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  

4  

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

6  

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.  

10  

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  

14  

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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