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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 | 2019

  • 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 2Q 2019 include: 

    •  European companies set a new record for equity investment, with €9.29 billion raised in 802 rounds of financing.

    •  Despite the issues surrounding Brexit, the UK continued to take the lion’s share of startup investment, VC fundraising, and liquidity events.

    •  VC fundraising enjoyed the best quarter in three years, more than doubling from 1Q.

    •  While the M&A market appeared relatively stable, IPOs had another anemic quarter.

    2

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

    RECORD-BREAKING QUARTER FOR EUROPEAN STARTUPS AS INVESTORS JOIN GOLD RUSH

    VC-backed companies in Europe raised the largest

    sum in any quarter on record, joining their U.S.

    counterparts in what may prove to be a golden age of

    startup investment. With €9.29 billion in the bank, 2Q

    vaulted 31% above the previous quarter’s total, which

    itself was a record-setter. If this trend continues, 2019

    will be on track to finally exceed the yearly record set

    in 2000 during the dot-com bubble.

    Northvolt AB, a Swedish provider of sustainable energy

    solutions, raised the top deal of the quarter with an

    €896 million 3rd round.

    3

    FINANCING Equity Financings in European

    VC-Backed Companies (2016–2019)

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

    Amount Raised (€B) € 5.34 € 3.81 € 4.28 € 4.54 € 5.52 € 5.81 € 5.60 € 4.87 € 6.31 € 5.41 € 5.64 € 7.08 € 9.29

    Number of Deals 839 762 857 878 837 826 907 799 933 794 854 787 802

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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 FOR EUROPEAN VC-BACKED COMPANIES (2016–2019)

    4

    FINANCING

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

    Seed 75 74 92 92 102 118 125 97 140 119 110 80 79

    First 250 248 228 224 234 195 255 219 256 228 253 232 249

    Second 103 96 114 139 116 123 106 95 135 106 121 129 133

    Later 256 208 261 245 230 244 287 278 276 251 269 262 273

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    300 Number of Deals

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

    EQUITY INVESTMENT IN EUROPEAN VC-BACKED COMPANIES BY ROUND CLASS (2016–2019)

    5

    FINANCING

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

    Seed € 77 € 71 € 92 € 106 € 102 € 150 € 112 € 134 € 135 € 160 € 155 € 108 € 99

    First € 713 € 647 € 934 € 903 € 912 € 520 € 710 € 876 € 1,204 € 978 € 1,051 € 1,055 € 1,071

    Second € 535 € 439 € 553 € 678 € 779 € 895 € 792 € 717 € 1,215 € 1,155 € 800 € 1,407 € 1,000

    Later € 3,774 € 2,470 € 2,468 € 2,360 € 2,592 € 3,875 € 3,473 € 2,940 € 3,275 € 2,687 € 3,152 € 3,977 € 6,824

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    € 8,000 Amount Raised (€M)

  • 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)

    6

    FINANCING

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

    Median Equity Deal Size (€M) € 1.41 € 1.57 € 1.73 € 2.00 € 1.65 € 2.00 € 1.58 € 1.80 € 2.50 € 2.50 € 2.00 € 2.67 € 2.60

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    € 3.00 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 IN EUROPEAN VC-BACKED COMPANIES BY INDUSTRY GROUP (2Q 2019)

    Companies in the IT and Business & Financial Services groups

    seized around 60% of both total investment and deal flow in 2Q.

    This surge of investor interest came at the expense of the

    Healthcare sector, which took its lowest share of funding in five

    years.

    Drilling down a level, the biggest winners were companies in the

    Wholesale Trade & Shipping, Electronics & Computer Hardware,

    Travel & Leisure, and Financial Institutions & Services segments.

    7

    FINANCING Industry Breakdown by Number of Deals

    Industry Breakdown by Amount Raised

    35%

    23%

    18%

    13%

    5% 3% 2% Information Technology

    Business and Financial Services

    Consumer Services

    Healthcare

    Consumer Goods

    Industrial Goods and Materials

    Energy and Utilities

    39%

    27%

    19%

    10% 2%

    2% 1%

    Business and Financial Services

    Information Technology

    Consumer Services

    Healthcare

    Consumer Goods

    Industrial Goods and Materials

    Energy and Utilities

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

    TOP EUROPEAN EQUITY DEALS (2Q 2019)

    8

    Company Name Location Industry

    Code Industry Segment

    Industry Group

    Brief Description

    Close Date

    Round Type

    Raised (€M)

    Round Investors (* denotes lead)

    Northvolt AB Stockholm,

    Sweden Power Supplies

    Electronics and Computer Hardware

    Information Technology

    Provider of sustainable energy solutions.

    6/12/2019 VC 3rd €895.54

    Volkswagen Aktiengesellschaft*; IMAS Foundation; Goldman Sachs Capital Partners*; Folksam Group;

    Bayerische Motoren Werke AG; AMF Pensionsforsakring AB

    Greensill Capital (UK) Ltd.

    London, UK Lending Financial Institutions

    and Services Business and

    Financial Services Provider of working capital

    finance for companies. 5/13/2019 Growth

    Equity €715.92 SoftBank Vision Fund*

    Roofoods Ltd.* London, UK Logistics/

    Delivery Services Wholesale Trade and

    Shipping Business and

    Financial Services Provider of a food delivery

    platform. 5/17/2019 VC 7th €514.56

    T. Rowe Price Group Inc.; Greenoaks Capital Management LLC; FMR LLC; Amazon.com Inc.*

    GetYourGuide Deutschland

    GmbH

    Berlin, Germany

    Travel Arrangement/

    Tourism Travel and Leisure

    Consumer Services

    Provider of a booking website for tours and activities.

    5/16/2019 VC 6th €433.13

    Temasek Holdings Pvt. Ltd.; Swisscanto Asset Management International S.A.; SoftBank Vision

    Fund*; Lakestar LP; Korelya Capital SAS; Heartcore Capital

    Meero SAS Paris, France Business to

    Business Marketplaces

    Business Support Services

    Business and Financial Services

    Provider of an on-demand professional photography platform for businesses.

    6/18/2019 VC 3rd €205.97

    White Star Capital; Prime Ventures NV*; Idinvest Partners; Global Founders Capital; Eurazeo SE*;

    Avenir Growth Capital; Alven Capital SA; Aglae Ventures SAS

    FINANCING

    *Deal pending due to an Initial Enforcement Order made by the Competition and Markets Authority, UK pursuant to section 72(2) of the Enterprise Act 2002 (the Act)

  • 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 (2Q 2019)

    9

    FINANCING

    38

    18

    14 13

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    Hiventures Venture Capital Fund Management Co. Ltd.

    Bpifrance Investissement SAS

    ALMI Invest AB Idinvest Partners High-Tech Gruenderfonds Management GmbH

    Deals Completed

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

    EQUITY FINANCING ROUNDS FOR EUROPEAN VC-BACKED COMPANIES BY COUNTRY (2Q 2019)

    The United Kingdom retained its position as Europe’s dominant

    country for VC investment and deal flow in 2Q, despite the issues

    surrounding Brexit and Theresa May’s resignation. The UK’s share of

    rounds reached 31% this quarter, above its long-term average of 27%

    dating back to 2000. The British share of total investment was even

    more impressive, rising to 37%, compared with the long-term

    average of 32%.

    France and Germany, as usual, were neck-and-neck for second and

    third place, respectively. Companies in Swed