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Europe | 4Q | 2014
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 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.
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 SGRs 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.
40
2.50
1.50
20
1.00
15
10
0.50
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
0.00
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
Firm Name
Fund Name
Amount
(M) Closed
in 4Q
Location
Offering
Status
Fund Type
Fund Category
Principia SGR
160.00
Milan, Italy
Open
Multi-stage
venture capital
Venture Capital
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
92.00
Naarden,
Netherlands
Open
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
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.
500
2.50
450
400
2.00
350
300
1.50
250
200
1.00
150
100
0.50
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
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
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
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
1,200
1,000
800
600
400
200
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
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
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.
24%
Consumer Goods
15%
1%
32%
Consumer Services
Consumer Services
2%
2%
18%
2%
Healthcare
4%
29%
Information Technology
Consumer Goods
2%
18%
Healthcare
Industrial Goods & Materials
(0.5%)
Information Technology
10
1%
Consumer Goods
38
12%
260
31%
Consumer Services
Consumer Goods
Consumer Services
22%
Energy & Utilities
220
56
2%
Healthcare
Healthcare
3%
44
432
29%
11
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
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
25/11/2014
4th
63.87
47.91
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
18
17
16
14
12
10
8
Northzone Ventures AS
Kima Ventures
4
2
0
High-Tech
Gruenderfonds
Management GmbH
Bpifrance Investment
13
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
21%
26%
30%
United Kingdom
33%
20%
United Kingdom
Germany
Germany
France
Netherlands
Spain
France
Rest of Europe
Rest of Europe
12%
18%
8%
18%
14%
14
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 Belgiums 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.
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
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
Financial
Institutions and
Services
Software
2/12/2014
16
LIQUIDITY
10 IPOs were completed during 4Q 2014, a decline of 38% from the previous quarters 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 AGs 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.
2,500.00
25
2,000.00
20
1,500.00
15
1,000.00
10
500.00
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
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
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
Zalando SE
Forward
Pharma A/S
Developer of
immunomodulatory
Denmark
drugs for the treatment
of immune disorders.
Biotechnology
Therapeutics
18
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.
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44 (0)20 7573 4016
Kate.Dobbin@dowjones.com
19