Venture Capital Report

Transcription

1 Venture Capital Report Europe 3Q 2015

2 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. 2

3 EUROPEAN VENTURE CAPITAL FUNDRAISING FALLS IN 3Q 2015 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) European VC Fundraising Based on multiple closings ( ) The largest fund of the quarter was Lakestar II LP, which raised 350 million, accounting for 41% of the total amount raised for 3Q Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Amount Raised ( B) Number of Funds

4 LARGEST EUROPEAN VC FUNDS RAISED IN 3Q 2015 FUNDRAISING Firm Name Fund Name Amount ( M) Location Offering Status Fund Type Fund Category Closing Type Lakestar LP Lakestar II LP Zurich, Switzerland Closed Multi-stage venture capital Venture Capital Final Notion Capital Notion Capital Fund III LP London, United Kingdom Open Early-stage venture capital Venture Capital First Runa Capital Runa Capital II Moscow, Russia Open Early-stage venture capital Venture Capital First b-to-v Partners AG b-to-v Partners Fund III St. Gallen, Switzerland Open Multi-stage venture capital Venture Capital First Nauta Capital Nauta Tech Invest IV Barcelona, Spain Open Early-stage venture capital Venture Capital First 4

5 INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES IMPROVES ONCE MORE IN 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) Equity Financings into Europe-based, VC-backed Companies ( ) Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Amount Raised ( B) Number of Deals

6 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS ( ) NUMBER OF DEALS FINANCING Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Seed First Second Later Restart

7 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS ( ) AMOUNT RAISED ( M) FINANCING 2,000 1,800 1,600 1,400 1,200 1, Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Seed First Second Later , , ,680 1,898 1,520 Restart

8 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES ( ) MEDIAN EQUITY DEAL SIZE ( M) FINANCING Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Median Equity Deal Size ( M)

9 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (3Q 2015) 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 Q'15 Industry Breakdown By Number of Deals 3Q 15 Industry Breakdown By Amount Raised Business and Financial Services 16% Consumer Goods 1% 32% Consumer Services 17% Energy & Utilities 3% Healthcare 2% Industrial Goods & Materials 29% Information Technology 6% Business and Financial Services 25% Consumer Goods Consumer Services 31% 1% Energy & Utilities Healthcare 6% 31% Industrial Goods & Materials (0%) Information Technology 9

10 TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (3Q 2015) FINANCING Co. Name Location Industry Code Industry Segment Industry Group Brief Description Close Date Round Type Raised ( M) Round Investors (* denotes lead) Comuto SA France Transportation Services Travel and Leisure Consumer Services Provider of a car journey-sharing platform. 31/07/2015 Later Individual Investors, Insight Venture Partners*, Lead Edge Capital, Vostok New Ventures Ltd. Mereo BioPharma Group Ltd. United Kingdom Drug Development Technologies Biopharmaceuticals Healthcare Provider of specialty biopharmaceutical services. 29/07/2015 First Round Invesco Perpetual, Novartis AG, Woodford Investment Management LLP Oxford Nanopore Technologies Ltd. United Kingdom Drug Development Technologies Biopharmaceuticals Healthcare Provider of nanopore technology. 21/07/2015 Later IP Group PLC EREN SA Luxembourg Renewable Energy: Other Renewable Energy Energy and Utilities Provider of natural resource efficiency. 30/09/2015 First Round Bpifrance Investment, FFP Holdings, Next World Capital, Salvepar SA CeQur SA Switzerland Therapeutic Devices (Invasive) Medical Devices and Equipment Healthcare Provider of an insulin infuser device for people with type 2 diabetes. 1/09/2015 Later Arthurian Life Sciences Ltd.*, Endeavour Vision SA, Schroders, VI Partners, Woodford Investment Management LLP 10

11 MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (3Q 2015) BY DEALS COMPLETED FINANCING Bpifrance Investment High-Tech Gruenderfonds Management GmbH Balderton Capital Management LLP Index Ventures Alven Capital Inveready Technology Investment Group 11

12 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (3Q 2015) FINANCING Number of Deals in 3Q 2015 by Country (Top 4) 29% 24% United Kingdom France 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 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 3Q Amount Raised in 3Q 2015 by Country (Top 4) 10% 30% 6% 18% 23% 19% 31% 19% Germany Spain Rest of Europe United Kingdom France Germany Switzerland 14% 19% Rest of Europe 12

13 EUROPE 3Q 2015 VENTURE EXIT ACTIVITY LIQUIDITY Exit Opportunities for European VC backed Companies ( ) 43 venture-backed M&As took place in Europe during 3Q 2015, a 2% increase from 2Q 2015 but a 12% drop from 3Q 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 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. 3Q'15 2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 1Q'14 4Q'13 3Q'13 2Q'13 1Q'13 4Q'12 3Q' Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 IPOs M&As

14 TOP 3 M&As IN EUROPE (3Q 2015) LIQUIDITY Company Name Location Brief Description Industry Code Industry Segment Industry Group Close Date Round Type Amount Paid ( M) Acquirer Idealista S.A. Madrid, Spain Operator of a real estate website in Spain, Italy, and Portugal. Search Portals Consumer Information Services Consumer Services 24/07/2015 Buyout Apax Partners LLP Oxitec Ltd. Abingdon, United Kingdom Provider of biotechnology for tackling dengue fever and damaging agricultural pests. Genetically Modified Agricultural Products Agriculture and Forestry Industrial Goods and Materials 04/09/2015 Acquisition Intrexon Corp. Powervation Ltd. Blackrock, Ireland Provider of fabless semiconductor solutions. Application-Specific Integrated Circuits Semiconductors Information Technology 23/07/2015 Acquisition ROHM Co. Ltd. 14

15 EUROPEAN VC-BACKED IPOs ( ) 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. 2, IPOs raised almost 700 million during 3Q 2015, an increase of 31% from the 533 million raised in 2Q 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. 2, , , Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Raised ( M) through IPO , Number of IPOs

16 TOP 3 IPOs IN EUROPE (3Q 2015) LIQUIDITY Company Name Location Brief Description Industry Code Industry Segment Industry Group Close Date Raised through IPO ( M) Exchange/ Symbol Flow Traders Netherlands Provider of electronic trading services. Institutional Investment Services Financial Institutions and Services Business and Financial Services 10/07/ AEX: FLOW Nabriva Therapeutics AG Austria Developer of pleuromutilin antibiotics. Biotechnology Therapeutics Biopharmaceuticals Healthcare 18/09/ NASDAQ: NBRV Kiadis Pharma BV Netherlands Developer of oncology-related therapeutics. Biotechnology Therapeutics Biopharmaceuticals Healthcare 02/07/ BSE: KDS 16

17 ABOUT US Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service provider 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 survey 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. 17

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