VentureSource
Europe - 1Q 2013
VentureSource
The following report presents Dow Jones VentureSource’s quarterly findings for
European venture capital fundraising, investment, and liquidity. The included charts and
graphs offer a comprehensive view of the trends currently affecting the venture capital
market.
Highlights for 1Q 2013 include:
European venture capital fundraising declined from 4Q 2012 and 1Q 2012 in both the number of funds
closed and capital raised;
Venture capital investment into European companies experienced a quarter-over-quarter increase;
A single venture-backed initial public offering (IPO) was completed during the quarter, the lowest figure
since 1Q 2010. Merger and acquisition (M&A) deal activity also fell from the previous quarter.
To view Dow Jones VentureSource’s U.S. data for 1Q 2013 , please click here.
2
VentureSource
European venture capital fundraising declines in 1Q 2013
FUNDRAISING
13 European venture capital funds accumulated €756 million in 1Q 2013, dipping 13% in the number of funds
and 5% in amount raised from the prior quarter.
In contrast with 1Q 2012, the number of funds fell by the same proportion, however, the amount raised fell
slightly more (8%).
The largest fund of the quarter was Accel Partners’ London IV fund, which raised €365 million, accounting for
48% of the total amount raised for 1Q 2013.
European VC Fundraising (2011 – 2013)
€ 2.00
30
Based on multiple closings
€ 1.80
25
€ 1.60
€ 1.40
20
€ 1.20
€ 1.00
15
€ 0.80
10
€ 0.60
€ 0.40
5
€ 0.20
0
Amount Raised (€B)
Number of Funds
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
€ 0.69
€ 0.64
€ 0.45
€ 1.74
€ 0.82
€ 0.97
€ 0.76
€ 0.80
€ 0.76
15
15
9
25
15
16
16
15
13
€ 0.00
3
Largest European VC Funds Raised in 1Q 2013
VentureSource
FUNDRAISING
Firm Name
Fund Name
Amount
(€M) Closed
in 1Q
Location
Accel Partners
Accel London IV
€364.85
Palo Alto, CA
U.S.
Prime Ventures NV
Prime Technology
Ventures Fund IV
€100.00
Atlantic Capital Partners
GmbH
ACP II
Arthurian Life Sciences
Point Nine Management
GmbH
Offering
Status
Fund Type
Fund Category
Closed
Multi-stage
venture capital
Venture Capital
Amsterdam,
Netherlands
Open
Multi-stage
venture capital
Venture Capital
€60.00
Munich,
Germany
Closed
Early-stage
venture
capital
Welsh Life Sciences Fund
€57.94
Cardiff, U.K.
Open
Point Nine Capital II
€40.00
Berlin,
Germany
Closed
Closing Type
Final
First
Venture Capital
Final
Multi-stage
venture capital
Venture Capital
First
Early-stage
venture capital
Venture Capital
Final
4
VentureSource
Venture capital investment into European companies experiences a quarter-over-quarter
increase
FINANCING
European companies raised €1.1 billion in 283 venture capital deals, a 1% rise in the number of deals
completed and a 2% rise in capital raised from the previous quarter.
In contrast with 1Q ‘12, deal flow experienced a 9% decline, while investment saw an increase of 9%.
The business and financial services, IT, and consumer services sectors all saw increases in venture capital
investment from the previous quarter. Conversely, healthcare and energy and utility companies experienced
declines in capital garnered.
Equity Financings into Europe –
based, VC-backed Companies
(2011 – 2013)
€ 1.60
400
€ 1.40
350
€ 1.20
300
€ 1.00
250
€ 0.80
200
€ 0.60
150
€ 0.40
100
€ 0.20
50
€ 0.00
Amount Raised (€B)
Number of Deals
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
€ 1.30
€ 1.19
€ 1.15
€ 1.33
€ 1.02
€ 1.46
€ 1.10
€ 1.09
€ 1.12
280
358
288
321
312
323
276
280
283
0
5
VentureSource
FINANCING
Equity Financings into Europe-based, VC-backed Companies, by Round Class
(2011 – 2013)
Number of Deals
200
160
120
80
40
0
Seed
1Q'11
15
2Q'11
26
3Q'11
27
4Q'11
28
1Q'12
22
2Q'12
26
3Q'12
40
4Q'12
32
1Q'13
19
First
136
169
155
149
150
167
137
152
156
Second
58
83
48
59
62
58
52
53
53
Later
57
56
49
70
68
57
43
36
47
Restart
0
1
2
3
0
0
0
0
0
6
VentureSource
FINANCING
Equity Financings into Europe-based, VC-backed Companies, by Round Class
(2011 – 2013)
Amount Raised (€M)
€ 700
€ 600
€ 500
€ 400
€ 300
€ 200
€ 100
€0
Seed
1Q'11
€8
2Q'11
€ 12
3Q'11
€ 19
4Q'11
€ 16
1Q'12
€ 10
2Q'12
€ 16
3Q'12
€ 10
4Q'12
€ 12
1Q'13
€ 10
First
€ 396
€ 347
€ 537
€ 395
€ 253
€ 481
€ 279
€ 376
€ 326
Second
€ 241
€ 303
€ 198
€ 364
€ 295
€ 248
€ 292
€ 285
€ 195
Later
€ 602
€ 427
€ 321
€ 533
€ 456
€ 663
€ 514
€ 418
€ 576
€0
€0
€ 69
€ 15
€0
€0
€0
€0
€0
Restart
7
VentureSource
FINANCING
Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (€M)
(2011 – 2013)
€ 2.50
€ 2.00
€ 1.50
€ 1.00
€ 0.50
€ 0.00
Median Equity Deal Size (€M)
1Q'11
2Q'11
3Q'11
4Q'11
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
€ 1.50
€ 1.50
€ 1.54
€ 1.60
€ 1.55
€ 2.00
€ 1.33
€ 1.54
€ 1.61
8
VentureSource
Equity Financings into Europe-based, VC-backed Companies, by Industry Group
(1Q 2013)
FINANCING
The consumer services sector received the largest allocation of investment in 1Q’13 (31%), accumulating €352
million through 61 deals, a rise of 7% from 4Q’12 in capital raised but a drop of 22% in the number of deals.
IT overtook healthcare to take second position in terms of investment allocation, taking a 27% share of all
venture investment. The sector raised €302 million across 92 deals, up 48% and 6% respectively from the
previous quarter.
The healthcare sector saw its share of investment fall from 30% in 4Q’12 to 22% in 1Q’13. Companies
completed 53 deals for a total of €242 million, up 15% in deal flow but a drop of 26% in capital raised from the
previous quarter.
Energy and utility companies failed to attract the levels of investment accrued in 4Q’12, even though deal
activity remained flat. €35 million of investment was raised during the quarter, down 44% and 37% from 4Q’12
and 1Q’12 respectively.
1Q’13 Industry Breakdown
By Amount Raised
1Q'13 Industry Breakdown
By Number of Deals
Business and Financial Services
14%
10%
Business and Financial Services
1%
3%
32%
Consumer Goods
27%
Consumer Goods
Consumer Services
22%
Consumer Services
31%
Energy & Utilities
Energy & Utilities
6%
Healthcare
6%
4%
19%
Industrial Goods & Materials
Information Technology
Healthcare
22%
3%
Industrial Goods & Materials
Information Technology
9
Top 5 Deals into European VC-backed Companies (1Q 2013)
VentureSource
FINANCING
Co. Name
Location
Industry
Group
Industry
Segment
Industry Code
Brief Description
Close Date
Round
Type
Raised
(€M)
Round Investors
(* denotes lead)
Truphone Ltd.
U.K.
Information
Technology
Communications
and Networking
Wired
Communications
Equipment
Provider of Internet
telephony solutions.
2/1/2013
3rd
€86.91
Minden*, Vollin Holdings
1/15/2013
Later
€78.53
Leeds Equity Partners*
€32.00
Abingworth Management Inc.*,
Index Ventures*, Novartis
Venture Fund*, Versant Venture
Management LLC*
€28.00
Alto Invest, Auriga Partners SA,
Bioam Gestion, Edmond de
Rothschild Investment Partners,
Fonds Strategique
d'Investissement, InnoBio, iXO
Private Equity SAS, Merieux
Developpement, National
Technology Enterprise Co., NBGI
Ventures, Omnes Capital,
Wellington Partners
€22.43
Accel Partners, Atomico, Felicis
Ventures, Global Brain Corp.,
Individual Investors, Phenomen
Ventures, Red Swan Ventures
LLC, Union Square Ventures*,
Wellington Partners
INTO University
Partnerships
Ltd.
GenSight
Biologics SA
SuperSonic
Imagine SA
Hailo Network
Ltd.
U.K.
France
France
U.K.
Consumer
Services
Healthcare
Healthcare
Information
Technology
Provider of education
services that aim to help
Educational/Training universities achieve their
Media and Content
Media and Services strategic goals and improve
their competitive
positioning globally.
Biopharmaceuticals
Biotechnology
Therapeutics
Medical Devices and Diagnostic Imaging
Equipment
Equipment
Software
Business
Applications
Software
Developer of ophthalmic
therapeutics using gene
therapy.
Provider of ultrasound
medical imaging systems
for measuring and
visualizing tissue elasticity.
Provider of a mobile
network for taxi cab drivers
and passengers.
3/31/2013
3/31/2013
2/5/2013
First Round
5th
3rd
10
VentureSource
FINANCING
Most Active Investors for Europe-based, VC-backed Companies by Deals
Completed (1Q 2013)
18
16
16
14
12
12
10
8
6
9
7
5
5
5
5
5
4
2
0
11
Equity Financings into Europe-based, VC-backed Companies, by Country
(1Q 2013)
VentureSource
The U.K. retained its position as the favoured destination for equity financing in
Europe, raising €377 million across 67 deals, a 34% share of all investment into
European VC-backed companies.
FINANCING
France placed second, raising €237 million through 63 deals, an increase of 4% and
43% on respective 4Q’12 figures. The allocation represents a 21% share of all
European investment.
Finland placed third raising €134 million, a 12% share of European investment and the
country’s highest quarterly figure since the third quarter of 2008.
Germany secured fourth position raising €113 million, a 10% share of Europe-wide
investment. The figure represents a substantial drop from the €249 million raised
during 4Q’12, a 23% share of investment into European VC-backed companies during
that quarter.
Number of Deals in 1Q' 2013 by Country
(Top 4)
Amount Raised in 1Q 2013
by Country (Top 4)
23%
24%
United Kingdom
32%
34%
United Kingdom
France
France
Germany
Finland
Spain
Rest of Europe
Germany
10%
Rest of Europe
22%
8%
12%
14%
21%
12
VentureSource
LIQUIDITY
Venture M&A and IPO Market Activity in Europe Fails to Improve during 1Q 2013
M&As of venture-backed companies in Europe declined by 19% from 4Q ‘12 with 29 deals completed.
The largest M&A of the quarter was Trivago GmbH, which was acquired by Expedia Inc. (Nasdaq:EXPE) for
€477 million.
A single venture-backed initial public offering (IPO) was completed during the quarter, the lowest figure since
the first quarter of 2010.
Exit Opportunities for European
VC – backed Companies
(2011 – 2013)
1Q'13
4Q'12
3Q'12
2Q'12
1Q'12
4Q'11
3Q'11
2Q'11
1Q'11
0
10
IPOs
1Q'11
3
2Q'11
7
M&As
51
60
20
3Q'11
3
52
30
4Q'11
2
40
1Q'12
6
50
2Q'12
3
45
32
49
60
3Q'12
2
32
70
80
4Q'12
5
1Q'13
1
36
29
13
VentureSource
Top 3 M&As in Europe (1Q 2013)
LIQUIDITY
Company
Name
Trivago GmbH
Location
Brief Description
Operator of a userdriven travel website in
Düsseldorf,
Europe, providing
Germany
travel information,
package deals, and tips
for travel planning.
Uteron Pharma
SA
GraceHollogne,
Belgium
Provider of female
healthcare products
related to
contraception and
fertility, menopause,
and osteoporosis.
Arieso Ltd.
Newbury,
U.K.
Provider of location
aware solutions for
mobile network
operators.
Industry
Code
Industry
Segment
Industry
Group
Close
Date
Round
Type
Amount
Paid
(€M)
Acquirer
Online
Communities
Consumer
Information
Services
Consumer
Services
3/12/2013
Acquisition
€477.00
Expedia Inc.
Pharmaceuticals Biopharmaceuticals
Healthcare
1/23/2013
Acquisition
€229.59
Watson
Pharmaceuticals
Communications
Software
Information
Technology
3/8/2013
Acquisition
€65.29
JDS Uniphase
Software
14
VentureSource
European VC-backed IPOs (2011-2013)
LIQUIDITY
Danish liquid cooling solutions provider Asetek Inc. was the only venture-backed company in Europe to
complete an IPO during 1Q’13 with its €19 million Oslo Børs listing in March.
European VC-backed IPO Activity
(2011 - 2013)
€ 400.00
8
€ 350.00
7
€ 300.00
6
€ 250.00
5
€ 200.00
4
€ 150.00
3
€ 100.00
2
€ 50.00
1
€ 0.00
1Q'11
2Q'11
Raised (€B) through IPO € 259.71 € 355.76
Number of IPOs
3
7
3Q'11
4Q'11
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
€ 65.15
€ 18.66
€ 157.40
€ 26.76
€ 52.08
€ 142.99
€ 19.22
3
2
6
3
2
5
1
0
15
VentureSource
ABOUT US
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.
About Dow Jones
Dow Jones & Company is a global provider of news and business information, delivering content to consumers
and organizations via newspapers, Web sites, apps, video, newsletters, magazines, proprietary databases,
conferences, and radio. Dow Jones has produced unrivalled quality content for over 100 years and today has
one of the world’s largest news-gathering operations with 2,000 journalists in more than 50 countries, including
The Wall Street Journal, America’s largest newspaper by total average circulation. Other premier brands
include Barron’s, MarketWatch, Factiva, Dow Jones Risk & Compliance, Dow Jones VentureSource, and All
Things Digital. Its information services publish in 11 languages and distribute content in 28 languages,
combining technology with news and data to support business decision making. The company pioneered the
first successful paid online news site and its industry leading innovation enables it to serve customers wherever
they may be, via the Web, mobile devices, Internet-connected televisions, and tablets.
MEDIA CONTACT:
Kate Dobbin
44 (0)20 7573 4016
Kate.Dobbin@dowjones.com
16