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

Venture Capital Report Europe | 3Q | 2015

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 2015 include: 

•  European venture capital fundraising falls from prior quarter;

•  Venture capital investment into European companies improves in consecutive quarters;

•  The number of initial public offerings (IPOs) experienced a decrease from the prior quarter, while the number of mergers and acquisitions (M&As) are on the rise.

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EUROPEAN VENTURE CAPITAL FUNDRAISING FALLS IN 3Q 2015

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FUNDRAISING

European VC Fundraising Based on multiple closings (2012–2015) 13 European venture capital funds accumulated

€853 million during 3Q 2015, dropping 58% in capital raised from 2Q 2015 with a 52% decrease in the number of fund closings.

•  Compared with the year ago period, euros raised improved by 5%, despite a reduction in the number of

fund closing (from 20 to 13).

•  The largest fund of the quarter was Lakestar II LP, which raised €350 million, accounting for 41% of the total amount raised for 3Q 2015.

3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15

Amount Raised (€B) € 0.76 € 1.38 € 0.76 € 1.03 € 0.64 € 2.06 € 0.55 € 1.26 € 0.81 € 1.26 € 1.06 € 2.04 € 0.85

Number of Funds 15 31 15 17 11 43 22 24 20 28 21 27 13

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LARGEST EUROPEAN VC FUNDS RAISED IN 3Q 2015

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FUNDRAISING

Firm Name Fund Name Amount (€M) Location Offering Status Fund Type Fund Category Closing Type

Lakestar LP Lakestar II LP € 350.00 Zurich,

Switzerland Closed Multi-stage venture

capital Venture Capital Final

Notion Capital Notion Capital Fund III LP € 108.56 London,

United Kingdom Open Early-stage venture

capital Venture Capital First

Runa Capital Runa Capital II € 67.85 Moscow, Russia Open

Early-stage venture capital

Venture Capital

First

b-to-v Partners AG b-to-v Partners Fund III € 63.00 St. Gallen,

Switzerland Open Multi-stage venture

capital Venture Capital

First

Nauta Capital Nauta Tech Invest IV € 61.87 Barcelona,

Spain Open Early-stage venture

capital Venture Capital First

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INVESTMENT INTO EUROPEAN VENTURE-BACKED COMPANIES IMPROVES ONCE MORE IN 3Q 2015

European companies raised over €3 billion for 355 deals during 3Q 2015, a minimal increase in the amount raised from 2Q 2015 despite a 5% slide in the number of deals completed.

•  In contrast with the year ago period, both investment and number of completed deals improved, respectively by 31% and 1%.

•  Consumer Services (€935 million) was the strongest sector of the quarter in terms of attracting investment followed by Healthcare (€929 million).

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FINANCING

Equity Financings into Europe-based, VC-backed Companies (2012–2015)

3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15

Amount Raised (€B) € 1.15 € 1.26 € 1.22 € 1.54 € 1.78 € 1.84 € 1.64 € 2.42 € 2.31 € 2.02 € 2.80 € 3.01 € 3.03

Number of Deals 334 395 379 421 397 487 406 436 353 393 385 375 355

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2012–2015) – NUMBER OF DEALS

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FINANCING

3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15

Seed 56 65 38 37 51 73 37 31 22 29 15 26 23

First 162 196 199 205 208 218 217 219 181 197 196 169 175

Second 53 59 66 89 63 83 65 90 65 75 80 68 73

Later 47 45 54 64 51 83 60 77 62 60 77 96 68

Restart 0 0 0 0 0 0 0 0 0 0 0 0 0

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY ROUND CLASS (2012–2015) – AMOUNT RAISED (€M)

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FINANCING

3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15

Seed € 16 € 26 € 20 € 17 € 20 € 30 € 17 € 22 € 13 € 21 € 11 € 16 € 26

First € 299 € 453 € 395 € 422 € 537 € 354 € 514 € 617 € 458 € 444 € 611 € 484 € 806

Second € 286 € 295 € 253 € 475 € 699 € 398 € 311 € 478 € 218 € 776 € 446 € 481 € 630

Later € 532 € 458 € 541 € 602 € 464 € 1,000 € 677 € 1,122 € 898 € 743 € 1,680 € 1,898 € 1,520

Restart € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES (2012–2015) – MEDIAN EQUITY DEAL SIZE (€M)

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FINANCING

3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15

Median Equity Deal Size (€M) € 1.15 € 1.20 € 1.50 € 1.52 € 1.00 € 1.37 € 1.50 € 1.91 € 1.77 € 2.10 € 2.00 € 2.41 € 2.40

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES, BY INDUSTRY GROUP (3Q 2015)

Consumer Services received the largest allocation of investment during 3Q 2015 (31%), accumulating €935 million through 103 deals. Deal flow rose by 5% from the prior quarter, despite a 33% drop in capital invested.

Healthcare placed second in terms of equity financing raising €929 million across 62 deals, an improvement of 101% in capital raised and 13% in deals completed from the previous quarter.

Business and Financial services placed third, with companies in the sector gathering 25% of the total amount invested for the quarter. The sector received €746 million across 112 deals; a rise of 12% in capital invested and of 8% in deal flow from 2Q 2015.

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FINANCING 3Q'15 Industry Breakdown By Number of Deals

3Q’15 Industry Breakdown By Amount Raised

32%

3%

29%

2%

17%

1%

16% Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials

Information Technology

25%

1%

31% 6%

31%

6% Business and Financial Services

Consumer Goods

Consumer Services

Energy & Utilities

Healthcare

Industrial Goods & Materials (0%)

Information Technology

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TOP 5 DEALS INTO EUROPEAN VC-BACKED COMPANIES (3Q 2015)

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Co. Name Location Industry

Code Industry Segment

Industry Group

Brief Description

Close Date

Round Type

Raised (€M)

Round Investors (* denotes lead)

Comuto SA France Transportation

Services Travel and Leisure Consumer Services Provider of a car journey-sharing

platform. 31/07/2015 Later €180.00

Individual Investors, Insight Venture Partners*, Lead Edge Capital, Vostok New Ventures Ltd.

Mereo BioPharma Group Ltd.

United Kingdom

Drug Development Technologies

Biopharmaceuticals Healthcare Provider of specialty

biopharmaceutical services. 29/07/2015 First Round € 108.08 Invesco Perpetual, Novartis AG, Woodford

Investment Management LLP

Oxford Nanopore

Technologies Ltd.

United Kingdom

Drug Development Technologies

Biopharmaceuticals Healthcare Provider of nanopore technology. 21/07/2015 Later € 98.90 IP Group PLC

EREN SA Luxembourg Renewable

Energy: Other Renewable Energy Energy and Utilities Provider of natural resource

efficiency. 30/09/2015 First Round €97.50 Bpifrance Investment, FFP Holdings, Next World Capital, Salvepar SA

CeQur SA Switzerland Therapeutic

Devices (Invasive)

Medical Devices and Equipment Healthcare

Provider of an insulin infuser device for people with type 2

diabetes. 1/09/2015 Later € 88.38

Arthurian Life Sciences Ltd.*, Endeavour Vision SA, Schroders, VI Partners, Woodford Investment

Management LLP

FINANCING

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MOST ACTIVE INVESTORS FOR EUROPE-BASED, VC-BACKED COMPANIES (3Q 2015) BY DEALS COMPLETED

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FINANCING

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Bpifrance Investment High-Tech Gruenderfonds Management GmbH

Balderton Capital Management LLP

Index Ventures Alven Capital Inveready Technology Investment Group

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EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED COMPANIES BY COUNTRY (3Q 2015)

The United Kingdom was the most favoured destination for equity financing during 3Q 2015, receiving €947 million across 87 deals. The country took 31% of all equity financing for the quarter, despite a 9% decrease in deal flow from 2Q 2015.

France placed second, attracting a 19% share of European financing. Investment reached a total €567 million, a 29% rise in capital invested, despite

a 22% drop in number of deals.

Germany occupies third position raising €428 million, 14% of the total for the quarter. Switzerland placed fourth with a 6% share, raising €194 million during 3Q 2015.

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FINANCING Number of Deals in 3Q 2015 by Country (Top 4)

Amount Raised in 3Q 2015 by Country (Top 4)

23%

19%

24%

19%

18%

10%

29%

United Kingdom

France

Germany

Spain

Rest of Europe

31%

19% 14%

6%

30%

United Kingdom

France

Germany

Switzerland

Rest of Europe

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EUROPE 3Q 2015 VENTURE EXIT ACTIVITY

43 venture-backed M&As took place in Europe during 3Q 2015, a 2% increase from 2Q 2015 but a 12% drop from 3Q 2014.

A total of €2.7 billion were raised through VC-backed M&As in 3Q 2015, a decrease of 27% from the previous quarter and a 9% drop compared to 3Q 2014.

8 venture-backed IPOs took place during 3Q 2015, a 47% decrease from the prior quarter and a 50% decrease in listings for VC-backed companies from the year ago period.

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LIQUIDITY

Exit Opportunities for European VC–backed Companies (2012–2015)

0 10 20 30 40 50 60 70

3Q'12

4Q'12

1Q'13

2Q'13

3Q'13

4Q'13

1Q'14

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15

IPOs 2 5 1 5 3 9 8 21 16 10 12 15 8

M&As 34 46 37 39 42 44 56 41 49 47 53 42 43

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TOP 3 M&As IN EUROPE (3Q 2015)

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Company Name Location Brief

Description Industry

Code Industry Segment Industry Group Close Date

Round Type

Amount Paid (€M) Acquirer

Idealista S.A. Madrid, Spain Operator of a real estate website

in Spain, Italy, and Portugal. Search Portals Consumer

Information Services Consumer Services 24/07/2015 Buyout € 150.00 Apax Partners LLP

Oxitec Ltd. Abingdon,

United Kingdom

Provider of biotechnology for tackling dengue fever and

damaging agricultural pests.

Genetically Modified Agricultural

Products

Agriculture and Forestry

Industrial Goods and Materials

04/09/2015 Acquisition € 142.08 Intrexon Corp.

Powervation Ltd. Blackrock,

Ireland Provider of fabless

semiconductor solutions. Application-Specific Integrated Circuits Semiconductors

Information Technology

23/07/2015 Acquisition € 63.33 ROHM Co. Ltd.

LIQUIDITY

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EUROPEAN VC-BACKED IPOs (2012-2015)

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LIQUIDITY

8 venture-backed IPOs took place during 3Q 2015, a decrease in number of deals both to the prior quarter and the previous year.

•  IPOs raised almost €700 million during 3Q 2015, an increase of 31% from the €533 million raised in 2Q 2015. VC-backed companies also raised an higher amount

through IPOs when compared with the year ago period (€447 million).

•  The largest European VC-backed IPO of 3Q 2015 was the Flow Traders listing in July. The company raised €521 million for its offering on the Amsterdam Exchange Index.

3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15

Raised (€M) through IPO € 52.08 € 142.99 € 19.22 € 89.24 € 25.51 € 366.10 € 448.63 € 529.53 € 447.47 € 2,249 € 417.40 € 533.10 € 699.69

Number of IPOs 2 5 1 5 3 9 8 21 16 10 12 15 8

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TOP 3 IPOs IN EUROPE (3Q 2015)

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LIQUIDITY

Company Name Location Brief

Description Industry

Code Industry Segment Industry Group Close Date

Raised through IPO (€M)

Exchange/ Symbol

Flow Traders Netherlands Provider of electronic trading

services. Institutional

Investment Services Financial Institutions

and Services Business and Financial

Services 10/07/2015 € 521.19 AEX: FLOW

Nabriva Therapeutics AG Austria

Developer of pleuromutilin antibiotics.

Biotechnology Therapeutics Biopharmaceuticals Healthcare 18/09/2015 € 81.54

NASDAQ: NBRV

Kiadis Pharma BV Netherlands Developer of oncology-related

therapeutics. Biotechnology Therapeutics

Biopharmaceuticals Healthcare 02/07/2015 € 32.67 BSE: KDS

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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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