August 20, 2007 ISSN 1741-9085 NEWS www.penews.com Mapping the achievements of the most influential European firms Fundraising is a sign of success and the sector is enjoying a boom after the sterile period following the dotcom disaster, writes James Mawson

1 Coller Capital Key people Jo Taylor is while venture partners are Mark Kreiz, Barry Maloney and Jerome managing partner of the 49 staff de Boer and Saul Klein. Misso, with Klaus Hommels AuM $7.8bn in last three in venture capital for , which High points Being an early among its venture partners. secondaries funds, of which a excludes its and round investor in internet High points Set up seven years substantial minority is in direct small and medium-sized telecoms company Skype, ago as the first European arm of venture capital investments investments division. He is also alongside Mangrove, Bessemer US tier-one firm Benchmark This fund $4.8bn (2007) chairman of the UK trade body’s and , Capital, the operation has spun Last fund $2.6bn (2002) venture committee. Ian Lobley is gave it an estimated 100 times its off and was renamed Balderton. a senior partner; Jean-David money. The firm has also seen The firm raised a $550m Key people Jeremy Coller, Chamboredon heads its Paris big wins from the sale of social III fund in November and its main doyen of secondaries market. Of office; Christian Siegele is head radio broadcaster Last.fm to US investments in the European the 10 other partners, Timothy of venture capital in Stuttgart, media group CBS. technology sector include Jones is responsible for and the hire of Jonas What the firm said We like to Finland’s Habbo Hotel, a teen origination, while Erwin Roex, Risberg from Sweden’s most back companies that aren’t down social networking site; Sweden’s former head of secondaries at prolific venture capital investor, the middle of the pitch. We look MySQL, an open-source database Netherlands-based private equity InnovationsKapital, last year was for quirky businesses that cut business; and Ireland-based investor AlpInvest, is on the a coup for its Stockholm office. across the grain. We try to make Setanta Sports, an international board of Forbion. High points Exits of DocMorris the most disruptive play in each sports pay-TV broadcaster. High points Substantial majority and ProStrakan in healthcare and sector we target. Aims to invest What the firm said Our of its last three funds have gone Cambridge Silicon Radio in $3m to $10m (double this over strategy is to be the first investor into venture capital through technology. the life of an investment) in in technology-driven companies direct secondaries deals and What the firm said Over the technology and life sciences, that seek to create new markets corporate venturing next five years, we will invest although sometimes invests as with significant growth potential. partnerships. Its most recent €1.2bn to help entrepreneurs little as $500,000 in seed rounds. We focus on early-stage investing public deals were with UK-listed realise their potential to become What the critics said Index has and take a labour-intensive, defence research company leaders in their fields. We been described as the premier service-oriented approach in QinetiQ, oil group Shell, Dutch typically invest between €2m and venture capital group in Europe markets where we have direct bank ABN Amro’s life sciences €50m from seed to late stage and arguably in the top five in the experience. These include venture capital spin-out Forbion across IT, healthcare and world. Its focused investment enterprise software and services, and telephone equipment cleantech. strategy of a few years ago, communications and security, company Lucent. It is Europe’s What the critics said Badly which generated stellar returns, semiconductors, mobile largest venture capital investor. burnt by the dotcom bust after is in danger of becoming a “spray computing, consumer services What the firm said We have a 2000, the firm has moved and pray” as it has made 11 and financial services. Our larger appetite for venture capital towards taking larger stakes in investments in the first six investments range from as little than most secondaries players. later stage businesses, while months against a stated average as $100,000 to $10m or $15m. What the critics said closing many of its UK regional target of six to 10 in a year, Typically, we invest $3m to $5m Consistent investors that go for offices to develop its according to Dow Jones initially and expect to invest $5m the trickier end of the market. Its international network. VentureOne. to $15m over the life of a 2001 purchase of Bell Labs’ company. corporate venture portfolio from What the critics said Lucent Technologies kick-started 3 4 Balderton Impressive record from its 60 the market in direct private AuM €1bn AuM $1.5bn investments, backed up by equity investments. Last fund €350m (2007) Current fund $550m (€457.6m) Nov sizeable exits this year. However, First fund $180m (1999) 2006 although it will remain close to 2 3i Last fund Benchmark’s Europe II its former parent Benchmark, Key people Co-founders David fund at $375m (2004) spinning out is never easy. But AuM £7bn in funds plus balance and Neil Rimer and Giuseppe with two thirds of its dealflow sheet Zocco. Other partners are Danny Key people The firm’s general coming from its portfolio This fund Plans to invest more than Rimer, Bernard Dallé, Francesco partners are Johan Brenner, company network and a strong $1.5bn over the next five years De Rubertis and Michèle Ollier, George Coelho, Mark Evans, Ynon team, it is well positioned. 5 Sofinnova Partners Schreck are their peers in partners are Carmen Scarpa and February, which was its eighth. AuM €900m technology. Rick Ganong. In Europe Last year, Abingworth completed This fund Sofinnova Capital V High points The company understood to be using a top-tier eight exits, including six from €385m (2005) changed its name from Techno venture capital group to source European firms including Last fund Sofinnova Capital IV €330, Venture Management last year. deals. PowderMed UK, which was (2000) Schühsler has become EVCA High points Some of its better acquired by Pfizer. Abingworth chairman during a crucial time as known investments, which have also participated in seven Key people Jean-Bernard it reorganises into three divisions. gone public, include Cambridge- financings including Ablynx of Schmidt is managing partner and Last year’s flotation of based Art Technology Group, Belgium, which develops next stepped down as chairman last Switzerland’s biotech company North Billerica-based Avici generation antibodies, summer, having been with the BioXell was TVM’s first exit from Systems and Tampa-based Switch nanobodies, HealthCare Brands firm since 1973, a year after it was its sixth life sciences fund. & Data Facilities. Spent an International of the UK, formed. Denis Lucquin is What the firm said In its estimated £100m in European marketing over-the-counter chairman, having come from the technology and life sciences deals in first half of year. products, and Intelligent Medical life sciences division. Monique investment efforts, TVM Capital What the firm said Launched in Implants of Switzerland, Saulnier is managing partner and focuses on creating global 1994, Tudor Ventures focuses on developing a retinal stimulator for chief financial officer of Sofinnova businesses that benefit from mid and late-stage technology visual perception in blind people. Partners. IT managing partners access to science, management companies. It typically invests What the firm said Founded in are Olivier Protard and Jean talent and capital in Europe, the between $7m and $15m in each of 1973, Abingworth has offices in Schmitt while Antoine Papiernik is US and Asia by being lead or co- its portfolio companies and most , Cambridge, Menlo Park, managing partner in life sciences lead investor. often acts as a lead investor in four California and Boston. alongside Lucquin. Gérard What the critics said communications, internet Abingworth’s investments range Hascoët, David Hytha Bernard Schühsler’s role in EVCA meant it infrastructure, enterprise from $1m to $25m, averaging and Gilly Piero Martinotti are pipped Wellington to the top 10, applications, financial and business about $15m per investment after venture partners. despite its rival’s chairman, Rolf services and media and retail. private rounds of financing. High points The oldest French Christof Dienst, becoming head of What the critics said One hedge What the critics said venture capital group, Sofinnova the BVK, the German trade body. fund manager that is expanding Impressive record and team and hired Olivier Sichel, former Solid fundraising and deal record into European venture capital. able to carry out strong exits as chairman and chief executive of but starting to look lightweight Concentrated in later-stage pharmaceutical groups look for France Télécom’s unit Wanadoo, compared with its Anglo-Saxon companies within a few years of pipelines. Larger fund will be as partner in its information peers. flotation and bidding up prices. required as drug development technology group last summer. becomes more expensive. Floated the largest biotechnology 7 Intel Capital 9 Kreos Capital company, Addex Pharmaceuticals 10= SV Life of the past three years. AuM $6bn This fund Kreos III (2006) €200m What the firm said Sofinnova Funds Central pot close Sciences Partners is an independent Last fund Kreos II (2004) aims to AuM $1.6bn, including the venture capital company based in Key people Arvind Sodhani has invest €400m by 2010 International Biotechnology Trust, a Paris. We have special relations been president of Intel Capital London Stock Exchange-listed with Sofinnova Ventures, our since 2005, and oversees the Key people Founding partners investment trust with a market cap sister firm based in San Francisco. group’s external investment are Ross Ahlgren, Maurizio of $210m We invest primarily in companies activity as well as being PetitBon, Raoul Stein and Mårten This fund SV Life Sciences fund IV in information technologies and responsible for new business Vading. $572m (February) life sciences in France and incubation. High points Invested €130m of Last fund SV Life Sciences fund III other European countries. A High points This year the firm financing in the first five $393m (2003) limited portion of our investments has led the second round months of the year in 25 venture is made in the US. We invest in investment in chipmaker Mirics capital companies to bring its Key people Managing partners start-ups and early-stage Semiconductor. Intel Capital completed closes to 200 of the SVLS investment team companies with ambitious invested $1.07bn in 163 deals last transactions in 12 countries in include James Garvey, Kate projects. The minimum unit year with about 60% of funds Europe and Israel. Bingham, Lutz Giebel, Eugene investment is €500,000. Up to invested outside the US, of which What the firm said Previously Hill, David Milne and Michael €20m may be invested over a dozen were in Europe. In 2005 it known as European Venture Ross. several rounds of financing. invested $265m in 140 deals in 19 Partners, Kreos is Europe’s High points Closing its fourth What the critics said Having countries. largest and leading fund at the same size as peer made 22 investments in the first What the firm said Since 1991, provider and manages third-party Abingworth. half, Sofinnova is on track to beat Intel Capital has invested more institutional money from a dozen What the firm said SV Life last year’s 25 deals and could than $6bn in nearly 1,000 financial sponsors, including Sciences, formerly Schroder begin another fundraising round in companies in more than 40 Merrill Lynch, Deutsche Bank and Ventures Life Sciences, provides the next year or two. It remains countries. In that time about 180 the European Investment Fund. finance to businesses at all stages ahead of Natixis’ venture capital portfolio companies have been What the critics said Innovative of development in the human life operation Seventure Partners, acquired and another 155 have addition to the European venture sciences sector and invests which has €400m under gone public on exchanges around scene and offers entrepreneurs between $1m and $20m in North management. the world. finance. America and Europe. Will What the critics said consider innovative investments Increasingly large bet on global in other regions. 6 TVM Capital technology investments by 10= Abingworth What the critics said Tied with AuM €1.3bn several deals brings into question AuM $1.25bn Abingworth for influence and This fund TVM Life Science Ventures its ability to handle the companies. This fund Abingworth Bioventures V equally strong. VI €240.3m (2005) £300m (February) Last fund TVM V Information 8 Tudor Ventures Last fund Abingworth Bioventures Technology €128m (2002) IV $350 (2003) The next in line AuM $15bn, of which $500m is in Key people Helmut Schühsler, venture capital through Tudor Key people Stephen Bunting has 12 DFJ Esprit managing partner in life sciences Ventures been managing director for the 13 Eden Ventures and chairman of European trade This fund Tudor Ventures III $262m past five years. Other partners 14 Wellington body, EVCA, this year. Other IT (June) are Joe Anderson, Tim Haines 15 Amadeus managing partner is Friedrich Last fund Tudor Ventures II $400m and Genghis Lloyd-Harris, while 16 Atlas Bornikoel. Alexandra Goll, Axel Andy Sandham is the venture 17 Accel Polack and Hubert Birner are Key people Managing partner partner. 18 Mangrove general partners in life sciences Bob Forlenza, who founded the High points Closing Europe’s 19 Pi Capital and Christian Claussen and Hans operation in 1994, while other then largest life sciences fund in 20 Unilever Ventures Coller rises highest among the green shoots of venture

Coller Capital is the elephant in the to December 31, 2006. com crash when many firms strug- room of European venture capital. Unlike the industry, gled to raise capital. Hidden by its preference for where nearly every firm can raise Preliminary data for 2006 com- backing start-ups when others another fund, venture capital piled for the European Private have given up, or working with fundraising is a gauge of success, Equity and Venture Capital Asso- corporate venturers rather than according to participants. Several ciation by Thomson Financial and sharing a funding round with oth- firms, such as Abingworth, SV Life PwC showed €16bn ($21bn) of ers, Coller is understood to have Sciences and Balderton in the top funds raised were allocated to ven- delivered the best returns of any 20 have just raised record funds or ture capital. This was up almost large European venture capital are about to come to the market 50% on the €11bn raised in 2005, group. It is also the biggest with big plans. and the second highest amount investor in Europe, having Despite poor investor sentiment raised for venture capital after the invested billions over the past – European venture capital is in record of €22bn in 2000. decade and so is the most influen- last place for investor attraction – More than €11bn was invested tial venture capital firm, according there has been a fundraising boom. in venture capital last year. There to Financial News. This follows a period after the dot- was also more early-stage activity, The firm is reluctant to talk and with 42% of the completed rounds its announcements are driven by Top European venture in Europe having been seed and those selling stakes to it, such as first rounds, the highest as a pro- QinetiQ, Lucent, BT and Forbion. capital investors – portion since 2001, compared with However, even this limited by number of deals 36% in the US. information reveals some of the June 30, 2007 Venture capital investors and smartest thinking about intellec- firms have been encouraged by a Jeremy Coller: Coller Capital tual property and growing compa- Investing firm No of deals few success stories, such as that nies of any private equity firm. of internet telecom operator tures in Geneva while Sequoia, Sofinnova Partners 22 Returns to investors in venture Skype, social radio company Bessemer, Draper Fisher Jurvet- capital funds have been dismal. Seventure Partners 11 Last.fm, and the opening of east- son and others are planning their A survey by Coller Capital found 11 ern Europe to investment. approach. DFJ has taken a stake in only 4% of European investors A strong exit market, whether UK-based Esprit, in what could were achieving net returns of more Index Ventures 11 trade sale or flotation, would become a powerhouse competitor, than 16% from their European 3i Group 10 reverse investor concerns. according to venture capital firms. venture capital portfolios, which Coller’s survey found two thirds Small venture capital firms are was the lowest percentage of any 10 thought there were too few or back in charge in Europe, pushing private equity asset class. YFM Group 9 weak sale options while more than aside large rivals. In Germany, But this average hides the green half of respondents said the mar- Wellington’s chairman Rolf Dienst TVM Capital 8 shoots of success among the top ket was fragmented and there has taken the top job at its trade firms. Preliminary private equity Viveris Management 8 were an insufficient number of body, the BVK, while Helmut performance benchmark data com- Quester Capital Mgmnt 8 strong venture capital groups. Schühsler, head of local peer TVM piled by Thomson Financial But limited domestic competi- Capital, will run the European revealed top quartile venture funds Source: Dow Jones VentureOne tion attracts US firms, with High- umbrella organisation for the next returned 23.5% a year since launch land Capital joining Index Ven- year.