VCs The Most Active And What They Are Investing In
Brian Perry
08-Aug-06
In 2005, European Venture Capital investments reached over €3.6 billion in 1,020 transactions. This seems fairly impressive but still a fraction of what it was “pre-bubble” era back in its peak back in 2000.
Although IPO’s rebounded significantly in 2005 and VC fund raising reached its highest level in 3 years, deal flow and capital invested decreased by 5% and 16% respectively. European Venture backed financing is still at about 20% of US VC financing of entrepreneurial firms. However, 46% of what the US industry is doing was completed in the number of financing rounds.
Some other interesting statistics:
- Average median investment - €2 million (up from €1.5 in 2004)
- Average time between financing rounds – 1.5 years (up from 10 months in 2004)
- Median pre-money valuation – €4.1 million (up from €3.8 in 2004)
- Seed and first round deals – 31%
- Most active investor – 3i Group
- Most active country – UK (307 deals and €1.04 billion invested – down 9% & 11% from 2004)
- Largest deal – €46.2 million (Oxagen based in Abingdon)
- Hottest industry – Information Technology (€1.57 billion invested, 528 deals, 44% of the Euros invested in 2005 and 52% of the deals – Note: Software representing the majority of the deals completed)
- Close Second – Healthcare Industry (€1.54 billion in 292 deals, 43% of the overall capital and 29% of the year’s deal flow) Once again, the UK is the most active country with a number of very active VC firms vying for top spot in investment success. Most notably is 3i Group. Based in London and they have an annual investment objective of over €1.5 billion. Last year 3i invested in 56 financing transactions within Europe alone.
2006 has already started off with a bang and we can only expect the big players and consistently active industries to continue throughout this year. Europe and the UK is still lagging behind the US market but as the World appears to be slowly shifting East, time can only tell what this will bring. One can only imagine how China and India will factor into VC and Private Equity activity over the coming years. Stay tuned!
| Firm Name | Number of Deals |
| 3i Group | 56 |
| YFM Group | 22 |
| SPEF Venture | 21 |
| SEB Foretagsinvest | 21 |
| Innovacom | 18 |
| Vaekstfonden | 17 |
| Sofinnova Partners | 17 |
| I-Source Gestion | 17 |
| Enterprise Ventures Limited | 17 |
| Atlas Venture | 16 |
| XAnge Private Equity | 15 |
| Industrifonden | 15 |
| CDC Entreprises Innovation | 15 |
| Apax Partners | 15 |
| Banexi Ventures Partners | 14 |
| HealthCap Venture Capital | 13 |
| Wales Fund Managers | 12 |
| Siparex Group | 12 |
| Credit Agricole Private Equity | 12 |
| Index Ventures | 11 |
| Seed Capital | 11 |
| MTI Partners | 11 |
| Sudinnova | 10 |
| Sigma Technology Group | 10 |
| Midven | 10 |
| AGF Private Equity | 10 |
| Iris Capital | 10 |
| Dansk Erhvervsinvestering | 10 |
| ACE Management | 10 |
| Vizille Capital Innovation | 9 |
| Societe Generale Asset Management | 9 |
| Scottish Equity Partners | 9 |
| Quester Capital Management | 9 |
| OTC Asset Management | 9 |
| Northzone Ventures | 9 |
| LinkMed | 9 |
| Intel Capital | 9 |
| InnovationsKapital AB | 9 |
| Delta Partners | 9 |
| Cap Decisif | 9 |
| Auriga Partners | 9 |
