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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 | 1Q | 2017


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 2017 include:

•  The amount raised by European venture capital funds increased compared to the previous quarter but was still well below 1Q 2016 levels;

•  Venture capital investment into European companies declined from 4Q 2016 in terms of both amount raised and number of deals;

•  The number of mergers and acquisitions (M&As) and the amount raised through M&As both decreased significantly compared to the previous

quarter’s figures;

•  While the total amount raised via initial public offerings (IPOs) increased, the number of IPOs experienced a notable drop-off compared to 4Q 2016.

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EUROPEAN VENTURE CAPITAL FUNDRAISING CONTINUES ITS REBOUND IN 1Q 2017

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FUNDRAISING

European VC Fundraising Based on multiple closings (2014–2017) 15 European venture capital funds raised

€2.23 billion during 1Q 2017. Compared with 4Q 2016, total

capital raised experienced a 32% increase, while the number

of fund closings decreased by 29%.

•  Compared with the same quarter last year, euros raised

decreased by 23%, while the number of fund closings

decreased by 42%.

•  Atomico’s Atomico Ventures IV fund, which raised

€723.30 million, was the largest fund of the quarter,

accounting for 32% of the total amount raised in 1Q 2017.

1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17

Amount Raised (€B) € 1.07 € 1.63 € 1.10 € 1.97 € 1.37 € 2.09 € 1.34 € 1.87 € 2.90 € 2.77 € 1.42 € 1.68 € 2.23

Number of Funds 24 22 21 29 24 25 19 26 26 25 24 21 15

€ 1.07

€ 1.63

€ 1.10

€ 1.97

€ 1.37

€ 2.09

€ 1.34

€ 1.87

€ 2.90 € 2.77

€ 1.42

€ 1.68

€ 2.23

0

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15

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35

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LARGEST EUROPEAN VC FUNDS RAISED IN 1Q 2017

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FUNDRAISING

Firm Name Fund Name Amount (€M) Location Offering Status

Fund Type Fund Category Closing Type

Atomico Atomico Ventures IV LP € 723.30 London,

United Kingdom Closed

Early-stage venture capital

Venture Capital Final

Rocket Internet AG Rocket Internet Capital Partners

SCS € 546.30 Berlin, Germany Closed

Multi-stage venture capital

Venture Capital Final

Edmond de Rothschild Investment Partners

BioDiscovery V € 170.00 Paris, France Open Multi-stage venture

capital Venture Capital

First

Project A Ventures GmbH & Co. KG Project A Ventures II GmbH & Co.

KG € 140.00 Berlin, Germany Closed

Early-stage venture capital

Venture Capital

Final

Sofinnova Partners Sofinnova Industrial Biotech I €106.00 Paris, France Open Early-stage venture

capital Venture Capital First


INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES DECREASED IN 1Q 2017

European companies raised approximately €2.83 billion from 548

deals in 1Q 2017, an 8% decrease in the amount raised and a 2%

decrease in the number of deals when compared to the previous

quarter.

•  Compared with the same period last year, the amount

companies raised increased by 4% and the number of deals

grew by 10%.

•  Business and Financial Services was the strongest sector of

the quarter in terms of both amount raised and number of

deals. It netted €877.92 million across 163 transactions.

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FINANCING Equity Financings into Europe-based,

VC-backed Companies (2014–2017)

1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17

Amount Raised (€B) € 1.66 € 2.43 € 2.37 € 2.12 € 2.87 € 3.97 € 3.43 € 3.55 € 2.73 € 3.14 € 2.18 € 3.06 € 2.83

Number of Deals 439 473 388 445 464 479 448 553 498 547 511 558 548

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2014–2017) – NUMBER OF DEALS

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FINANCING

1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17

Seed 46 42 36 46 37 53 43 48 49 41 44 52 60

First 232 235 194 220 237 213 215 290 230 286 255 262 235

Second 64 96 68 80 82 78 85 97 102 96 102 116 134

Later 62 77 62 60 80 108 78 81 86 93 75 95 74

Restart 0 0 1 0 0 1 0 0 0 1 0 1 0

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2014–2017) – AMOUNT RAISED (€M)

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FINANCING

1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17

Seed € 25 € 27 € 17 € 32 € 33 € 40 € 36 € 36 € 42 € 29 € 33 € 55 € 66

First € 491 € 608 € 500 € 479 € 643 € 588 € 862 € 796 € 741 € 904 € 717 € 1,097 € 884

Second € 292 € 496 € 223 € 781 € 441 € 913 € 610 € 606 € 774 € 557 € 450 € 577 € 708

Later € 708 € 1,122 € 903 € 768 € 1,682 € 2,287 € 1,874 € 1,653 € 1,079 € 1,606 € 904 € 1,251 € 885

Restart € 0 € 0 € 1 € 0 € 0 € 1 € 0 € 0 € 0 € 2 € 0 € 1 € 0

€ 0

€ 500

€ 1,000

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€ 2,500


EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES (2014–2017) – MEDIAN EQUITY DEAL SIZE (€M)

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FINANCING

1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17

Median Equity Deal Size (€M) € 1.22 € 1.50 € 1.50 € 1.75 € 1.60 € 2.00 € 1.90 € 1.96 € 2.00 € 1.80 € 2.00 € 2.12 € 2.35

€ 0.00

€ 0.50

€ 1.00

€ 1.50

€ 2.00

€ 2.50


EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (1Q 2017)

Business and Financial Services received the largest allocation of investment

during 1Q 2017, raising €877.92 million through 163 deals. The sector attracted 31%

of the total amount invested into European VC-backed companies as well as a

30% share of all deals completed in the quarter.

Consumer Services ranked second in terms of euros invested. The sector

garnered €650.57 million across 130 deals. This represented 24% of all

transactions and 23% of the total amount invested into European VC-backed

companies for the quarter.

Healthcare placed third, receiving €645.10 million via 73 deals. The sector’s

investment figures represent 23% of the total equity financing into European VC-

backed companies for 1Q 2017 and 13% of the transactions for the quarter.

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FINANCING 1Q'17 Industry Breakdown By Number of Deals

1Q’17 Industry Breakdown By Amount Raised

30%

3%

24% 1%

13%

1%

27%

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

31%

1%

23% 0%

23%

1%

21% Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology


TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (1Q 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)

Picnic B.V. Amsterdam, Netherlands

Logistics / Delivery Services

Wholesale Trade and Shipping


Provider of grocery delivery services.

28/03/2017 1st € 100.00 De Hoge Dennen Capital PE BV, Finci, Hoyberg,

NPM Capital NV

Funding Circle Ltd.

London, United

Kingdom Lending

Financial Institutions and Services


Provider of a lending platform for small businesses.

12/01/2017 7th € 94.43

Accel Partners*, Baillie Gifford & Co. Ltd., DST Global, Index Ventures, Ribbit Capital LP, Rocket

Internet AG, Sands Capital Management, Temasek Holdings Pvt. Ltd., Union Square Ventures

Cell Medica Ltd. London, United

Kingdom

Biotechnology Therapeutics

Biopharmaceuticals Healthcare Provider of antigen-specific T-cell

immunotherapy treatments for infectious diseases and cancer.

16/03/2017 5th € 68.64 Invesco Perpetual, Touchstone Innovations Group

PLC, Woodford Investment Management LLP

Vestiaire Collective SA

Paris, France Shopping

Facilitators Consumer

Information Services Consumer Services

Operator of an online marketplace for fashion.

24/01/2017 5th € 58.00 Eurazeo SA, Idinvest Partners, Vitruvian Partners

LLP*

Breath Therapeutics

Munich, Germany

Therapeutic Devices

(Minimally Invasive /

Noninvasive)

Medical Devices and Equipment

Healthcare Developer of advanced drug-

aerosol therapeutics in pulmonary orphan indications.

08/03/2017 1st € 43.50 Gilde Healthcare Partners, Gimv NV*, Sofinnova

Partners*

FINANCING


MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (1Q 2017) BY DEALS COMPLETED

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FINANCING

12

9 9 9

8 8 8 8

0

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6

8

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12

14

16

Index Ventures Sunstone Capital A/S

Enterprise Ireland Bpifrance Investissement SAS

ALMI Invest AB 500 Startups Management Co.

LLC

Global Founders Capital

High-Tech Gründerfonds

Management GmbH


EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (1Q 2017)

During 1Q 2017, the United Kingdom was once again the most favored

destination for equity financing, receiving €970.28 million across 150 deals. The

amount invested increased by 27% and the deal flow by 11% compared to last

quarter.

France held onto second place, with €398.02 million raised through 78 deals.

Despite a 35% decrease in capital invested compared to last quarter, it

experienced a 22% increase in the number of deals.

Germany came in third, raising €371.04 million in 59 deals. Transaction volume

dropped 30% from the previous quarter and the amount raised was down 38%.

The Netherlands, helped along by a big round for Picnic N.V., placed fourth

based on the €177.34 million it received from 23 deals. These figures represent

increases of 64% and 28%, respectively, compared to 4Q 2016. However, both

Sweden (58 deals) and Spain (32 deals) had larger deal counts.

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FINANCING Number of Deals in 1Q 2017 by Country (Top 4)

Amount Raised in 1Q 2017 by Country (Top 4)

23%

19%

27%

14%

11% 11%

37%

United Kingdom

France

Germany

Sweden

Rest of Europe

34%

14% 13%

6%

33%

United Kingdom

France

Germany

Netherlands

Rest of Europe


EUROPE 1Q 2017 VENTURE EXIT ACTIVITY

During the quarter, 61 venture-backed M&As took place

in Europe, a 38% drop compared to 4Q 2016 and a 29%

decrease relative to 1Q 2016.

The total amount raised through European VC-backed

M&As in 1Q 2017 was €2.52 billion. This represents a

58% decrease from the previous quarter and a 51%

decrease from the same quarter last year.

10 venture-backed IPOs took place during 1Q 2017, a

33% drop from 4Q 2016 but a 43% increase over 1Q

2016.

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LIQUIDITY

Exit Opportunities for European VC–backed Companies (2014–2017)

0 10 20 30 40 50 60 70

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17

IPOs 9 21 16 10 12 17 8 15 7 11 13 15 10

M&As 66 49 61 60 62 51 61 44 86 87 98 99 61


TOP 3 M&As IN EUROPE (1Q 2017)

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Company Name Location Brief

Description Industry

Code Industry Segment Industry Group

Close Date

Round Type

Amount Paid (€M)

Acquirer

CMC Biologics A/S Gladsaxe, Denmark

Provider of contract-based biotechnology services.

Medical / Lab Services

Healthcare Services Healthcare 01/02/2017 Acquisition € 495.02 Asahi Glass Co.

Social Point SL Barcelona, Spain Provider of free-to-play mobile

games. Entertainment

Consumer Information Services

Consumer Services 31/01/2017 Acquisition € 236.37 Take-Two Interactive

Software Inc.

GenKyoTex SA Plan-Les-Ouates,

Switzerland

Developer of small molecule therapeutics that act as NOX inhibitors for the treatment of

diseases.


Biopharmaceuticals Healthcare 28/02/2017 Reverse Merger € 120.00 Genticel SA

LIQUIDITY


EUROPEAN VC-BACKED IPOs (2014-2017)

1 5

LIQUIDITY

The number of IPOs during 1Q 2017 decreased in comparison

to the prior quarter, whereas the amount raised increased

significantly.

10 venture-backed companies went public during 1Q 2017, a

33% decrease from the prior quarter.

IPOs raised €357.82 million during 1Q 2017, an increase of

83% from the €195.11 million raised in 4Q 2016.

The largest European VC-backed IPO of 1Q 2017 was Avantium NV. The company raised €103.42 million for its

offering on Euronext Amsterdam and Euronext Brussels.

1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17

Raised (€M) through IPO € 691.24 € 529.53 € 447.47 € 2,249.97 € 417.40 € 576.70 € 699.69 € 609.55 € 155.78 € 227.64 € 483.22 € 195.11 € 357.82

Number of IPOs 9 21 16 10 12 17 8 15 7 11 13 15 10

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TOP 3 IPOs IN EUROPE (1Q 2017)

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LIQUIDITY

Company Name Location Brief

Description Industry

Code Industry Segment Industry Group

Close Date

Raised through IPO (€M)

Exchange/ Symbol

Avantium NV Netherlands Provider of bio-based chemical

building blocks for making green materials and fuels.

Biofuels / Biomass Renewable Energy Energy and Utilities 15/03/2017 € 103.42 AMS: AVTX BRX: AVTX

ObsEva SA Switzerland Developer of pharmaceuticals for women's reproductive medicine.


Biopharmaceuticals Healthcare 26/01/2017 € 91.36 NASDAQ: OBSV

Oncopeptides AB Sweden Developer of chemotherapeutic

pharmaceuticals for cancer treatment.


Biopharmaceuticals Healthcare 22/02/2017 € 69.83 NASDAQ:ONCO


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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