|
Almeida Capital is pleased to be a premier sponsor of AltAssets
|
FREE newsletter RSS
INTELLIGENCE
RECRUITMENT
KNOWLEDGE BANK
EVENTS
SECTOR ANALYSIS
HEDGE FUNDS
|
PRINT THIS PAGE European venture capital investment in Q1 down on quarter, down on year09/05/2007. Source: AltAssets. 
 Venture capital investment into European in the first quarter of this year was down to €1.07bn invested in 207 financings from the €1.21bn invested in 233 deals in Q1 2006 and also down from the €1.18bn invested in 226 deals in Q4 2006, according to the quarterly European Venture Capital Report released by Dow Jones VentureOne and Ernst & Young.
The IT sector had the most significant upturn of any industry in the first quarter. A total of €550.2m was invested in 133 technology deals, representing €30.1m more in capital and 11 more deals than in the first quarter of 2006. The software and information services segments showed the most activity for the sector. Software deals increased by 20 per cent over the same period a year ago to 73, and investment increased 11 per cent to €222.5m. Deal flow in the information services segment increased 131 per cent to 30 deals, and capital increased more than two-fold to €114.7m.
Median round sizes across all industries improved upon last year's increases to reach the highest point on record at €2.7m overall.
'The continued growth in round size, especially in second and later rounds, indicates that investors are providing the most promising portfolio companies with the resources needed to progress along the path to exit,' said John de Yonge, global research director of Ernst & Young's Venture Capital Advisory Group. 'Last year saw the most venture-backed initial public offerings in Europe in six years and steady acquisition activity. Investors are focusing greater capital and attention on the subset of companies with the most potential to take advantage of the supportive exit climate in the near term.'
'The emerging interest in Web 2.0 technology - which is mostly focused in the information services segment - seems to be fuelling this growth in European technology investments,' added Jessica Canning, director of global research for VentureOne. 'In addition, the number of IPOs for information services companies doubled over the past year and this is likely a factor in investors' preference for the segment this quarter.'
France surpassed the UK to post the most deal flow activity in Europe in the first quarter, with 60 deals and €297.8m invested. This represents an increase of 36 per cent over the same quarter of 2006, the report found.
There were 58 deals and €317.6m invested in the UK, representing declines of 11 per cent and 28 per cent respectively.
Investment also declined in Germany, where there were only 16 financing rounds completed, down from 29 in the same quarter last year. Capital investment did not fall as far, down only 13 per cent to €122m.
Switzerland showed significant increases with twice as many deals (12) as in the first quarter of 2006, and €69.1m invested, an increase of 170 per cent.
Copyright © 2007 AltAssets
|
 
|
|
|
