Venture Capital Deals in Europe in 2014 YTD – May 2014

by Emily Forbes

  • 21 May 2014
  • PE
  • VC

In 2014 YTD, there have been 492 European venture capital deals with an aggregate value of €2.5bn. This represents a notable market share: 21% of global number and 13% of the aggregate value of venture capital deals that have been announced so far this year. Preqin’s Venture Deals Analyst online service shows that the number of venture capital financings in Europe in the year to date is 12% lower than during the same period in 2013, but the aggregate value of deals is 37% higher, with the average value of venture capital financing in Europe increasing from €4.3mn to €6.2mn. 

Further geographic breakdown reveals that the country with the highest number of deals in Europe so far in 2014 is the UK, accounting for 37% of the total, followed by Germany (12%), and France (10%). The UK has the largest aggregate deal value with €805mn, again followed by Germany (€454mn), but with Sweden (€332) replacing France in the third place. Interestingly, 2014 is the first year since 2007 that France hasn’t been in the top three in terms of the aggregate deal value. 

The internet sector currently attracts the most venture capital investments of all industries tracked by Preqin’s Venture Deals Analyst, with 136 venture capital deals of an aggregate value of €831mn occurring in 2014 YTD. This sector accounted for 28% of European venture capital financings in terms of number and 33% in terms of the aggregate capital. In comparison to 2013, this represents a three percentage point and 16 percentage point increase respectively.  Venture capital investments in the software & related industry are the second-most abundant in regard to the number of financings, accounting for 18% of all venture capital deals in Europe so far this year and 11% of the total capital invested in the region, a 16 percentage point decrease since 2013. The healthcare sector was the second most prominent in regards to the aggregate deal value comprising nearly a quarter (24%) of the total value of European venture capital financings, a small increase in proportion from 23% in 2013. 

In 2014 YTD, angel/seed rounds represented the largest number of venture capital deals in Europe, as they have done since 2011, attributing to over a fifth (21%) of European activity with 112 deals. This is only a two percentage point decrease since last year (23%), whereas aggregate deal size has comparatively remained the same at 3% since 2013. Series A rounds however have increased in number and value, rising by 3 percentage points for both, and accounting for 14% of all deals in terms of number and 13% of the total capital invested so far this year. 

The prominence of growth capital/expansion financings have significantly increased in Europe this year, rising six percentage points to 8% and nine percentage points to 11% for total number of deals and aggregate deal size respectively. In absolute terms, this represents a 331% increase in number of such deals from the same period last year, with a €291mn increase in aggregate deal value. 

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