Venture Capital Report
Europe | 4Q | 2014
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 4Q 2014 include:
European venture capital fundraising experiences uptick from 3Q 2014, but suffers declines in both
fund closings and euros raised for the 12 month period;
Venture capital investment into European companies falls from 3Q 2014, but improves by a quarter year
over year;
Despite an overall fall in exit activity, the total amount raised through venture-backed Initial public
offerings (IPOs) reached its highest point since 2Q 2000.
2
Venture Capital Report
European Venture Capital Fundraising Experiences Uptick in 4Q 2014
FUNDRAISING
18 European venture capital funds accumulated €927 million during 4Q 2014, an increase of 33% in euros
raised and 20% in the number of funds with closings from 3Q 2014.
Despite the uptick in fundraising from 3Q 2014, the number of funds with closings during 4Q 2014 fell by 51%
compared with the same period last year, while euros raised fell by 49%.
The largest fund of the quarter was Principia SGR’s Fund III which raised €160 million, accounting for 17% of
the total amount raised for 4Q 2014.
Overall, the number of fund closings in 2014 was down by 4% to 76 from the year prior, while the total amount
raised by venture funds fell by 18% from 2013 to €3.4 billion.
European VC Fundraising (2011 – 2014)
€ 2.50
40
Based on multiple closings
35
€ 2.00
30
25
€ 1.50
20
€ 1.00
15
10
€ 0.50
5
0
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
€ 0.00
Amount Raised (€B) € 2.17 € 0.98 € 1.18 € 0.76 € 1.19 € 0.76 € 1.03 € 0.50 € 1.81 € 0.69 € 1.03 € 0.70 € 0.93
Number of Funds
36
17
21
15
29
15
17
10
37
23
20
15
18
3
Largest European VC Funds Raised in 4Q 2014
Venture Capital Report
FUNDRAISING
Firm Name
Fund Name
Amount
(€M) Closed
in 4Q
Location
Offering
Status
Fund Type
Fund Category
Principia SGR
Principia Fund III
€160.00
Milan, Italy
Open
Multi-stage
venture capital
Venture Capital
Infocomm Investments Pte.
Ltd.
Infocomm European
Technology Fund
€158.43
Singapore,
Singapore
Closed
Early-stage
venture capital
Venture Capital
Northzone Ventures AS
Northzone VII
€100.00
Oslo, Norway
Closed
Early-stage
venture
capital
Forbion Capital Partners
Forbion Capital Fund III
€92.00
Naarden,
Netherlands
Open
Advent Venture Partners
LLP
Advent Life Sciences
Fund II LP
€70.24
London, United
Kingdom
Closed
Closing Type
First
Final
Venture Capital
Final
Multi-stage
venture capital
Venture Capital
First
Multi-stage
venture capital
Venture Capital
Final
4
Venture Capital Report
Investment into European Venture-backed Companies Falls in 4Q 2014
FINANCING
European companies raised €1.8 billion for 332 deals during 4Q 2014, a fall of 24% in the amount raised from
3Q 2014 despite just five fewer deals being completed.
In contrast with the year ago period, investment improved by 1% despite a 28% reduction in the number of
completed deals.
In 2014 as a whole, European venture-backed companies attracted €7.9 billion across 1460 deals, a decline of
11% in deals completed from 2013 but an improvement of 25% in euros invested.
Equity Financings into Europe –
based, VC-backed Companies
(2011 – 2014)
€ 2.50
500
450
€ 2.00
400
350
€ 1.50
300
250
€ 1.00
200
150
€ 0.50
100
50
€ 0.00
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
0
Amount Raised (€B) € 1.46 € 1.06 € 1.56 € 1.15 € 1.24 € 1.21 € 1.57 € 1.75 € 1.76 € 1.54 € 2.26 € 2.32 € 1.77
Number of Deals
374
347
375
326
373
371
420
384
461
387
404
337
332
5
Venture Capital Report
FINANCING
Equity Financings into Europe-based, VC-backed Companies, by Round Class
(2011 – 2014)
Number of Deals
240
200
160
120
80
40
0
Seed
4Q'11
45
1Q'12
38
2Q'12
38
3Q'12
53
4Q'12
61
1Q'13
35
2Q'13
34
3Q'13
52
4Q'13
67
1Q'14
32
2Q'14
24
3Q'14
19
4Q'14
23
First
168
161
192
155
187
197
207
197
207
210
203
176
171
Second
62
63
60
55
57
64
89
63
81
67
87
60
64
Later
73
70
55
46
43
53
65
51
81
56
73
65
55
Restart
3
0
0
0
0
0
0
0
0
0
0
0
0
6
Venture Capital Report
FINANCING
Equity Financings into Europe-based, VC-backed Companies, by Round Class
(Year over Year, 2004 – 2014 )
Number of Deals
900
800
700
600
500
400
300
200
100
0
Restart
2004
14
2005
9
2006
10
2007
12
2008
5
2009
3
2010
2
2011
6
2012
0
2013
0
2014
0
Later
437
482
339
385
316
290
304
238
214
250
249
Second
289
283
242
267
274
251
268
261
235
297
278
First
519
541
643
845
712
598
669
664
695
808
760
Seed
66
55
93
100
99
93
97
134
190
188
98
7
Venture Capital Report
FINANCING
Equity Financings into Europe-based, VC-backed Companies, by Round Class
(2011 – 2014)
Amount Raised (€M)
€ 1,200
€ 1,000
€ 800
€ 600
€ 400
€ 200
€0
4Q'11
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
Seed
€ 23
€ 17
€ 23
€ 15
€ 26
€ 20
€ 14
€ 19
€ 27
€ 16
€ 17
€ 11
4Q'14
€ 14
First
€ 433
€ 298
€ 537
€ 289
€ 449
€ 403
€ 418
€ 526
€ 349
€ 441
€ 563
€ 510
€ 403
Second
€ 355
€ 278
€ 257
€ 300
€ 291
€ 229
€ 479
€ 697
€ 391
€ 319
€ 468
€ 207
€ 683
Later
€ 604
€ 448
€ 673
€ 531
€ 449
€ 543
€ 639
€ 458
€ 937
€ 642
€ 1,039
€ 877
€ 647
Restart
€ 15
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
€0
8
Venture Capital Report
FINANCING
Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (€M)
(2011 – 2014)
€ 2.50
€ 2.00
€ 1.50
€ 1.00
€ 0.50
€ 0.00
4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14
Median Equity Deal Size (€M) € 1.41 € 1.50 € 1.90 € 1.20 € 1.22 € 1.50 € 1.52 € 1.00 € 1.40 € 1.58 € 2.00 € 2.00 € 2.30
9
Equity Financings into Europe-based, VC-backed Companies, by Industry Group
(4Q 2014)
Venture Capital Report
FINANCING
Business and Financial Services received the largest allocation of investment during 4Q 2014 (32%),
accumulating €557 million through 80 deals. The sector remained the most attractive sector despite investment
dropping by 41% from 3Q 2014. Deal flow remained flat.
Healthcare rose to second in terms of equity financing, taking a 30% share of all 4Q 2014 investment. The
sector raised €535 million across 60 deals, an increase of 64% in capital raised and 25% in deals completed
from the previous quarter.
Consumer Services was pushed down to third, with companies in the sector gathering 18% of the total amount
invested for the quarter. The sector received €327 million across 96 deals; a fall of 53% and 3% from 3Q 2014
in capital invested and deal flow respectively.
4Q'14 Industry Breakdown
By Number of Deals
4Q’14 Industry Breakdown
By Amount Raised
Business and Financial Services
21%
24%
Consumer Goods
Business and Financial Services
15%
1%
32%
Consumer Services
Consumer Services
2%
2%
Energy & Utilities
Energy & Utilities
30%
18%
2%
Healthcare
4%
29%
Industrial Goods & Materials
Information Technology
Consumer Goods
2%
18%
Healthcare
Industrial Goods & Materials
(0.5%)
Information Technology
10
Equity Financings into Europe-based, VC-backed Companies, by Industry Group (2014)
Venture Capital Report
FINANCING
2014 Industry Breakdown
By Number of Deals
2014 Industry Breakdown
By Amount Raised ($B)
Business and Financial Services
406
Business and Financial Services
12%
260
1%
Consumer Goods
31%
Consumer Goods
38
Consumer Services
Consumer Services
22%
Energy & Utilities
220
Energy & Utilities
56
2%
Healthcare
Healthcare
3%
44
432
Industrial Goods & Materials
Information Technology
29%
Industrial Goods & Materials
Information Technology
11
Venture Capital Report
Top 5 Deals into European VC-backed Companies (4Q 2014)
FINANCING
Co. Name
Location
Industry
Group
Industry
Segment
Industry Code
Brief Description
Close Date
Round
Type
Adyen BV
Netherlands
Business and
Financial
Services
Financial
Institutions and
Services
Payment/
Transactional
Processing
Provider of an Internet
payment system for
international merchants.
16/12/2014
Second
Verne Global
Iceland
Information
Technology
Electronics and
Computer
Hardware
Data Storage
Provider of renewable
energy-powered data
centers.
31/12/2014
Second
€78.24
General Catalyst Partners,
Novator Partners, Stefnir*,
Wellcome Trust
Powa
Technologies
Ltd.
United
Kingdom
Business and
Financial
Services
Financial
Institutions and
Services
Payment/
Transactional
Processing
Provider of an integrated
mobile payments and
e-commerce platform.
7/11/2014
Second
€63.88
Wellington Management
Co. LLP*
Biotechnology
Therapeutics
Provider of antigenspecific T-Cell
immunotherapy
treatments for the
treatment of infectious
disease and cancer.
25/11/2014
4th
€63.87
Imperial Innovations*, Invesco
Perpetual, Woodford
Investment Management LLP
€47.91
Janus Capital Group, OrbiMed
Advisors LLC*, RA Capital
Management LLC, Rock Springs
Capital Management, Sectoral
Asset Management Inc.,
Sofinnova Partners, Sofinnova
Ventures Inc.*, Venrock, Vivo
Capital*
Cell Medica Ltd.
Ascendis
Pharma A/S
United
Kingdom
Denmark
Healthcare Biopharmaceuticals
Healthcare Biopharmaceuticals
Drug Development
Technologies
Developer of long-acting
prodrug therapies to
address large markets
with significant unmet
medical needs.
24/11/2014
3rd
Raised
(€M)
€199.60
Round Investors
(* denotes lead)
Felicis Ventures, General
Atlantic LLC*, Index Ventures,
Temasek Holdings Pvt. Ltd.
12
Venture Capital Report
FINANCING
Most Active Investors for Europe-based, VC-backed Companies by Deals Completed
(4Q 2014)
18
17
16
14
12
10
8
8
7
6
6
Northzone Ventures AS
Kima Ventures
6
4
2
0
High-Tech
Gruenderfonds
Management GmbH
Truffle Capital SAS
Bpifrance Investment
13
Equity Financings into Europe-based, VC-backed Companies, by
Country (4Q 2014)
Venture Capital Report
The United Kingdom was the most favoured destination for equity financing during 4Q
2014, receiving €524 million across 69 deals. The country took in 30% of all
investment into European VC-backed companies for the quarter.
FINANCING
Germany placed second, capturing 18% of European investment. Investment fell by
73% from the prior quarter to total €322 million. Deal flow remained relatively stable,
however, with 66 completed.
The Netherlands rose to third position raising €243 million, a 14% share of investment.
France placed in fourth position with a 12% share, raising €218 million during 3Q
2014.
Number of Deals in 4Q 2014 by Country
(Top 4)
Amount Raised in 4Q 2014 by Country
(Top 4)
21%
26%
33%
20%
30%
United Kingdom
United Kingdom
Germany
Germany
France
Netherlands
Spain
France
Rest of Europe
Rest of Europe
12%
18%
8%
18%
14%
14
Venture Capital Report
Europe Sees Overall Decrease in 4Q 2014 Venture Exit Activity
LIQUIDITY
42 venture-backed M&As took place in Europe during 4Q 2014, down 9% from 3Q 2014 but one up on the
figure for 4Q 2013.
The largest M&A for 4Q 2014 was Belgium’s Clear2Pay NV, an e-payment solutions provider, which was
acquired by Fidelity National Information Services for €375 million.
55 venture-backed IPOs took place during 2014, tripling the number of listings seen across Europe in 2013.
201 M&As were completed during the course of 2014, a 21% increase on the 166 that took place during 2013.
Exit Opportunities for European
VC – backed Companies
(2011 – 2014)
4Q'14
3Q'14
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12
3Q'12
2Q'12
1Q'12
4Q'11
0
IPOs
4Q'11
3
M&As
45
10
1Q'12
2Q'12
6
3
38
42
20
3Q'12
2
4Q'12
5
30
1Q'13
1
2Q'13
5
40
3Q'13
3
4Q'13
9
50
1Q'14
8
2Q'14
21
30
46
34
36
41
41
51
42
60
3Q'14
16
46
70
4Q'14
10
42
15
Venture Capital Report
Top 3 M&As in Europe (4Q 2014)
LIQUIDITY
Company
Name
Location
Brief Description
Industry Code
Industry
Segment
Industry
Group
Close
Date
Round
Type
Amount
Paid
(€M)
Acquirer
Clear2Pay NV
Mechelen,
Belgium
Provider of e-payment
solutions.
Vertical Market
Applications
Software
Software
Information
Technology
2/10/2014
Acquisition
€375.00
FIdelity National
Information
Services
Business and
Financial
8/10/2014
Services
Acquisition
€277.25
Intercontinental
Exchange
Information
Technology
Acquisition
€209.98
Progress
Software Corp.
SuperDerivatives
Inc.
Telerik AD
London,
United
Kingdom
Provider of cloudbased derivatives data
and technology for
Financial
financial and
Data/Information
commodity markets
worldwide.
Provider of an end-toend platform that
Software
Sofia, Bulgaria
combines user
Development Tools
interface (UI) tools
and cloud services.
Financial
Institutions and
Services
Software
2/12/2014
16
Venture Capital Report
European VC-backed IPOs (2011-2014)
LIQUIDITY
10 IPOs were completed during 4Q 2014, a decline of 38% from the previous quarter’s total but an increase of
one on those completed during 4Q 2013.
IPOs raised €2.3 billion during 4Q 2014, more than six times the figure seen in 4Q 2013 and the highest sum
since 2Q 2000 when 71 IPOs raised a total of € 3.8 billion.
The largest European VC-backed IPO of 4Q 2014 was Rocket Internet AG’s October listing on the Frankfurt
Stock Exchange. The company raised a total of €1.4 billion, accounting for 62% of the total amount raised
through European venture-backed company IPOs for the quarter.
European VC-backed IPO Activity
(2011 - 2014)
€ 2,500.00
25
€ 2,000.00
20
€ 1,500.00
15
€ 1,000.00
10
€ 500.00
€ 0.00
5
4Q'11
1Q'12
2Q'12
3Q'12
4Q'12
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
0
Raised (€M) through IPO € 18.66 € 157.40 € 26.76 € 52.08 € 142.99 € 19.22 € 89.24 € 25.51 € 366.10 € 448.63 € 529.53 € 447.47 € 2,250
Number of IPOs
3
6
3
2
5
1
5
3
9
8
21
16
10
17
Venture Capital Report
Top 3 IPOs in Europe (4Q 2014)
LIQUIDITY
Company
Name
Country
Brief Description
Industry Code
Industry
Group
Close Date
Raised
through IPO
(€M)
Exchange/
Symbol
Business and
Financial
Services
2/10/2014
€1,400.00
XETRA: RKET
Retailers
Consumer
Services
1/10/2014
€526.24
XETRA: ZAL
Biopharmaceuticals
Healthcare
15/10/2014
€174.67
NASDAQ: FWP
Industry Segment
Rocket
Internet AG
Operator of an ecommerce focused Incubators/Business Business Support
Germany
venture capital (VC) firm
Development
Services
and a startup incubator.
Zalando SE
Provider of an ecommerce platform Clothing/Accessory
Germany
specializing in the retail
Retailers
of brand name shoes.
Forward
Pharma A/S
Developer of
immunomodulatory
Denmark
drugs for the treatment
of immune disorders.
Biotechnology
Therapeutics
18
Venture Capital Report
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 120 years and today has one of the world’s largest news-gathering operations with nearly 2,000
journalists in more than 80 bureaus, including The Wall Street Journal, America’s largest newspaper by
paid circulation. Other premier brands include Barron’s, MarketWatch, and Dow Jones, its flagship news
and analytics platform. Dow Jones publishes in 13 languages and distributes 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
[email protected]
19