venture capital report europe 4q14

8/9/2019 Venture Capital Report Europe 4Q14

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2/19

Venture Capital Report The following report presents Dow Jones VentureSources quarterly findings forEuropean venture capital fundraising, investment, valuation, and liquidity. The includedcharts and graphs offer a comprehensive view of the trends currently affecting theventure capital market.

Highlights for 4Q 2014 include:

European venture capital fundraising experiences uptick from 3Q 2014, but suffers declines in bothfund closings and euros raised for the 12 month period;

Venture capital investment into European companies falls from 3Q 2014, but improves by a quarter yearover year;

Despite an overall fall in exit activity, the total amount raised through venture-backed Initial publicofferings (IPOs) reached its highest point since 2Q 2000.

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3/19

Venture Capital Report

FUNDRAISING

#

4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14

Amount Raised (B) 2.17 0.98 1.18 0.76 1.19 0.76 1.03 0.50 1.81 0.69 1.03 0.70 0.93

Number of Funds 36 17 21 15 29 15 17 10 37 23 20 15 18

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2.50European VC Fundraising (20112014)Based on multiple closings

European Venture Capital Fundraising Experiences Uptick in 4Q 2014

18 European venture capital funds accumulated927 million during 4Q 2014, an increase of 33% in euros

raised and 20% in the number of funds with closings from 3Q 2014.

Despite the uptick in fundraising from 3Q 2014, the number of funds with closings during 4Q 2014 fell by 51%

compared with the same period last year, while euros raised fell by 49%.

The largest fund of the quarter was Principia SGRs Fund III which raised160 million, accounting for 17% of

the total amount raised for 4Q 2014.

Overall, the number of fund closings in 2014 was down by 4% to 76 from the year prior, while the total amount

raised by venture funds fell by 18% from 2013 to3.4 billion.


4/19


FUNDRAISING

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Largest European VC Funds Raised in 4Q 2014

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5/19


FINANCING

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Equity Financings into Europebased, VC-backed Companies(20112014)

Investment into European Venture-backed Companies Falls in 4Q 2014

European companies raised1.8 billion for 332 deals during 4Q 2014, a fall of 24% in the amount raised from

3Q 2014 despite just five fewer deals being completed.

In contrast with the year ago period, investment improved by 1% despite a 28% reduction in the number of

completed deals.

In 2014 as a whole, European venture-backed companies attracted7.9 billion across 1460 deals, a decline of

11% in deals completed from 2013 but an improvement of 25% in euros invested.

4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14

Amount Raised (B) 1.46 1.06 1.56 1.15 1.24 1.21 1.57 1.75 1.76 1.54 2.26 2.32 1.77

Number of Deals 374 347 375 326 373 371 420 384 461 387 404 337 332

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6/19


FINANCING

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Equity Financings into Europe-based, VC-backed Companies, by Round Class(20112014)

Number of Deals

4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14

Seed 45 38 38 53 61 35 34 52 67 32 24 19 23

First 168 161 192 155 187 197 207 197 207 210 203 176 171

Second 62 63 60 55 57 64 89 63 81 67 87 60 64

Later 73 70 55 46 43 53 65 51 81 56 73 65 55

Restart 3 0 0 0 0 0 0 0 0 0 0 0 0

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Equity Financings into Europe-based, VC-backed Companies, by Round Class(Year over Year, 20042014 )

Number of Deals

FINANCING

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2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Restart 14 9 10 12 5 3 2 6 0 0 0

Later 437 482 339 385 316 290 304 238 214 250 249

Second 289 283 242 267 274 251 268 261 235 297 278

First 519 541 643 845 712 598 669 664 695 808 760

Seed 66 55 93 100 99 93 97 134 190 188 98

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FINANCING

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4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14

Seed 23 17 23 15 26 20 14 19 27 16 17 11 14

First 433 298 537 289 449 403 418 526 349 441 563 510 403

Second 355 278 257 300 291 229 479 697 391 319 468 207 683

Later 604 448 673 531 449 543 639 458 937 642 1,039 877 647

Restart 15 0 0 0 0 0 0 0 0 0 0 0 0

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Equity Financings into Europe-based, VC-backed Companies, by Round Class(20112014)

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FINANCING

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Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (M)(20112014)

4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14

Median Equity Deal Size (M) 1.41 1.50 1.90 1.20 1.22 1.50 1.52 1.00 1.40 1.58 2.00 2.00 2.30

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10/19


FINANCING

35

24%

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18%

2%

21%

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

4Q'14 Industry BreakdownBy Number of Deals

Equity Financings into Europe-based, VC-backed Companies, by Industry Group(4Q 2014)

Business and Financial Services received the largest allocation of investment during 4Q 2014 (32%),

accumulating557 million through 80 deals. The sector remained the most attractive sector despite investment

dropping by 41% from 3Q 2014. Deal flow remained flat.

Healthcare rose to second in terms of equity financing, taking a 30% share of all 4Q 2014 investment. The

sector raised535 million across 60 deals, an increase of 64% in capital raised and 25% in deals completed

from the previous quarter.

Consumer Services was pushed down to third, with companies in the sector gathering 18% of the total amount

invested for the quarter. The sector received327 million across 96 deals; a fall of 53% and 3% from 3Q 2014

in capital invested and deal flow respectively.

32%

2%

18%2%

30%

1%

15%Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials(0.5%)


4Q14 Industry BreakdownBy Amount Raised


11/19


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Consumer Goods

Consumer Services

Energy & Utilities

Healthcare



Equity Financings into Europe-based, VC-backed Companies, by Industry Group (2014)

2014 Industry BreakdownBy Number of Deals

2014 Industry BreakdownBy Amount Raised ($B)

FINANCING

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Energy & Utilities

Healthcare




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FINANCING

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Truffle Capital SAS Bpifrance Investment Northzone Ventures AS Kima Ventures

Most Active Investors for Europe-based, VC-backed Companies by Deals Completed(4Q 2014)


14/19


FINANCING

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Amount Raised in 4Q 2014 by Country(Top 4)

30%

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United Kingdom

Germany

Netherlands

France

Rest of Europe

21%

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33%United Kingdom

Germany

France

Spain

Rest of Europe

Number of Deals in 4Q 2014 by Country(Top 4)

Equity Financings into Europe-based, VC-backed Companies, byCountry (4Q 2014)

The United Kingdom was the most favoured destination for equity financing during 4Q

2014, receiving524 million across 69 deals. The country took in 30% of all

investment into European VC-backed companies for the quarter.

Germany placed second, capturing 18% of European investment. Investment fell by

73% from the prior quarter to total322 million. Deal flow remained relatively stable,

however, with 66 completed.

The Netherlands rose to third position raising243 million, a 14% share of investment.

France placed in fourth position with a 12% share, raising 218 million during 3Q

2014.


15/19


LIQUIDITY

3K

Exit Opportunities for EuropeanVCbacked Companies(20112014)

Europe Sees Overall Decrease in 4Q 2014 Venture Exit Activity

42 venture-backed M&As took place in Europe during 4Q 2014, down 9% from 3Q 2014 but one up on the

figure for 4Q 2013.

The largest M&A for 4Q 2014 was Belgiums Clear2Pay NV, an e -payment solutions provider, which was

acquired by Fidelity National Information Services for 375 million.

55 venture-backed IPOs took place during 2014, tripling the number of listings seen across Europe in 2013.

201 M&As were completed during the course of 2014, a 21% increase on the 166 that took place during 2013.

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IPOs 3 6 3 2 5 1 5 3 9 8 21 16 10

M&As 45 38 42 30 46 34 36 41 41 51 42 46 42


16/19


LIQUIDITY

34

Top 3 M&As in Europe (4Q 2014)

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LIQUIDITY

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European VC-backed IPO Activity(2011 - 2014)

European VC-backed IPOs (2011-2014)

10 IPOs were completed during 4Q 2014, a decline of 38% from the previous quarters total but an increase of

one on those completed during 4Q 2013.

IPOs raised2.3 billion during 4Q 2014, more than six times the figure seen in 4Q 2013 and the highest sum

since 2Q 2000 when 71 IPOs raised a total of 3.8 billion.

The largest European VC-backed IPO of 4Q 2014 was Rocket Internet AGs October listing on the Frankfurt

Stock Exchange. The company raised a total of1.4 billion, accounting for 62% of the total amount raised

through European venture-backed company IPOs for the quarter.

4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14

Raised (M) through IPO 18.66 157.40 26.76 52.08 142.99 19.22 89.24 25.51 366.10448.63529.53447.47 2,250

Number of IPOs 3 6 3 2 5 1 5 3 9 8 21 16 10

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Top 3 IPOs in Europe (4Q 2014)


19/19


ABOUT US

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venture capital report europe 4q14

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