Thursday, November 12, 2015

Europe | 3Q | 2015 VENTURE CAPITAL REPORT


Venture Capital Repor
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 3Q 2015 include:
  •  European venture capital fundraising falls from prior quarter;
  •  Venture capital investment into European companies improves in consecutive quarters;
  •  The number of initial public offerings (IPOs) experienced a decrease from the prior quarter, while the number of mergers and acquisitions (M&As) are on the rise.

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FUNDRAISING 

13 European venture capital funds accumulated
853 million during 3Q 2015, dropping 58% in capital raised from 2Q 2015 with a 52% decrease in the number of fund closings.

Compared with the year ago period, euros raised improved by 5%, despite a reduction in the number of
fund closing (from 20 to 13).

The largest fund of the quarter was Lakestar II LP, which raised  350 million, accounting for 41% of the total amount for 3Q 2015.

FINANCING
European companies raised over 3 billion for 355 deals during 3Q 2015, a minimal increase in the amount raised from 2Q 2015 despite a 5% slide in the number of deals completed.
  •  In contrast with the year ago period, both investment and number of completed deals improved, respectively
    by 31% and 1%.

  •  Consumer Services (935 million) was the strongest sector of the quarter in terms of attracting investment followed by Healthcare (929 million).
FINANCING 

Consumer Services received the largest allocation of investment during 3Q 2015 (31%), accumulating 935 million through 103 deals. Deal flow rose by 5% from the prior quarter, despite a 33% drop in capital invested.
Healthcare placed second in terms of equity financing raising 929 million across 62 deals, an improvement of 101% in capital raised and 13% in deals completed from the previous quarter.
Business and Financial services placed third, with companies in the sector gathering 25% of the total amount invested for the quarter. The sector received 746 million across 112 deals; a rise of 12% in capital invested and of 8% in deal flow from 2Q 2015.

FINANCING

The United Kingdom was the most favoured destination for equity financing during 3Q 2015, receiving 947 million across 87 deals. The country took 31% of all equity financing for the quarter, despite a 9% decrease in deal flow from 2Q 2015.


France placed second, attracting a 19% share of European financing. Investment reached a total 567 million, a 29% rise in capital invested, despite a 22% drop in number of deals. 

Germany occupies third position raising 428 million, 14% of the total for the quarter. 

Switzerland placed fourth with a 6% share, raising 194 million during

LIQUIDITY 

43 venture-backed M&As took place in Europe during 3Q 2015, a 2% increase from 2Q 2015 but a 12% drop from 3Q 2014.
A total of 2.7 billion were raised through VC-backed M&As in 3Q 2015, a decrease of 27% from the previous quarter and a 9% drop compared to 3Q 2014.
8 venture-backed IPOs took place during 3Q 2015, a 47% decrease from the prior quarter and a 50% decrease in listings for VC-backed companies from the year ago period.


LIQUIDITY 

8 venture-backed IPOs took place during 3Q 2015, a decrease in number of deals both to the prior quarter and the previous year.
  •  IPOs raised almost 700 million during 3Q 2015, an increase of 31% from the 533 million raised in 2Q 2015. VC-backed companies also raised an higher amount through IPOs when compared with the year ago period (447 million).
  •  The largest European VC-backed IPO of 3Q 2015
    was the Flow Traders listing in July. The company raised
    521 million for its offering on the Amsterdam Exchange Index.


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