Venture Capital Report

Europe | 1Q | 2015

Venture Capital Report

The following report presents Dow Jones VentureSources 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.

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

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

Oering
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

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

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

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

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

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

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

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

1Q15 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

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

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 Pharmas 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

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

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

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
signicant 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

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The investment gures included in this release are based on aggregate ndings of Dow Jones'
proprietary research and are contained in VentureSource. This data was collected through surveys of
professional rms, 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.

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