Saturday, February 1, 2014
DJX VentureSource European Venture Capital Report 4Q 2013
European Venture Capital Fundraising Rises Significantly from 3Q 2013 and 4Q 2012
23 European venture capital funds accumulated €1.4 billion in 4Q 2013, more than doubling the number of
funds and almost tripling the amount raised from the prior quarter.
In contrast with 4Q 2012, though the number of funds fell by 12%, the amount raised rose by 38%. 4Q 2013
represents the highest quarterly figure for amount raised since 4Q 2011 when €2.1 billion was raised.
The largest fund of the quarter was Abingworth Management’s Bioventures VI fund, which raised €240 million
and accounted for 17% of the total amount raised for 4Q 2013.
Venture capital funds raised a total €3.58 billion across 60 funds in 2013, down 8% and 21% from respective figures for 2012.
Investment into European Venture-backed Companies Sees Quarter over Quarter and Year over Year Increase
European companies raised €1.5 billion for 357 deals during 4Q’13, a 6% uptick in the number of deals
completed and an 18% rise in capital raised from the previous quarter.
In contrast with 4Q‘12, deal flow and investment experienced similar improvements, with increases of 5% and 24% respectively.
A total of €5.6 billion were raised during 2013 as a whole, an improvement of 15% on 2012 and 7% on 2011.
In terms of deal flow, 1395 were completed in 2013, equating to an increase of 6% on 2011 and 2012 figures.
Equity Financings into Europe-based, VC-backed Companies, by Industry Group (4Q 2013)
The Consumer Services sector received the largest allocation of investment during 4Q’13 (37%), accumulating €553 million through 106 deals, an increase of 136% from 3Q’13 in capital raised despite deal flow remaining level.
Healthcare placed second in terms of equity financing, taking a 27% share of all 4Q’13 investment. The sector raised €392 million across 55 deals, a rise of 23% and 31% from respective 3Q’13 figures.
Business and Financial Services occupies third, with companies gathering a 15% share of the total amount
invested during the quarter. The sector received €223 million across 92 deals, an uptick of 3% in deal flow but a drop of 29% in capital raised from 3Q’13.
The Consumer Services sector placed first for euros raised during all of 2013, with €1.5 billion equating to a 28% share of investment for the year. Healthcare companies raised €1.4 billion giving the sector a 25% share, while the Information Technology sector placed third with a 19% share of investment (€1.1 billion).
Equity Financings into Europe-based, VC-backed Companies, by Country (4Q 2013)
The U.K. remained the favoured destination for equity financing in 4Q’13 with a 29%
share of all investment into European VC-backed companies. The country received
€427 million across 91 deals, a drop of 26% and 5% from respective 3Q’13 figures.
Germany consolidated its position in second with a 19% share of investment, raising
€277 million across 66 deals, a 59% increase in euros raised and an 18% rise in deal
flow from the previous quarter.
Sweden climbed to third, thanks in large part to Spotify’s November round of financing,
raising €257 million and representing a 17% share of investment. France,
consequently, dropped to fourth spot with a 10% share. The country raised €144
million during 4Q’13, a 20% decline from the previous quarter.
In 2013 as a whole, the U.K. took a 29% share of investment (€1.6 billion), Germany
an 18% share (€992 million), and France received a 14% share (€785 million).
Venture Exits in Europe Experience Overall Uptick in 4Q 2013 Despite M&A Slide
M&As of venture-backed companies in Europe fell slightly during 4Q’13, by 10% from 3Q‘13 and by 5% from
4Q’12 with a total of 36 transactions completed during the quarter.
The largest M&A of 4Q’13 was for Helsinki-based Supercell Oy, which was acquired by GungHo Online
Entertainment Inc. for €1.1 billion.
145 M&As were completed for venture-backed companies in Europe during 2013, up 1% from the 143
completed during the 2012 but falling 26% from the 197 seen during 2011.
Eight venture-backed IPOs took place during 4Q’13, quadrupling the number completed during 3Q’13 and up
by 60% on 4Q’12. A total of 15 IPOs were completed for the year, level with 2011 but down by one from 2012.