Europe 1Q 2015
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
FUNDRAISING European Venture Capital Fundraising Experiences Downturn in 1Q 2015 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 35 30 25 20 15 10 5 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 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 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 0.00 3
Largest European VC Funds Raised in 1Q 2015 FUNDRAISING Firm Name Fund Name Amount ( M) Closed in 1Q Loca9on Offering Status Fund Type Fund Category Closing Type HV Holtzbrinck Ventures Adviser GmbH HV Holtzbrinck Ventures Fund VI 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
Investment into European Venture-backed Companies Improves in 1Q 2015 FINANCING 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 was the strongest sector of the quarter in terms of attracting investment with Business and Financial 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 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 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 348 376 325 379 375 423 387 469 392 410 342 362 345 500 450 400 350 300 250 200 150 100 50 0 5
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
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
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
FINANCING Equity Financings into Europe-based, VC-backed Companies, by Industry Group (1Q 2015) Consumer 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 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 22% 24% Business and Financial Consumer Goods 2% 16% 17% Business and Financial 1% Consumer Goods 4% 3% Consumer Energy & Utilities 13% Consumer Energy & Utilities 16% Healthcare 1% Healthcare 1% 30% Industrial Goods & Materials 50% Industrial Goods & Materials Information Technology Information Technology 9
Top 5 Deals into European VC-backed Companies (1Q 2015) FINANCING Co. Name Loca9on Industry Group Industry Segment Industry Code Brief Descrip9on Close Date Round Type Raised ( M) Round Investors (* denotes lead) Delivery Hero Holding GmbH Germany Consumer Consumer InformaFon Shopping Facilitators Provider of an online food ordering plauorm. 6/2/2015 Later 288.00 Rocket Internet AG* Grocery Delivery E- USA Inc. Germany Consumer Retailers Food/Drug Retailers Provider of meal kit delivery service. 6/2/2015 4th 111.59 Insight Venture Partners*, Rocket Internet AG* Nabriva TherapeuFcs AG Austria Healthcare BiopharmaceuFcals Biotechnology TherapeuFcs Developer of pleuromuflin anfbiofcs. 31/3/2015 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 Foodpanda GmbH Germany Consumer Consumer InformaFon Shopping Facilitators Provider of a food delivery plauorm. 11/3/2015 4th 104.00 Rocket Internet AG* Sigfox SA France InformaFon Technology CommunicaFons and Networking Wireless CommunicaFons Equipment Operator of a cellular network. 11/2/2015 4th 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 10
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 6 4 2 0 Bpifrance Investment High-Tech Gruenderfonds Management GmbH Seventure Partners SA Index Ventures HV Holtzbrinck Ventures Adviser GmbH 11
FINANCING Equity Financings into Europe-based, VC-backed Companies, by Country (1Q 2015) 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. 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% 7% 28% 25% United Kingdom France Germany Spain Rest of Europe 11% 7% 35% Germany United Kingdom France Austria Rest of Europe 21% 19% 34% 12
LIQUIDITY Europe Sees Improvement in 1Q 2015 Venture Exit Activity from Prior Quarter 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 10 20 30 40 50 60 70 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 IPOs 6 3 2 5 1 5 3 9 8 21 16 10 12 M&As 38 44 31 46 35 37 41 41 52 42 46 46 49 13
Top 3 M&As in Europe (1Q 2015) LIQUIDITY Company Name Loca9on Brief Descrip9on Industry Code Industry Segment Industry Group Close Date Round Type Amount Paid ( M) Acquirer Trophos SA Marseille, France Developer of compounds for the treatment of neurological and cardiac diseases. Biotechnology TherapeuFcs BiopharmaceuFcals Healthcare 16/2/2015 AcquisiFon 470.00 Roche Holding AG IGEFI Group Sarl Luxembourg, Luxembourg Provider of investment fund and transfer agency sodware. Business ApplicaFons Sodware Sodware InformaFon Technology 4/3/2015 AcquisiFon 235.00 Temenos Group Quandoo GmbH Berlin, Germany Provider of a real- Fme restaurant reservafon Shopping Facilitators plauorm. Consumer InformaFon Consumer 5/3/2015 AcquisiFon 202.39 Recruit Holdings Co. Ltd. 14
LIQUIDITY European VC-backed IPOs (2012-2015) 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 5 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 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 0 15
Top 3 IPOs in Europe (1Q 2015) LIQUIDITY Company Name Country Brief Descrip9on Industry Code Industry Segment Industry Group Close Date Raised through IPO ( M) Exchange/ Symbol Ascendis Pharma A/S Denmark Developer of long- acfng prodrug therapies to address large markets with significant unmet medical needs. Drug Development Technologies BiopharmaceuFcals Business and Financial 28/1/2015 89.26 NASDAQ: ASND Nordic Nanovector AS Norway Developer of radio- immunotherapeufcs to treat cancer. Biotechnology TherapeuFcs BiopharmaceuFcals Consumer 23/3/2015 58.14 OSE: NANO Banzai SpA Italy Provider of Internet e- commerce and media solufons. Consumer InformaFon Shopping Facilitators Healthcare 16/2/2015 54.00 MIL: BANZ 16
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