Venture Capital Report - Dow Jones & Company

[Pages:18]Venture Capital Report

Europe | 3Q | 2016

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 3Q 2016 include: ? European venture capital fundraising declined noticeably from the prior quarter and just slightly compared to the same quarter in 2015; ? Venture capital investment into European companies decreased significantly from 2Q 2016; ? The number of mergers and acquisitions (M&As) was one deal lower, but the total amount raised in M&As experienced a significant increase from the

previous quarter; ? The number of initial public offerings (IPOs) remained stable and the total amount raised increased significantly from 2Q 2016.

VENTURE CAPITAL REPORT 2

EUROPEAN VENTURE CAPITAL FUNDRAISING FALLS IN 3Q 2016

FUNDRAISING

20 European venture capital funds raised 1.23 billion during 3Q 2016. Compared with 2Q 2016, total capital raised experienced a significant decline, and the number of fund closings decreased by 17%.

? Compared with the same quarter last year, euros raised declined by 8%, while the number of fund closings increased by 18%

? Northzone Ventures AS, which raised 300 million, was the largest fund of the quarter, accounting for 24% of the total amount raised in 3Q 2016

European VC Fundraising

Based on multiple closings (2013?2016)

50

2.74

2.79 2.71

3.00

45

2.50

40

2.14

35

30

1.73

1.68

1.59

2.00

25

20 0.85

15

1.00

1.10

1.37

1.33

1.23 1.50 1.00

10

0.50

5

0 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14

Amount Raised (B) 0.85 2.74 1.00 1.73 1.10 1.68

Number of Funds

12 46 24 24 20 28

1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16

1.37 2.14 1.33 1.59 2.79 2.71 1.23

24 26

17 24 25

24

20

0.00

VENTURE CAPITAL REPORT 3

LARGEST EUROPEAN VC FUNDS RAISED IN 3Q 2016

FUNDRAISING

Firm Name

Fund Name

Amount (M)

Location

Offering Status

Fund Type

Fund Category

Closing Type

Northzone Ventures AS

Northzone VIII

300.00

Oslo, Norway

Closed

Early-stage venture capital

Venture Capital

Final

Via Venture Partners

Via Venture Partners Fond III K/S

134.38

Hellerup, Denmark

Closed

Multi-stage venture capital

Venture Capital

Final

Russian Venture Company

National Technology Initiative Fund

106.74

Moscow, Russia

Open

Early-stage venture capital

Venture Capital

First

PSA Peugeot Citroen

Groupe PSA Fund

100.00

Paris, France

Closed

Early-stage venture capital

Venture Capital

Final

Santander InnoVentures

Santander InnoVentures Fund

89.77

London, United Kingdom

Open

Early-stage venture capital

Venture Capital

Interim

VENTURE CAPITAL REPORT 4

INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES DECREASED IN 3Q 2016

FINANCING

European companies raised approximately 2.10 billion from 464 deals in 3Q 2016, a 32% decrease in the amount raised as well as a 3% decline in the number of deals when compared to the previous quarter. ? Compared with the same period last year, the amount

companies raised decreased by 39%, whereas the number of deals grew by 9% ? Consumer Services was the strongest sector of the quarter in terms of amount raised, while Business and Financial Services completed the largest number of deals

Equity Financings into Europe-based, VC-backed Companies (2013?2016)

4.50

550

4.00

500

450 3.50

400

3.00 350

2.50

300

2.00

250

200 1.50

150 1.00

100

0.50

50

0.00

0

3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16

Amount Raised (B) 1.77 2.00 1.62 2.40 2.35 2.09 2.82 3.98 3.46 3.43 2.60 3.07 2.10

Number of Deals

415 522 427 464 379 439 443 451 425 509 442 478 464

VENTURE CAPITAL REPORT 5

EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2013?2016) ? NUMBER OF DEALS

FINANCING

280

240

200

160

120

80

40

0 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16

Seed

64

81

44

38

32 45

33

47

37

42

42

27

32

First

212 236 224 233 189 211 228 197 204 265 209 251 228

Second 65

88

64

92

67

76

78

78

83

94

97

90

99

Later

50

81

61

77

62

61

78

104

77

75

80

83

72

Restart 0

0

0

0

1

0

1

1

0

1

0

1

0

VENTURE CAPITAL REPORT 6

EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2013?2016) ? AMOUNT RAISED (M)

FINANCING

2,500

2,000

1,500

1,000

500

0

Seed First Second Later Restart

3Q'13 25 510 706 469 0

4Q'13 32 512 411 988 0

1Q'14 24 472 307 696 0

2Q'14 3Q'14

24 16

603 488

474 220

1,123 903

0

1

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16

32 31 35 30 32 39 20 45

468 630 567 917 765 707 802 601

766 436 919 584 604 770 657 436

778 1,650 2,303 1,876 1,581 1,072 1,559 925

0

1

1

0

1

0

2 0

VENTURE CAPITAL REPORT 7

EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES (2013?2016) ? MEDIAN EQUITY DEAL SIZE (M)

FINANCING

2.50

2.00

1.50

1.00

0.50

0.00 3Q'13

Median Equity Deal Size (M) 1.00

4Q'13 1.17

1Q'14 2Q'14 3Q'14 1.30 1.50 1.50

4Q'14 1.71

1Q'15 1.79

2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 2.11 2.00 2.00 2.18 2.00 2.00

VENTURE CAPITAL REPORT 8

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