Venture Capital Report
Europe | 4Q | 2015
VENTURE CAPITAL REPORT 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 2015 include: • European venture capital fundraising and fund closings climbed from prior quarter; • Venture capital investment into European companies declined from 3Q 2015, while the number of deals improved; • The number of mergers and acquisitions (M&As) experienced a decrease from the last quarter, while the number of initial public offerings (IPOs) is on the rise.
VENTURE CAPITAL REPORT 2 EUROPEAN VENTURE CAPITAL FUNDRAISING RISES IN 4Q 2015 FUNDRAISING
European VC Fundraising 19 European venture capital funds raised Based on multiple closings (2012–2015) €1.33 billion during 4Q 2015, both a 58% climb in capital raised 45 € 2.50 and number of fund closings from 3Q 2015 . 40 • Compared with the same period last year, euros raised 35 € 2.00 improved by 6%, despite the number of 30 fund closing dropped 30%. € 1.50 25 • Sofinnova Capital VIII was the largest fund of this quarter, 20 which raised €300 million, accounting for 23% of the total € 1.00 amount raised for 4Q 2015. 15
10 € 0.50 5
0 € 0.00 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Amount Raised (€B) € 1.42 € 0.76 € 1.03 € 0.65 € 1.94 € 0.55 € 1.26 € 0.81 € 1.26 € 1.06 € 1.96 € 0.84 € 1.33 Number of Funds 32 15 17 12 41 22 24 20 27 22 26 12 19
VENTURE CAPITAL REPORT 3 LARGEST EUROPEAN VC FUNDS RAISED IN 4Q 2015 FUNDRAISING
Offering Firm Name Fund Name Amount (€M) Location Fund Type Fund Category Closing Type Status
Paris, Early-stage venture Sofinnova Partners Sofinnova Capital VIII € 300.00 Closed Venture Capital Final France capital
Munich, Late-stage venture Acton Capital Partners Heureka Growth Fund II € 170.00 Closed Venture Capital Final Germany capital
Paris, Late-stage venture Partech Ventures Partech Growth € 170.00 Open Venture Capital France capital First
Octopus Zenith Opportunities II London, Late-stage venture Octopus Ventures Ltd. € 121.62 Closed Venture Capital LP United Kingdom capital Final
Open Ocean Capital Software Espoo, Early-stage venture Open Ocean Capital € 100 Closed Venture Capital Final Fund Finland capital
VENTURE CAPITAL REPORT 4 INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES DECLINED IN 4Q 2015 FINANCING
European companies raised over €3.3 billion for 426 deals during Equity Financings into Europe-based, VC-backed Companies (2012–2015) 4Q 2015, a 1% decline in the amount raised from the prior quarter € 4.00 500 despite a 14% rise in the number of deals. 450 € 3.50 • Compared with the year ago period, both investment amount 400 and the number of deals improved, raising 61% and 4% € 3.00 350 respectively. € 2.50 300 • Information Technology was the strongest sector of the € 2.00 250 quarter in terms of attracting investment. 200 € 1.50 150 € 1.00 100 € 0.50 50
€ 0.00 0 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Amount Raised (€B) € 1.28 € 1.24 € 1.54 € 1.80 € 1.98 € 1.64 € 2.43 € 2.32 € 2.05 € 2.83 € 3.52 € 3.32 € 3.29 Number of Deals 405 391 434 410 499 412 450 361 411 405 393 374 426
VENTURE CAPITAL REPORT 5 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2012–2015) – NUMBER OF DEALS FINANCING
240
200
160
120
80
40
0 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Seed 66 41 40 57 75 39 32 26 35 21 26 26 29 First 200 205 215 213 223 219 227 182 200 204 179 178 229 Second 61 66 87 65 85 64 92 66 76 79 73 78 82 Later 45 54 65 51 82 60 78 62 60 79 96 75 62 Restart 0 0 0 0 0 0 0 0 0 1 0 0 1
VENTURE CAPITAL REPORT 6 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2012–2015) – AMOUNT RAISED (€M) FINANCING
€ 2,500
€ 2,000
€ 1,500
€ 1,000
€ 500
€ 0 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Seed € 27 € 21 € 17 € 23 € 31 € 18 € 22 € 15 € 27 € 16 € 17 € 29 € 20 First € 464 € 401 € 429 € 543 € 491 € 513 € 625 € 461 € 453 € 606 € 509 € 808 € 725 Second € 299 € 258 € 472 € 706 € 402 € 306 € 477 € 220 € 775 € 451 € 922 € 571 € 578 Later € 458 € 540 € 600 € 461 € 995 € 679 € 1,124 € 900 € 751 € 1,691 € 1,937 € 1,861 € 1,511 Restart € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 1 € 0 € 0 € 1
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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES (2012–2015) – MEDIAN EQUITY DEAL SIZE (€M) FINANCING
€ 3.00
€ 2.50
€ 2.00
€ 1.50
€ 1.00
€ 0.50
€ 0.00 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Median Equity Deal Size (€M) € 1.20 € 1.39 € 1.52 € 1.00 € 1.25 € 1.50 € 1.74 € 1.58 € 2.00 € 1.98 € 2.50 € 2.30 € 2.22
VENTURE CAPITAL REPORT 8 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (4Q 2015) FINANCING 4Q'15 Industry Breakdown Business and Financial Services By Number 25% 23% Consumer Goods Information Technology received the largest allocation of investment during 4Q of Deals 2015, raising €840 million through 107 deals. The sector attracted a 26% of the Consumer Services 3% Energy & Utilities total amount invested and a 25% of all deals completed for the quarter. 1% Consumer Services ranked the second highest proportion of investment. The Healthcare 17% sector garnered €802 million across 110 deals, an improvement of 4% in deal 26% Industrial Goods & Materials 2% number while a 14% decline in amount invested from 3Q 2015. Information Technology Healthcare placed third, receiving € 752 million across 73 deals. The sector’s investment figure represents a 23% of the total equity financing into European 4Q’15 Industry Breakdown Business and Financial Services VC-backed companies for 4Q 2015. 22% By Amount 26% Consumer Goods Raised Consumer Services 1% Energy & Utilities 3% Healthcare
24% Industrial Goods & Materials
23% 1% Information Technology
VENTURE CAPITAL REPORT 9 TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (4Q 2015) FINANCING
Industry Industry Industry Brief Close Round Raised Round Investors Co. Name Location Code Segment Group Description Date Type (€M) (* denotes lead)
St. Helier, Wireless Allen & Co. LLC, Development Bank of Southern O3B Networks United Telecommunic Communications and Information Provider of global satellite 5th Africa, Google Ventures, HSBC Investments, Liberty 10/12/2015 €427.83 Ltd. Kingdom ations Service Networking Technology services. Round Global, Luxempart SA, North Bridge Venture Providers Partners, Satya Capital LLP, SES SA, Sofina SA.
Edinburgh, Artemis Ventures, Baillie Gifford & Co. Ltd., Consumer Provider of an online travel search Later Skyscanner Ltd. United Search Portals Consumer Services 31/12/2015 € 179.94 Khazanah Nasional Berhad*, Vitruvian Partners Information Services engine. Round Kingdom LLP, Yahoo Japan Corp.*
auxmoney Gdusseldorf, Financial Institutions Business and Financial Provider of an online peer-to-peer Lending 20/10/2015 Corporate € 150 Aegon* GmbH Germany and Services Services (P2P) lending marketplace.
Developer of messenger RNA Baillie Gifford & Co. Ltd.*, Chartwave Ltd., Coppel Tuebingen, Biotechnology Later CureVac AG Biopharmaceuticals Healthcare (mRNA)-based therapeutics and 29/10/2015 €100 Family, Elma Investments, Northview LifeSciences, Germany Therapeutics Round prophylactic vaccines. Sigma Group
Biotechnology Developer of genome-editing Crispr Basel, Therapeutics Biopharmaceuticals Healthcare technologies for the treatment of 26/10/2015 Corporate € 93.78 Vertex Pharmaceuticals* Therapeutics AG Switzerland serious human genetic diseases.
VENTURE CAPITAL REPORT 10 MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (4Q 2015) BY DEALS COMPLETED FINANCING
16 16
14
12 11
10
8 8 7 6 6 6 6
4
2
0 High-Tech Bpifrance Investment Partech Ventures Idinvest Partners Seedcamp Mercia Technologies Index Ventures Gruenderfonds PLC Management GmbH
VENTURE CAPITAL REPORT 11 EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (4Q 2015) FINANCING Number of Deals in 4Q 2015 United Kingdom by Country 29% 26% (Top 4) France
The United Kingdom remained as the most favoured destination for equity Germany financing during 4Q 2015, receiving €1403 million across 111 deals. The country 6% 23% took 43% of all equity financing from 4Q 2015. 21% Spain Germany ranked second. It reached a total €685 million through 78 deals, 18% Rest of Europe representing a 21% share of European financing. A 92% rise in capital invested and 11% increase of the number of deals from last quarter. Amount Raised France occupied third position raising €379 million, 12% of the total for the in 4Q 2015 15% United Kingdom quarter. Switzerland placed fourth ,raising €316 million during 4Q 2015. by Country (Top 4) Germany 10% 43% France
11% 19% Switzerland
21% Rest of Europe
VENTURE CAPITAL REPORT 12 EUROPE 4Q 2015 VENTURE EXIT ACTIVITY LIQUIDITY
Exit Opportunities for European VC–backed Companies (2012–2015)
4Q'15 38 venture-backed M&As took place in Europe 3Q'15 during 4Q 2015, a 22% decrease from 3Q 2015 as well as 2Q'15 from 4Q 2014. 1Q'15 4Q'14 Total amount raised through European VC-backed 3Q'14 M&As in 4Q 2015 is €6.7 billion. A 28% rise from the prior 2Q'14 quarter and more than doubled from the same period 1Q'14 4Q'13 last year. 3Q'13 13 venture-backed IPOs took place during 4Q 2015, a 2Q'13 63% and 30% increase from 3Q 2015 and 4Q 2014 1Q'13 4Q'12 respectively. 0 10 20 30 40 50 60 70 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 IPOs 5 1 5 3 9 8 21 16 10 12 15 8 13 M&As 47 37 40 42 44 56 42 50 49 53 43 49 38
VENTURE CAPITAL REPORT 13 TOP 3 M&As IN EUROPE (4Q 2015) LIQUIDITY
Brief Industry Close Round Amount Paid Company Name Location Industry Segment Industry Group Acquirer Description Code Date Type (€M)
Developer of therapies intended Acerta Pharma Oss, Biotechnology for the treatment of cancer and Biopharmaceuticals Healthcare 17/12/2015 Acquisition € 2296.03 AstraZeneca Plc B.V. Netherlands Therapeutics autoimmune diseases.
Dezima Pharma Naarden, Developer of drugs to treat Pharmaceuticals Biopharmaceuticals Healthcare 16/10/2015 Acquisition € 1339.76 Amgen Inc. B.V. Netherlands dyslipidemia.
Moscow, Provider of a classified Shopping Consumer Avito.ru Consumer Services 23/10/2015 Acquisition € 1071.81 Naspers Russia advertising website. Facilitators Information Services
VENTURE CAPITAL REPORT 14 EUROPEAN VC-BACKED IPOs (2012-2015) LIQUIDITY
13 venture-backed companies went public during 4Q 2015, an increase in number of deals from the prior quarter while € 2,500.00 25 the amount raised declined. • IPOs raised €511 million during 4Q 2015, a decline of 27% € 2,000.00 20 from the €700 million raised in 3Q 2015.
€ 1,500.00 15
• The largest European VC-backed IPO of 4Q 2015 was the NovoCure Ltd. The company raised €147 million € 1,000.00 10 for its offering on Nasdaq. € 500.00 5
€ 0.00 0 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Raised (€M) through IPO € 142.99 € 19.22 € 89.24 € 25.51 € 366.10 € 448.63 € 529.53 € 447.47 € 2,250 € 417.40 € 533.10 € 699.69 € 511.42 Number of IPOs 5 1 5 3 9 8 21 16 10 12 15 8 13
VENTURE CAPITAL REPORT 15 TOP 3 IPOs IN EUROPE (4Q 2015) LIQUIDITY
Brief Industry Close Raised through Exchange/ Company Name Location Industry Segment Industry Group Description Code Date IPO (€M) Symbol
Developer of therapy for the Biotechnology NovoCure Ltd. United Kingdom Biopharmaceuticals Healthcare 2/10/2015 € 147.37 Nasdaq: NVCR treatment of solid tumor cancers. Therapeutics
Network/Systems Information Software 19/11/2015 € 70.42 NASDAQ: MIME Mimecast Ltd. United Kingdom Provider of cloud security solutions. Management Software Technology
Advanced Developer of molecular nuclear Biotechnology Accelerator France Biopharmaceuticals Healthcare 11/11/2015 € 68.15 NASDAQ: AAAP medicine (MNM) products. Therapeutics Applications SA
VENTURE CAPITAL REPORT 16 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.
VENTURE CAPITAL REPORT 17 ABOUT DOW JONES
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