V E N T U R E C A P I T A L R E P O R T

Venture Capital Report

Eu r o p e | 3 Q | 2 0 1 9

V E N T U R E C A P I T A L R E P O R T

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 3Q 2019 include:

• European companies smashed the all-time record for annual investment, surpassing the amount raised in 2000 during the dot-com bubble.

• Despite the upcoming Brexit deadline, the UK continued to take the lion’s share of startup investment and exits.

• VC fundraising is on track for the best year since 2000, with €3.34 billion raised in 25 fund closings during 3Q.

• While M&A activity was fairly average in 3Q, the IPO market suffered through another anemic quarter with the fewest IPOs in 6 years.

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V E N T U R E C A P I T A L R E P O R T

EUROPEAN VC FINANCING SETS NEW ANNUAL RECORD

With one quarter remaining in 2019, European

entrepreneurial ventures have already broken the

all-time annual record for VC financing set during the

dot-com bubble 19 years ago. While the number of

deals has been trending downward since 2Q 2018,

the total amount raised in 3Q was the second-largest

since 2000. The fact that this milestone has been

achieved in spite of the turmoil surrounding Brexit,

along with credible signs of recession, makes this all

the more remarkable.

FlixMobility GmbH, a German provider of long

distance mobility services, raised the top deal of the

quarter with a €500 million 4th round.

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FINANCING

Equity Financings in European

VC-Backed Companies (2016–2019)

3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

Amount Raised (€B) € 3.82 € 4.27 € 4.58 € 5.54 € 5.81 € 5.63 € 4.91 € 6.33 € 5.48 € 5.62 € 7.14 € 9.39 € 8.19

Number of Deals 776 876 891 853 840 927 831 959 811 876 816 859 723

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V E N T U R E C A P I T A L R E P O R T

EQUITY DEALS BY ROUND CLASS

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FINANCING

3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

Seed 75 93 92 103 120 126 104 144 123 113 89 85 82

First 253 235 231 247 212 277 232 263 238 261 244 267 237

Second 95 114 143 120 126 110 110 143 113 126 132 152 103

Later 207 257 238 220 229 265 260 271 236 263 255 274 248

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Number of Deals for European VC-

Backed Companies (2016-2019)

V E N T U R E C A P I T A L R E P O R T

EQUITY INVESTMENT BY ROUND CLASS

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FINANCING

3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

Seed € 74 € 93 € 106 € 83 € 149 € 88 € 101 € 137 € 165 € 122 € 116 € 106 € 166

First € 668 € 930 € 925 € 1,010 € 590 € 921 € 724 € 1,200 € 1,005 € 1,137 € 1,106 € 1,134 € 872

Second € 426 € 556 € 848 € 812 € 931 € 772 € 1,000 € 1,271 € 1,236 € 808 € 1,432 € 1,168 € 1,519

Later € 2,464 € 2,450 € 2,190 € 2,488 € 3,766 € 3,319 € 2,860 € 3,231 € 2,600 € 3,086 € 3,912 € 6,659 € 5,419

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€ 7,000Amount Raised (€M) by European

VC-Backed Companies (2016-2019)

V E N T U R E C A P I T A L R E P O R T

EQUITY FINANCINGS IN EUROPEAN VC-BACKED COMPANIES, MEDIAN DEAL SIZE (2016–2019)

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FINANCING

3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

Median Equity Deal Size (€M) € 1.52 € 1.54 € 2.00 € 1.60 € 1.91 € 1.57 € 1.70 € 2.39 € 2.50 € 2.00 € 2.52 € 2.46 € 3.00

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€ 3.50 Median Equity Deal Size [€M]

V E N T U R E C A P I T A L R E P O R T

EQUITY INVESTMENT BY INDUSTRY GROUP (3Q 2019)

Healthcare startups secured the largest share of VC funding in

3Q, raising €2.29 billion in 113 deals. Following close behind

was Business & Financial Services, with €2.23 billion across 182

rounds.

Drilling down to more specific sectors, the biggest winners were

companies in the Payment/Transactional Processing,

Biotechnology Therapeutics, Clinical Decision Support Software,

Business Applications Software, and Transportation Services

spaces.

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FINANCINGIndustry

Breakdown

by Number

of Deals

Industry

Breakdown

by Amount

Raised

29%

25%

20%

16%

5%3%2%

Information Technology

Business & Financial Services

Consumer Services

Healthcare

Consumer Goods

Industrial Goods and Materials

Energy and Utilities

28%

27%

19%

19%

3%

2%

2%Healthcare

Business & Financial Services

Consumer Services

Information Technology

Energy and Utilities

Industrial Goods and Materials

Consumer Goods

V E N T U R E C A P I T A L R E P O R T

TOP EUROPEAN EQUITY DEALS (3Q 2019)

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Company Name LocationIndustry

Code

Industry

Segment

Industry

Group

Brief

Description

Close

Date

Round

Type

Raised

(€M)

Round Investors

(* denotes lead)

FlixMobility

GmbH

Munich,

Germany

Transportation

ServicesTravel and Leisure

Consumer

Services

Provider of long distance

mobility services.7/18/2019 VC 4th €500.00

Technology Crossover Ventures*; Permira

Holdings Ltd.*; Odyssey 44; Luxor Capital

Group; HV Holtzbrinck Ventures Adviser GmbH;

European Investment Bank; BlackRock

Alternative Investors; Baillie Gifford & Co. Ltd.

Babylon

Holdings Ltd.London, UK

Clinical Decision

Support

Medical Software

and Information

Services

Healthcare

Provider of a subscription

health service that enables

users to consult a doctor via a

mobile app.

8/2/2019 VC 3rd €495.12

Vostok New Ventures Ltd.; Saudi Arabia Public

Investment Fund*; Munich Re/ERGO Corporate

Venture Fund; Kinnevik AB; Individual Investor(s)

Klarna

Holding AB

Stockholm,

Sweden

Payment/

Transactional

Processing

Financial

Institutions and

Services

Business and

Financial

Services

Provider of payment solutions

for e-commerce.8/6/2019 VC 5th €414.10

Merian Chrysalis Investment Company Ltd.; IVP;

IPGL; HMI Capital LLC; Forsta AP-fonden;

Dragoneer Investment Group*; Commonwealth

Bank of Australia; BlackRock Alternative

Investors

BioNTech SEMainz,

Germany

Biotechnology

TherapeuticsBiopharmaceuticals Healthcare

Developer of personalized

therapies for cancer and other

diseases.

7/9/2019 VC 3rd €287.93

Struengmann Family Office; Steam Athena

Capital; Redmile Group LLC; Platinum Asset

Management; Mirae Asset Venture Investment

Co. Ltd.; Jebsen Capital; Invus Group; FMR

LLC*; BioVeda China Fund

CMR

Surgical Ltd.

Cambridge,

UKSurgical Devices

Medical Devices

and EquipmentHealthcare

Developer of surgical robotics

solutions.9/17/2019 VC 4th €218.75

Zhejiang United Investment Group; Watrium AS;

LGT Capital Partners Ltd.; Escala Capital

Investments Cyprus; Cambridge Innovation

Capital Plc

FINANCING

V E N T U R E C A P I T A L R E P O R T

MOST ACTIVE INVESTORS IN EUROPEAN VC-BACKED COMPANIES (3Q 2019)

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FINANCING

33

12 1211

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Hiventures Venture CapitalFund Management Co. Ltd.

Bpifrance InvestissementSAS

Mercia Technologies PLC Partech Partners Idinvest Partners

Deals Completed

V E N T U R E C A P I T A L R E P O R T

UK COMPANIES CONTINUE TO SHRUG OFF BREXIT, LEADING EUROPE IN VC INVESTMENT

The United Kingdom retained its longstanding position as

Europe’s dominant country for VC investment and deal flow in 3Q,

despite the upcoming Brexit deadline. The UK’s share of deals

and total financing was just shy of one-third.

Germany was the runner-up, taking one-quarter of European

funding.

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FINANCING

Number of

Deals by

Country

(Top 5)

Amount Raised

by Country

(Top 5)

23%

19%

31%

30%

13%

13%

7%6% Rest of Europe

United Kingdom

Germany

France

Sweden

Spain

33%

25%

18%

10%

7%

7%United Kingdom

Germany

Rest of Europe

France

Sweden

Switzerland

V E N T U R E C A P I T A L R E P O R T

VC FUNDRAISING ON TRACK FOR BEST YEAR SINCE 2000

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FUNDRAISING

European VC Fundraising (2016–2019)

Based on multiple closingsEuropean fundraisers powered another strong quarter,

raising €3.34 billion across 25 fund closings in 3Q.

While these figures were down slightly from 2Q, it still

qualified as the second-best quarter since 2010. If this

trend continues, 2019 will be the best year for

fundraising since 2000.

Berlin-based firm Rocket Internet AG had the top fund

closing of the quarter, raising €911.45 million in the first

close of its Rocket Internet Capital Partners Fund II.

German funds accounted for 38% of the total amount

raised in 3Q, with €1.28 billion.

3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

Amount Raised (€B) € 1.13 € 2.40 € 2.28 € 3.17 € 1.56 € 2.53 € 2.04 € 2.00 € 2.72 € 1.58 € 1.48 € 3.44 € 3.34

Number of Funds 22 35 20 39 19 35 32 26 21 20 24 27 25

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V E N T U R E C A P I T A L R E P O R T

TOP EUROPEAN VC FUND CLOSINGS IN 3Q 2019

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FUNDRAISING

Firm Name Fund Name Amount Closed

(€M)Location

Offering

Status Fund Type Closing Type

Rocket Internet AGRocket Internet Capital

Partners Fund II€911.45 Berlin, Germany Open

Multi-Stage

Venture CapitalFirst

Lakestar LP Lakestar III €508.50 Zurich, Switzerland OpenMulti-Stage

Venture CapitalSecond

Medicxi Ventures Medicxi III LP €400.00 London, UK ClosedMulti-Stage

Venture CapitalFinal

Wellington PartnersWellington Partners Life

Science Fund V€210.00 Munich, Germany Closed

Multi-Stage

Venture CapitalFinal

Odlander, Fredrikson & Co AB HealthCap VIII LP €188.54 Stockholm, Sweden OpenMulti-Stage

Venture CapitalFirst

V E N T U R E C A P I T A L R E P O R T

EUROPEAN VENTURE CAPITAL EXIT ACTIVITY (2016-2019)

The total number of exits for European VC-backed

companies dipped 8% from 2Q, and it was also 11%

below the previous 12-quarter average. The number

of IPOs fell to the lowest figure in 6 years, while the

count of M&A deals was about average compared to

the last few years.

The €325 million acquisition of Amal Therapeutics

SA by Boehringer Ingelheim GmbH was the top M&A

of the quarter. The Geneva-based company is

developing therapeutic cancer vaccines.

The UK had the largest number of exits with 21,

followed by Germany with 15.

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LIQUIDITY

Exits for European VC–backed Companies (2016–2019)

0 20 40 60 80 100 120

3Q'16

4Q'16

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

IPOs 13 21 11 16 9 20 8 21 8 8 10 6 4

M&As 87 90 72 73 56 62 60 68 65 81 78 78 72

V E N T U R E C A P I T A L R E P O R T

TOP M&As IN EUROPE (3Q 2019)

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Company Name LocationBrief

Description

Industry

CodeIndustry Segment Industry Group

Close

Date

Round

Type

Amount Paid

(€M)Acquirer

Amal Therapeutics

SAGeneva,

Switzerland

Developer of therapeutic

cancer vaccines.

Biotechnology

TherapeuticsBiopharmaceuticals Healthcare 7/15/2019 Acquisition €325.00

Boehringer

Ingelheim GmbH

Seriously Digital

Entertainment Ltd.

Helsinki,

Finland

Provider of games and

entertainment for mobile

devices.

Recreational/Home

SoftwareSoftware

Information

Technology8/26/2019 Acquisition €247.56 Playtika Ltd.

Falguiere Conseil

SASParis, France

Provider of real estate broker

services.Real Estate

Financial Institutions

& Services

Business and

Financial Services8/1/2019 Acquisition €200.00 AVIV Group

LIQUIDITY

V E N T U R E C A P I T A L R E P O R T

FEEBLE IPO MARKET CONTINUES TO STRUGGLE IN 3Q

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LIQUIDITY

With only four IPOs and €315 raised in total,

European startups continued to face major

headwinds in reaching the public markets. While

the amount raised was an improvement over 2Q, it

was still around 30% below the previous 12-quarter

average.

The top IPO of the quarter belonged to Global

Fashion Group SA, a Luxembourg-based provider

of an online fashion and lifestyle platform. This

single offering comprised 57% of 3Q’s total, with

the company valued at €957 million.

3Q'16 4Q'16 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19

Raised (€M) through IPO € 483 € 278 € 358 € 739 € 225 € 718 € 78 € 830 € 689 € 685 € 89 € 261 € 315

Number of IPOs 13 21 11 16 9 20 8 21 8 8 10 6 4

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TOP IPOs IN EUROPE (3Q 2019)

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LIQUIDITY

Company Name LocationBrief

Description

Industry

CodeIndustry Segment Industry Group

IPO

Date

Raised through

IPO (€M)Exchange: Ticker

Global Fashion

Group SA

Senningerberg,

Luxembourg

Provider of an online fashion and

lifestyle platform.

Clothing/Accessory

RetailersRetailers Consumer Services 7/2/2019 €180.00

FWB:

GFG

FINEOS

Corporation

Holdings PLC

Dublin, Ireland

Provider of core software for life,

accident, and health insurance

carriers.

Business Applications

SoftwareSoftware

Information

Technology8/16/2019 €129.20

ASX:

FCL

CleanBnB SpA Milan, ItalyProvider of short term rental

management services.

Travel

Arrangement/TourismTravel and Leisure Consumer Services 7/24/2019 €3.92

BIT:

CBB

V E N T U R E C A P I T A L R E P O R T

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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V E N T U R E C A P I T A L R E P O R T

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