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. 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