Venture Capital Report Europe | 4Q | 2014
Venture Capital Report
Europe | 4Q | 2014
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 4Q 2014 include:
European venture capital fundraising experiences uptick from 3Q 2014, but suffers declines in both
fund closings and euros raised for the 12 month period;
Venture capital investment into European companies falls from 3Q 2014, but improves by a quarter year
over year;
Despite an overall fall in exit activity, the total amount raised through venture-backed Initial public
offerings (IPOs) reached its highest point since 2Q 2000.
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Venture Capital Report
FUNDRAISING
3
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
Amount Raised (€B) € 2.17 € 0.98 € 1.18 € 0.76 € 1.19 € 0.76 € 1.03 € 0.50 € 1.81 € 0.69 € 1.03 € 0.70 € 0.93
Number of Funds 36 17 21 15 29 15 17 10 37 23 20 15 18
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€ 2.50 European VC Fundraising (2011 – 2014) Based on multiple closings
European Venture Capital Fundraising Experiences Uptick in 4Q 2014
18 European venture capital funds accumulated €927 million during 4Q 2014, an increase of 33% in euros
raised and 20% in the number of funds with closings from 3Q 2014.
Despite the uptick in fundraising from 3Q 2014, the number of funds with closings during 4Q 2014 fell by 51%
compared with the same period last year, while euros raised fell by 49%.
The largest fund of the quarter was Principia SGR’s Fund III which raised €160 million, accounting for 17% of
the total amount raised for 4Q 2014.
Overall, the number of fund closings in 2014 was down by 4% to 76 from the year prior, while the total amount
raised by venture funds fell by 18% from 2013 to €3.4 billion.
Venture Capital Report
FUNDRAISING
4
Largest European VC Funds Raised in 4Q 2014
Firm Name Fund Name Amount
(€M) Closed in 4Q
Location Offering Status
Fund Type Fund Category Closing Type
Principia SGR Principia Fund III €160.00 Milan, Italy Open Multi-stage
venture capital
Venture Capital First
Infocomm Investments Pte. Ltd.
Infocomm European Technology Fund
€158.43 Singapore, Singapore
Closed Early-stage
venture capital
Venture Capital Final
Northzone Ventures AS Northzone VII €100.00 Oslo, Norway Closed Early-stage
venture capital
Venture Capital
Final
Forbion Capital Partners Forbion Capital Fund III €92.00 Naarden,
Netherlands Open
Multi-stage venture capital
Venture Capital
First
Advent Venture Partners LLP
Advent Life Sciences Fund II LP
€70.24 London, United
Kingdom Closed
Multi-stage venture capital
Venture Capital
Final
Venture Capital Report
FINANCING
5
Equity Financings into Europe –
based, VC-backed Companies
(2011 – 2014)
Investment into European Venture-backed Companies Falls in 4Q 2014
European companies raised €1.8 billion for 332 deals during 4Q 2014, a fall of 24% in the amount raised from
3Q 2014 despite just five fewer deals being completed.
In contrast with the year ago period, investment improved by 1% despite a 28% reduction in the number of
completed deals.
In 2014 as a whole, European venture-backed companies attracted €7.9 billion across 1460 deals, a decline of
11% in deals completed from 2013 but an improvement of 25% in euros invested.
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
Amount Raised (€B) € 1.46 € 1.06 € 1.56 € 1.15 € 1.24 € 1.21 € 1.57 € 1.75 € 1.76 € 1.54 € 2.26 € 2.32 € 1.77
Number of Deals 374 347 375 326 373 371 420 384 461 387 404 337 332
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Venture Capital Report
FINANCING
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Equity Financings into Europe-based, VC-backed Companies, by Round Class
(2011 – 2014)
Number of Deals
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
Seed 45 38 38 53 61 35 34 52 67 32 24 19 23
First 168 161 192 155 187 197 207 197 207 210 203 176 171
Second 62 63 60 55 57 64 89 63 81 67 87 60 64
Later 73 70 55 46 43 53 65 51 81 56 73 65 55
Restart 3 0 0 0 0 0 0 0 0 0 0 0 0
0
40
80
120
160
200
240
Venture Capital Report
Equity Financings into Europe-based, VC-backed Companies, by Round Class
(Year over Year, 2004 – 2014 )
Number of Deals
FINANCING
7
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Restart 14 9 10 12 5 3 2 6 0 0 0
Later 437 482 339 385 316 290 304 238 214 250 249
Second 289 283 242 267 274 251 268 261 235 297 278
First 519 541 643 845 712 598 669 664 695 808 760
Seed 66 55 93 100 99 93 97 134 190 188 98
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Venture Capital Report
FINANCING
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4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
Seed € 23 € 17 € 23 € 15 € 26 € 20 € 14 € 19 € 27 € 16 € 17 € 11 € 14
First € 433 € 298 € 537 € 289 € 449 € 403 € 418 € 526 € 349 € 441 € 563 € 510 € 403
Second € 355 € 278 € 257 € 300 € 291 € 229 € 479 € 697 € 391 € 319 € 468 € 207 € 683
Later € 604 € 448 € 673 € 531 € 449 € 543 € 639 € 458 € 937 € 642 € 1,039 € 877 € 647
Restart € 15 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0
€ 0
€ 200
€ 400
€ 600
€ 800
€ 1,000
€ 1,200
Equity Financings into Europe-based, VC-backed Companies, by Round Class
(2011 – 2014)
Amount Raised (€M)
Venture Capital Report
FINANCING
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Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (€M)
(2011 – 2014)
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
Median Equity Deal Size (€M) € 1.41 € 1.50 € 1.90 € 1.20 € 1.22 € 1.50 € 1.52 € 1.00 € 1.40 € 1.58 € 2.00 € 2.00 € 2.30
€ 0.00
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Venture Capital Report
FINANCING
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24%
2%
29% 4%
18%
2%
21%
Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
4Q'14 Industry Breakdown
By Number of Deals
Equity Financings into Europe-based, VC-backed Companies, by Industry Group
(4Q 2014)
Business and Financial Services received the largest allocation of investment during 4Q 2014 (32%),
accumulating €557 million through 80 deals. The sector remained the most attractive sector despite investment
dropping by 41% from 3Q 2014. Deal flow remained flat.
Healthcare rose to second in terms of equity financing, taking a 30% share of all 4Q 2014 investment. The
sector raised €535 million across 60 deals, an increase of 64% in capital raised and 25% in deals completed
from the previous quarter.
Consumer Services was pushed down to third, with companies in the sector gathering 18% of the total amount
invested for the quarter. The sector received €327 million across 96 deals; a fall of 53% and 3% from 3Q 2014
in capital invested and deal flow respectively.
32%
2%
18% 2%
30%
1%
15% Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials(0.5%)
Information Technology
4Q’14 Industry Breakdown
By Amount Raised
Venture Capital Report
406
56
432
44
220
38
260 Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
Equity Financings into Europe-based, VC-backed Companies, by Industry Group (2014)
2014 Industry Breakdown
By Number of Deals
2014 Industry Breakdown
By Amount Raised ($B)
FINANCING
11
31%
2%
29%
3%
22%
1%
12% Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
Venture Capital Report
FINANCING
12
Co. Name Location Industry Group
Industry Segment
Industry Code Brief Description Close Date Round Type
Raised (€M)
Round Investors (* denotes lead)
Adyen BV Netherlands Business and
Financial Services
Financial Institutions and
Services
Payment/ Transactional
Processing
Provider of an Internet payment system for
international merchants. 16/12/2014 Second
€199.60
Felicis Ventures, General Atlantic LLC*, Index Ventures,
Temasek Holdings Pvt. Ltd.
Verne Global Iceland Information Technology
Electronics and Computer Hardware
Data Storage Provider of renewable energy-powered data
centers. 31/12/2014 Second €78.24
General Catalyst Partners, Novator Partners, Stefnir*,
Wellcome Trust
Powa Technologies
Ltd.
United Kingdom
Business and Financial Services
Financial Institutions and
Services
Payment/ Transactional
Processing
Provider of an integrated mobile payments and
e-commerce platform. 7/11/2014 Second €63.88
Wellington Management Co. LLP*
Cell Medica Ltd. United
Kingdom Healthcare Biopharmaceuticals
Biotechnology Therapeutics
Provider of antigen-specific T-Cell
immunotherapy treatments for the
treatment of infectious disease and cancer.
25/11/2014 4th €63.87 Imperial Innovations*, Invesco
Perpetual, Woodford Investment Management LLP
Ascendis Pharma A/S
Denmark Healthcare Biopharmaceuticals Drug Development
Technologies
Developer of long-acting prodrug therapies to
address large markets with significant unmet
medical needs.
24/11/2014 3rd €47.91
Janus Capital Group, OrbiMed Advisors LLC*, RA Capital
Management LLC, Rock Springs Capital Management, Sectoral
Asset Management Inc., Sofinnova Partners, Sofinnova Ventures Inc.*, Venrock, Vivo
Capital*
Top 5 Deals into European VC-backed Companies (4Q 2014)
Venture Capital Report
FINANCING
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17
8
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High-TechGruenderfonds
Management GmbH
Truffle Capital SAS Bpifrance Investment Northzone Ventures AS Kima Ventures
Most Active Investors for Europe-based, VC-backed Companies by Deals Completed
(4Q 2014)
Venture Capital Report
FINANCING
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Amount Raised in 4Q 2014 by Country
(Top 4)
30%
18%
14%
12%
26%
United Kingdom
Germany
Netherlands
France
Rest of Europe
21%
20%
18%
8%
33% United Kingdom
Germany
France
Spain
Rest of Europe
Number of Deals in 4Q 2014 by Country
(Top 4)
Equity Financings into Europe-based, VC-backed Companies, by
Country (4Q 2014)
The United Kingdom was the most favoured destination for equity financing during 4Q
2014, receiving €524 million across 69 deals. The country took in 30% of all
investment into European VC-backed companies for the quarter.
Germany placed second, capturing 18% of European investment. Investment fell by
73% from the prior quarter to total €322 million. Deal flow remained relatively stable,
however, with 66 completed.
The Netherlands rose to third position raising €243 million, a 14% share of investment.
France placed in fourth position with a 12% share, raising €218 million during 3Q
2014.
Venture Capital Report
LIQUIDITY
15
Exit Opportunities for European
VC – backed Companies
(2011 – 2014)
Europe Sees Overall Decrease in 4Q 2014 Venture Exit Activity
42 venture-backed M&As took place in Europe during 4Q 2014, down 9% from 3Q 2014 but one up on the
figure for 4Q 2013.
The largest M&A for 4Q 2014 was Belgium’s Clear2Pay NV, an e-payment solutions provider, which was
acquired by Fidelity National Information Services for €375 million.
55 venture-backed IPOs took place during 2014, tripling the number of listings seen across Europe in 2013.
201 M&As were completed during the course of 2014, a 21% increase on the 166 that took place during 2013.
0 10 20 30 40 50 60 70
4Q'11
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
IPOs 3 6 3 2 5 1 5 3 9 8 21 16 10
M&As 45 38 42 30 46 34 36 41 41 51 42 46 42
Venture Capital Report
LIQUIDITY
16
Top 3 M&As in Europe (4Q 2014)
Company Name
Location Brief Description Industry Code Industry Segment
Industry Group
Close Date
Round Type
Amount Paid (€M)
Acquirer
Clear2Pay NV Mechelen,
Belgium Provider of e-payment
solutions.
Vertical Market Applications
Software Software
Information Technology
2/10/2014 Acquisition €375.00 FIdelity National
Information Services
SuperDerivatives Inc.
London, United
Kingdom
Provider of cloud-based derivatives data
and technology for financial and
commodity markets worldwide.
Financial Data/Information
Financial Institutions and
Services
Business and Financial Services
8/10/2014 Acquisition €277.25 Intercontinental
Exchange
Telerik AD Sofia, Bulgaria
Provider of an end-to-end platform that
combines user interface (UI) tools and cloud services.
Software Development Tools
Software Information Technology
2/12/2014 Acquisition €209.98 Progress
Software Corp.
Venture Capital Report
LIQUIDITY
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European VC-backed IPO Activity
(2011 - 2014)
European VC-backed IPOs (2011-2014)
10 IPOs were completed during 4Q 2014, a decline of 38% from the previous quarter’s total but an increase of
one on those completed during 4Q 2013.
IPOs raised €2.3 billion during 4Q 2014, more than six times the figure seen in 4Q 2013 and the highest sum
since 2Q 2000 when 71 IPOs raised a total of € 3.8 billion.
The largest European VC-backed IPO of 4Q 2014 was Rocket Internet AG’s October listing on the Frankfurt
Stock Exchange. The company raised a total of €1.4 billion, accounting for 62% of the total amount raised
through European venture-backed company IPOs for the quarter.
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
Raised (€M) through IPO € 18.66 € 157.40 € 26.76 € 52.08 € 142.99 € 19.22 € 89.24 € 25.51 € 366.10 € 448.63 € 529.53 € 447.47 € 2,250
Number of IPOs 3 6 3 2 5 1 5 3 9 8 21 16 10
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Venture Capital Report
LIQUIDITY
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Company Name
Country Brief Description Industry Code Industry Segment Industry Group
Close Date Raised
through IPO (€M)
Exchange/ Symbol
Rocket Internet AG
Germany
Operator of an e-commerce focused
venture capital (VC) firm and a startup incubator.
Incubators/Business Development
Business Support Services
Business and Financial Services
2/10/2014 €1,400.00 XETRA: RKET
Zalando SE Germany
Provider of an e-commerce platform
specializing in the retail of brand name shoes.
Clothing/Accessory Retailers
Retailers Consumer Services
1/10/2014 €526.24 XETRA: ZAL
Forward Pharma A/S
Denmark
Developer of immunomodulatory
drugs for the treatment of immune disorders.
Biotechnology Therapeutics
Biopharmaceuticals Healthcare 15/10/2014 €174.67 NASDAQ: FWP
Top 3 IPOs in Europe (4Q 2014)
Venture Capital Report
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Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service providers find deal and partnership opportunities, 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 executives – 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 executives, and from secondary sources. These venture capital statistics cover equity investments into early stage, innovative companies and do not include companies receiving funding solely from corporate, individual, and/or government investors. Figures contained throughout the report current at time of editorial but are subject to change without notice. No statement herein is to be construed as a recommendation to buy or sell securities or to provide investment advice.
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