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Report: European VC fundraising has tripled in three years to about €12 billion today

Written on September 20, 2017 by Yoram Wijngaarde

How much venture capital is out there? Where is it coming from? Is Brexit causing a shift in Europe? This free 17-page Dealroom aims answer these questions, packed with new insights about the European VC landscape.

Underlying data used in this report is available online. If you have any comments on data in this report please contact us via [email protected]

Fundraising by European Venture Capital Funds

Download the 17-page slide deck now

Key insights:

  • Fundraising by European VC funds has tripled from about €4 billion in 2014 to €12 billion in 2016 and a similar amount likely to be raised in 2017
  • The number of funds grew at the same pace, from 30 to 100 new funds per year, while the average size per fund is constant around €110M
  • In 2016, continental European VC fundraising made a surge, especially in France, Sweden, Netherlands
  • And in 2017 for the first time ever, France leads with €2.7 billion funds raised, vs. €2.3 billion in the UK

Additional resources:

You can now also explore new VC funds by country and per quarter via this New Funds heatmap:

You can also make detailed filters in this New Funds list. For example, these are new Paris-based VCs and corporate funds with Health Tech experience.

 

Horizon 2020 using Dealroom to track 2,400 companies from its €3 billion SME Instrument portfolio

Written on September 10, 2017 by Yoram Wijngaarde

Business case – How to keep track of a €3 billion portfolio?

Horizon 2020 & SME Instrument – Horizon 2020 is a European Union funding programme to support and foster research and innovation. Horizon 2020’s SME Instrument is a €3 billion fund to support high-potential companies to develop “groundbreaking innovative products, services or processes”. The SME Instrument will help 7,500 companies to put their innovations onto the market, by the end of 2020.

Results so far – Since 2014, more than 2,400 SMEs were selected to receive funding (out of more than 31,000 applications) in 36 countries. Investments include well-known companies like Monese, Acast, SnappCar, Swap.com. The fund has already realised 11 exits. To learn more about the fund’s achievements, read the full SME Instrument Impact Report or just check the highlights presentation.

Dealroom.co – Since early 2017, Dealroom provides the SME Instrument team with research and online tools to analyse and track its 2,400 investments. Some of that information is available to you on Dealroom. Click on the image below to explore SME Instrument’s entire portfolio in list view or grid view (pro tip: in grid view, use the top-right menu to pivot different viewpoints).

European VC funding: up, down or sideways?

Written on July 25, 2017 by Yoram Wijngaarde

Last week, Dealroom released its European venture capital report for Q2 2017. It showed a record €5.0 billion raised by European companies, and €5.6 billion when including Israel (download Dealroom’s full 2017 Q2 VC report). The chart below shows that the 50 or so largest rounds (out of more than 750 rounds) already accounted for nearly €3.5 billion in funding. The remaining 700 or so rounds bring the total to €5.0 billion, a record.

Subsequently, other reports came out by other vendors with a very different narrative. KPMG, for instance, released a global analysis of venture funding showing Q2 VC funding at only €3.5 billion in total (PDF) and said:

A fifth straight quarterly decline in deals volume, however, total VC investment in Europe remained strong as a result of a number of mega-deals. Three $100 million+ deals together accounted for $1 billion in European VC funding, including $502 million to London-based Improbable, $397 million to Berlin-based Auto1 Group, and $100 million to London-based GammaDelta Therapeutics.” (via Business Insider)

The following slide shows Dealroom Data and the KPMG data side-by-side. KPMG data shows the quarterly number of rounds would have roughly halved in the last 3 years, while total funding doubled. This would imply 300% growth of average deal-size. Dealroom data shows a roughly 50% increase in average deal size (which is still very significant).

This is despite the fact that Dealroom does not include most of the $397 million (€360 million) to Auto1 Group as it was largely debt funding from a consortium of investment banks. Also *not* included in Dealroom numbers are: secondary transactions (trading of existing shares), debt rounds, funding of outside tech companies (such as telecom) and companies that moved to the USA.

Interestingly, Q2 was also a record when excluding top-3 or top-10 rounds, as the following chart shows:

Dealroom data does show a decline in the number of rounds but only in the last two (not five) quarters (additional technicality: total of rounds in the last quarters might still go up, as seed rounds are often reported after a successful series-A raise).

The KPMG data has led some to pronounce that the bubble is deflating. How to interpret the Dealroom data then? Dealroom data demonstrates that investors are in fact betting on European tech companies at record pace. The outcome of these bets is to be determined years from now.

Record €5.6 billion raised by European & Israeli companies (download full 2017 Q2 VC report)

Written on July 16, 2017 by Yoram Wijngaarde

Following the release of preliminary Q2 figures on 2 July, the Full European 2017 Q2 venture capital report is now published. The conclusion remains: investors are betting on European tech companies at a record pace, investing €5.6 billion including Israel, or €5.0 billion excluding Israel. This figure excludes lending capital, buyouts, secondary transactions and debt.

Mega-rounds such as Farfetch and Improbable were key drivers behind this trend. However, even without these mega-rounds, this was one of the most active quarters ever by the amount of venture capital invested into European companies:

  • Excluding the 3 largest rounds: €4.4 billion (vs. in €3.9 billion Q1 2017, the previous record)
  • Excluding the 10 largest rounds: €3.5 billion (vs. in €3.3 billion Q1 2017, the previous record)

Download the full European 2017 Q2 venture capital report

32 pages of stats and key insights

Contact us with any questions

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Sneak preview: record €5.5 billion raised by European & Israeli companies (slide-deck)

Written on July 2, 2017 by Yoram Wijngaarde

UPDATE: the full 29 page Q2 venture capital report is now available here.

While we are still gathering data, it seems safe to say that, with more than €5.5 billion venture capital raised by European companies, this second quarter of 2017 sets an all-time record. This figure includes Israel, and excludes lending capital, buyouts, secondary transactions and debt (Auto1 Group’s €285m debt raise is excluded).

On Dealroom you can track venture capital trends in real-time. Click the image below (or here) to see the latest Q2 data with underlying rounds (or check out the funding heatmap).

The sharp growth in funding is partly driven by several mega-rounds that some would say don’t fit the traditional definition of venture (but then again, venture is evolving, just like the industries it invests in). However, even without these mega-rounds this was one of the most active quarters ever, as the following slide-deck shows.

Click on the below image or here to open the mini slide-deck:

UPDATE: the full 29 page Q2 venture capital report is now available here.

Final note: more funding basically means more bets are being placed. The outcome of these bets will become clear in the next 10 years (some much sooner). More funding isn’t necessarily always better (as opposed to, say, GDP, sales or profit, where more is generally better). Because of this, we try (but not always succeed!) to avoid terms like “strong quarter” or “great numbers” when funding is concerned.

UK tech: going stronger than ever in Q2 2017

Written on June 21, 2017 by Yoram Wijngaarde

Despite all the political upheaval, UK’s tech and venture capital are going stronger than ever in Q2 2017. And it is not just Improbable and Farfetch. A long-tail of smaller rounds all add up, as the below table shows (click on image).

The UK is followed by Germany and France, as the below heatmap shows (click image to open interactive heatmap):

Q2 is not over yet. In a few weeks we will release the full Q2 report with more details. Also see Dealroom’s Q1 venture capital report.

Finally Online: Europe’s 500 Most Prominent Venture Capital Investors

Written on June 7, 2017 by Yoram Wijngaarde

Back in April, Dealroom published a preliminary ranking of Europe’s 500 most prominent venture capital investors (see April post). The ranking has already been published by Business Insider, Corriere della Sera, and many others. Feedback and input was received from numerous VCs.

Now this ranking is finally online!

This means you can now search & filter the list by criteria such as location, industry experience, country experience, location. Here are just some examples of what is possible:

Over 10,500 investors were reviewed for this top ranking: funds, corporate investors, angels, accelerators and crowdfunding platforms. The rankings per country are as follows:

Country#1#2#3#4#5
AllIndex VenturesHoltzbrinck VenturesBalderton CapitalNorthzoneLakestar
United KingdomIndex VenturesBalderton CapitalAtomicoDN CapitalGeneral Atlantic
GermanyHoltzbrinck VenturesRocket InternetHigh-Tech GründerfondsWellington PartnersActon Capital Partner
Israel83NorthCarmel VenturesPitango Venture CapitalJerusalem Venture PartnersOurCrowd
FranceOleg TscheltzoffIdInvestPartech Ventures360 Capital PartnersXavier Niel
SwedenNorthzoneCreandumIndustrifondenInvestment AB KinnevikVostok New Ventures
SwitzerlandLakestarRedalpineNovartis Venture FundSwisscom VenturesRingier
SpainNauta CapitalCaixa Capital RiscYsios CapitalCabiedes & PartnersJose Marin
IrelandEnterprise IrelandAtlantic BridgeKernel CapitalAIB Seed Capital FundDelta Partners
NetherlandsNewion InvestmentsEndeit CapitalPrime VenturesINKEF CapitalArthur Kosten
FinlandNokia Growth PartnersLifeline Ventures OyInventureConor Ventures PartnerTekes
BelgiumGIMVHummingbird VenturesCapricorn Venture PartnersPMVFortino
ItalyInnogest CapitalP101United VenturesL-Venture GroupItalian Angels for Growth
NorwayVerdaneInvestinorSchibsted Media GroupAlliance VentureViking Venture
DenmarkSunstone CapitalSeed Capital DenmarkBonnierDanish Growth FundNovo A/S
AustriaSpeedinvestAustria Wirtschafts serviceRene GiretzlehnerAlfred LugerFlorian Gschwandtner
PolandMCI ManagementRTAventuresInnovation NestExperior Venture FundHedgehog Fund

All the received input and feedback from numerous venture capital firms has been reflected. But you can still provide us with info as we will keep updating the ranking regularly.

Below is an FAQ based on the questions we’ve received.

  1. How is the ranking calculated?
    The ranking is based on nine different indicators which look at: investment activity, current portfolio size and quality, and (successful) exits. See bottom of this blog post for more detail on the nine indicators.
  2. What is the goal of this ranking?
    The main goal is to make it easier to see which investors you should consider in various cases such as:
    – A founder looking for capital
    – An investor looking for co-investors
    – A corporate M&A team looking for VC portfolios to explore
    – An LP exploring and comparing different funds
    A secondary goal is to have a logical way to sort results. Dealroom counts over 6,500 tech investors active in Europe. After sorting by relevance, most circumstances require the dataroom to have a secondary way to sort results.
  3. How can I improve my ranking?
    Firstly, we need to make sure all data is up to date (check online here). You can contact us or you can register for free, claim your account and add data directly yourself or ask us to update. 
  4. How can I provide feedback on the methodology?
    We welcome feedback on methodology and will consider it carefully. You can write us here or reach out via Twitter.
  5. Why did you include corporate funds and rankings?
    We deliberately made the ranking as inclusive as possible, because the lines between investor types are blurring. If anything, angels and corporates are at a disadvantage. The list enables you to filter any way you like: to show investment funds only use this filter.
  6. Our fund is still new, so we are at a disadvantage
    Track-record is a key attribute for any investor’s standing in the world. The ranking wouldn’t be complete without measuring it. New funds are inherently at a disadvantage in this respect. However, Dealroom is contemplating another future ranking of first-time funds.
  7. Is the ranking based on Europe only?
    Emphasis is placed on European investments, activity and performance (see full methodology at the bottom). The location of the investor was not a factor, so the ranking includes many U.S. based investors.
  8. Investor X is a top performing fund. Why is it not ranked higher?
    The ranking is not a purely performance-based, but performance does play a big role. Firstly, information on investment returns is highly imperfect. Secondly, while performance is the most important measure for LPs, it is not the only thing that counts for many other stakeholders. For example, Scottish Equity Partners is a fund with an exceptional track-record, but happens to have been less active during the last year and therefore isn’t ranked as prominently as one might expect.

Ranking methodology

The ranking is based on the following nine indicators, each with equal weighting:

  1. Portfolio size in Europe = number of portfolio companies in Europe (incl. Israel), all time
  2. Number of rounds in last 12 months = number of rounds which investor participated in during last 12 months
  3. Deal size in last 12 months (€ millions) = total aggregate size of rounds which investor participated in during last 12 months
  4. Exit score  = number of exits relative to total portfolio, all time
  5. Exits number = number of exits, global
  6. Number of exits > €100 millions (total firm value, all time)
  7. Number of exits > €500 millions (total firm value, all time)
  8. Number of portfolio companies valued over €500 millions, all time
  9. Capital efficiency = total € amount of all exits relative to the € amount of capital invested (total of rounds which investor participated in, all time)

If you have any other questions, please contact us on Twitter.

Go to Investor Prominence Ranking

 

9-page report on the Dutch angel investing landscape in partnership with Angel Academy

Written on May 14, 2017 by Yoram Wijngaarde

European angel investing has increased sharply in the first quarter of 2017, Dealroom data shows, in a 9-page report published jointly with Angel Academy. Funding rounds with at least one angel participating reached a value of €700 million, compared with €180 million in the first quarter of 2016. The number of such rounds quadrupled during the same period. Growth was strongest in the UK, France, Spain, and Sweden.

In the Netherlands however, angel investing has failed to catch up, according to Dealroom data (although limited disclosure of angel-backed rounds maybe partly to blame here). Given the importance of business angels in supporting new ventures in their earliest stages of development, it is important that the Netherlands develops and nurtures angel investing, by creating a favorable climate.

Jointly, Angel Academy (the Dutch Academy for private investors) and Dealroom published an initial 9-page overview of the Dutch angel investing landscape. Ohad Gilad from Angel Academy handed over the report personally to the Dutch minister of economic affairs Henk Kamp, who also announced a new €10 million government scheme to support angel investing.

As a next step, Dealroom and Angel Academy have begun development of an online overview of all active Angel Investors in the Netherlands. The objective is to provide startups with easier access to investors while at the same time providing better insights to business angels about attractive investment opportunities. A comprehensive ranking of Angel Investors will also be published to provide a clear overview of the most active and successful angel investors in the Netherlands.

Get the 9-page report here:

About Angel Academy:

The Angel Academy was founded in 2016 and is an initiative of the Keadyn Angel VC team. The purpose of the academy is for to promote angel investing, to connect angels and to educate.

  • Promote: Get more smart capital to angel rounds by making angel investing more popular
  • Connect: Stimulate angels to share knowledge and opportunities through, for instance, joined
    investment structures (syndicates)
  • Educate: Enable angels to learn from experienced investors and experts in various topics by
    organizing workshops and informal sessions

For more information about Angel Academy, please visit: www.angelacademy.nl or contact Martijn Don: [email protected]

 

Europe’s most active investors in Q1 2017 (featuring funds and corporates)

Written on April 23, 2017 by Yoram Wijngaarde

These were the most active VC funds by number of rounds in Q1:

  1. Bpifrance
  2. High-Tech Gründerfonds (HTGF)
  3. Index Ventures
  4. Global Founders Capital
  5. Kima Ventures

On the corporate side, these were the most active:

  1. BNP Paribas
  2. Microsoft
  3. Rocket Internet SE
  4. Credit Mutuel Arkea
  5. Caisse d’Epargne

The downloadable 14-page Q1 2017 review which Dealroom released last week and is full of insights:

Corporate includes both corporate venturing and direct corporate balance sheet investment in VC rounds.

Download the full 14-page Q1 2017 VC report here