Venture Capital Report

Europe | 1Q | 2017

VENTURE CAPITAL REPORT

VENTURE CAPITAL REPORT

The following report presents Dow Jones VentureSources quarterly findings for European venture capital fundraising, investment, valuation,
and liquidity. The included charts and graphs offer a comprehensive view of the trends currently affecting the venture capital market.

Highlights for 1Q 2017 include:

The amount raised by European venture capital funds increased compared to the previous quarter but was still well below 1Q 2016 levels;
Venture capital investment into European companies declined from 4Q 2016 in terms of both amount raised and number of deals;
The number of mergers and acquisitions (M&As) and the amount raised through M&As both decreased significantly compared to the previous
quarters figures;
While the total amount raised via initial public offerings (IPOs) increased, the number of IPOs experienced a notable drop-off compared to 4Q 2016.

VENTURE CAPITAL REPORT 2

EUROPEAN VENTURE CAPITAL FUNDRAISING CONTINUES
ITS REBOUND IN 1Q 2017
FUNDRAISING

European VC Fundraising
15 European venture capital funds raised Based on multiple closings (20142017)
2.23 billion during 1Q 2017. Compared with 4Q 2016, total 35 3.50

capital raised experienced a 32% increase, while the number 2.90

30 2.77 3.00
of fund closings decreased by 29%.
Compared with the same quarter last year, euros raised 25 2.23 2.50
2.09
decreased by 23%, while the number of fund closings 1.97
1.87
20 2.00
1.63 1.68
decreased by 42%.
1.37 1.42
15 1.34 1.50
Atomicos Atomico Ventures IV fund, which raised 1.07 1.10
723.30 million, was the largest fund of the quarter, 10 1.00
accounting for 32% of the total amount raised in 1Q 2017.
5 0.50

0 0.00
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Amount Raised (B) 1.07 1.63 1.10 1.97 1.37 2.09 1.34 1.87 2.90 2.77 1.42 1.68 2.23
Number of Funds 24 22 21 29 24 25 19 26 26 25 24 21 15

VENTURE CAPITAL REPORT 3

LARGEST EUROPEAN VC FUNDS RAISED IN 1Q 2017
FUNDRAISING

Offering
Firm Name Fund Name Amount (M) Location Fund Type Fund Category Closing Type
Status

London, Early-stage venture

Atomico Atomico Ventures IV LP 723.30 Closed Venture Capital Final
United Kingdom capital

Rocket Internet Capital Partners Multi-stage venture

Rocket Internet AG 546.30 Berlin, Germany Closed Venture Capital Final
SCS capital

Edmond de Rothschild Investment Multi-stage venture

BioDiscovery V 170.00 Paris, France Open Venture Capital
Partners capital First

Project A Ventures II GmbH & Co. Early-stage venture

Project A Ventures GmbH & Co. KG 140.00 Berlin, Germany Closed Venture Capital
KG capital Final

Early-stage venture
Sofinnova Partners Sofinnova Industrial Biotech I 106.00 Paris, France Open Venture Capital First
capital

VENTURE CAPITAL REPORT 4

INVESTMENT INTO EUROPEAN VENTURE-BACKED
COMPANIES DECREASED IN 1Q 2017
FINANCING
Equity Financings into Europe-based,
VC-backed Companies (20142017)
European companies raised approximately 2.83 billion from 548 4.50 600
deals in 1Q 2017, an 8% decrease in the amount raised and a 2% 550
4.00
decrease in the number of deals when compared to the previous 500
quarter. 3.50
450
Compared with the same period last year, the amount 3.00 400
companies raised increased by 4% and the number of deals 350
2.50
grew by 10%. 300
2.00
Business and Financial Services was the strongest sector of 250

the quarter in terms of both amount raised and number of 1.50 200

deals. It netted 877.92 million across 163 transactions. 150

1.00
100
0.50
50

0.00 0
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Amount Raised (B) 1.66 2.43 2.37 2.12 2.87 3.97 3.43 3.55 2.73 3.14 2.18 3.06 2.83
Number of Deals 439 473 388 445 464 479 448 553 498 547 511 558 548

VENTURE CAPITAL REPORT 5

EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED
COMPANIES, BY ROUND CLASS (20142017) NUMBER
OF DEALS
FINANCING

320

280

240

200

160

120

80

40

0
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Seed 46 42 36 46 37 53 43 48 49 41 44 52 60
First 232 235 194 220 237 213 215 290 230 286 255 262 235
Second 64 96 68 80 82 78 85 97 102 96 102 116 134
Later 62 77 62 60 80 108 78 81 86 93 75 95 74
Restart 0 0 1 0 0 1 0 0 0 1 0 1 0

VENTURE CAPITAL REPORT 6

EQUITY FINANCINGS INTO EUROPE-BASED, VC-BACKED
COMPANIES, BY ROUND CLASS (20142017) AMOUNT
RAISED (M)
FINANCING

2,500

2,000

1,500

1,000

500

0
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Seed 25 27 17 32 33 40 36 36 42 29 33 55 66
First 491 608 500 479 643 588 862 796 741 904 717 1,097 884
Second 292 496 223 781 441 913 610 606 774 557 450 577 708
Later 708 1,122 903 768 1,682 2,287 1,874 1,653 1,079 1,606 904 1,251 885
Restart 0 0 1 0 0 1 0 0 0 2 0 1 0

VENTURE CAPITAL REPORT 7

EQUITY FINANCINGS INTO EUROPE-BASED,
VC-BACKED COMPANIES (20142017)
MEDIAN EQUITY DEAL SIZE (M)
FINANCING

2.50

2.00

1.50

1.00

0.50

0.00
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Median Equity Deal Size (M) 1.22 1.50 1.50 1.75 1.60 2.00 1.90 1.96 2.00 1.80 2.00 2.12 2.35

VENTURE CAPITAL REPORT 8

EQUITY FINANCINGS INTO EUROPE-BASED,
VC-BACKED COMPANIES, BY INDUSTRY GROUP (1Q 2017)
FINANCING
1Q'17 Industry
Business and Financial Services
Breakdown
By Number 27% Consumer Goods
Business and Financial Services received the largest allocation of investment of Deals 30%
Consumer Services
during 1Q 2017, raising 877.92 million through 163 deals. The sector attracted 31%
of the total amount invested into European VC-backed companies as well as a 1%
Energy & Utilities

30% share of all deals completed in the quarter. 3% Healthcare

13%
Consumer Services ranked second in terms of euros invested. The sector Industrial Goods & Materials
1% 24%
garnered 650.57 million across 130 deals. This represented 24% of all Information Technology
transactions and 23% of the total amount invested into European VC-backed
companies for the quarter. 1Q17 Industry
Breakdown Business and Financial Services
Healthcare placed third, receiving 645.10 million via 73 deals. The sectors 21%
By Amount 31%
Consumer Goods
investment figures represent 23% of the total equity financing into European VC- Raised Consumer Services
1%
backed companies for 1Q 2017 and 13% of the transactions for the quarter.
Energy & Utilities

Healthcare
1%
23% Industrial Goods & Materials
0% 23% Information Technology

VENTURE CAPITAL REPORT 9

TOP 5 DEALS INTO EUROPEAN VC-BACKED
COMPANIES (1Q 2017)
FINANCING

Industry Industry Industry Brief Close Round Raised Round Investors

Co. Name Location
Code Segment Group Description Date Type (M) (* denotes lead)

Amsterdam, Logistics / Wholesale Trade and Business and Provider of grocery delivery De Hoge Dennen Capital PE BV, Finci, Hoyberg,
Picnic B.V. 28/03/2017 1st 100.00
Netherlands Delivery Services Shipping Financial Services services. NPM Capital NV

Accel Partners*, Baillie Gifford & Co. Ltd., DST

London,
Funding Circle Financial Institutions Business and Provider of a lending platform for Global, Index Ventures, Ribbit Capital LP, Rocket
United Lending 12/01/2017 7th 94.43
Ltd. and Services Financial Services small businesses. Internet AG, Sands Capital Management, Temasek
Kingdom
Holdings Pvt. Ltd., Union Square Ventures

London, Provider of antigen-specific T-cell

Biotechnology Invesco Perpetual, Touchstone Innovations Group
Cell Medica Ltd. United Biopharmaceuticals Healthcare immunotherapy treatments for 16/03/2017 5th 68.64
Therapeutics PLC, Woodford Investment Management LLP
Kingdom infectious diseases and cancer.

Vestiaire Shopping Consumer Operator of an online Eurazeo SA, Idinvest Partners, Vitruvian Partners
Paris, France Consumer Services 24/01/2017 5th 58.00
Collective SA Facilitators Information Services marketplace for fashion. LLP*

Therapeutic
Devices Developer of advanced drug-
Breath Munich, (Minimally Medical Devices and Gilde Healthcare Partners, Gimv NV*, Sofinnova
Healthcare aerosol therapeutics in 08/03/2017 1st 43.50
Therapeutics Germany Equipment Partners*
Invasive / pulmonary orphan indications.
Noninvasive)

VENTURE CAPITAL REPORT 10

MOST ACTIVE INVESTORS FOR EUROPE-BASED,
VC-BACKED COMPANIES (1Q 2017) BY DEALS COMPLETED
FINANCING

16

14

12
12

10 9 9 9
8 8 8 8
8

0
Index Ventures Sunstone Capital A/ Enterprise Ireland Bpifrance ALMI Invest AB 500 Startups Global Founders High-Tech
S Investissement SAS Management Co. Capital Grnderfonds
LLC Management GmbH

VENTURE CAPITAL REPORT 11

EQUITY FINANCINGS INTO EUROPE-BASED,
VC-BACKED COMPANIES BY COUNTRY (1Q 2017)
FINANCING
Number of
Deals in 1Q 2017 United Kingdom

During 1Q 2017, the United Kingdom was once again the most favored by Country 27%
(Top 4) 37% France
destination for equity financing, receiving 970.28 million across 150 deals. The
amount invested increased by 27% and the deal flow by 11% compared to last Germany
quarter.
14%
23%
Sweden
France held onto second place, with 398.02 million raised through 78 deals.
11%
11%
Despite a 35% decrease in capital invested compared to last quarter, it Rest of Europe
experienced a 22% increase in the number of deals.
Germany came in third, raising 371.04 million in 59 deals. Transaction volume Amount Raised
dropped 30% from the previous quarter and the amount raised was down 38%. in 1Q 2017 United Kingdom

by Country
The Netherlands, helped along by a big round for Picnic N.V., placed fourth (Top 4)
33% 34% France

based on the 177.34 million it received from 23 deals. These figures represent
Germany
increases of 64% and 28%, respectively, compared to 4Q 2016. However, both 19%

Sweden (58 deals) and Spain (32 deals) had larger deal counts. 6%
Netherlands

14%
13% Rest of Europe

VENTURE CAPITAL REPORT 12

EUROPE 1Q 2017 VENTURE EXIT ACTIVITY
LIQUIDITY

Exit Opportunities for European VCbacked Companies (20142017)

During the quarter, 61 venture-backed M&As took place
1Q'17
in Europe, a 38% drop compared to 4Q 2016 and a 29%
4Q'16
decrease relative to 1Q 2016. 3Q'16
2Q'16
The total amount raised through European VC-backed
1Q'16
M&As in 1Q 2017 was 2.52 billion. This represents a 4Q'15
58% decrease from the previous quarter and a 51% 3Q'15
decrease from the same quarter last year. 2Q'15
1Q'15
10 venture-backed IPOs took place during 1Q 2017, a 4Q'14
33% drop from 4Q 2016 but a 43% increase over 1Q 3Q'14

2016. 2Q'14
1Q'14
0 10 20 30 40 50 60 70
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
IPOs 9 21 16 10 12 17 8 15 7 11 13 15 10
M&As 66 49 61 60 62 51 61 44 86 87 98 99 61

VENTURE CAPITAL REPORT 13

TOP 3 M&As IN EUROPE (1Q 2017)
LIQUIDITY

Brief Industry Close Round Amount Paid

Company Name Location Industry Segment Industry Group Acquirer
Description Code Date Type (M)

Gladsaxe, Provider of contract-based Medical / Lab

CMC Biologics A/S Healthcare Services Healthcare 01/02/2017 Acquisition 495.02 Asahi Glass Co.
Denmark biotechnology services. Services

Provider of free-to-play mobile Consumer Take-Two Interactive

Social Point SL Barcelona, Spain Entertainment Consumer Services 31/01/2017 Acquisition 236.37
games. Information Services Software Inc.

Developer of small molecule

Plan-Les-Ouates, therapeutics that act as NOX Biotechnology
GenKyoTex SA Biopharmaceuticals Healthcare 28/02/2017 Reverse Merger 120.00 Genticel SA
Switzerland inhibitors for the treatment of Therapeutics
diseases.

VENTURE CAPITAL REPORT 14

EUROPEAN VC-BACKED IPOs (2014-2017)
LIQUIDITY

The number of IPOs during 1Q 2017 decreased in comparison

to the prior quarter, whereas the amount raised increased 2,500.00 25
significantly.
10 venture-backed companies went public during 1Q 2017, a
2,000.00 20
33% decrease from the prior quarter.
IPOs raised 357.82 million during 1Q 2017, an increase of
1,500.00 15
83% from the 195.11 million raised in 4Q 2016.
The largest European VC-backed IPO of 1Q 2017 1,000.00 10
was Avantium NV. The company raised 103.42 million for its
offering on Euronext Amsterdam and Euronext Brussels.
500.00 5

0.00 0
1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 2Q'16 3Q'16 4Q'16 1Q'17
Raised (M) through IPO 691.24 529.53 447.47 2,249.97 417.40 576.70 699.69 609.55 155.78 227.64 483.22 195.11 357.82
Number of IPOs 9 21 16 10 12 17 8 15 7 11 13 15 10

VENTURE CAPITAL REPORT 15

TOP 3 IPOs IN EUROPE (1Q 2017)
LIQUIDITY

Brief Industry Close Raised through Exchange/

Company Name Location Industry Segment Industry Group
Description Code Date IPO (M) Symbol

Provider of bio-based chemical

AMS: AVTX
Avantium NV Netherlands building blocks for making green Biofuels / Biomass Renewable Energy Energy and Utilities 15/03/2017 103.42 BRX: AVTX
materials and fuels.

Biotechnology
Developer of pharmaceuticals for
ObsEva SA Switzerland Therapeutics Biopharmaceuticals Healthcare 26/01/2017 91.36 NASDAQ: OBSV
women's reproductive medicine.

Developer of chemotherapeutic
Biotechnology
Oncopeptides AB Sweden pharmaceuticals for cancer Biopharmaceuticals Healthcare 22/02/2017 69.83 NASDAQ:ONCO
Therapeutics
treatment.

VENTURE CAPITAL REPORT 16

ABOUT US & METHODOLOGY
Dow Jones VentureSource helps venture capitalists, corporate development executives, investment bankers and service providers find deal and
partnership opportunities, perform comprehensive due diligence and examine trends in venture capital investment, fund-raising and liquidity. It provides
accurate, comprehensive data on venture-backed companies including their investors and executives in every region, industry and stage of
development throughout the world.

The investment figures included in this report cover venture backed companies headquartered in Europe, and are based on aggregate findings of Dow
Jones proprietary research for VentureSource.

This data was collected through surveys of professional firms, interviews with company executives, and from secondary sources. To be included,
companies have to receive financing from a venture capital or private equity firm. Our figures do not include companies that have received funding solely
from individual, corporate and/or government investors. The data in this report only accounts for equity funding, not convertible debt deals.

Figures contained throughout the report are current at time of editorial but subject to change without notice. No statement herein is to be construed as a
recommendation to buy or sell securities or to provide investment advice.

VENTURE CAPITAL REPORT 17

ABOUT DOW JONES

Dow Jones is a global provider of news and business information, delivering content to consumers and organizations around the world across multiple
formats, including print, digital, mobile and live events. Dow Jones has produced unrivaled quality content for more than 130 years and today has one of
the worlds largest newsgathering operations globally. It produces leading publications and products including the flagship Wall Street Journal,
Americas largest newspaper by paid circulation; Factiva, Barrons, MarketWatch, Financial News, DJX, Dow Jones Risk & Compliance, Dow Jones
Newswires, and Dow Jones VentureSource. Dow Jones is a division of News Corp (NASDAQ: NWS, NWSA; ASX: NWS, NWSLV).

MEDIA CONTACT:
Sophie Bent
+44 (0) 203 426 1381
sophie.bent@dowjones.com

VENTURE CAPITAL REPORT 18