Venture Capital Report

Europe | 2Q | 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 2Q 2015 include:
European venture capital fundraising doubles from prior quarter;

Venture capital investment into European companies improves in consecutive quarters;

Initial public offerings (IPOs) experienced an increase from the prior quarter, while the number of
mergers and acquisitions (M&As) fell to its lowest level since 1Q 2013.

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Venture Capital Report

European Venture Capital Fundraising Improves in 2Q 2015

FUNDRAISING

25 European venture capital funds accumulated over 2 billion during 2Q 2015, more than double the euros
raised in 1Q 2015 with a 47% increase in the number of fund closings.
Compared with the year ago period, euros raised improved by 63% in two more fund closings.

The largest fund of the quarter was Index Ventures Growth Fund III, which raised 650 million, accounting for
32% of the total amount raised for 2Q 2015.

European VC Fundraising (2012 2015)

Based on multiple closings

45

2.50

40
2.00

35
30

1.50

25
20

1.00

15
10

0.50

5
0

2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15

0.00

Amount Raised (B) 1.19 0.76 1.37 0.76 1.03 0.51 1.88 0.63 1.25 0.71 1.26 0.93 2.04
Number of Funds

22

15

30

15

17

10

39

23

23

19

27

17

25

3"

Largest European VC Funds Raised in 2Q 2015

Venture Capital Report

FUNDRAISING

Firm%Name%%%

Fund%Name%%

Amount%
(M)%Closed%
in%2Q%

Loca9on%

Oering%
Status%%

Fund%Type%

Fund%Category%%

Closing%Type%

Index"Ventures"

Index"Ventures"Growth"III"

"650.00"

Geneva,"
Switzerland"

Closed"

LateAstage"
venture"capital"

"
Venture"Capital"

Final"

Isis"InnovaFon"Ltd."

Oxford"Sciences"
InnovaFon"

"283.98"

Oxford,"United"
Kingdom"

Open"

"EarlyAstage"
venture"capital"

"
Venture"Capital"

First"

"150.00"

Luxembourg,"
Luxembourg"
"

Closed"

MulFAstage"
venture"
capital"

"
Venture"Capital"

"
Final"

European"Investment"Fund" Luxembourg"Future"Fund"

Felix"Capital"

Felix"Capital"Fund"I"LP"

"109.80"

London,"United"
Kingdom"

Closed"

"EarlyAstage"
venture"capital"

"
Venture"Capital"

"
Final"

IK"Investment"Partners"

Industry"Kapital"Small"
Cap"Fund"

"100.00"

London,"United"
Kingdom"

Open"

EarlyAstage"
venture"capital"

"
Venture"Capital"

First"

4"

Venture Capital Report

FINANCING

Investment into European Venture-backed Companies Improves Once More in 2Q 2015

European companies raised just over 3 billion for 357 deals during 2Q 2015, an increase of 12% in the
amount raised from 1Q 2015 despite a 5% slide in the number of deals completed.

In contrast with the year ago period, investment improved by 31% despite a 15% reduction in the number of
completed deals.

Consumer Services was the strongest sector of the quarter in terms of attracting investment followed by
Business and Financial Services. The sectors garnered 45% and 24% of all euros invested during 2Q 2015
respectively.

Equity Financings into Europe

based, VC-backed Companies
(2012 2015)

3.50

500
450

3.00

400
2.50

350
300

2.00

250
1.50

200
150

1.00

100
0.50
0.00

50
2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15

Amount Raised (B) 1.55 1.15 1.25 1.24 1.53 1.76 1.82 1.62 2.34 2.33 2.00 2.72 3.05
Number of Deals

378

326

387

378

421

386

474

397

418

351

370

377

357

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

2Q'12

3Q'12

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

Seed

38

53

63

37

37

49

71

32

28

22

25

16

21

First

191

156

192

198

206

201

212

212

211

180

185

194

162

Second

60

54

58

66

89

63

81

67

87

63

72

78

68

Later

58

46

45

54

64

51

83

59

74

64

60

75

92

Restart

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Venture Capital Report

FINANCING

Equity Financings into Europe-based, VC-backed Companies, by Round Class

(2012 2015)
Amount Raised (M)

2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0

2Q'12

3Q'12

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

Seed

23

16

25

21

16

19

30

16

18

14

18

13

12

First

532

291

446

409

421

531

353

492

601

455

432

615

466

Second

257

288

294

254

476

695

395

319

475

212

773

433

571

Later

687

532

457

544

600

464

985

671

1,067

933

743

Restart

1,653 1,844
0

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Venture Capital Report

FINANCING

Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (M)
(2012 2015)

3.00

2.50

2.00

1.50

1.00

0.50

0.00

2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15

Median Equity Deal Size (M) 1.80 1.20 1.22 1.50 1.52 1.00 1.40 1.54 2.00 1.80 2.30 1.93 2.50

8"

Equity Financings into Europe-based, VC-backed Companies, by Industry Group

(2Q 2015)

Venture Capital Report

FINANCING

Consumer Services received the largest allocation of investment during 2Q 2015 (45%), accumulating 1.4
billion through 91 deals. Deal flow fell by 22% from the prior quarter, while sector investment dipped by 1%."

Business and Financial Services placed second in terms of equity financing, taking a 24% share of all 2Q 2015
investment. The sector raised 716 million across 99 deals, an improvement of 53% in capital raised and 16%
in deals completed from the previous quarter.
Healthcare placed in third, with companies in the sector gathering 15% of the total amount invested for the
quarter. The sector received 458 million across 52 deals; a rise of 48% in capital invested from 1Q 2015
despite a 10% decline in deal flow.

2Q'15 Industry Breakdown

By Number of Deals

2Q15 Industry Breakdown

By Amount Raised
14%

Business and Financial Services

23%

28%

Consumer Goods
Consumer Services

Business and Financial Services

24%

1%

Consumer Goods (0.2%)

Consumer Services

15%

4%
2%

Energy & Utilities

Energy & Utilities

1%

Healthcare

Healthcare

15%
2%

26%

Industrial Goods & Materials

Information Technology

45%

Industrial Goods & Materials

Information Technology

9"

Venture Capital Report

Top 5 Deals into European VC-backed Companies (2Q 2015)

FINANCING
Co.%Name%

SpoFfy"
Technology"SA"

Loca9on

Sweden"

Industry%
Group

Consumer"
Services"

Global"Fashion"
Consumer"
Luxembourg"
Group"SA"
Services"

Funding"Circle"
Ltd."

Foodpanda"
GmbH"

Industry%
Segment

Consumer"
Services"

Brief%Descrip9on

Close%Date

Consumer"
InformaFon"
Services"

Entertainment"

Retailers"

Clothing/Accessory"
Retailers"

Provider"of"an"online"
fashion"pla`orm."

Lending"

Provider"of"a"lending"
pla`orm"for"small"
businesses."

22/04/2015"

Shopping"Facilitators"

Provider"of"a"food"
delivery"pla`orm."

01/05/2015"

Business"and"
Financial"
United"
Financial"
InsFtuFons"and"
Kingdom"
Services"
Services"

Germany"

Industry%Code%

Consumer"
InformaFon"
Services"

AMAPharma"
Netherlands" Healthcare" BiopharmaceuFcals"
B.V."

Biotechnology"
TherapeuFcs"

Provider"of"online"digital" 17/04/2015"
music"services."

30/06/2015"

Round%
Type

7th"

Raised%
(M)%

Round%Investors%%
(*%denotes%lead)

Baillie"Giord"&"Co."Ltd.,"D."E."
Shaw"&"Co"LP,"Discovery"
Capital"Management"Corp.,"
Goldman"Sachs"Group"Inc.,"
GSV"Capital"Corp.,"Halcyon"
488.67" Capital,"Landsdowne"Partners"
"
Ltd.,"Northzone"Ventures"AS,"
P."Schoenfeld"Asset"
Management"LP,"Rinkelberg"
Capital"Ltd.,"Senvest"
InternaFonal"LLC,"TCMI"Inc.,"
TeliaSonera"AB"

150.00"

Investment"AB"Kinnevik,"
Rocket"Internet"AG"

6th"

139.35"

Baillie"Giord"&"Co."Ltd.,"
Digital"Sky"Technologies"
Ltd.*,"Sands"Capital"
Management,"Temasek"
Holdings"Pvt."Ltd."

5th"

89.30"

Goldman"Sachs"Private"Equity"
Group*,"Rocket"Internet"AG"

78.14"

Pzer"Inc.*"

Second"

Developer"of"
pharmaceuFcal"
compounds"in"the"elds"
11/05/2015" Corporate"
of"severe"infecFous"
diseases"and"
inammatory"diseases."

10"

Venture Capital Report

FINANCING

Most Active Investors for Europe-based, VC-backed Companies by Deals Completed

(2Q 2015)

14
12
12
10
10
8

0
Bpifrance Investment

SEED Capital
Management I/S

Rocket Internet AG

High-Tech
Gruenderfonds
Management GmbH

Mercia Fund
Management

11"

Equity Financings into Europe-based, VC-backed Companies, by

Country (2Q 2015)

Venture Capital Report

The United Kingdom was the most favoured destination for equity financing during 2Q
2015, receiving 645 million across 89 deals. The country took 21% of all equity
financing for the quarter, despite a 28% fall in investment from 1Q 2015.

FINANCING

Sweden placed second, attracting a 19% share of European financing. Investment

reached a total 596 million, bolstered in large part by Spotify Technologys most
recent round of financing in April.

Germany occupies third position raising 508 million, 17% of the total for the quarter.
France placed fourth with a 15% share, raising 449 million during 2Q 2015.

Number of Deals in 2Q 2015 by Country

(Top 4)

Amount Raised in 2Q 2015 by Country

(Top 4)

21%
28%

25%
33%

United Kingdom

United Kingdom

France

Sweden

Germany

Germany

Italy

France

Rest of Europe
6%

23%
13%

19%

Rest of Europe

15%
17%

12"

Venture Capital Report

Europe 2Q 2015 Venture Exit Activity

LIQUIDITY

37 venture-backed M&As took place in Europe during 2Q 2015, a drop of 27% from 1Q 2015 and 12% from 2Q
2014.

The largest M&A for 2Q 2015 was Yemek Sepeti Elektronik Iletisim Tanitim, a provider of online food ordering
services in Turkey, which was acquired by Delivery Hero Holding AG for 526 million.
15 venture-backed IPOs took place during 2Q 2015, a 25% rise from the prior quarter but a 29% decline in
listings for VC-backed companies from the year ago period.

Exit Opportunities for European

VC backed Companies
(2012 2015)

2Q'15
1Q'15
4Q'14
3Q'14
2Q'14
1Q'14
4Q'13
3Q'13
2Q'13
1Q'13
4Q'12
3Q'12
2Q'12
0
IPOs

2Q'12
3

M&As

43

10
3Q'12
4Q'12
2
5
31

46

20
1Q'13
1

2Q'13
5

30
3Q'13
3

4Q'13
9

40
1Q'14
8

2Q'14
21

50
3Q'14
16

4Q'14
10

36

39

42

42

55

42

47

47

60
1Q'15
12
51

70
2Q'15
15
37

13"

Venture Capital Report

Top 3 M&As in Europe (2Q 2015)

LIQUIDITY

Industry%
Segment%

Industry%
Group

Close%
Date

Round%
Type

Amount%
Paid%
(M)

Acquirer

Consumer"
InformaFon"
Services"

Consumer"
Services"

05/05/2015"

AcquisiFon"

"525.99"

Delivery"Hero"
Holding"GmbH"

Travel"and"Leisure"

Consumer"
Services"

01/05/2015"

AcquisiFon"

"188.43"

RGIP"LLC"

Developer"of"
ultrasonic"parFcle"
engineering"
Oxford,"United"
technologies"for"the" Medical/Lab"Services"Healthcare"Services" Healthcare" 15/06/2015"
Kingdom"
manufacture"of"
pharmaceuFcal"
powders."

AcquisiFon"

Circassia"
"139.09" PharmaceuFcals"
Plc"

Company%
Name%

Loca9on

Brief%Descrip9on

Yemek"SepeF"
Elektronik"IleFsim"
TaniFm"

Istanbul,"
Turkey"

Provider"of"online"
food"ordering"
Shopping"Facilitators"
services."

Hotspring"
Ventures"Ltd."

London,"
United"
Kingdom"

Prosonix"Ltd."

Provider"of"an"online"
beauty,"health,"and"
wellness"directory."

Industry%Code

Personal"Services"

14"

Venture Capital Report

European VC-backed IPOs (2012-2015)

LIQUIDITY

15 venture-backed IPOs took place during 2Q 2015, an increase of three from the prior quarter but six fewer
than in the year ago period.
IPOs raised 533 million during 2Q 2015, an uptick of 28% from the $417 million raised in 1Q 2015. VC-backed
companies raised an almost identical amount through IPOs compared with the year ago period (530 million).
The largest European VC-backed IPO of 2Q 2015 was the windeln.de GmbH listing in May. The company
raised 183 million for its offering on the Deutsche Boerse.

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

2Q'12

3Q'12

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

Raised (M) through IPO 26.76 52.08 142.99 19.22 89.24 25.51 366.10 448.63 529.53 447.47 2,250 417.40 533.10
Number of IPOs

21

16

10

12

15

15"

Venture Capital Report

Top 3 IPOs in Europe (2Q 2015)

LIQUIDITY

Company%
Name%%

windeln.de"
GmbH"

AdapFmmune"
TherapeuFcs"
PLC"

BiocarFs"NV"

Country%

Brief%Descrip9on%

Industry%Code%

Industry%Segment%

Industry%Group%

Close%Date%

Raised%
through%IPO%
(M)%

Exchange/%
Symbol%

Germany"

Operator"of"an"online"
retailer"and"ash"sales"
pla`orm"for"baby"and"
children"products"in"
Germany,"Austria,"and"
Switzerland."

Specialty"Retailers"

Retailers"

Consumer"Services"

06/05/2015"

183.47"

XETRA:"WD"

Biotechnology"
TherapeuFcs"

BiopharmaceuFcals"

Healthcare"

06/05/2015"

170.79"

NASDAQ:"
ADAP"

Drug"Development"
Technologies"

BiopharmaceuFcals"

Healthcare"

27/04/2015"

100.00"

BSE:"BCART"

Developer"of"cancer"
United" immunotherapy"products"
Kingdom" based"on"a"TAcell"receptor"
pla`orm."

Belgium"

Provider"of"a"molecular"
and"immunodiagnosFcs"
pla`orm."

16"

Venture Capital Report

ABOUT US

Dow% Jones% VentureSource% helps% venture% capitalists,% corporate% development% execu9ves,% investment%
bankers%and%service%providers%nd%deal%and%partnership%opportuni9es,%perform%comprehensive%due%
diligence% and% examine% trends% in% venture% capital% investment,% fundXraising% and% liquidity.% It% provides%
accurate,% comprehensive% data% on% ventureXbacked% companies% % including% their% investors% and%
execu9ves%%in%every%region,%industry%and%stage%of%development%throughout%the%world.%
""
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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