European Portfolio Companies Investor Locations 2008 - 2013 YTD – May 2013

by Gemma Morris

  • 09 May 2013
  • PE

An overview of venture capital financings for European portfolio companies from 2008 to present shows that the majority of firms investing into the region are also Europe-based. Preqin’s Venture Deals Analyst shows that on average, 85% of investments into Europe-based portfolio companies involve European firms, with 12.6% involving firms based in North America, 0.2% Chinese, 0.1% Indian and 2% from other locations.  

Across the years, European firms have consistently dominated the market in terms of the number of investments made. During 2008 and 2009, European firms invested in 87% and 87.2% of European deals respectively; however, this has decreased since, to 86.2% in 2010, to 84.5% in 2011 and further to 80.6% in 2012. So far during 2013, European firms have contributed to 87% of financings. Of all the financings involving European venture capital firms, over a quarter involved UK-based firms, either as a sole investor or a co-investor.

Venture capital firms based in Germany and France each contributed to 18% of European venture capital financings. Firms headquartered in Switzerland and Sweden each accounted for 5% of investments made by European firms, with Spanish and Dutch firms closely following at 4% each.

North American firms are regularly the second most active investors in European ventures. Between 2008 and 2012, the proportion of investments that North American firms were involved in has increased, from 10.9% in 2008 to 17% in 2012. So far, 2013 has seen a lower proportion of North American investor activity at 10.8%. North American investments into European based portfolio companies were predominantly from US-based firms. Such firms contributed to 97.2% of all investments involving North America-based investors, while Canadian firms were involved in 2.8% of North American venture capital investments in Europe.

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