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Venture Capital Report

Europe | 1Q | 2016

VENTURE CAPITAL REPORT

VENTURE CAPITAL REPORT

The following report presents Dow Jones VentureSources 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 2016 include:

European venture capital fundraising amount improved significantly from prior quarter and reached a new high;

Venture capital investment into European companies declined from 4Q 2015;

The number of mergers and acquisitions (M&As) experienced an increase from the last quarter, while the total M&A raised amount decreased
significantly;

The number of initial public offerings (IPOs) and total amount raised dropped dramatically form 4Q 2015.

VENTURE CAPITAL REPORT

EUROPEAN VENTURE CAPITAL FUNDRAISING


ROCKETS IN 1Q 2016
FUNDRAISING

25 European venture capital funds reached a new high of


2.85 billion during 1Q 2016. Compared with 4Q 2015, total
capital raised more than doubled, and the number of fund
closings climbed 19% .

Compared with the same period last year, euros raised


improved by 169%, and the number of fund closing
increased 14%.
Index Ventures VIII LP was the largest fund of this
quarter, which raised 511.53 million, accounting for
18% of the total amount raised in 1Q 2016.

European VC Fundraising
Based on multiple closings (20132016)
45

3.00

40
2.50
35
30

2.00

25
1.50
20
15

1.00

10
0.50
5
0

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

Amount Raised (B) 0.76 1.03 0.65 1.89 0.65 1.26 0.81 1.26 1.06
Number of Funds

15

17

12

41

23

24

20

27

22

2Q'15

3Q'15

4Q'15

0.00

1Q'16

1.96 0.86 1.36 2.85


26

13

21

25

VENTURE CAPITAL REPORT

LARGEST EUROPEAN VC FUNDS RAISED IN 1Q 2016


FUNDRAISING
Firm Name

Fund Name

Amount (M)

Location

Offering
Status

Fund Type

Fund Category

Closing Type

Index Ventures

Index Ventures VIII LP

511.53

Geneva, Switzerland

Closed

Early-stage venture
capital

Venture Capital

Final

Rocket Internet AG

Rocket Internet Capital Partners


Fund

390.63

Berlin,
Germany

Open

Late-stage venture
capital

Venture Capital

First

Endeavour Vision SA

Endeavour Medtech Growth LP

250.00

Closed

Multi-stage venture
capital

Venture Capital

Medicxi Ventures

Medicxi Ventures I

210.00

London,
United Kingdom

Closed

Early-stage venture
capital

Venture Capital

Creandum

Creandum IV

180.00

Stockholm,
Sweden

Closed

Early-stage venture
capital

Venture Capital

Geneva, Switzerland

Final

Final

Final

VENTURE CAPITAL REPORT

INVESTMENT INTO EUROPEAN VENTURE-BACKED


COMPANIES DECLINED IN 1Q 2016
FINANCING
European companies raised 2.4 billion through 411 deals during 1Q
2016, a 29% decline in the amount raised from the prior quarter as
well as a 12% drop in the number of deals.

4.50

500

4.00

450

3.50

400

Compared with the same period last year, both investment


amount and the number of deals decreased, 17% and 2%
respectively.
Healthcare was the strongest sector of the quarter in terms of
attracting investment.

Equity Financings into Europe-based,


VC-backed Companies (20132016)

350

3.00

300

2.50

250
2.00

200

1.50

150

1.00

100

0.50

50

0.00

1Q'13

2Q'13 3Q'13 4Q'13

1Q'14

2Q'14 3Q'14 4Q'14

1Q'15

2Q'15 3Q'15 4Q'15

1Q'16

Amount Raised (B) 1.23 1.54 1.78 1.97 1.64 2.43 2.33 2.03 2.91 3.84 3.35 3.40 2.42
Number of Deals

394

435

413

499

413

452

366

416

419

416

396

467

VENTURE CAPITAL REPORT

411

EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED


COMPANIES, BY ROUND CLASS (20132016) NUMBER
OF DEALS
FINANCING
280
240
200
160
120
80
40
0

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

Seed

42

41

60

76

40

32

28

39

28

38

33

32

1Q'16
34

First

205

217

212

223

220

227

183

201

212

183

191

250

193

Second

66

85

66

85

63

92

66

76

78

76

79

89

94

Later

54

65

51

81

60

77

62

59

79

99

76

69

79

Restart

VENTURE CAPITAL REPORT

EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED


COMPANIES, BY ROUND CLASS (20132016) AMOUNT
RAISED (M)
FINANCING
2,500

2,000

1,500

1,000

500

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

Seed

21

18

24

33

19

22

15

29

31

24

36

25

25

First

401

433

535

489

514

625

469

446

614

554

821

773

649

Second

255

464

708

402

300

477

220

775

443

946

574

607

772

Later

541

600

462

989

680

1,122

901

734

1,752 2,179

1,873 1,534

962

Restart

VENTURE CAPITAL REPORT

EQUITY FINANCINGS INTO EUROPE-BASED,


VC-BACKED COMPANIES (20132016)
MEDIAN EQUITY DEAL SIZE (M)
FINANCING
3.00

2.50

2.00

1.50

1.00

0.50

0.00
Median Equity Deal Size (M)

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1.50

1.54

1.03

1.40

1.50

2.00

1.74

2.10

2.00 2.68

2.31

2.03 2.56

1Q'16

VENTURE CAPITAL REPORT

EQUITY FINANCINGS INTO EUROPE-BASED,


VC-BACKED COMPANIES, BY INDUSTRY GROUP (1Q 2016)
FINANCING

Healthcare received the largest allocation of investment during 1Q 2016, raising


754.05 million through 62 deals. The sector attracted a 31% of the total amount
invested and a 15% of all deals completed for the quarter.

1Q'16 Industry
Breakdown
By Number
of Deals

Business and Financial Services


25%

Consumer Goods
Consumer Services
Energy & Utilities

1%
4%

Business and Financial Services ranked the second highest proportion of


investment. The sector garnered 712.1 million across 116 deals, an increase of
5% in deal number and a less than 1% drop in amount invested from 4Q 2015.
Consumer Services represented the third, receiving 476.92 million across 97
deals. The sectors investment figure represents 20% of the total equity financing
into European VC-backed companies for 1Q 2016.

28%

15%

Healthcare
Industrial Goods & Materials

1%

24%

Information Technology

1Q16 Industry
Breakdown
By Amount
Raised

Business and Financial Services

17%
29%

1%

Consumer Goods
Consumer Services
Energy & Utilities

1%

Healthcare
Industrial Goods & Materials

31%
1%

20%

Information Technology

VENTURE CAPITAL REPORT

TOP 5 DEALS INTO EUROPEAN VC-BACKED


COMPANIES (1Q 2016)
FINANCING

Co. Name
Mission
Therapeutics
Ltd.

Location

Industry
Code

Industry
Segment

Cambridge,
Biotechnology
United
Biopharmaceuticals
Therapeutics
Kingdom

Industry
Group

Brief
Description

Close
Date

Healthcare

Developer of drugs designed to


improve the management of lifethreatening diseases, particularly
cancer.

2/2/2016

Healthcare

Provider of biopharmaceutical
solutions.

Round
Type

Raised
(M)

Round Investors
(* denotes lead)

3rd

84.35

Imperial Innovations Group PLC*, Pfizer Venture


Investments, Roche Venture Fund, Sofinnova
Partners, SR One Ltd., Woodford Investment
Management LLP*

3/3/2016

Second
Round

56.23

Perceptive Bioscience Investments Ltd., Woodford


Investment Management LLP

Autolus Ltd.

London,
United
Kingdom

Student.com
(UK) Ltd.

London,
United
Kingdom

Hotels /
Gambling

Travel and Leisure

Consumer Services

Provider of an accommodation
marketplace for students
studying abroad.

10/2/2016

First Round

55.80

Expa Capital, Horizons Ventures Ltd., Individual


Investors, Vy Capital Management Co. Ltd.*

Blippar.com
Ltd.

London,
United
Kingdom

Recreational /
Home Software

Software

Information
Technology

Provider of a mobile image


recognition and augmented
reality platform.

2/3/2016

Second
Round

50.22

Khazanah Nasional Berhad*

Aprea AB

Solna,
Stockholm

Healthcare

Developer of drugs for the


treatment of cancer.

9/3/2016

Later

46

5AM Venture Management LLC*, HealthCap


Venture Capital*, Sectoral Asset Management Inc.,
Versant Venture Management LLC*

Biotechnology
Biopharmaceuticals
Therapeutics

Biotechnology
Biopharmaceuticals
Therapeutics

VENTURE CAPITAL REPORT

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MOST ACTIVE INVESTORS FOR EUROPE-BASED,


VC-BACKED COMPANIES (1Q 2016) BY DEALS COMPLETED
FINANCING
16

16
15

14
12
12
10

Bayern Kapital
GmbH

Idinvest Partners

HV Holtzbrinck
Ventures Adviser
GmbH

Index Ventures

6
4
2
0

Bpifrance
Investment

High-Tech
German Startups
Gruenderfonds
Group Berlin GmbH
Management GmbH
& Co. KGaA

Jenson Funding
Partners LLP

VENTURE CAPITAL REPORT

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EQUITY FINANCINGS INTO EUROPE-BASED,


VC-BACKED COMPANIES BY COUNTRY (1Q 2016)
FINANCING
Number of
Deals in 1Q 2016
by Country
(Top 4)

The United Kingdom remained as the most favoured destination for equity
financing during 1Q 2016, receiving 974 million across 111 deals. The country
took 40% of all equity financing from 1Q 2016.
Germany ranked second. It reached a total 463 million through 75 deals,
representing a 19% share of European financing. A 33% decrease in capital
invested and 13% drop of the number of deals from last quarter.
France occupied third position raising 354 million, 15% of the total for the
quarter. Sweden placed fourth based on raising 99 million during 1Q 2016.

United Kingdom
27%

29%

France
Germany
5%
23%

21%

Netherlands

18%
Rest of Europe

Amount Raised
in 1Q 2016
by Country
(Top 4)

United Kingdom
22%
40%
4%

Germany
France

19%

Sweden

15%
19%

Rest of Europe

VENTURE CAPITAL REPORT

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EUROPE 1Q 2016 VENTURE EXIT ACTIVITY


LIQUIDITY

Exit Opportunities for European VCbacked Companies (20132016)

50 venture-backed M&As took place in Europe


during 1Q 2016, a 28% increase from 4Q 2015. The
number is 6% lower than that of 1Q 2015.
However, total amount raised through European VCbacked M&As in 1Q 2016 is only 3.7 billion. A 45% drop
from the prior quarter and 16% lower than the same
period last year.
5 venture-backed IPOs took place during 1Q 2016, a
64% and 58% decrease from 4Q 2015 and 1Q 2015
respectively.

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

10
2Q'13

3Q'13

20
4Q'13

1Q'14

30
2Q'14

3Q'14

40
4Q'14

1Q'15

50
2Q'15

3Q'15

60
4Q'15

70
1Q'16

IPOs

21

16

10

12

15

14

M&As

37

40

43

44

56

42

50

49

53

44

49

39

50

VENTURE CAPITAL REPORT

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TOP 3 M&As IN EUROPE (1Q 2016)


LIQUIDITY

Industry
Code

Industry Segment

Industry Group

Close
Date

Round
Type

Amount Paid
(M)

Acquirer

Provider of collaboration
Uxbridge,
infrastructure and conferencing
United Kingdom
software.

Communications
Software

Software

Information
Technology

29/1/2016

Acquisition

651.04

Cisco Systems

London,
Provider of predictive text entry
TouchType Ltd. United Kingdom
software.

Communications
Software

Software

Information
Technology

2/2/2016

Acquisition

232.51

Microsoft Corp.

Internet Service
Providers

Communications
and Networking

Information
Technology

14/1/2016

Acquisition

126.52

KCOM Group Plc

Company Name

Acano Ltd.

CityFibre
Infrastructure
Holdings Plc

Location

Brief
Description

Provider of dark fibre networks in


London,
towns and cities outside London
United Kingdom
on a shared infrastructure basis.

VENTURE CAPITAL REPORT

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EUROPEAN VC-BACKED IPOs (2013-2016)


LIQUIDITY

Both the number of deals and amount raised via IPO during
1Q 2016 dropped significantly from the prior quarter.

2,500.00

25

5 venture-backed companies went public during 1Q


2016, 64% decrease from the last quarter.

2,000.00

20

IPOs raised 110 million during 1Q 2016, a decline of 82%


from the 608 million raised in 4Q 2015.

1,500.00

15

1,000.00

10

The largest European VC-backed IPO of 1Q 2016


was Shield Therapeutics Ltd. The company raised 45.69
million for its offering on AIM.

500.00

0.00
Raised (M) through IPO
Number of IPOs

1Q'13

2Q'13

19.22

89.24

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

25.51 366.10 691.24 529.53 447.47 2,249.97 417.40 533.10 699.69 608.00 110.05
3

21

16

10

12

15

14

VENTURE CAPITAL REPORT

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TOP 3 IPOs IN EUROPE (1Q 2016)


LIQUIDITY

Company Name

Location

Brief
Description

Industry
Code

Industry Segment

Industry Group

Close
Date

Raised through
IPO (M)

Exchange/
Symbol

Shield
Therapeutics Ltd.

United Kingdom

Developer of late-state, secondary


care-focused pharmaceuticals.

Biotechnology
Therapeutics

Biopharmaceuticals

Healthcare

12/2/2016

45.69

AIM: STX

Biotechnology
Research &
Information
Network AG

Germany

Provider of drugs, bioactive natural


compounds, and proprietary
enzymes for businesses in the
chemical, pharmaceutical, food, and
cosmetics industries.

Pharmaceuticals

Biopharmaceuticals

Healthcare

9/2/2016

31.50

FWB: BNN

Blue Prism Group


PLC

United Kingdom

Provider of Robotic Process


Automation (RPA) software.

Business Applications
Software

Software

Information
Technology

18/3/2016

15.59

LSE: PRSM

VENTURE CAPITAL REPORT

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ABOUT US

Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service provider 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 release are based on aggregate findings of Dow Jones proprietary research and are contained in VentureSource.
This data was collected through survey of professional firms, interviews with company executives, and from secondary sources. These venture capital
statistics cover equity investments into early stage, innovative companies and do not include companies receiving funding solely from corporate,
individual, and/or government investors. Figures contained throughout the report current at time of editorial but are 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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ABOUT DOW JONES

Dow Jones is a global provider of news and business information, delivering content to consumers and organizations around the world across multiple
formats, including print, digital, mobile and live events. Dow Jones has produced unrivaled quality content for more than 130 years and today has one of
the worlds largest newsgathering operations globally. It produces leading publications and products including the flagship Wall Street Journal,
Americas largest newspaper by paid circulation; Factiva, Barrons, MarketWatch, Financial News, DJX, Dow Jones Risk & Compliance, Dow Jones
Newswires and Dow Jones VentureSource. Dow Jones is a division of News Corp [NASDAQ: NWS, NWSA; ASX: NWS, NWSLV].

MEDIA CONTACT:
Sophie Bent
+44 (0) 203 426 1381
sophie.bent@dowjones.com

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