Thursday, September 17, 2015

Dow Jones VentureSource’s Venture Capital Report Europe | 2Q | 2015

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 2Q 2015 include: 

  • European venture capital fundraising doubles from prior quarter;
    Venture capital investment into European companies improves in consecutive quarters;
  • Initial public offerings (IPOs) experienced an increase from the prior quarter, while the number of mergers and acquisitions (M&As) fell to its lowest level since 1Q 2013.


European Venture Capital Fundraising Improves in 2Q 2015 

  • 25 European venture capital funds accumulated over 2 billion during 2Q 2015, more than double the euros raised in 1Q 2015 with a 47% increase in the number of fund closings.
  • Compared with the year ago period, euros raised improved by 63% in two more fund closings.
  • The largest fund of the quarter was Index Ventures Growth Fund III, which raised 650 million, accounting for 32% of the total amount raised for 2Q 2015.


Investment into European Venture-backed Companies Improves Once More in 2Q 2015 

  • European companies raised just over 3 billion for 357 deals during 2Q 2015, an increase of 12% in the amount raised from 1Q 2015 despite a 5% slide in the number of deals completed.
  • In contrast with the year ago period, investment improved by 31% despite a 15% reduction in the number of completed deals.
  • Consumer Services was the strongest sector of the quarter in terms of attracting investment followed by Business and Financial Services. The sectors garnered 45% and 24% of all euros invested during 2Q 2015 respectively.

Equity Financings into Europe-based, VC-backed Companies, by Industry Group (2Q 2015) 

  • Consumer Services received the largest allocation of investment during 2Q 2015 (45%), accumulating 1.4 billion through 91 deals. Deal flow fell by 22% from the prior quarter, while sector investment dipped by 1%.
  • Business and Financial Services placed second in terms of equity financing, taking a 24% share of all 2Q 2015 investment. The sector raised 716 million across 99 deals, an improvement of 53% in capital raised and 16% in deals completed from the previous quarter.
  • Healthcare placed in third, with companies in the sector gathering 15% of the total amount invested for the quarter. The sector received 458 million across 52 deals; a rise of 48% in capital invested from 1Q 2015 despite a 10% decline in deal flow.

Equity Financings into Europe-based, VC-backed Companies, by Country (2Q 2015) 

  • The United Kingdom was the most favoured destination for equity financing during 2Q 2015, receiving 645 million across 89 deals. The country took 21% of all equity financing for the quarter, despite a 28% fall in investment from 1Q 2015.
  • Sweden placed second, attracting a 19% share of European financing. Investment reached a total 596 million, bolstered in large part by Spotify Technology’s most recent round of financing in April.
  • Germany occupies third position raising 508 million, 17% of the total for the quarter. France placed fourth with a 15% share, raising 449 million during 2Q 2015.


Europe 2Q 2015 Venture Exit Activity 

  • 37 venture-backed M&As took place in Europe during 2Q 2015, a drop of 27% from 1Q 2015 and 12% from 2Q 2014.
  • The largest M&A for 2Q 2015 was Yemek Sepeti Elektronik Iletisim Tanitim, a provider of online food ordering services in Turkey, which was acquired by Delivery Hero Holding AG for 526 million.
  • 15 venture-backed IPOs took place during 2Q 2015, a 25% rise from the prior quarter but a 29% decline in listings for VC-backed companies from the year ago period.

European VC-backed IPOs (2012-2015) 

  • 15 venture-backed IPOs took place during 2Q 2015, an increase of three from the prior quarter but six fewer than in the year ago period.
  • IPOs raised 533 million during 2Q 2015, an uptick of 28% from the $417 million raised in 1Q 2015. VC-backed companies raised an almost identical amount through IPOs compared with the year ago period (530 million).
  • The largest European VC-backed IPO of 2Q 2015 was the GmbH listing in May. The company raised 183 million for its offering on the Deutsche Boerse.

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