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VentureSource
Europe -- 2Q 2014
VentureSource
2
The following report presents Dow Jones VentureSource’s quarterly findings for
European venture capital fundraising, investment, and liquidity. The included charts and
graphs offer a comprehensive view of the trends currently affecting the venture capital
market.
Highlights for 2Q 2014 include:
European venture capital fundraising rallied from customary first quarter decline to match 2Q 2013;
Venture capital investment into European companies improved to reach highest quarterly investment
figure since 3Q 2001;
Despite a slide in mergers and acquisitions (M&As), overall exit activity improved from the previous
quarter due to the highest number of initial public offerings (IPOs) in a quarter since 4Q 2006.
To view Dow Jones VentureSource’s U.S. data for 2Q 2014 , please click here.
VentureSource
FUNDRAISING
3
2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Amount Raised (€B) € 0.63 € 0.42 € 2.17 € 0.98 € 1.18 € 0.76 € 1.09 € 0.74 € 1.03 € 0.50 € 1.79 € 0.65 € 1.03
Number of Funds 18 10 36 17 21 15 28 14 17 10 36 20 20
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€ 2.50 European VC Fundraising (2011 – 2014) Based on multiple closings
European Venture Capital Fundraising Rallies in 2Q 2014
20 European venture capital funds accumulated €1.03 billion during 2Q 2014, equating to an increase of 58% in
euros raised from 1Q 2014 despite the number of fund closings remaining flat. Though level with 2Q 2013, the
raised figure falls short of the €1.18 billion raised during 2Q 2012.
A total of €1.68 billion were raised by 40 European venture capital funds during the first half of 2014,
representing a dip of 5% in euros raised despite fund closings increasing by 29% from the first half of 2013.
The largest fund of the quarter was Index Ventures’ VII LP fund which raised €400 million, and accounted for
39% of the total amount raised for 2Q 2014.
VentureSource
FUNDRAISING
4
Largest European VC Funds Raised in 2Q 2014
Firm Name Fund Name Amount
(€M) Closed in 2Q
Location Offering Status
Fund Type Fund Category Closing Type
Index Ventures Index Ventures VII LP €400.00 Geneva,
Switzerland Closed
Early-stage venture capital
Venture Capital
Final
Balderton Capital Management LLP
Balderton Europe V LP €221.10 London, United
Kingdom Closed
Early-stage venture capital
Venture Capital
Final
Quadrivio SGR Fondo TT Venture Due €100.00 Milan, Italy Closed Early-stage
venture capital
Venture Capital
Final
IBB Beteiligungsgesellschaft GmbH
VC Fonds Technologie Berlin II
€60.00 Berlin,
Germany Closed
Multi-stage venture capital
Venture Capital
Final
Hermes Fund Managers Ltd. Hermes GPE PEC II LP €54.08 London, United
Kingdom Open
Multi-stage venture capital
Venture Capital
First
VentureSource
FINANCING
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Equity Financings into Europe –
based, VC-backed Companies
(2011 – 2014)
Investment into European Venture-backed Companies Improves in 2Q 2014
European companies raised €2.1 billion for 365 deals during 2Q 2014, an increase of 2% in the number of
deals and 41% in capital raised from the previous quarter. 2Q 2014 enjoyed the highest quarterly investment
figure since 3Q 2001 when €2.7 billion were raised.
In contrast with 2Q 2013 figures, despite deal flow decreasing by 10%, investment improved by 42%.
For the first half of 2014, European venture-backed companies drew in €3.6 billion in 723 deals, a decline of 5%
in deals completed but a rise of 35% in euros invested from the first six months of 2013 .
2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Amount Raised (€B) € 1.24 € 1.24 € 1.44 € 1.08 € 1.48 € 1.14 € 1.25 € 1.19 € 1.49 € 1.30 € 1.69 € 1.50 € 2.12
Number of Deals 394 309 364 339 363 321 364 356 406 375 464 358 365
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FINANCING
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Equity Financings into Europe-based, VC-backed Companies, by Round Class
(2011 – 2014)
Number of Deals
2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Seed 37 31 43 32 37 50 58 29 31 50 73 28 19
First 187 165 164 160 184 155 180 191 203 193 208 199 180
Second 86 52 62 62 61 55 60 63 88 61 79 64 83
Later 56 50 72 70 54 45 42 53 62 51 80 53 70
Restart 1 2 3 0 0 0 0 0 0 0 0 0 0
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160
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VentureSource
FINANCING
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2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Seed € 16 € 21 € 22 € 15 € 23 € 13 € 26 € 17 € 12 € 16 € 22 € 16 € 17
First € 384 € 573 € 419 € 302 € 458 € 288 € 437 € 393 € 421 € 461 € 352 € 414 € 550
Second € 315 € 214 € 355 € 293 € 255 € 304 € 334 € 224 € 481 € 311 € 386 € 318 € 401
Later € 423 € 325 € 602 € 459 € 673 € 529 € 447 € 543 € 563 € 456 € 900 € 634 € 973
Restart € 0 € 69 € 15 € 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
(2011 – 2014)
Amount Raised (€M)
VentureSource
FINANCING
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Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (€M)
(2011 – 2014)
2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Median Equity Deal Size (€M) € 1.50 € 1.54 € 1.41 € 1.53 € 1.90 € 1.20 € 1.22 € 1.54 € 1.52 € 1.00 € 1.29 € 1.75 € 2.17
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VentureSource
FINANCING
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30%
4%
30%
3%
14%
3%
16% Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
2Q'14 Industry Breakdown
By Number of Deals
Equity Financings into Europe-based, VC-backed Companies, by Industry Group
(2Q 2014)
The Consumer Services sector received the largest allocation of investment during 2Q 2014 (37%),
accumulating €788 million through 109 deals. While deal flow picked up by just 2% from 1Q 2014, sector
investment rose by 76%. The five largest deals completed for the quarter were all for companies in Consumer
Services.
Business and Financial Services placed second in terms of equity financing, taking a 26% share of all 2Q 2014
investment. The sector raised €540 million across 108 deals, an increase of 33% in capital raised despite a 5%
dip in deal flow. The sector’s investment total was the largest for a single quarter since 1Q 2001.
Healthcare remained third, with companies gathering 18% of the total amount invested during the quarter. The
sector received €375 million across 52 deals, an uptick of 6% in both deal flow and capital invested from 1Q
2014.
26%
1%
37%
3%
18%
3%
12% Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
2Q’14 Industry Breakdown
By Amount Raised
VentureSource
FINANCING
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Co. Name Location Industry Group
Industry Segment
Industry Code Brief Description Close Date Round Type
Raised (€M)
Round Investors (* denotes lead)
Ozon Group Russia Consumer Services
Consumer Information
Services Shopping Facilitators
Provider of Internet- based retail services.
29/4/2014 Corporate €108.74
Mobile TeleSystems OJSC,
Sistema JSFC
Kobalt Music Group Ltd.
United Kingdom
Consumer Services
Media and Content
Movie/Music Producers and
Distributors
Provider of music publishing, neighboring
rights, and label services worldwide.
4/6/2014 Later €84.36 Balderton Capital
Management LLP, Individual Investors
Sarenza SA France Consumer Services
Retailers Clothing/Accessory
Retailers Provider of an online
food ordering platform. 25/6/2014 5th €74.00
Bpifrance Investment*, HLD Associes SCA, Individual
Investors
Comuto SAS France Consumer Services
Travel and Leisure
Transportation Services
Provider of a car journey-sharing
platform. 30/6/2014 Later €73.36
Accel Partners, Index Ventures*, Isai SAS, Lead
Edge Capital
Delivery Hero Holding GmbH
Germany Consumer Services
Consumer Information
Services Shopping Facilitators
Provider of an online food ordering platform.
23/4/2014 Other Early
Stage €61.62 Luxor Capital Group*
Top 5 Deals into European VC-backed Companies (2Q 2014)
VentureSource
FINANCING
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16
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7 7 7 7 7 7
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Index Ventures High-TechGruenderfondsManagement
GmbH
BpifranceInvestment
SofinnovaPartners
Caixa CapitalRisc SGECR
Alven Capital BaldertonCapital
ManagementLLP
IdinvestPartners
Most Active Investors for Europe-based, VC-backed Companies by Deals Completed
(2Q 2014)
VentureSource
FINANCING
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Amount Raised in 2Q 2014 by Country
(Top 4)
28%
19%
15%
8%
30% United Kingdom
France
Germany
Netherlands
Rest of Europe
26%
20%
13%
8%
33% United Kingdom
France
Germany
Spain
Rest of Europe
Number of Deals in 2Q' 2014 by Country
(Top 4)
Equity Financings into Europe-based, VC-backed Companies, by
Country (2Q 2014)
The U.K. remained the favoured destination for equity financing in 2Q 2014 with a 28%
share of investment into European VC-backed companies. The country received €598
million across 97 deals, an increase of 7% in deal flow and 58% in amount invested
from 1Q 2014.
France placed second with a 19% share of investment. While deal flow saw an
increase of 42% from 1Q 2014 with 74 completed, investment more than doubled from
the €184 million drawn in during the previous quarter to reach €395 million.
Germany occupy third spot, raising €322 million, representing a 15% share of
investment. The Netherlands rose to fourth spot with an 8% share, raising €166 million
during 2Q 2014. It was the country’s highest quarterly investment total since 3Q 2000.
VentureSource
LIQUIDITY
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Exit Opportunities for European
VC – backed Companies
(2011 – 2014)
Venture Exits in Europe See Overall Increase in 2Q 2014 Despite M&A Slide
38 venture-backed M&As took place in Europe during 2Q 2014, a decline of 19% from 1Q 2014 but an uptick of
6% from 2Q 2013.
The largest M&A of 2Q 2014 was Crossknowledge Group Ltd., a corporate e-learning service provider, which
was acquired by John Wiley & Sons for €127 million.
19 venture-backed IPOs took place during 2Q 2014, 11 more than in 1Q 2014 and the most since 4Q 2006.
Companies raised €407 million for their listings during 2Q 2014, a slight decline from the €449 million seen in
1Q 2014.
0 10 20 30 40 50 60 70
2Q'11
3Q'11
4Q'11
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
IPOs 7 3 2 6 3 2 5 1 4 3 9 8 19
M&As 56 50 45 36 42 29 44 34 36 40 41 47 38
VentureSource
LIQUIDITY
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Top 3 M&As in Europe (2Q 2014)
Company Name
Location Brief Description Industry Code Industry Segment
Industry Group
Close Date
Round Type
Amount Paid (€M)
Acquirer
Crossknowledge Group Ltd.
Suresnes, France
Provider of corporate e-learning services.
Educational/Training Media and Services
Media and Content Consumer Services
28/4/2014 Acquisition €126.86 John Wiley &
Sons
eNovance SAS Paris, France
Provider of high-end hosting and managed services focused on
open source and open cloud technologies.
IT Consulting Business Support
Services
Business and Financial Services
30/6/2014 Acquisition €70.00 Red Hat Inc.
Lab21 Ltd. Cambridge,
United Kingdom
Provider of personalized medicine and clinical diagnostics products and services.
Medical Lab Instruments/Test
Kits
Medical Devices and Equipment
Healthcare 5/6/2014 Acquisition €40.00 Novacyt SAS
VentureSource
LIQUIDITY
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European VC-backed IPO Activity
(2011 - 2014)
European VC-backed IPOs (2011-2014)
19 IPOs were completed during 2Q 2014, outnumbering those in both the previous quarter and 2Q 2013 and
the highest number of venture-backed IPOs in a quarter since 4Q 2006 when 34 were completed.
IPOs raised €407 million during 2Q 2014, a fall of 9% from 1Q 2014. A total of €855 million has been raised
during the first half of 2014, more than eight times the figure for the equivalent period in 2013 and the highest
amount since €862 million were raised in IPOs during the first half of 2006.
The largest European VC-backed IPO of 2Q 2014 was JUST EAT PLC’s April listing on the London Stock
Exchange. The company raised a total of €121 million, which represents 30% of the total amount raised
through European venture-backed company IPOs for the quarter.
2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14
Raised (€M) through IPO € 355.76 € 65.15 € 18.66 € 157.40 € 26.76 € 52.08 € 142.99 € 19.22 € 71.56 € 25.51 € 378.13 € 448.63 € 406.50
Number of IPOs 7 3 2 6 3 2 5 1 4 3 9 8 19
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LIQUIDITY
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Company Name
Country Brief Description Industry Code Industry Segment
Industry Group
Close Date Raised
through IPO (€M)
Exchange/ Symbol
JUST EAT PLC United
Kingdom Provider of an online
takeaway ordering service. Restaurants/Food
Service Travel and Leisure
Consumer Services
3/4/2014 €120.57 LSE: JE
SuperSonic Imagine SA
France
Provider of ultrasound medical imaging systems
for measuring and visualizing tissue elasticity.
Diagnostic Imaging Equipment
Medical Devices and Equipment
Healthcare 10/4/2014 €50.00 PAR: SSI
Fermentalg SA France
Developer of a method to transform microalgae into chemical compounds for the agrifood, healthcare,
and energy markets.
Biofuels/Biomass Renewable Energy Energy and
Utilities 16/4/2014 €40.37 PAR: FALG
Top 3 IPOs in Europe (2Q 2014)
VentureSource
ABOUT US
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 release are based on aggregate findings of Dow Jones' proprietary research and are contained in VentureSource. This data was collected through surveys 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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