dow jones - venture capital report q2 2015
TRANSCRIPT
Venture Capital Report
Europe | 2Q | 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 2Q 2015 include: European venture capital fundraising doubles from prior quarter; Venture capital investment into European companies improves in consecutive quarters; Initial public offerings (IPOs) experienced an increase from the prior quarter, while the number of mergers and acquisitions (M&As) fell to its lowest level since 1Q 2013.
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Venture Capital Report
FUNDRAISING
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2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Amount Raised (€B) € 1.19 € 0.76 € 1.37 € 0.76 € 1.03 € 0.51 € 1.88 € 0.63 € 1.25 € 0.71 € 1.26 € 0.93 € 2.04
Number of Funds 22 15 30 15 17 10 39 23 23 19 27 17 25
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€ 2.50 European VC Fundraising (2012 – 2015) Based on multiple closings
European Venture Capital Fundraising Improves in 2Q 2015 25 European venture capital funds accumulated over €2 billion during 2Q 2015, more than double the euros raised in 1Q 2015 with a 47% increase in the number of fund closings. Compared with the year ago period, euros raised improved by 63% in two more fund closings. The largest fund of the quarter was Index Ventures Growth Fund III, which raised €650 million, accounting for 32% of the total amount raised for 2Q 2015.
Venture Capital Report
FUNDRAISING
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Largest European VC Funds Raised in 2Q 2015
Firm Name Fund Name Amount
(€M) Closed in 2Q
Loca9on Offering Status Fund Type Fund Category Closing Type
Index Ventures Index Ventures Growth III € 650.00 Geneva, Switzerland Closed Late-‐stage
venture capital
Venture Capital Final
Isis InnovaFon Ltd. Oxford Sciences InnovaFon € 283.98 Oxford, United
Kingdom Open Early-‐stage venture capital
Venture Capital First
European Investment Fund Luxembourg Future Fund € 150.00 Luxembourg, Luxembourg
Closed
MulF-‐stage venture capital
Venture Capital
Final
Felix Capital Felix Capital Fund I LP € 109.80 London, United Kingdom Closed Early-‐stage
venture capital
Venture Capital
Final
IK Investment Partners Industry Kapital Small Cap Fund € 100.00 London, United
Kingdom Open Early-‐stage venture capital
Venture Capital First
Venture Capital Report
FINANCING
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Equity Financings into Europe – based, VC-backed Companies (2012 – 2015)
Investment into European Venture-backed Companies Improves Once More in 2Q 2015 European companies raised just over €3 billion for 357 deals during 2Q 2015, an increase of 12% in the amount raised from 1Q 2015 despite a 5% slide in the number of deals completed. In contrast with the year ago period, investment improved by 31% despite a 15% reduction in the number of completed deals. Consumer Services was the strongest sector of the quarter in terms of attracting investment followed by Business and Financial Services. The sectors garnered 45% and 24% of all euros invested during 2Q 2015 respectively.
2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Amount Raised (€B) € 1.55 € 1.15 € 1.25 € 1.24 € 1.53 € 1.76 € 1.82 € 1.62 € 2.34 € 2.33 € 2.00 € 2.72 € 3.05
Number of Deals 378 326 387 378 421 386 474 397 418 351 370 377 357
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FINANCING
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Equity Financings into Europe-based, VC-backed Companies, by Round Class (2012 – 2015) Number of Deals
2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Seed 38 53 63 37 37 49 71 32 28 22 25 16 21
First 191 156 192 198 206 201 212 212 211 180 185 194 162
Second 60 54 58 66 89 63 81 67 87 63 72 78 68
Later 58 46 45 54 64 51 83 59 74 64 60 75 92
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FINANCING
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2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Seed € 23 € 16 € 25 € 21 € 16 € 19 € 30 € 16 € 18 € 14 € 18 € 13 € 12
First € 532 € 291 € 446 € 409 € 421 € 531 € 353 € 492 € 601 € 455 € 432 € 615 € 466
Second € 257 € 288 € 294 € 254 € 476 € 695 € 395 € 319 € 475 € 212 € 773 € 433 € 571
Later € 687 € 532 € 457 € 544 € 600 € 464 € 985 € 671 € 1,067 € 933 € 743 € 1,653 € 1,844
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Equity Financings into Europe-based, VC-backed Companies, by Round Class (2012 – 2015) Amount Raised (€M)
Venture Capital Report
FINANCING
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Equity Financings into Europe-based, VC-backed Companies, Median Equity Deal Size (€M) (2012 – 2015)
2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Median Equity Deal Size (€M) € 1.80 € 1.20 € 1.22 € 1.50 € 1.52 € 1.00 € 1.40 € 1.54 € 2.00 € 1.80 € 2.30 € 1.93 € 2.50
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FINANCING
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28%
2%
26% 2%
15%
4%
23%
Business and Financial Services
Consumer Goods
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
2Q'15 Industry Breakdown By Number of Deals
Equity Financings into Europe-based, VC-backed Companies, by Industry Group (2Q 2015) Consumer Services received the largest allocation of investment during 2Q 2015 (45%), accumulating €1.4 billion through 91 deals. Deal flow fell by 22% from the prior quarter, while sector investment dipped by 1%. Business and Financial Services placed second in terms of equity financing, taking a 24% share of all 2Q 2015 investment. The sector raised €716 million across 99 deals, an improvement of 53% in capital raised and 16% in deals completed from the previous quarter. Healthcare placed in third, with companies in the sector gathering 15% of the total amount invested for the quarter. The sector received €458 million across 52 deals; a rise of 48% in capital invested from 1Q 2015 despite a 10% decline in deal flow.
24%
45%
1%
15%
1%
14% Business and Financial Services
Consumer Goods (0.2%)
Consumer Services
Energy & Utilities
Healthcare
Industrial Goods & Materials
Information Technology
2Q’15 Industry Breakdown By Amount Raised
Venture Capital Report
FINANCING
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Co. Name Loca9on Industry Group
Industry Segment Industry Code Brief Descrip9on Close Date Round
Type Raised (€M)
Round Investors (* denotes lead)
SpoFfy Technology SA Sweden Consumer
Services
Consumer InformaFon Services
Entertainment Provider of online digital music services.
17/04/2015 7th €488.67
Baillie Gifford & Co. Ltd., D. E. Shaw & Co LP, Discovery
Capital Management Corp., Goldman Sachs Group Inc., GSV Capital Corp., Halcyon
Capital, Landsdowne Partners Ltd., Northzone Ventures AS,
P. Schoenfeld Asset Management LP, Rinkelberg
Capital Ltd., Senvest InternaFonal LLC, TCMI Inc.,
TeliaSonera AB
Global Fashion Group SA Luxembourg Consumer
Services Retailers Clothing/Accessory Retailers
Provider of an online fashion pla`orm.
30/06/2015 Second €150.00 Investment AB Kinnevik, Rocket Internet AG
Funding Circle Ltd.
United Kingdom
Business and Financial Services
Financial InsFtuFons and
Services Lending
Provider of a lending pla`orm for small
businesses. 22/04/2015 6th €139.35
Baillie Gifford & Co. Ltd., Digital Sky Technologies Ltd.*, Sands Capital
Management, Temasek Holdings Pvt. Ltd.
Foodpanda GmbH Germany Consumer
Services
Consumer InformaFon Services
Shopping Facilitators Provider of a food delivery pla`orm.
01/05/2015 5th €89.30 Goldman Sachs Private Equity Group*, Rocket Internet AG
AM-‐Pharma B.V. Netherlands Healthcare BiopharmaceuFcals Biotechnology
TherapeuFcs
Developer of pharmaceuFcal
compounds in the fields of severe infecFous
diseases and inflammatory diseases.
11/05/2015 Corporate €78.14 Pfizer Inc.*
Top 5 Deals into European VC-backed Companies (2Q 2015)
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FINANCING
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Bpifrance Investment SEED Capital Management I/S
Rocket Internet AG High-Tech Gruenderfonds
Management GmbH
Mercia Fund Management
Most Active Investors for Europe-based, VC-backed Companies by Deals Completed (2Q 2015)
Venture Capital Report
FINANCING
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Amount Raised in 2Q 2015 by Country (Top 4)
21%
19%
17%
15%
28% United Kingdom
Sweden
Germany
France
Rest of Europe
25%
23%
13%
6%
33% United Kingdom
France
Germany
Italy
Rest of Europe
Number of Deals in 2Q 2015 by Country (Top 4)
Equity Financings into Europe-based, VC-backed Companies, by Country (2Q 2015) The United Kingdom was the most favoured destination for equity financing during 2Q 2015, receiving €645 million across 89 deals. The country took 21% of all equity financing for the quarter, despite a 28% fall in investment from 1Q 2015. Sweden placed second, attracting a 19% share of European financing. Investment reached a total €596 million, bolstered in large part by Spotify Technology’s most recent round of financing in April. Germany occupies third position raising €508 million, 17% of the total for the quarter. France placed fourth with a 15% share, raising €449 million during 2Q 2015.
Venture Capital Report
LIQUIDITY
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Exit Opportunities for European VC – backed Companies (2012 – 2015)
Europe 2Q 2015 Venture Exit Activity 37 venture-backed M&As took place in Europe during 2Q 2015, a drop of 27% from 1Q 2015 and 12% from 2Q 2014. The largest M&A for 2Q 2015 was Yemek Sepeti Elektronik Iletisim Tanitim, a provider of online food ordering services in Turkey, which was acquired by Delivery Hero Holding AG for €526 million. 15 venture-backed IPOs took place during 2Q 2015, a 25% rise from the prior quarter but a 29% decline in listings for VC-backed companies from the year ago period.
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2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15
2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 IPOs 3 2 5 1 5 3 9 8 21 16 10 12 15
M&As 43 31 46 36 39 42 42 55 42 47 47 51 37
Venture Capital Report
LIQUIDITY
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Top 3 M&As in Europe (2Q 2015)
Company Name Loca9on Brief Descrip9on Industry Code Industry
Segment Industry Group
Close Date
Round Type
Amount Paid (€M)
Acquirer
Yemek SepeF Elektronik IleFsim
TaniFm
Istanbul, Turkey
Provider of online food ordering
services. Shopping Facilitators
Consumer InformaFon Services
Consumer Services 05/05/2015 AcquisiFon € 525.99 Delivery Hero
Holding GmbH
Hotspring Ventures Ltd.
London, United Kingdom
Provider of an online beauty, health, and wellness directory.
Personal Services Travel and Leisure Consumer Services 01/05/2015 AcquisiFon € 188.43 RGIP LLC
Prosonix Ltd. Oxford, United Kingdom
Developer of ultrasonic parFcle
engineering technologies for the manufacture of pharmaceuFcal
powders.
Medical/Lab Services Healthcare Services Healthcare 15/06/2015 AcquisiFon € 139.09 Circassia
PharmaceuFcals Plc
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LIQUIDITY
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European VC-backed IPO Activity (2012 - 2015)
European VC-backed IPOs (2012-2015) 15 venture-backed IPOs took place during 2Q 2015, an increase of three from the prior quarter but six fewer than in the year ago period. IPOs raised €533 million during 2Q 2015, an uptick of 28% from the $417 million raised in 1Q 2015. VC-backed companies raised an almost identical amount through IPOs compared with the year ago period (€530 million). The largest European VC-backed IPO of 2Q 2015 was the windeln.de GmbH listing in May. The company raised €183 million for its offering on the Deutsche Boerse.
2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 Raised (€M) through IPO € 26.76 € 52.08 € 142.99 € 19.22 € 89.24 € 25.51 € 366.10 € 448.63 € 529.53 € 447.47 € 2,250 € 417.40 € 533.10
Number of IPOs 3 2 5 1 5 3 9 8 21 16 10 12 15
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Company Name Country Brief Descrip9on Industry Code Industry Segment Industry Group Close Date
Raised through IPO
(€M)
Exchange/ Symbol
windeln.de GmbH Germany
Operator of an online retailer and flash sales pla`orm for baby and children products in Germany, Austria, and
Switzerland.
Specialty Retailers Retailers Consumer Services 06/05/2015 €183.47 XETRA: WD
AdapFmmune TherapeuFcs
PLC
United Kingdom
Developer of cancer immunotherapy products based on a T-‐cell receptor
pla`orm.
Biotechnology TherapeuFcs BiopharmaceuFcals Healthcare 06/05/2015 €170.79
NASDAQ: ADAP
BiocarFs NV Belgium Provider of a molecular and immunodiagnosFcs
pla`orm.
Drug Development Technologies BiopharmaceuFcals Healthcare 27/04/2015 €100.00 BSE: BCART
Top 3 IPOs in Europe (2Q 2015)
Venture Capital Report
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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 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]
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