Rise in the European Venture Market slowing down

Every month the Go4Venture Advisers team reports about the European Venture market. Investment activity is measured using Go4Venture’s European Tech Headline Transaction Index (HTI), which is based on the number and value of transactions reported in professional publications. In May, the HTI, while ending roughly at the same level as May last year, showed the same pattern as the month before, i.e. a well-spread out level of activity except for the high concentration in internet and software. Stage-wise, the balancing act between late-stage on one hand, and ambitious Series A rounds on the other, is continuing. From a geography standpoint, UK is still leading the chart, with no other country scoring more than one Large HTI transaction (more than $10 million / €7.5 million / £5 million) except this month Denmark.

What was really surprising in May according to the Bulletin was the rush of fund announcements, at all stages of the venture funding cycle:

• Oxford Sciences Innovation has a first closing at $330 million in its way to a $475 million fund to better finance innovation coming out of Oxford University
• Passion Capital, a London-based seed and early-stage fund, closed their second fund at £45 million
• Paris-based Idinvest announced their 2rd digital (internet and software) fund at €140 million
• Carlyle closed their 3rd TMT European fund with €656 million

For entrepreneurs the situation is still good. The authors of the bulletin cinclude: “As the European market progresses and US investors get more involved, local players have to raise their game – a great time to be a European entrepreneur.”

The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bulletin provides a summary of the most prominent private investment transactions among emerging European TMT companies. Investment activity is measured using Go4Venture’s European Tech Headline Transaction Index (HTI), which is based on the number and value of transactions reported in professional publications. The HTI captures transactions at all stages of investment, from seed to pre-IPO, and is an early indicator of the progression of the private market cycle.

The Bulletin provides analysis of Venture Capital (VC) and Private Equity (PE) financings, including growth equity and financing rounds with single secondaries components (recapitalisations), of a value greater than or equal to our Large Transaction threshold (£5mn / €7.5mn / $10mn). Transactions below the threshold are captured in the HTI, but not profiled in the Bulletin.