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V E N T U R E C A P I T A L R E P O R T
Venture Capital Report Europe | 3Q | 2017
V E N T U R E C A P I T A L R E P O R T
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 3Q 2017 include:
• Both the number of funds and amount raised by European venture capital funds decreased compared to the previous quarter.
• Venture capital investment into European companies fell by 25% from 2Q 2017 in terms of amount raised, but was up 48% year-on-year.
• The number of and amount raised through M&As fell 30% and 43%, respectively, compared with the previous quarter.
• Exits via IPOs saw a steep drop in the third quarter compared to 2Q 2017, both in terms of amount raised and number of IPOs.
2
V E N T U R E C A P I T A L R E P O R T
EUROPEAN VENTURE CAPITAL FUNDRAISING EXPERIENCES SIGNIFICANT DROP IN 3Q 2017
3
FUNDRAISING
European VC Fundraising Based on multiple closings (2014–2017) 20 European venture capital funds raised
€1.58 billion during 3Q 2017. Compared with 2Q 2017, total
capital raised experienced a 48% drop, and the number of
fund closings decreased by 41%.
Compared with the same quarter last year, amount raised
increased by 24%, despite closing 13% fewer funds.
Partech International Ventures VII, which raised €400 million,
was the largest fund of the quarter, accounting for 25% of the
total amount raised in 3Q 2017.
3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17
Amount Raised (€B) € 0.83 € 1.40 € 1.30 € 2.03 € 1.20 € 1.70 € 2.85 € 2.57 € 1.27 € 2.08 € 2.23 € 3.04 € 1.58
Number of Funds 22 29 24 27 19 27 29 25 23 24 19 34 20
€ 0.83
€ 1.40 € 1.30
€ 2.03
€ 1.20
€ 1.70
€ 2.85
€ 2.57
€ 1.27
€ 2.08 € 2.23
€ 3.04
€ 1.58
0
5
10
15
20
25
30
35
40
€ 0.00
€ 0.50
€ 1.00
€ 1.50
€ 2.00
€ 2.50
€ 3.00
€ 3.50
V E N T U R E C A P I T A L R E P O R T
LARGEST EUROPEAN VC FUNDS RAISED IN 3Q 2017
4
FUNDRAISING
Firm Name Fund Name Amount (€M) Location Offering Status
Fund Type Fund Category Closing Type
Partech Ventures Partech International
Ventures VII €400.00 Paris, France Closed
Early-stage Venture Capital
Venture Capital Final
Cathay Innovation Cathay Innovation Fund €280.05 Paris, France Closed Multi-stage
Venture Capital Venture Capital Final
Mangrove Capital Partners Mangrove V Fund €148.78 Luxembourg City,
Luxembourg Closed
Early-stage Venture Capital
Venture Capital Final
BlackFin Capital Partners SAS BlackFin Tech Fund 1 €100.00 Paris, France Open Multi-stage
Venture Capital
Venture Capital First
Abingworth LLP Abingworth Bioventures VII LP €88.11 London,
United Kingdom Open
Multi-stage Venture Capital
Venture Capital Interim
V E N T U R E C A P I T A L R E P O R T
INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES PARES BACK GAINS IN 3Q 2017
European companies raised approximately €3.29 billion through
513 deals in 3Q 2017.
In comparison to the same quarter last year, the amount
companies raised increased by 48%, while the total number of
deals closed fell by some 5%.
Quarter-over-quarter figures show both the amount raised and
number deals declining by 25% and 7%, respectively.
The quarter’s decline in the number of deals continued the year-to-date downward trend in this area. Moreover, the correction in the
amount raised by European venture-backed companies in 3Q 2017
might suggest last quarter’s spike was more of an anomaly and
not fully representative of how the rest of the year’s equity
financings could develop.
5
FINANCING Equity Financings into Europe-based,
VC-backed Companies (2014–2017)
3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17
Amount Raised (€B) € 2.39 € 2.09 € 2.92 € 4.11 € 3.43 € 3.56 € 2.85 € 3.21 € 2.23 € 3.51 € 2.97 € 4.39 € 3.29
Number of Deals 402 473 497 516 471 591 543 598 539 608 610 554 513
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
€ 0.00
€ 0.50
€ 1.00
€ 1.50
€ 2.00
€ 2.50
€ 3.00
€ 3.50
€ 4.00
€ 4.50
V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2014–2017)
6
FINANCING
3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17
Seed 43 51 43 61 47 56 58 55 51 63 71 80 79
First 193 230 244 225 219 300 241 292 261 272 253 225 186
Second 72 83 87 82 89 102 106 105 103 121 146 110 118
Later 58 58 81 110 75 78 84 91 74 94 76 80 84
Restart 1 1 1
0
40
80
120
160
200
240
280
320 Number of Deals
V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (3Q 2014–3Q 2017)
7
FINANCING
3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17
Seed € 19 € 32 € 36 € 43 € 38 € 43 € 48 € 46 € 42 € 65 € 79 € 83 € 113
First € 495 € 500 € 654 € 683 € 721 € 803 € 757 € 902 € 740 € 1,116 € 961 € 1,007 € 584
Second € 247 € 830 € 446 € 937 € 643 € 811 € 800 € 580 € 455 € 597 € 755 € 730 € 827
Later € 886 € 681 € 1,690 € 2,295 € 1,981 € 1,452 € 1,053 € 1,607 € 902 € 1,615 € 846 € 1,559 € 1,556
Restart € 2 € 1 € 2
€ 0
€ 500
€ 1,000
€ 1,500
€ 2,000
€ 2,500 Amount Raised (€M)
V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES (3Q 2014–3Q 2017)
8
FINANCING
3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17
Median Equity Deal Size (€M) € 1.48 € 1.60 € 1.59 € 1.86 € 1.78 € 1.86 € 1.90 € 1.56 € 1.81 € 2.05 € 2.20 € 1.96 € 2.36
€ 0.00
€ 0.50
€ 1.00
€ 1.50
€ 2.00
€ 2.50 Median Equity Deal Size [€M]
V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (3Q 2017)
Consumer Services received the largest allocation of investment during 3Q 2017,
raising €996 million through 121 deals. The sector attracted 30% of capital raised
by European VC-backed companies in the quarter, and a 24% share of all deals
completed in the quarter.
Business and Financial Services ranked second, raising some €904 million
through 134 deals. The sector attracted 27% of the total amount invested into
European VC-backed companies as well as a 26% share of all deals completed in
the quarter.
Information Technology (IT) placed third in terms of euros invested, raising €641
million, or some 20% of the total amount invested into European VC-backed
companies for the quarter. Additionally, IT, with 136 financing rounds, was
Europe’s most active industry, beating out Business and Financial Services by
two deals.
9
FINANCING 3Q 2017 Industry Breakdown By Number of Deals
3Q 2017 Industry Breakdown By Amount Raised
26%
4%
24% 3%
14%
3%
26%
Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
27%
3%
30% 2%
14%
4%
20% Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
V E N T U R E C A P I T A L R E P O R T
TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (3Q 2017)
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Co. Name Location Industry
Code Industry Segment
Industry Group
Brief Description
Close Date
Round Type
Raised (€M)
Round Investors (* denotes lead)
Roofoods Ltd. (Deliveroo)
London, United
Kingdom
Shopping Facilitators
Consumer Information Services
Consumer Services Provider of a food delivery
platform. 24/09/2017 Later
Stage €301.79
Accel Partners, Digital Sky Technologies Ltd., Fidelity Management & Research Co.*, General
Catalyst Partners, Index Ventures, T. Rowe Price Group Inc.*
SoundCloud Ltd. Berlin,
Germany
Movie / Music Producers and
Distributors Media & Content Consumer Services
Operator of an online platform to send, receive, and distribute
music. 11/08/2017 Later
Stage €142.94
Atlantic Labs Manager GmbH, Doughty Hanson, Temasek Holdings Pvt. Ltd.*, The Raine Group
LLC*, Union Square Ventures
Lilium GmbH (Lilium Aviation)
Gilching, Germany
Commercial Aircraft
Aerospace & Defense
Industrial Goods & Materials
Developer of small-scale electric aircrafts.
05/09/2017 Second Round
€75.87 Atomico, LGT Group, Obvious Ventures
Management LLC, Tencent Holdings Ltd.
TTTech Computer-technik AG
Vienna, Austria
Software Development
Tools Software
Information Technology
Provider of time-triggered systems.
14/09/2017 Later Stage
€75.00 Samsung Strategy & Innovation Center*
Autolus Ltd. London, United
Kingdom
Biotechnology Therapeutics
Biopharmaceuticals Healthcare Provider of biopharmaceutical
solutions. 26/09/2017 Later
Stage €64.42
Arix Bioscience Investments Ltd., Cormorant Asset Management LLC*, Nextech Invest Ltd., Syncona Partners LLP, Woodford Investment Management
LLP
FINANCING
V E N T U R E C A P I T A L R E P O R T
MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (3Q 2017)
1 1
FINANCING
14
13
12
11
10 10
9 9
0
2
4
6
8
10
12
14
16
Force Over Mass Capital LLP
Bpifrance Investissement
SAS
Partech Ventures High-Tech Gruenderfonds Management
GmbH
Kima Ventures Sunstone Capital A/S
Balderton Capital Management LLP
Global Founders Capital
Deals Completed
V E N T U R E C A P I T A L R E P O R T
EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (3Q 2017)
The United Kingdom remained the most favored destination for equity
financings in 3Q 2017, attaining some 41% of amount raised and 28% of all
deals. The region received €1.34 billion across 146 deals. The amount invested
was down 35% from last quarter while the deal flow decreased by 12%.
Germany ranked second with €603 million raised through 70 deals. This
represents a 33% decrease in capital invested and a 8% rise in the number of
deals compared to last quarter.
France came in third, raising €504 million in 78 deals. It attracted 11% more
capital than last quarter, through a similar level of deals.
Switzerland, garnering €146 million across 30 deals, was just two financings
shy of being in the Top 4 outright for both amount raised and number of deals.
Instead, Russia, with 31 deals, rounded out the Top 4 for number of financings.
1 2
FINANCING Number of Deals in 3Q 2017 by Country (Top 4)
Amount Raised in 3Q 2017 by Country (Top 4)
23%
19%
28%
15%
14% 6%
37%
United Kingdom
France
Germany
Russia
Rest of Europe
41%
18%
15%
4%
22% United Kingdom
Germany
France
Switzerland
Rest of Europe
V E N T U R E C A P I T A L R E P O R T
EUROPE 3Q 2017 VENTURE CAPITAL EXIT ACTIVITY
During the quarter, 46 venture-backed M&As took
place in Europe, a 30% quarter-on-quarter drop and a
39% drop compared to the same quarter last year.
The total amount raised through European VC-backed
M&As in 3Q 2017 was €1.8 billion, representing a 43%
decrease from last quarter and a 52% decline from 3Q
2016.
Eight European venture-backed companies completed
initial public offerings in the quarter, indicating M&As
continue to be the preferred exit strategy for venture-
backed companies.
1 3
LIQUIDITY
Exits for European VC–backed Companies (2014–2017)
0 10 20 30 40 50 60 70 80 90 100
3Q'14
4Q'14
1Q'15
2Q'15
3Q'15
4Q'15
1Q'16
2Q'16
3Q'16
4Q'16
1Q'17
2Q'17
3Q'17
3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17
IPOs 16 11 12 17 8 17 7 11 13 17 10 17 8
M&As 60 59 63 53 64 45 67 66 75 74 62 66 46
V E N T U R E C A P I T A L R E P O R T
TOP 3 M&As IN EUROPE (3Q 2017)
1 4
Company Name Location Brief
Description Industry
Code Industry Segment Industry Group
Close Date
Round Type
Amount Paid (€M)
Acquirer
Contorion GmbH Berlin,
Germany
Operator of an e-commerce site for industrial and trade supplies in the maintenance repair and operations (MRO) parts sector.
Shopping Facilitators
Consumer Information Services
Consumer Services 26/07/2017 Acquisition €120.00 Hoffmann SE
Cobalt Light Systems Ltd.
Abingdon, United Kingdom
Manufacturer of laser-spectroscopy systems for pharmaceutical analysis,
research, security, and biomedical analysis
Electronic Components
/ Devices
Electronics & Computer Hardware
Information Technology
07/07/2017 Acquisition €45.59 Agilent Technologies
Inc.
The Social Travel Club Ltd. (Love
Home Swap)
London, United Kingdom
Operator of an international vacation home exchange
website.
Travel Arrangement /
Tourism Travel & Leisure Consumer Services 31/07/2017 Acquisition €45.59
Resort Condominiums
International Ltd.
LIQUIDITY
V E N T U R E C A P I T A L R E P O R T
EUROPEAN VC-BACKED IPOs (3Q 2014-3Q 2017)
1 5
LIQUIDITY
During 3Q 2017, both the number of IPOs and the amount
raised fell significantly in comparison to the prior quarter.
Only eight venture-backed companies went public in the
quarter, down markedly from the 18 IPOs in 2Q 2017. This
figure represents 53% fewer IPOs than last quarter and 38%
fewer than the same quarter last year. Furthermore, the
€207.60 million raised through the quarter’s IPOs
constituted a 72% and 57% decline compared to last quarter
and 3Q 2016, respectively.
The largest European VC-backed IPO during the quarter was
NuCana PLC, which raised €84.34 million at a valuation of
€450.07 million for its offering on NASDAQ.
3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17 2Q'17 3Q'17
Raised (€M) through IPO € 447.47 € 2,264.11 € 417.40 € 576.70 € 699.69 € 612.93 € 155.78 € 227.64 € 483.22 € 202.04 € 357.82 € 749.81 € 207.60
Number of IPOs 16 11 12 17 8 17 7 11 13 17 10 17 8
0
2
4
6
8
10
12
14
16
18
€ 0.00
€ 500.00
€ 1,000.00
€ 1,500.00
€ 2,000.00
€ 2,500.00
V E N T U R E C A P I T A L R E P O R T
TOP 3 IPOs IN EUROPE (3Q 2017)
1 6
LIQUIDITY
Company Name Location Brief
Description Industry
Code Industry Segment Industry Group
Close Date
Raised through IPO (€M)
Exchange: Ticker
NuCana PLC United Kingdom Provider of biopharmaceuticals for
anti-cancer therapies. Biotechnology Therapeutics
Biopharmaceuticals Healthcare 28/09/2017 €84.34 NASDAQ: NCNA
Nightstar Therapeutics Ltd.
United Kingdom Developer of gene therapies for
retinal dystrophies, such as choroideremia (CHM).
Biotechnology Therapeutics
Biopharmaceuticals Healthcare 28/09/2017 €63.26 NASDAQ: NITE
Rovio Entertainment Ltd.
Finland Provider of entertainment products. Recreational / Home
Software Software
Information Technology
29/09/2017 €30.00 HEL: ROVIO
V E N T U R E C A P I T A L R E P O R T
ABOUT US & METHODOLOGY
Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service providers 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 report cover venture backed companies headquartered in Europe, and are based on aggregate findings of Dow
Jones’ proprietary research for VentureSource.
This data was collected through surveys of professional firms, interviews with company executives, and from secondary sources. To be included,
companies have to receive financing from a venture capital or private equity firm. Our figures do not include companies that have received funding solely
from individual, corporate and/or government investors. The data in this report only accounts for equity funding, not convertible debt deals.
Figures contained throughout the report are current at time of editorial but 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.
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V E N T U R E C A P I T A L R E P O R T
ABOUT DOW JONES
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Newswires, and Dow Jones VentureSource.
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