As European VC activity slides 23%, how does it compare to the U.S.?
May 02, 2016
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For some time, the number of completed venture rounds in Europe has been diminishing, even while capital invested remained relatively elevated. But that's changed in the past year. 1Q 2016 marked the third consecutive decline in overall quarterly deal value, while the 523 deals done were the fewest since 2011, according to our 1Q 2016 European Venture Industry Report. Here are a few other data points from the report:
The percentage of deals in 1Q that were €5 million or more in size puts 2016 thus far at the second-highest of the decade
Venture-backed exits slid in count and value to 2013 levels
Similarly to the U.S., there was a strong surge in capital raised in 1Q, at just below €3 billion
In short, the VC slowdown is definitely apparent in Europe, although investors still see opportunities. The environment differs from that of the U.S. in a few key ways, not the least of which is the fact there was relatively less overheating in round sizes and valuations. What that portends for European venture investment prospects is explored at greater length in the full report, sponsored by Merrill DataSite, which you can download for free.