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European Venture Report

1Q 2018

European Venture Report

April 25, 2018

European Venture Report
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Nearly €4.4 billion was invested across Europe in 1Q, the fourth highest quarterly deal value we have tracked in the past decade. This high figures highlights the increased availability of late-stage capital across the region, as well as the continued growth of the industry. The 1Q 2018 European Venture Report also looks into exits and fundraising, which have each shown a decline in recent years. In the first quarter, just 64 exits were completed for an exit value of €1.5 billion, and 18 VC vehicles were closed with just 2.1 billion in commitments. Each of these figures sets 2018 on pace for lower annual totals than 2017.

Key Highlights:

  • European VCs invested €4.4 billion across 571 rounds in the first quarter of 2018, putting the year on pace to nearly match last year’s decade-high value of aggregate capital invested. Deal count, however, saw a 49% decrease YoY, marking the fifth consecutive quarter deal count has trended downward.
  • With 18 vehicles closed by European VCs totaling 2.1 billion in commitments, 2018 appears to be on track to just fall short of 2017’s fundraising metrics. Should European VCs continue to raise larger funds as they have in recent years, however, capital raised in 2018 could still match or exceed 2017’s total. 
  • VC-backed exits started off slowly in the first quarter of 2018, with 1.5 billion of value exited across only 64 deals. We attribute much of the slowdown to sheer capital availability in the VC ecosystem, which has afforded some VC-backed companies the ability to scale without completing a traditional liquidity event.