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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 Europe | 4Q | 2015
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 4Q 2015 include:
• European venture capital fundraising and fund closings climbed from prior quarter;
• Venture capital investment into European companies declined from 3Q 2015, while the number of deals improved;
• The number of mergers and acquisitions (M&As) experienced a decrease from the last quarter, while the number of initial public offerings (IPOs) is on the rise.
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EUROPEAN VENTURE CAPITAL FUNDRAISING RISES IN 4Q 2015
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FUNDRAISING
European VC Fundraising Based on multiple closings (2012–2015) 19 European venture capital funds raised
€1.33 billion during 4Q 2015, both a 58% climb in capital raised and number of fund closings from 3Q 2015 .
• Compared with the same period last year, euros raised improved by 6%, despite the number of fund closing dropped 30%.
• Sofinnova Capital VIII was the largest fund of this quarter, which raised €300 million, accounting for 23% of the total amount raised for 4Q 2015.
4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
Amount Raised (€B) € 1.42 € 0.76 € 1.03 € 0.65 € 1.94 € 0.55 € 1.26 € 0.81 € 1.26 € 1.06 € 1.96 € 0.84 € 1.33
Number of Funds 32 15 17 12 41 22 24 20 27 22 26 12 19
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LARGEST EUROPEAN VC FUNDS RAISED IN 4Q 2015
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FUNDRAISING
Firm Name Fund Name Amount (€M) Location Offering Status Fund Type Fund Category Closing Type
Sofinnova Partners Sofinnova Capital VIII € 300.00 Paris,
France Closed Early-stage venture
capital Venture Capital Final
Acton Capital Partners Heureka Growth Fund II
€ 170.00
Munich, Germany
Closed Late-stage venture capital
Venture Capital Final
Partech Ventures Partech Growth € 170.00 Paris,
France Open Late-stage venture
capital Venture Capital
First
Octopus Ventures Ltd. Octopus Zenith Opportunities II
LP € 121.62 London,
United Kingdom Closed Late-stage venture
capital Venture Capital
Final
Open Ocean Capital Open Ocean Capital Software
Fund € 100 Espoo, Finland
Closed Early-stage venture capital
Venture Capital Final
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INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES DECLINED IN 4Q 2015
European companies raised over €3.3 billion for 426 deals during 4Q 2015, a 1% decline in the amount raised from the prior quarter despite a 14% rise in the number of deals.
• Compared with the year ago period, both investment amount and the number of deals improved, raising 61% and 4% respectively.
• Information Technology was the strongest sector of the quarter in terms of attracting investment.
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FINANCING
Equity Financings into Europe-based, VC-backed Companies (2012–2015)
4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
Amount Raised (€B) € 1.28 € 1.24 € 1.54 € 1.80 € 1.98 € 1.64 € 2.43 € 2.32 € 2.05 € 2.83 € 3.52 € 3.32 € 3.29
Number of Deals 405 391 434 410 499 412 450 361 411 405 393 374 426
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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2012–2015) – NUMBER OF DEALS
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FINANCING
4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
Seed 66 41 40 57 75 39 32 26 35 21 26 26 29
First 200 205 215 213 223 219 227 182 200 204 179 178 229
Second 61 66 87 65 85 64 92 66 76 79 73 78 82
Later 45 54 65 51 82 60 78 62 60 79 96 75 62
Restart 0 0 0 0 0 0 0 0 0 1 0 0 1
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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2012–2015) – AMOUNT RAISED (€M)
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FINANCING
4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
Seed € 27 € 21 € 17 € 23 € 31 € 18 € 22 € 15 € 27 € 16 € 17 € 29 € 20
First € 464 € 401 € 429 € 543 € 491 € 513 € 625 € 461 € 453 € 606 € 509 € 808 € 725
Second € 299 € 258 € 472 € 706 € 402 € 306 € 477 € 220 € 775 € 451 € 922 € 571 € 578
Later € 458 € 540 € 600 € 461 € 995 € 679 € 1,124 € 900 € 751 € 1,691 € 1,937 € 1,861 € 1,511
Restart € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 1 € 0 € 0 € 1
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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES (2012–2015) – MEDIAN EQUITY DEAL SIZE (€M)
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FINANCING
4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
Median Equity Deal Size (€M) € 1.20 € 1.39 € 1.52 € 1.00 € 1.25 € 1.50 € 1.74 € 1.58 € 2.00 € 1.98 € 2.50 € 2.30 € 2.22
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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (4Q 2015)
Information Technology received the largest allocation of investment during 4Q 2015, raising €840 million through 107 deals. The sector attracted a 26% of the total amount invested and a 25% of all deals completed for the quarter.
Consumer Services ranked the second highest proportion of investment. The sector garnered €802 million across 110 deals, an improvement of 4% in deal number while a 14% decline in amount invested from 3Q 2015.
Healthcare placed third, receiving € 752 million across 73 deals. The sector’s investment figure represents a 23% of the total equity financing into European VC-backed companies for 4Q 2015.
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FINANCING 4Q'15 Industry Breakdown By Number of Deals
4Q’15 Industry Breakdown By Amount Raised
23%
3%
26% 2%
17%
1%
25%
Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
22%
1%
24%
1% 23%
3%
26%
Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
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TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (4Q 2015)
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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)
O3B Networks Ltd.
St. Helier, United
Kingdom
Wireless Telecommunications Service
Providers
Communications and Networking
Information Technology
Provider of global satellite services.
10/12/2015 5th Round €427.83
Allen & Co. LLC, Development Bank of Southern Africa, Google Ventures, HSBC Investments, Liberty
Global, Luxempart SA, North Bridge Venture Partners, Satya Capital LLP, SES SA, Sofina SA.
Skyscanner Ltd. Edinburgh,
United Kingdom
Search Portals Consumer
Information Services Consumer Services Provider of an online travel search
engine. 31/12/2015 Later
Round € 179.94
Artemis Ventures, Baillie Gifford & Co. Ltd., Khazanah Nasional Berhad*, Vitruvian Partners
LLP, Yahoo Japan Corp.*
auxmoney GmbH
Gdusseldorf, Germany Lending
Financial Institutions and Services
Business and Financial Services
Provider of an online peer-to-peer (P2P) lending marketplace. 20/10/2015 Corporate € 150 Aegon*
CureVac AG Tuebingen,
Germany Biotechnology Therapeutics Biopharmaceuticals Healthcare
Developer of messenger RNA (mRNA)-based therapeutics and
prophylactic vaccines. 29/10/2015
Later Round €100
Baillie Gifford & Co. Ltd.*, Chartwave Ltd., Coppel Family, Elma Investments, Northview LifeSciences,
Sigma Group
Crispr Therapeutics AG
Basel, Switzerland
Biotechnology Therapeutics
Biopharmaceuticals Healthcare
Developer of genome-editing technologies for the treatment of serious human genetic diseases.
26/10/2015 Corporate € 93.78 Vertex Pharmaceuticals*
FINANCING
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MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (4Q 2015) BY DEALS COMPLETED
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FINANCING
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High-Tech Gruenderfonds
Management GmbH
Bpifrance Investment Partech Ventures Idinvest Partners Seedcamp Mercia Technologies PLC
Index Ventures
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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (4Q 2015)
The United Kingdom remained as the most favoured destination for equity financing during 4Q 2015, receiving €1403 million across 111 deals. The country took 43% of all equity financing from 4Q 2015.
Germany ranked second. It reached a total €685 million through 78 deals, representing a 21% share of European financing. A 92% rise in capital invested and 11% increase of the number of deals from last quarter.
France occupied third position raising €379 million, 12% of the total for the quarter. Switzerland placed fourth ,raising €316 million during 4Q 2015.
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FINANCING Number of Deals in 4Q 2015 by Country (Top 4)
Amount Raised in 4Q 2015 by Country (Top 4)
23%
19%
26%
21%
18%
6%
29%
United Kingdom
France
Germany
Spain
Rest of Europe
43%
21%
11%
10%
15% United Kingdom
Germany
France
Switzerland
Rest of Europe
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EUROPE 4Q 2015 VENTURE EXIT ACTIVITY
38 venture-backed M&As took place in Europe during 4Q 2015, a 22% decrease from 3Q 2015 as well as from 4Q 2014.
Total amount raised through European VC-backed M&As in 4Q 2015 is €6.7 billion. A 28% rise from the prior quarter and more than doubled from the same period
last year.
13 venture-backed IPOs took place during 4Q 2015, a 63% and 30% increase from 3Q 2015 and 4Q 2014 respectively.
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LIQUIDITY
Exit Opportunities for European VC–backed Companies (2012–2015)
0 10 20 30 40 50 60 70
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
2Q'15
3Q'15
4Q'15
4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
IPOs 5 1 5 3 9 8 21 16 10 12 15 8 13
M&As 47 37 40 42 44 56 42 50 49 53 43 49 38
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TOP 3 M&As IN EUROPE (4Q 2015)
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Company Name Location Brief
Description Industry
Code Industry Segment Industry Group Close Date
Round Type
Amount Paid (€M) Acquirer
Acerta Pharma B.V.
Oss, Netherlands
Developer of therapies intended for the treatment of cancer and
autoimmune diseases.
Biotechnology Therapeutics Biopharmaceuticals Healthcare 17/12/2015 Acquisition € 2296.03 AstraZeneca Plc
Dezima Pharma B.V.
Naarden, Netherlands
Developer of drugs to treat dyslipidemia. Pharmaceuticals Biopharmaceuticals Healthcare 16/10/2015 Acquisition € 1339.76 Amgen Inc.
Avito.ru Moscow, Russia
Provider of a classified advertising website.
Shopping Facilitators
Consumer Information Services Consumer Services 23/10/2015 Acquisition € 1071.81 Naspers
LIQUIDITY
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EUROPEAN VC-BACKED IPOs (2012-2015)
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LIQUIDITY
13 venture-backed companies went public during 4Q 2015, an increase in number of deals from the prior quarter while the amount raised declined.
• IPOs raised €511 million during 4Q 2015, a decline of 27% from the €700 million raised in 3Q 2015.
• The largest European VC-backed IPO of 4Q 2015 was the NovoCure Ltd. The company raised €147 million for its offering on Nasdaq.
4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15
Raised (€M) through IPO € 142.99 € 19.22 € 89.24 € 25.51 € 366.10 € 448.63 € 529.53 € 447.47 € 2,250 € 417.40 € 533.10 € 699.69 € 511.42
Number of IPOs 5 1 5 3 9 8 21 16 10 12 15 8 13
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TOP 3 IPOs IN EUROPE (4Q 2015)
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LIQUIDITY
Company Name Location Brief
Description Industry
Code Industry Segment Industry Group Close Date
Raised through IPO (€M)
Exchange/ Symbol
NovoCure Ltd. United Kingdom Developer of therapy for the
treatment of solid tumor cancers. Biotechnology Therapeutics Biopharmaceuticals Healthcare 2/10/2015 € 147.37 Nasdaq: NVCR
Mimecast Ltd. United Kingdom Provider of cloud security solutions. Network/Systems
Management Software Software Information Technology 19/11/2015 € 70.42 NASDAQ: MIME
Advanced Accelerator
Applications SA France
Developer of molecular nuclear medicine (MNM) products.
Biotechnology Therapeutics
Biopharmaceuticals Healthcare 11/11/2015 € 68.15 NASDAQ: AAAP
V E N T U R E C A P I T A L R E P O R T
ABOUT US
Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service provider 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 release are based on aggregate findings of Dow Jones’ proprietary research and are contained in VentureSource. This data was collected through survey of professional firms, interviews with company executives, and from secondary sources. These venture capital
statistics cover equity investments into early stage, innovative companies and do not include companies receiving funding solely from corporate, individual, and/or government investors. Figures contained throughout the report current at time of editorial but are 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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