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
Fundraising? Then you don’t want to miss EMERGING MANAGER CONNECT in NYC on Jan. 24. This event is packed with 100+ LPs managing more than $45 billion devoted to emerging managers combined. Details are here: http://bit.ly/2ed5fcM
Take your pick!
- Buyouts delivers exclusive news and analysis about private equity deals, fundraising, top-quartile managers and more. Get your FREE trial or subscribe now.
- VC Journal provides exclusive news and analysis about venture capital deals, fundraising, top-quartile investors and more. Get your FREE trial or subscribe now.