Venture Capital Report

Transcription

1 Venture Capital Report Europe 1Q 2016

2 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 2016 include: European venture capital fundraising amount improved significantly from prior quarter and reached a new high; Venture capital investment into European companies declined from 4Q 2015; The number of mergers and acquisitions (M&As) experienced an increase from the last quarter, while the total M&A raised amount decreased significantly; The number of initial public offerings (IPOs) and total amount raised dropped dramatically form 4Q

3 EUROPEAN VENTURE CAPITAL FUNDRAISING ROCKETS IN 1Q 2016 FUNDRAISING 25 European venture capital funds reached a new high of 2.85 billion during 1Q Compared with 4Q 2015, total capital raised more than doubled, and the number of fund closings climbed 19%. Compared with the same period last year, euros raised improved by 169%, and the number of fund closing increased 14%. Index Ventures VIII LP was the largest fund of this quarter, which raised million, accounting for 18% of the total amount raised in 1Q European VC Fundraising Based on multiple closings ( ) Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Amount Raised ( B) Number of Funds

4 LARGEST EUROPEAN VC FUNDS RAISED IN 1Q 2016 FUNDRAISING Firm Name Fund Name Amount ( M) Location Offering Status Fund Type Fund Category Closing Type Index Ventures Index Ventures VIII LP Geneva, Switzerland Closed Early-stage venture capital Venture Capital Final Rocket Internet AG Rocket Internet Capital Partners Fund Berlin, Germany Open Late-stage venture capital Venture Capital First Endeavour Vision SA Endeavour Medtech Growth LP Geneva, Switzerland Closed Multi-stage venture capital Venture Capital Final Medicxi Ventures Medicxi Ventures I London, United Kingdom Closed Early-stage venture capital Venture Capital Final Creandum Creandum IV Stockholm, Sweden Closed Early-stage venture capital Venture Capital Final 4

5 INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES DECLINED IN 1Q 2016 FINANCING European companies raised 2.4 billion through 411 deals during 1Q 2016, a 29% decline in the amount raised from the prior quarter as well as a 12% drop in the number of deals. Compared with the same period last year, both investment amount and the number of deals decreased, 17% and 2% respectively. Healthcare was the strongest sector of the quarter in terms of attracting investment Equity Financings into Europe-based, VC-backed Companies ( ) Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Amount Raised ( B) Number of Deals

6 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS ( ) NUMBER OF DEALS FINANCING Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Seed First Second Later Restart

7 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS ( ) AMOUNT RAISED ( M) FINANCING 2,500 2,000 1,500 1, Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Seed First Second Later , ,752 2,179 1,873 1, Restart

8 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES ( ) MEDIAN EQUITY DEAL SIZE ( M) FINANCING Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Median Equity Deal Size ( M)

9 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (1Q 2016) FINANCING Healthcare received the largest allocation of investment during 1Q 2016, raising million through 62 deals. The sector attracted a 31% of the total amount invested and a 15% of all deals completed for the quarter. Business and Financial Services ranked the second highest proportion of investment. The sector garnered million across 116 deals, an increase of 5% in deal number and a less than 1% drop in amount invested from 4Q Consumer Services represented the third, receiving million across 97 deals. The sector s investment figure represents 20% of the total equity financing into European VC-backed companies for 1Q Q'16 Industry Breakdown By Number of Deals 1Q 16 Industry Breakdown By Amount Raised 1% 1% 25% 15% 17% 1% 24% 29% 28% 4% Business and Financial Services Consumer Goods Consumer Services Energy & Utilities Healthcare Industrial Goods & Materials Information Technology Business and Financial Services Consumer Goods Consumer Services Energy & Utilities 1% Healthcare 31% 1% 20% Industrial Goods & Materials Information Technology 9

10 TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (1Q 2016) FINANCING Co. Name Location Industry Code Industry Segment Industry Group Brief Description Close Date Round Type Raised ( M) Round Investors (* denotes lead) Mission Therapeutics Ltd. Cambridge, United Kingdom Biotechnology Therapeutics Biopharmaceuticals Healthcare Developer of drugs designed to improve the management of lifethreatening diseases, particularly cancer. 2/2/2016 3rd Imperial Innovations Group PLC*, Pfizer Venture Investments, Roche Venture Fund, Sofinnova Partners, SR One Ltd., Woodford Investment Management LLP* Autolus Ltd. London, United Kingdom Biotechnology Therapeutics Biopharmaceuticals Healthcare Provider of biopharmaceutical solutions. 3/3/2016 Second Round Perceptive Bioscience Investments Ltd., Woodford Investment Management LLP Student.com (UK) Ltd. London, United Kingdom Hotels / Gambling Travel and Leisure Consumer Services Provider of an accommodation marketplace for students studying abroad. 10/2/2016 First Round Expa Capital, Horizons Ventures Ltd., Individual Investors, Vy Capital Management Co. Ltd.* Blippar.com Ltd. London, United Kingdom Recreational / Home Software Software Information Technology Provider of a mobile image recognition and augmented reality platform. 2/3/2016 Second Round Khazanah Nasional Berhad* Aprea AB Solna, Stockholm Biotechnology Therapeutics Biopharmaceuticals Healthcare Developer of drugs for the treatment of cancer. 9/3/2016 Later 46 5AM Venture Management LLC*, HealthCap Venture Capital*, Sectoral Asset Management Inc., Versant Venture Management LLC* 10

11 MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (1Q 2016) BY DEALS COMPLETED FINANCING Bpifrance Investment High-Tech German Startups Gruenderfonds Group Berlin GmbH Management GmbH & Co. KGaA Jenson Funding Partners LLP Bayern Kapital GmbH Idinvest Partners HV Holtzbrinck Ventures Adviser GmbH Index Ventures 11

12 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (1Q 2016) FINANCING Number of Deals in 1Q 2016 by Country (Top 4) 29% 27% United Kingdom France The United Kingdom remained as the most favoured destination for equity financing during 1Q 2016, receiving 974 million across 111 deals. The country took 40% of all equity financing from 1Q Germany ranked second. It reached a total 463 million through 75 deals, representing a 19% share of European financing. A 33% decrease in capital invested and 13% drop of the number of deals from last quarter. France occupied third position raising 354 million, 15% of the total for the quarter. Sweden placed fourth based on raising 99 million during 1Q Amount Raised in 1Q 2016 by Country (Top 4) 5% 18% 22% 4% 23% 21% 40% Germany Netherlands Rest of Europe United Kingdom Germany France 15% 19% Sweden 19% Rest of Europe 12

13 EUROPE 1Q 2016 VENTURE EXIT ACTIVITY LIQUIDITY Exit Opportunities for European VC backed Companies ( ) 50 venture-backed M&As took place in Europe during 1Q 2016, a 28% increase from 4Q The number is 6% lower than that of 1Q However, total amount raised through European VCbacked M&As in 1Q 2016 is only 3.7 billion. A 45% drop from the prior quarter and 16% lower than the same period last year. 5 venture-backed IPOs took place during 1Q 2016, a 64% and 58% decrease from 4Q 2015 and 1Q 2015 respectively. 1Q'16 4Q'15 3Q'15 2Q'15 1Q'15 4Q'14 3Q'14 2Q'14 1Q'14 4Q'13 3Q'13 2Q'13 1Q' Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 IPOs M&As

14 TOP 3 M&As IN EUROPE (1Q 2016) LIQUIDITY Company Name Location Brief Description Industry Code Industry Segment Industry Group Close Date Round Type Amount Paid ( M) Acquirer Acano Ltd. Uxbridge, United Kingdom Provider of collaboration infrastructure and conferencing software. Communications Software Software Information Technology 29/1/2016 Acquisition Cisco Systems TouchType Ltd. London, United Kingdom Provider of predictive text entry software. Communications Software Software Information Technology 2/2/2016 Acquisition Microsoft Corp. CityFibre Infrastructure Holdings Plc Provider of dark fibre networks in London, towns and cities outside London United Kingdom on a shared infrastructure basis. Internet Service Providers Communications and Networking Information Technology 14/1/2016 Acquisition KCOM Group Plc 14

15 EUROPEAN VC-BACKED IPOs ( ) LIQUIDITY Both the number of deals and amount raised via IPO during 1Q 2016 dropped significantly from the prior quarter. 5 venture-backed companies went public during 1Q 2016, 64% decrease from the last quarter. IPOs raised 110 million during 1Q 2016, a decline of 82% from the 608 million raised in 4Q The largest European VC-backed IPO of 1Q 2016 was Shield Therapeutics Ltd. The company raised million for its offering on AIM. 2, , , , Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Raised ( M) through IPO , Number of IPOs

16 TOP 3 IPOs IN EUROPE (1Q 2016) LIQUIDITY Company Name Location Brief Description Industry Code Industry Segment Industry Group Close Date Raised through IPO ( M) Exchange/ Symbol Shield Therapeutics Ltd. United Kingdom Developer of late-state, secondary care-focused pharmaceuticals. Biotechnology Therapeutics Biopharmaceuticals Healthcare 12/2/ AIM: STX Biotechnology Research & Information Network AG Germany Provider of drugs, bioactive natural compounds, and proprietary enzymes for businesses in the chemical, pharmaceutical, food, and cosmetics industries. Pharmaceuticals Biopharmaceuticals Healthcare 9/2/ FWB: BNN Blue Prism Group PLC United Kingdom Provider of Robotic Process Automation (RPA) software. Business Applications Software Software Information Technology 18/3/ LSE: PRSM 16

17 ABOUT US Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service provider 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 survey 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. 17

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