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Private Equity-Backed Venture Capital Deals by Region Q1 2010 to 2012 YTD

by Jessica Hull

  • 07 Jun 2012
  • PE

From 2010-2012 YTD, the greatest number of private equity-backed venture capital deals have been announced in North America, with two-thirds of all venture financings taking place in the region. The greatest number of deals since Preqin records began in Q1 2010 was witnessed in the third quarter of 2011, where 800 VC deals took place in North America. Since Q3 2011, the number of private equity-backed venture capital deals has failed to reach similar levels in this region, but the number has fluctuated close to the mean number of deals (711 deals) experienced over the last two years.

Europe has been the second most prominent area in terms of number of venture capital deals announced, with considerable activity occurring in the United Kingdom, France and Germany. The largest number of venture capital transactions in this geographic region was seen in Q1 2010, when 224 deals were recorded. So far this year, just less than 20% of all venture capital deals have taken place in Europe, with the first quarter of the year showing a secondary peak in the number of European transactions since Q1 2010. Since the previous quarter, there has been a considerable resurgence in European venture capital activity, a notable 30% increase, which suggests a significant resilience against the growing troubles in the Euro zone.

China and India have also both revealed themselves as important regions for venture capital activity. Since a peak witnessed in Q2 2011, when 59 venture capital transactions took place, the number of financings in China have experienced a steady decline. In Q1 2012, the country saw just 34 venture capital deals completed, the lowest number on record. Inversely proportional to China, India has experienced a surge in venture capital activity, with deal flow increasing by 40% from Q4 2011 to Q1 2012. This suggests a growing importance of the Indian venture capital market, likely due to their robust financial sector, high economic growth and entrepreneurial strength of the population.

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