Fewer, but larger deals are being favoured for European venture capital investment, says Dow Jones in its latest study of deals in the first quarter of 2015.
European companies raised €2.6bn in venture capital for 345 deals during 1Q 2015, an increase of 41% in the amount raised from 4Q 2014 despite a 5% slide in the number of deals completed. Consumer Services was the strongest sector of the quarter in terms of attracting investment with Business and Financial Services in second.
Information Technology was placed third, with companies in the sector gathering 16% of the total amount invested for the quarter. The sector received €436m across 75 deals; a rise of 65% and 1% from 4Q 2014 in capital invested and deal flow respectively. 49 venture-backed M&As took place in Europe during 1Q 2015, up 7% from 4Q 2014 but down 6% on the figure for 1Q 2014. 12 venture-backed IPOs took place during 1Q 2015, two more than those seen in the prior quarter and four more than the listings for VC-backed companies completed in the year ago period.
Germany was the most favoured destination for equity financing during 1Q 2015, receiving €921m across 64 deals. The country took 35% of all equity financing for the quarter, tripling its 4Q 2014 investment total. The United Kingdom placed second, attracting a 34% share of European financing. Investment rose by 54% from the prior quarter to total €886m while deal flow increased by 16%. France occupies third position raising €292m, 11% of the total for the quarter. Austria rose to fourth position with a 7% share, raising €173m during 1Q 2015.