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Venture Capital Report
Europe | 1Q | 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 1Q 2015 include:
European venture capital fundraising down by a quarter from 4Q 2014;
Venture capital investment into European companies rose to highest figure since 3Q 2001;
Though exits via mergers and acquisitions (M&As) and initial public offerings (IPOs) rose slightly from
the prior quarter, euros raised through IPOs shrunk to less than a fifth of the 4Q 2014 total.
2 Venture Capital Report
European Venture Capital Fundraising Experiences Downturn in 1Q 2015
FUNDRAISING
13 European venture capital funds accumulated €874 million during 1Q 2015, a decline of 25% in euros raised
and 38% in the number of funds with closings from 4Q 2014.
Despite the decline in fundraising from 4Q 2014, euros raised improved by 36% compared with the year ago
period, despite the number of funds with closings falling by 43%.
The largest fund of the quarter was HV Holtzbrinck Ventures Fund VI which raised €285 million, accounting for
33% of the total amount raised for 1Q 2015.
European VC Fundraising (2012 – 2015)
Based on multiple closings
40
€ 2.00
€ 1.80
35
€ 1.60
30
€ 1.40
25
€ 1.20
20
€ 1.00
€ 0.80
15
€ 0.60
10
€ 0.40
5
0
€ 0.20
1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15
€ 0.00
Amount Raised (€B) € 0.90 € 1.18 € 0.76 € 1.37 € 0.76 € 1.03 € 0.50 € 1.87 € 0.64 € 1.03 € 0.71 € 1.16 € 0.87
Number of Funds
16
21
15
30
15
17
10
38
23
19
18
21
13
3 Largest European VC Funds Raised in 1Q 2015
Venture Capital Report
FUNDRAISING
Firm Name Fund Name HV Holtzbrinck Ventures HV Holtzbrinck Ventures Adviser GmbH Fund VI Amount (€M) Closed in 1Q Loca9on Offering Status Fund Type Fund Category Closing Type €285.00 Munich, Germany Closed MulF-­‐stage venture capital Venture Capital Final AXA Group AXA Strategic Ventures €200.00 Paris, France Closed Early-­‐stage venture capital Venture Capital Final Fountain Healthcare Partners Fountain Healthcare Partners Fund II €85.00 Dublin, Ireland Open Early-­‐stage venture capital Venture Capital First Partech Ventures Partech Entrepreneur II €60.00 Paris, France Closed Early-­‐stage venture capital Venture Capital Final Speed Invest GmbH Speed Invest Fund II €58.00 Vienna, Austria Open Early-­‐stage venture capital Venture Capital First 4 Venture Capital Report
FINANCING
Investment into European Venture-backed Companies Improves in 1Q 2015
European companies raised €2.6 billion for 345 deals during 1Q 2015, an increase of 41% in the amount raised
from 4Q 2014 despite a 5% slide in the number of deals completed.
In contrast with the year ago period, investment improved by 63% despite a 12% reduction in the number of
completed deals.
Consumer Services was the strongest sector of the quarter in terms of attracting investment with Business and
Financial Services in second. The sectors garnered 50% and 17% of all dollars invested during 1Q 2015
respectively.
Equity Financings into Europe –
based, VC-backed Companies
(2012 – 2015)
€ 3.00
500
450
€ 2.50
400
350
€ 2.00
300
€ 1.50
250
200
€ 1.00
150
100
€ 0.50
50
€ 0.00
1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15
0
Amount Raised (€B) € 1.06 € 1.57 € 1.14 € 1.24 € 1.21 € 1.57 € 1.75 € 1.80 € 1.61 € 2.27 € 2.34 € 1.86 € 2.62
Number of Deals
348
376
325
379
375
423
387
469
392
410
342
362
345
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
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
Seed
38
37
52
61
37
35
52
70
32
26
20
25
13
First
162
192
156
190
198
209
200
211
211
206
179
183
176
Second
63
60
54
58
65
89
63
81
67
87
62
68
72
Later
70
57
46
43
52
65
50
81
58
74
63
60
72
6 Venture Capital Report
FINANCING
Equity Financings into Europe-based, VC-backed Companies, by Round Class
(2012 – 2015)
Amount Raised (€M)
€ 1,800
€ 1,600
€ 1,400
€ 1,200
€ 1,000
€ 800
€ 600
€ 400
€ 200
€0
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
Seed
€ 17
€ 23
€ 15
€ 25
€ 21
€ 15
€ 19
€ 30
€ 17
€ 18
€ 13
€ 18
€ 11
First
€ 298
€ 537
€ 288
€ 445
€ 407
€ 419
€ 530
€ 355
€ 482
€ 568
€ 526
€ 425
€ 563
Second
€ 279
€ 257
€ 288
€ 294
€ 229
€ 475
€ 695
€ 395
€ 319
€ 468
€ 211
€ 691
€ 406
Later
€ 449
€ 678
€ 532
€ 449
€ 540
€ 639
€ 449
€ 962
€ 668
€ 1,044
€ 878
€ 699
€ 1,637
7 Venture Capital Report
FINANCING
Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (€M)
(2012 – 2015)
€ 2.50
€ 2.00
€ 1.50
€ 1.00
€ 0.50
€ 0.00
1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15
Median Equity Deal Size (€M) € 1.50 € 1.90 € 1.20 € 1.22 € 1.50 € 1.52 € 1.00 € 1.40 € 1.50 € 2.00 € 1.95 € 2.16 € 2.00
8 Equity Financings into Europe-based, VC-backed Companies, by Industry Group
(1Q 2015)
Venture Capital Report
FINANCING
Consumer Services received the largest allocation of investment during 1Q 2015 (50%), accumulating €1.3
billion through 103 deals. Although deal flow remained relatively steady, sector investment quadrupled from the
4Q 2014 figure of €326 million. Business and Financial Services placed second in terms of equity financing, taking a 17% share of all 1Q 2015
investment. The sector raised €443 million across 82 deals, a decline of 26% in capital raised and 12% in deals
completed from the previous quarter.
Information Technology placed in third, with companies in the sector gathering 16% of the total amount invested
for the quarter. The sector received €436 million across 75 deals; a rise of 65% and 1% from 4Q 2014 in capital
invested and deal flow respectively.
1Q'15 Industry Breakdown
By Number of Deals
1Q’15 Industry Breakdown
By Amount Raised
Business and Financial Services
22%
24%
Consumer Goods
16%
1%
2%
Consumer Goods
Consumer Services
Consumer Services
4%
Business and Financial Services
17%
13%
3%
Energy & Utilities
Energy & Utilities
1%
Healthcare
Healthcare
16%
1%
30%
Industrial Goods & Materials
Information Technology
50%
Industrial Goods & Materials
Information Technology
9 Venture Capital Report
Top 5 Deals into European VC-backed Companies (1Q 2015)
FINANCING
Co. Name Loca9on
Delivery Hero Germany Holding GmbH Grocery Delivery E-­‐
Services USA Inc. Germany Nabriva TherapeuFcs AG Austria Foodpanda GmbH Germany Sigfox SA France Industry Group
Industry Segment
Industry Code Brief Descrip9on
Close Date
Round Type
Raised (€M) Round Investors (* denotes lead)
Consumer Services Consumer InformaFon Services Shopping Facilitators Provider of an online food ordering plaUorm. 6/2/2015 Later €288.00 Rocket Internet AG* Consumer Services Retailers Food/Drug Retailers Provider of meal kit delivery service. 6/2/2015 4th €111.59 Insight Venture Partners*, Rocket Internet AG* 3rd €107.18 Global Life Science Ventures, HBM Partners AG, NovarFs Venture Funds, OrbiMed Advisors LLC*, Phase4 Partners Ltd., Tavistock Life Sciences Inc., Vivo Capital*, Wellcome Trust 4th €104.00 Rocket Internet AG* €100.00 Air Liquide, Bpifrance Investment, Elaia Partners, Elliob Associates LP, Eutelsat SA, GDF Suez SA, Idinvest Partners, iXO Private Equity SAS, NTT DoCoMo Inc., Partech Ventures, SK Telecom, Telefonica Healthcare BiopharmaceuFcals Consumer Services Consumer InformaFon Services InformaFon CommunicaFons Technology and Networking Biotechnology TherapeuFcs Shopping Facilitators Wireless CommunicaFons Equipment Developer of 31/3/2015 pleuromuFlin anFbioFcs. Provider of a food delivery plaUorm. Operator of a cellular network. 11/3/2015 11/2/2015 4th 10 Venture Capital Report
FINANCING
Most Active Investors for Europe-based, VC-backed Companies by Deals Completed
(1Q 2015)
16
14
14
12
12
10
9
8
7
7
Index Ventures
HV Holtzbrinck Ventures
Adviser GmbH
6
4
2
0
Bpifrance Investment
High-Tech
Gruenderfonds
Management GmbH
Seventure Partners SA
11 Equity Financings into Europe-based, VC-backed Companies, by
Country (1Q 2015)
Venture Capital Report
Germany was the most favoured destination for equity financing during 1Q 2015,
receiving €921 million across 64 deals. The country took 35% of all equity financing for
the quarter, tripling its 4Q 2014 investment total.
FINANCING
The United Kingdom placed second, attracting a 34% share of European financing.
Investment rose by 54% from the prior quarter to total €886 million while deal flow
increased by 16%.
France occupies third position raising €292 million, 11% of the total for the quarter.
Austria rose to fourth position with a 7% share, raising €173 million during 1Q 2015.
Number of Deals in 1Q 2015 by Country
(Top 4)
Amount Raised in 1Q 2015 by Country
(Top 4)
13%
25%
28%
United Kingdom
7%
35%
United Kingdom
France
Germany
Spain
France
11%
Austria
Rest of Europe
Rest of Europe
7%
Germany
21%
19%
34%
12 Venture Capital Report
Europe Sees Improvement in 1Q 2015 Venture Exit Activity from Prior Quarter
LIQUIDITY
49 venture-backed M&As took place in Europe during 1Q 2015, up 7% from 4Q 2014 but down 6% on the
figure for 1Q 2014.
The largest M&A for 1Q 2015 was Trophos SA, a developer of compounds for the treatment of neurological and
cardiac diseases, which was acquired by Roche AG for €470 million.
12 venture-backed IPOs took place during 1Q 2015, two more than those seen in the prior quarter and four
more than the listings for VC-backed companies completed in the year ago period.
Exit Opportunities for European
VC – backed Companies
(2012 – 2015)
1Q'15
4Q'14
3Q'14
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12
3Q'12
2Q'12
1Q'12
0
IPOs
1Q'12
6
M&As
38
10
2Q'12
3Q'12
3
2
44
31
20
4Q'12
5
1Q'13
1
30
2Q'13
5
3Q'13
3
40
4Q'13
9
1Q'14
8
50
2Q'14
21
3Q'14
16
46
35
37
41
41
52
42
46
60
4Q'14
10
46
70
1Q'15
12
49
13 Venture Capital Report
Top 3 M&As in Europe (1Q 2015)
LIQUIDITY
Company Name Trophos SA Loca9on
Brief Descrip9on
Industry Code
Marseille, France Developer of compounds for the treatment of neurological and cardiac diseases. Biotechnology TherapeuFcs Provider of Luxembourg, investment fund and IGEFI Group Sarl Luxembourg transfer agency sodware. Quandoo GmbH Berlin, Germany Business ApplicaFons Sodware Provider of a real-­‐Fme restaurant reservaFon Shopping Facilitators plaUorm. Close Date
Round Type
Amount Paid (€M)
Acquirer
BiopharmaceuFcals Healthcare 16/2/2015 AcquisiFon €470.00 Roche Holding AG Sodware InformaFon Technology 4/3/2015 AcquisiFon €235.00 Temenos Group Consumer InformaFon Services Consumer Services 5/3/2015 AcquisiFon €202.39 Recruit Holdings Co. Ltd. Industry Segment Industry Group
14 Venture Capital Report
European VC-backed IPOs (2012-2015)
LIQUIDITY
12 venture-backed IPOs took place during 1Q 2015, two more than those seen in the prior quarter and four
more than the listings for VC-backed companies completed in the year ago period.
IPOs raised €417 million during 1Q 2015, a decline of 81% from the $2.25 billion raised in 4Q 2014, which was
the highest total for a single quarter since 2Q 2000. Compared to the year ago period, VC-backed companies
raised 7% less through IPOs during 1Q 2015.
The largest European VC-backed IPO of 1Q 2015 was Ascendis Pharma’s January listing on the NASDAQ. The
company raised a total of €89 million, accounting for 21% of the total amount raised through European venturebacked company IPOs for the quarter.
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
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
0
Raised (€M) through IPO € 157.40 € 26.76 € 52.08 € 142.99 € 19.22 € 89.24 € 25.51 € 366.10 € 448.63 € 529.53 € 447.47 € 2,250 € 417.40
Number of IPOs
6
3
2
5
1
5
3
9
8
21
16
10
12
15 Venture Capital Report
Top 3 IPOs in Europe (1Q 2015)
LIQUIDITY
Company Name Country Brief Descrip9on Industry Code Developer of long-­‐acFng prodrug therapies to Ascendis Pharma Drug Development Denmark address large markets with A/S Technologies significant unmet medical needs. Nordic Nanovector AS Norway Developer of radio-­‐
immunotherapeuFcs to treat cancer. Biotechnology TherapeuFcs Banzai SpA Italy Provider of Internet e-­‐
commerce and media soluFons. Shopping Facilitators Industry Segment Industry Group Close Date Raised through IPO (€M) Exchange/ Symbol BiopharmaceuFcals Business and Financial Services 28/1/2015 €89.26 NASDAQ: ASND BiopharmaceuFcals Consumer Services 23/3/2015 €58.14 OSE: NANO Consumer InformaFon Healthcare Services 16/2/2015 €54.00 MIL: BANZ 16 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
Dow Jones is a global provider of news and business informaFon, delivering content to consumers and organizaFons around the world across mulFple formats, including print, digital, mobile and live events. Dow Jones has produced unrivaled quality content for more than 125 years and today has one of the world’s largest newsgathering operaFons with nearly 2,000 journalists in more than 75 bureaus globally. It produces leading publicaFons and products including the flagship Wall Street Journal, America’s largest newspaper by paid circulaFon; FacFva, Barron’s, MarketWatch, Financial News, DJX, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones VentureSource. MEDIA CONTACT:
Kate Dobbin
44 (0)20 7573 4016
Kate.Dobbin@dowjones.com
17