venture capital report - dow jones & company

Venture Capital Report

Europe | 1Q | 2015

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 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

3

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

5

10

15

20

25

30

35

40

€ 0.00

€ 0.20

€ 0.40

€ 0.60

€ 0.80

€ 1.00

€ 1.20

€ 1.40

€ 1.60

€ 1.80

€ 2.00 European VC Fundraising (2012 – 2015) Based on multiple closings

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.


FUNDRAISING

4

Largest European VC Funds Raised in 1Q 2015

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


FINANCING

5

Equity Financings into Europe – based, VC-backed Companies (2012 – 2015)

Investment into European Venture-backed Companies Improves in 1Q 2015 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 Services was the strongest sector of the quarter in terms of attracting investment with Business and Financial Services in second. The sectors garnered 50% and 17% of all dollars invested during 1Q 2015 respectively.

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

0

50

100

150

200

250

300

350

400

450

500

€ 0.00

€ 0.50

€ 1.00

€ 1.50

€ 2.00

€ 2.50

€ 3.00


FINANCING

6

Equity Financings into Europe-based, VC-backed Companies, by Round Class (2012 – 2015) Number of Deals

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

0

40

80

120

160

200

240


FINANCING

7

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

€ 0

€ 200

€ 400

€ 600

€ 800

€ 1,000

€ 1,200

€ 1,400

€ 1,600

€ 1,800

Equity Financings into Europe-based, VC-backed Companies, by Round Class (2012 – 2015) Amount Raised (€M)


FINANCING

8

Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (€M) (2012 – 2015)

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

€ 0.00

€ 0.50

€ 1.00

€ 1.50

€ 2.00

€ 2.50


FINANCING

9

24%

3%

30% 1%

16%

4%

22% Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

1Q'15 Industry Breakdown By Number of Deals

Equity Financings into Europe-based, VC-backed Companies, by Industry Group (1Q 2015) Consumer Services 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 Services 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.

17%

1%

50%

1%

13%

2%

16% Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

1Q’15 Industry Breakdown By Amount Raised


FINANCING

10

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

Services

Consumer InformaFon Services

Shopping Facilitators Provider of an online food ordering plaUorm.

6/2/2015 Later €288.00 Rocket Internet AG*

Grocery Delivery E-‐Services USA

Inc.

Germany Consumer Services 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

Services


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

Top 5 Deals into European VC-backed Companies (1Q 2015)


FINANCING

11

14

12

9

7 7

0

2

4

6

8

10

12

14

16

Bpifrance Investment High-Tech Gruenderfonds

Management GmbH

Seventure Partners SA Index Ventures HV Holtzbrinck Ventures Adviser GmbH

Most Active Investors for Europe-based, VC-backed Companies by Deals Completed (1Q 2015)


FINANCING

12

Amount Raised in 1Q 2015 by Country (Top 4)

35%

34%

11%

7%

13%

Germany

United Kingdom

France

Austria

Rest of Europe

25%

21%

19%

7%

28% United Kingdom

France

Germany

Spain

Rest of Europe

Number of Deals in 1Q 2015 by Country (Top 4)

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.


LIQUIDITY

13

Exit Opportunities for European VC – backed Companies (2012 – 2015)

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.

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

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


LIQUIDITY

14

Top 3 M&As in Europe (1Q 2015)

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

plaUorm. Shopping Facilitators


Consumer Services 5/3/2015 AcquisiFon €202.39 Recruit Holdings

Co. Ltd.


LIQUIDITY

15

European VC-backed IPO Activity (2012 - 2015)

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 venture-backed company IPOs for the quarter.

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

5

10

15

20

25

€ 0.00

€ 500.00

€ 1,000.00

€ 1,500.00

€ 2,000.00

€ 2,500.00


LIQUIDITY

16

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 Services

28/1/2015 €89.26 NASDAQ: ASND

Nordic Nanovector AS Norway

Developer of radio-‐immunotherapeuFcs to

treat cancer.

Biotechnology TherapeuFcs BiopharmaceuFcals Consumer

Services 23/3/2015 €58.14 OSE: NANO

Banzai SpA Italy Provider of Internet e-‐commerce and media

soluFons. Shopping Facilitators Consumer InformaFon

Services Healthcare 16/2/2015 €54.00 MIL: BANZ

Top 3 IPOs in Europe (1Q 2015)


ABOUT US

Dow Jones VentureSource helps venture capitalists, corporate development execu9ves, investment bankers and service providers find deal and partnership opportuni9es, 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 execu9ves – 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 surveys of professional firms, interviews with company execu9ves, and from secondary sources. These venture capital sta9s9cs cover equity investments into early stage, innova9ve companies and do not include companies receiving funding solely from corporate, individual, and/or government investors. Figures contained throughout the report current at 9me of editorial but are subject to change without no9ce. No statement herein is to be construed as a recommenda9on to buy or sell securi9es or to provide investment advice. About Dow Jones Dow Jones is a global provider of news and business informaFon, delivering content to consumers and organizaFons around the world across mulFple formats, including print, digital, mobile and live events. Dow Jones has produced unrivaled quality content for more than 125 years and today has one of the world’s largest newsgathering operaFons with nearly 2,000 journalists in more than 75 bureaus globally. It produces leading publicaFons and products including the flagship Wall Street Journal, America’s largest newspaper by paid circulaFon; FacFva, Barron’s, MarketWatch, Financial News, DJX, Dow Jones Risk & Compliance, Dow Jones Newswires, and Dow Jones VentureSource. MEDIA CONTACT: Kate Dobbin 44 (0)20 7573 4016 [email protected]

17

venture capital report - dow jones & company

Documents