European venture capital rebounds in fourth quarter


The European venture capital business rebounded in the fourth quarter with fundraising and IPOs up, while investments in startups grew at a smart pace.

Twenty-three venture funds raised nearly $2 billion in the quarter, the most money raised in a quarter in two years, according to a report from Dow Jones’ DJX VentureSource. Capital was up 38% from the same quarter a year ago. The number of funds fell by 12%.

As was the case in the United States, fundraising in Europe showed some concentration. The largest fund raised during the period, Abingworth Management’s Bioventures VI, accounted for 17% of the quarter’s capital.

For the year, capital raised was down 8% from 2012.

There were eight IPOs of venture-funded European companies in the quarter, the largest number of deals since the second quarter of 2010.

Investments ended the year on a reasonably strong note as well, the DJX VentureSource study shows.

Venture firms invested slightly more than $2 billion in startups in the final three months of the year, up 18% from the third quarter. The number of deals – at 357 – edged up 6%.

The top deal in the quarter was Spotify’s $253 million financing.

For the year, investments rose 15% from 2012 in terms of capital allocated.

Photo courtesy of Shutterstock

Leave a Reply

PE HUB Community

Join the 12525 members of PE HUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Look Who’s Tweeting

PE HUB News Briefs

RSS Feed Widget