule therapeutics that act as NOX inhibitors for the treatment of
diseases.
Biotechnology Therapeutics
Biopharmaceuticals Healthcare 28/02/2017 Reverse Merger € 120.00 Genticel SA
LIQUIDITY
V E N T U R E C A P I T A L R E P O R T
EUROPEAN VC-BACKED IPOs (2014-2017)
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LIQUIDITY
The number of IPOs during 1Q 2017 decreased in comparison
to the prior quarter, whereas the amount raised increased
significantly.
10 venture-backed companies went public during 1Q 2017, a
33% decrease from the prior quarter.
IPOs raised €357.82 million during 1Q 2017, an increase of
83% from the €195.11 million raised in 4Q 2016.
The largest European VC-backed IPO of 1Q 2017 was Avantium NV. The company raised €103.42 million for its
offering on Euronext Amsterdam and Euronext Brussels.
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Raised (€M) through IPO € 691.24 € 529.53 € 447.47 € 2,249.97 € 417.40 € 576.70 € 699.69 € 609.55 € 155.78 € 227.64 € 483.22 € 195.11 € 357.82
Number of IPOs 9 21 16 10 12 17 8 15 7 11 13 15 10
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V E N T U R E C A P I T A L R E P O R T
TOP 3 IPOs IN EUROPE (1Q 2017)
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LIQUIDITY
Company Name Location Brief
Description Industry
Code Industry Segment Industry Group
Close Date
Raised through IPO (€M)
Exchange/ Symbol
Avantium NV Netherlands Provider of bio-based chemical
building blocks for making green materials and fuels.
Biofuels / Biomass Renewable Energy Energy and Utilities 15/03/2017 € 103.42 AMS: AVTX BRX: AVTX
ObsEva SA Switzerland Developer of pharmaceuticals for women's reproductive medicine.
Biotechnology Therapeutics
Biopharmaceuticals Healthcare 26/01/2017 € 91.36 NASDAQ: OBSV
Oncopeptides AB Sweden Developer of chemotherapeutic
pharmaceuticals for cancer treatment.
Biotechnology Therapeutics
Biopharmaceuticals Healthcare 22/02/2017 € 69.83 NASDAQ:ONCO
V E N T U R E C A P I T A L R E P O R T
ABOUT US & METHODOLOGY
Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service providers find deal and
partnership opportunities, perform comprehensive due diligence and examine trends in venture capital investment, fund-raising and liquidity. It provides
accurate, comprehensive data on venture-backed companies – including their investors and executives – in every region, industry and stage of
development throughout the world.
The investment figures included in this report cover venture backed companies headquartered in Europe, and are based on aggregate findings of Dow
Jones’ proprietary research for VentureSource.
This data was collected through surveys of professional firms, interviews with company executives, and from secondary sources. To be included,
companies have to receive financing from a venture capital or private equity firm. Our figures do not include companies that have received funding solely
from individual, corporate and/or government investors. The data in this report only accounts for equity funding, not convertible debt deals.
Figures contained throughout the report are current at time of editorial but subject to change without notice. No statement herein is to be construed as a
recommendation to buy or sell securities or to provide investment advice.
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V E N T U R E C A P I T A L R E P O R T
ABOUT DOW JONES
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