Venture Capital Report
Europe | 2Q | 2015
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 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.
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Venture Capital Report
European Venture Capital Fundraising Improves in 2Q 2015
FUNDRAISING
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.
European VC Fundraising (2012 – 2015) Based on multiple closings
45
€ 2.50
40 € 2.00
35 30
€ 1.50
25 20
€ 1.00
15 10
€ 0.50
5 0
2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15
€ 0.00
Amount Raised (€B) € 1.19 € 0.76 € 1.37 € 0.76 € 1.03 € 0.51 € 1.88 € 0.63 € 1.25 € 0.71 € 1.26 € 0.93 € 2.04 Number of Funds
22
15
30
15
17
10
39
23
23
19
27
17
25
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Largest European VC Funds Raised in 2Q 2015
Venture Capital Report FUNDRAISING
Firm Name
Fund Name
Amount (€M) Closed in 2Q
Loca9on
Offering Status
Fund Type
Fund Category
Closing Type
Index Ventures
Index Ventures Growth III
€ 650.00
Geneva, Switzerland
Closed
Late-‐stage venture capital
Venture Capital
Final
Isis InnovaFon Ltd.
Oxford Sciences InnovaFon
€ 283.98
Oxford, United Kingdom
Open
Early-‐stage venture capital
Venture Capital
First
€ 150.00
Luxembourg, Luxembourg
Closed
MulF-‐stage venture capital
Venture Capital
Final
European Investment Fund Luxembourg Future Fund
Felix Capital
Felix Capital Fund I LP
€ 109.80
London, United Kingdom
Closed
Early-‐stage venture capital
Venture Capital
Final
IK Investment Partners
Industry Kapital Small Cap Fund
€ 100.00
London, United Kingdom
Open
Early-‐stage venture capital
Venture Capital
First
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Venture Capital Report FINANCING
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 (2012 – 2015)
€ 3.50
500 450
€ 3.00
400 € 2.50
350 300
€ 2.00
250 € 1.50
200 150
€ 1.00
100 € 0.50 € 0.00
50 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15
0
Amount Raised (€B) € 1.55 € 1.15 € 1.25 € 1.24 € 1.53 € 1.76 € 1.82 € 1.62 € 2.34 € 2.33 € 2.00 € 2.72 € 3.05 Number of Deals
378
326
387
378
421
386
474
397
418
351
370
377
357
5
Venture Capital Report FINANCING
Equity Financings into Europe-based, VC-backed Companies, by Round Class (2012 – 2015) Number of Deals
240
200
160
120
80
40
0
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
2Q'15
Seed
38
53
63
37
37
49
71
32
28
22
25
16
21
First
191
156
192
198
206
201
212
212
211
180
185
194
162
Second
60
54
58
66
89
63
81
67
87
63
72
78
68
Later
58
46
45
54
64
51
83
59
74
64
60
75
92
Restart
0
0
0
0
0
0
0
0
0
0
0
0
0
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Venture Capital Report FINANCING
Equity Financings into Europe-based, VC-backed Companies, by Round Class (2012 – 2015) Amount Raised (€M)
€ 2,000 € 1,800 € 1,600 € 1,400 € 1,200 € 1,000 € 800 € 600 € 400 € 200 €0
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
2Q'15
Seed
€ 23
€ 16
€ 25
€ 21
€ 16
€ 19
€ 30
€ 16
€ 18
€ 14
€ 18
€ 13
€ 12
First
€ 532
€ 291
€ 446
€ 409
€ 421
€ 531
€ 353
€ 492
€ 601
€ 455
€ 432
€ 615
€ 466
Second
€ 257
€ 288
€ 294
€ 254
€ 476
€ 695
€ 395
€ 319
€ 475
€ 212
€ 773
€ 433
€ 571
Later
€ 687
€ 532
€ 457
€ 544
€ 600
€ 464
€ 985
€ 671
€ 1,067
€ 933
€ 743
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
Restart
€ 1,653 € 1,844 €0
€0
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Venture Capital Report FINANCING
Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (€M) (2012 – 2015)
€ 3.00
€ 2.50
€ 2.00
€ 1.50
€ 1.00
€ 0.50
€ 0.00
2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15
Median Equity Deal Size (€M) € 1.80 € 1.20 € 1.22 € 1.50 € 1.52 € 1.00 € 1.40 € 1.54 € 2.00 € 1.80 € 2.30 € 1.93 € 2.50
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Equity Financings into Europe-based, VC-backed Companies, by Industry Group (2Q 2015)
Venture Capital Report FINANCING
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.
2Q'15 Industry Breakdown By Number of Deals
2Q’15 Industry Breakdown By Amount Raised 14%
Business and Financial Services 23%
28%
Consumer Goods Consumer Services
Business and Financial Services 24%
1%
Consumer Goods (0.2%) Consumer Services
15%
4% 2%
Energy & Utilities
Energy & Utilities 1%
Healthcare
Healthcare
15% 2%
26%
Industrial Goods & Materials Information Technology
45%
Industrial Goods & Materials Information Technology
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Venture Capital Report
Top 5 Deals into European VC-backed Companies (2Q 2015)
FINANCING Co. Name
SpoFfy Technology SA
Loca9on
Sweden
Industry Group
Consumer Services
Global Fashion Consumer Luxembourg Group SA Services
Funding Circle Ltd.
Foodpanda GmbH
Industry Segment
Consumer Services
Brief Descrip9on
Close Date
Consumer InformaFon Services
Entertainment
Retailers
Clothing/Accessory Retailers
Provider of an online fashion pla`orm.
Lending
Provider of a lending pla`orm for small businesses.
22/04/2015
Shopping Facilitators
Provider of a food delivery pla`orm.
01/05/2015
Business and Financial United Financial InsFtuFons and Kingdom Services Services
Germany
Industry Code
Consumer InformaFon Services
AM-‐Pharma Netherlands Healthcare BiopharmaceuFcals B.V.
Biotechnology TherapeuFcs
Provider of online digital 17/04/2015 music services.
30/06/2015
Round Type
7th
Raised (€M)
Round Investors (* denotes lead)
Baillie Gifford & Co. Ltd., D. E. Shaw & Co LP, Discovery Capital Management Corp., Goldman Sachs Group Inc., GSV Capital Corp., Halcyon €488.67 Capital, Landsdowne Partners Ltd., Northzone Ventures AS, P. Schoenfeld Asset Management LP, Rinkelberg Capital Ltd., Senvest InternaFonal LLC, TCMI Inc., TeliaSonera AB
€150.00
Investment AB Kinnevik, Rocket Internet AG
6th
€139.35
Baillie Gifford & Co. Ltd., Digital Sky Technologies Ltd.*, Sands Capital Management, Temasek Holdings Pvt. Ltd.
5th
€89.30
Goldman Sachs Private Equity Group*, Rocket Internet AG
€78.14
Pfizer Inc.*
Second
Developer of pharmaceuFcal compounds in the fields 11/05/2015 Corporate of severe infecFous diseases and inflammatory diseases.
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Venture Capital Report FINANCING
Most Active Investors for Europe-based, VC-backed Companies by Deals Completed (2Q 2015)
14 12 12 10 10 8
8
8
7
6
4
2
0 Bpifrance Investment
SEED Capital Management I/S
Rocket Internet AG
High-Tech Gruenderfonds Management GmbH
Mercia Fund Management
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Equity Financings into Europe-based, VC-backed Companies, by Country (2Q 2015)
Venture Capital Report
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.
FINANCING
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.
Number of Deals in 2Q 2015 by Country (Top 4)
Amount Raised in 2Q 2015 by Country (Top 4)
21% 28%
25% 33%
United Kingdom
United Kingdom
France
Sweden
Germany
Germany
Italy
France
Rest of Europe 6%
23% 13%
19%
Rest of Europe
15% 17%
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Venture Capital Report
Europe 2Q 2015 Venture Exit Activity
LIQUIDITY
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.
Exit Opportunities for European VC – backed Companies (2012 – 2015)
2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 1Q'14 4Q'13 3Q'13 2Q'13 1Q'13 4Q'12 3Q'12 2Q'12 0 IPOs
2Q'12 3
M&As
43
10 3Q'12 4Q'12 2 5 31
46
20 1Q'13 1
2Q'13 5
30 3Q'13 3
4Q'13 9
40 1Q'14 8
2Q'14 21
50 3Q'14 16
4Q'14 10
36
39
42
42
55
42
47
47
60 1Q'15 12 51
70 2Q'15 15 37
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Venture Capital Report
Top 3 M&As in Europe (2Q 2015)
LIQUIDITY
Industry Segment
Industry Group
Close Date
Round Type
Amount Paid (€M)
Acquirer
Consumer InformaFon Services
Consumer Services
05/05/2015
AcquisiFon
€ 525.99
Delivery Hero Holding GmbH
Travel and Leisure
Consumer Services
01/05/2015
AcquisiFon
€ 188.43
RGIP LLC
Developer of ultrasonic parFcle engineering Oxford, United technologies for the Medical/Lab Services Healthcare Services Healthcare 15/06/2015 Kingdom manufacture of pharmaceuFcal powders.
AcquisiFon
Circassia € 139.09 PharmaceuFcals Plc
Company Name
Loca9on
Brief Descrip9on
Yemek SepeF Elektronik IleFsim TaniFm
Istanbul, Turkey
Provider of online food ordering Shopping Facilitators services.
Hotspring Ventures Ltd.
London, United Kingdom
Prosonix Ltd.
Provider of an online beauty, health, and wellness directory.
Industry Code
Personal Services
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Venture Capital Report
European VC-backed IPOs (2012-2015)
LIQUIDITY
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 windeln.de GmbH listing in May. The company raised €183 million for its offering on the Deutsche Boerse.
European VC-backed IPO Activity (2012 - 2015)
€ 2,500.00
25
€ 2,000.00
20
€ 1,500.00
15
€ 1,000.00
10
€ 500.00
€ 0.00
5
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
2Q'15
0
Raised (€M) through IPO € 26.76 € 52.08 € 142.99 € 19.22 € 89.24 € 25.51 € 366.10 € 448.63 € 529.53 € 447.47 € 2,250 € 417.40 € 533.10 Number of IPOs
3
2
5
1
5
3
9
8
21
16
10
12
15
15
Venture Capital Report
Top 3 IPOs in Europe (2Q 2015)
LIQUIDITY
Company Name
windeln.de GmbH
AdapFmmune TherapeuFcs PLC
BiocarFs NV
Country
Brief Descrip9on
Industry Code
Industry Segment
Industry Group
Close Date
Raised through IPO (€M)
Exchange/ Symbol
Germany
Operator of an online retailer and flash sales pla`orm for baby and children products in Germany, Austria, and Switzerland.
Specialty Retailers
Retailers
Consumer Services
06/05/2015
€183.47
XETRA: WD
Biotechnology TherapeuFcs
BiopharmaceuFcals
Healthcare
06/05/2015
€170.79
NASDAQ: ADAP
Drug Development Technologies
BiopharmaceuFcals
Healthcare
27/04/2015
€100.00
BSE: BCART
Developer of cancer United immunotherapy products Kingdom based on a T-‐cell receptor pla`orm.
Belgium
Provider of a molecular and immunodiagnosFcs pla`orm.
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Venture Capital Report ABOUT US
Dow Jones VentureSource helps venture capitalists, corporate development execu9ves, investment bankers and service providers find deal and partnership opportuni9es, 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 execu9ves – 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 execu9ves, and from secondary sources. These venture capital sta9s9cs cover equity investments into early stage, innova9ve companies and do not include companies receiving funding solely from corporate, individual, and/or government investors. Figures contained throughout the report current at 9me of editorial but are subject to change without no9ce. No statement herein is to be construed as a recommenda9on to buy or sell securi9es or to provide investment advice. About Dow Jones
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