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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 | 2Q | 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 2Q 2017 include:

•  The amount raised by European venture capital funds increased compared both to the previous quarter and to 2Q 2016;

•  Venture capital investment into European companies increased from 1Q 2017 in terms of amount raised but declined in number of deals;

•  The amount raised through mergers and acquisitions (M&As) increased significantly compared to the previous quarter’s figures, while the number of

M&As was slightly lower;

•  Both the total amount raised via initial public offerings (IPOs) and the number of IPOs experienced a notable increase compared to 1Q 2017.

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EUROPEAN VENTURE CAPITAL FUNDRAISING CONTINUES ITS REBOUND IN 2Q 2017

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FUNDRAISING

European VC Fundraising Based on multiple closings (2014–2017) 32 European venture capital funds raised

€2.88 billion during 2Q 2017. Compared with 1Q 2017, total

capital raised experienced a 32% increase, and the number of

fund closings rose by 88%.

•  Compared with the same quarter last year, euros raised

increased by 12% and the number of fund closings rose

by 28%.

•  SILK Ventures Fund, which raised €457.52 million, was

the largest fund of the quarter, accounting for 16% of the

total amount raised in 2Q 2017.

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

Amount Raised (€B) € 1.19 € 0.83 € 1.41 € 1.19 € 1.91 € 1.99 € 1.70 € 2.70 € 2.57 € 1.27 € 1.92 € 2.18 € 2.88

Number of Funds 22 22 28 24 25 19 26 26 25 24 22 17 32

€ 1.19

€ 0.83

€ 1.41

€ 1.19

€ 1.91 € 1.99

€ 1.70

€ 2.70 € 2.57

€ 1.27

€ 1.92

€ 2.18

€ 2.88

0

5

10

15

20

25

30

35

€ 0.00

€ 0.50

€ 1.00

€ 1.50

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€ 3.00

€ 3.50


LARGEST EUROPEAN VC FUNDS RAISED IN 2Q 2017

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FUNDRAISING

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

Fund Type Fund Category Closing Type

SILK Ventures Ltd. SILK Ventures Fund € 457.52 London,

United Kingdom Closed

Late-stage venture capital

Venture Capital Final

Cathay Capital Private Equity Sino-French Innovation Fund € 265.00 Paris, France Closed Multi-stage venture

capital Venture Capital Final

Iris Capital IrisNext € 250.00 Paris, France Open Multi-stage venture

capital Venture Capital

First

High-Tech Gruenderfonds Management GmbH

High-Tech Gruenderfonds III € 245.00 Bonn, Germany Open Early-stage venture

capital Venture Capital

First

SBT Venture Capital SBT Venture Fund II €140.77 London,

United Kingdom Closed

Early-stage venture capital

Venture Capital Final


INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES INCREASED IN 2Q 2017

European companies raised approximately €4.31 billion from 528

deals in 2Q 2017, beating the region’s strongest quarter over the

past three years, 2Q 2015, in terms of amount raised.

•  In comparison to the prior year period, the amount companies

raised increased by 36%, while the total number of deals

closed fell by 8%.

•  Investment and overall deal flow for 2Q 2017 echoes the year-

over-year trend. Despite the region posting a 52% increase in

the amount raised from 1Q 2017, Europe did witness a 10%

quarter–over-quarter decrease in the number of financing

deals.

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FINANCING Equity Financings into Europe-based,

VC-backed Companies (2014–2017)

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

Amount Raised (€B) € 2.45 € 2.36 € 2.11 € 2.88 € 4.05 € 3.44 € 3.48 € 2.77 € 3.17 € 2.20 € 3.45 € 2.84 € 4.31

Number of Deals 495 400 459 486 504 465 573 526 574 526 588 588 528

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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

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

Seed 43 39 47 41 60 46 51 55 50 47 55 64 68

First 238 195 255 241 220 219 292 238 289 262 271 249 221

Second 102 72 82 87 80 89 102 105 103 103 120 143 105

Later 74 59 59 80 109 76 78 83 90 74 94 77 81

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

0

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80

120

160

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240

280

320


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

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FINANCING

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

Seed € 27 € 18 € 31 € 34 € 43 € 38 € 40 € 45 € 40 € 39 € 57 € 69 € 71

First € 617 € 497 € 493 € 645 € 678 € 866 € 796 € 772 € 907 € 729 € 1,131 € 937 € 1,013

Second € 534 € 240 € 827 € 446 € 935 € 643 € 807 € 780 € 581 € 456 € 586 € 741 € 694

Later € 1,100 € 890 € 722 € 1,686 € 2,290 € 1,855 € 1,450 € 1,045 € 1,604 € 904 € 1,607 € 834 € 1,564

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

€ 0

€ 500

€ 1,000

€ 1,500

€ 2,000

€ 2,500 Amount Raised (€M)


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

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FINANCING

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

Median Equity Deal Size (€M) € 1.47 € 1.48 € 1.70 € 1.59 € 1.92 € 1.81 € 1.93 € 2.00 € 1.70 € 1.99 € 2.05 € 2.29 € 2.00

€ 0.00

€ 0.50

€ 1.00

€ 1.50

€ 2.00

€ 2.50


EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (2Q 2017)

Consumer Services received the largest allocation of investment during 2Q 2017,

raising €1.31 billion through 127 deals. The sector attracted 31% of the total

amount invested into European VC-backed companies as well as a 24% share of

all deals completed in the quarter.

Information Technology ranked second in terms of euros invested. The sector

garnered €1.16 billion across 127 deals. This represents 24% of all transactions

and 27% of the total amount invested into European VC-backed companies for

the quarter.

Business and Financial Services placed third, receiving €768.60 million via 141

deals. The sector’s investment figures represent an 18% share of the quarter’s

total equity financings, and 27% of all completed transactions for the quarter.

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FINANCING 2Q'17 Industry Breakdown By Number of Deals

2Q’17 Industry Breakdown By Amount Raised

27%

4%

24% 1%

17%

3%

24%

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

18%

8%

31% 0% 15%

1%

27%

Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials



TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (2Q 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)

Improbable Worlds Ltd.

London, United

Kingdom

Software Development

Tools Software


Provider of a 3-D modeling platform,

11/05/2017 3rd € 459.35 Andreessen Horowitz, Horizon Ventures, Softbank

Corp.*, Temasek Holdings Pvt. Ltd.

Delivery Hero AG Berlin,

Germany Shopping

Facilitators Consumer

Information Services Consumer Services

Operator of an online food delivery platform.

12/05/2017 Corporate Equity

€ 387.00 Naspers*

Farfetch UK Ltd. London, United

Kingdom

Shopping Facilitators

Consumer Information Services

Consumer Services Provider of a global e-commerce

site for independent fashion boutiques.

22/06/2017 Corporate Equity

€ 351.90 JD.com Inc.*

BrewDog PLC Ellon, United

Kingdom

Alcoholic Beverages

Food and Beverage Consumer Goods Provider of craft beer and pub

chains. 11/04/2017 1st € 250.83 TSG Consumer Partners LLC*

Gigaclear PLC Abingdon,

United Kingdom

Internet Service Providers

Communications and Networking


Operator of fiber broadband networks in rural UK

communities. 05/05/2017 4th € 131.43

Individual Investor(s), M&G Investments*, Railway Pension Investments Ltd., Woodford Investment

Management LLP

FINANCING


MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (2Q 2017) BY DEALS COMPLETED

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FINANCING

9

8 8 8 8 8

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3

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10

High-Tech Gruenderfonds

Management GmbH

Global Founders Capital

Bpifrance Investissement SAS

Idinvest Partners Sunstone Capital A/S

Kima Ventures ALMI Invest AB Nesta Investment Management LLP


EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (2Q 2017)

During 2Q 2017, the United Kingdom was once again the most favored

destination for equity financing, receiving €2.03 billion across 156 deals. The

amount invested increased by 99% and the deal flow decreased by 10%

compared to last quarter.

Germany ranked second, with €877.75 million raised through 66 deals. This

represents a 129% increase in capital invested and a 5% rise in the number of

deals compared to last quarter.

France came in third, raising €478.71 million in 78 deals. Transaction volume

dipped 6% from the previous quarter, while the amount raised rose 16%.

Spain placed fourth based on the €299.44 million it received from 35 deals,

representing a 134% and 3% increase, respectively, compared to 1Q 2017.

However, Sweden, with 46 deals, had a larger deal count.

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FINANCING Number of Deals in 2Q 2017 by Country (Top 4)

Amount Raised in 2Q 2017 by Country (Top 4)

23%

19%

30%

15%

12%

9%

34%

United Kingdom

France

Germany

Sweden

Rest of Europe

47%

21%

11%

5%

16% United Kingdom

Germany

France

Spain

Rest of Europe


EUROPE 2Q 2017 VENTURE EXIT ACTIVITY

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

in Europe, a 2% drop compared to 1Q 2017 and a 8%

decrease relative to 2Q 2016.

The total amount raised through European VC-backed

M&As in 2Q 2017 was €4 billion. This represents a 21%

increase from the previous quarter and a 4% decrease

from the same quarter last year.

17 venture-backed IPOs took place during 2Q 2017, a

70% rise from 1Q 2017 and a 55% increase over 2Q 2016.

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LIQUIDITY

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

0 10 20 30 40 50 60 70 80 90 100

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

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

IPOs 23 16 10 12 17 8 17 7 11 13 17 10 17

M&As 49 60 59 63 53 64 44 67 66 75 74 62 61


TOP 3 M&As IN EUROPE (2Q 2017)

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Company Name Location Brief

Description Industry

Code Industry Segment Industry Group

Close Date

Round Type

Amount Paid (€M)

Acquirer

Ogeda SA Gosselies, Belgium

Provider of research focused on deorphanizing and identifying new drugs interacting with G protein-coupled receptors

(GPCRs).

Biotechnology Therapeutics

Biopharmaceuticals Healthcare 16/05/2017 Acquisition € 500.00 Astellas Pharma Inc.

Symetis SA Ecublens,

Switzerland

Provider of percutaneous heart valve replacement solutions for the treatment of severe cardiac

valve conditions.

Therapeutic Devices (Invasive)

Medical Devices and Equipment

Healthcare 16/05/2017 Acquisition € 398.04 Boston Scientific

Zenly SAS Paris,

France Provider of a location sharing

application. Online Communities


Consumer Services 31/05/2017 Acquisition € 274.51 Snap Inc.

LIQUIDITY


EUROPEAN VC-BACKED IPOs (2014-2017)

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LIQUIDITY

During 2Q 2017, both the number of IPOs and the amount

raised increased significantly in comparison to the prior

quarter.

17 venture-backed companies went public during 2Q 2017, a

70% rise from the prior quarter.

IPOs raised €749.81 million during 2Q 2017, an increase of

110% from the €357.82 million raised in 1Q 2017.

The quarter’s largest European VC-backed IPO, Delivery Hero AG, raised €483.23 million for its offering on the Frankfurt

Stock Exchange.

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

Raised (€M) through IPO € 593.16 € 447.47 € 2,249.97 € 417.40 € 576.70 € 699.69 € 612.93 € 155.78 € 227.64 € 483.22 € 202.04 € 357.82 € 749.81

Number of IPOs 23 16 10 12 17 8 17 7 11 13 17 10 17

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TOP 3 IPOs IN EUROPE (2Q 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

Delivery Hero AG Germany Operator of an online food delivery

platform. Shopping Facilitators


Consumer Services 30/06/2017 € 483.23 FSE:DHER

Isofol Medical AB Sweden Developer of novel products for unmet needs within oncology.

Drug Delivery Biopharmaceuticals Healthcare 04/04/2017 € 44.99 SSE:ISOFOL

BerGenBio ASA Norway Developer of treatments for

aggressive, drug resistant cancers. Drug Development

Technologies Biopharmaceuticals Healthcare 07/04/2017 € 43.65 OSE:BGBIO


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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