THE GROWTH OF THE VENTURE CAPITAL ECOSYSTEM IN EUROPE SLOWS DOWN
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61 new European buyers based in 2021 – solely half the variety of new buyers in comparison with 2020
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The UK is Europe’s high nation in relation to the variety of buyers (191) and property below administration (€468 billion)
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London stays Europe’s enterprise capital epicenter. The British capital alone counts 316 investor places of work
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Nevertheless, the expansion of the enterprise capital ecosystem within the UK slowed down by two thirds in 2021
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British buyers are invested in 88 out of 130 European Unicorns and have probably the most profitable portfolio in comparison with the remainder of Europe
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British buyers significantly centered on early-stage investments in HealthTech & Life Science final 12 months
After a record-breaking 2021 with staggering valuations and a complete of 84 new European tech unicorns, the variety of new enterprise capital buyers in Europe has concurrently decreased by nearly half. With 61 new buyers in 2021, together with ten headquartered in the UK, the full variety of European buyers thus rose to 817 on the finish of the earlier 12 months. A examine by worldwide tech M&A advisor i5invest, enterprise builder i5growth, and the Entrepreneurship Heart of the Vienna College of Economics and Enterprise exhibits that British buyers have in extra of €468 billion in property below administration and a selected deal with investments in HealthTech & Life Science.
Regardless of Brexit, the UK continues to steer the rating of nations with probably the most native buyers in Europe (351), adopted by Germany in 2nd place (199), France in third place (128), and the Netherlands in 4th place (70). Whereas the DACH area grew the quickest by way of new buyers in 2020, Scandinavia counted among the many most newcomers final 12 months. “Most central European international locations have comparatively fixed progress figures. Scandinavia nonetheless was in a position to improve whereas we noticed solely about one-third of newly based buyers within the UK in 2021 in comparison with the 12 months earlier than”, emphasizes Herwig Springer, CEO of i5invest, indicating a doable change in pattern.
The portfolios of British buyers are probably the most profitable out of any in a European comparability. Of a complete of 130 European startups valued at multiple billion {dollars}, the so-called unicorns, 68% have not less than one British enterprise capitalist on board. For firms that buyers consider have the potential to succeed in this billion valuation threshold within the subsequent 24 months, the so-called soonicorns, this determine is as excessive as 60%.
Out of the 191 buyers based totally within the UK, 67% have an early-stage funding focus, not less than amongst different phases. This pattern seems to be unbroken – 9 out of the ten new buyers based in 2021 make investments solely in early-stage startups. “European scale-ups in later phases are largely depending on cash from the UK the place by far a lot of the European progress capital is concentrated. Nevertheless, the larger the funding spherical, the extra possible we see a US investor within the lead. There may be positively potential for extra progress capital throughout Europe”, says Simona Huebl, CEO of i5growth.
Europe’s most energetic and strongest buyers
Based mostly on property below administration in 2022, Novo Holdings (Denmark), Balderton Capital (UK), Atomico (UK), Goal International (Germany), and Verdane (Norway) are probably the most highly effective European enterprise capital buyers. CVC Capital Companions (Luxembourg), Companions Group (Switzerland), Ardian (France), Intermediate Capital Group (UK), and Schroder Adveq Administration (Switzerland) lead the personal fairness rating. The whole property below the administration of all buyers included within the European Capital Report 2022 quantity to greater than €3,286 billion.
Probably the most energetic European enterprise capital buyers based mostly on the variety of investments made in 2021 are International Founders Capital with 233 investments (Germany), adopted by Seedcamp (UK), BGF (UK), Entrepreneur First (UK), and SFC Capital (UK).
Within the rating of the most important enterprise capital buyers from the UK in 2022 based mostly on the respective property below administration, Balderton Capital leads forward of Atomico, BGF, Octopus Investments, and Octopus Ventures. If one ranks all buyers within the UK in line with the variety of investments made within the earlier 12 months, Seedcamp leads with 116 investments, adopted by BGF (113), Entrepreneur First (111), HG Capital (108), and SFC Capital (103).
Company enterprise capital
One pattern that’s solely slowly gaining momentum throughout Europe is for giant firms to arrange enterprise capital arms as a part of their innovation technique. The UK’s most outstanding instance is Unilever Ventures. “What stands out is that among the largest German firms, together with BMW, SAP, and Siemens, have positioned their enterprise capital automobiles in Silicon Valley,” says Dr. Stephan Jung of the Entrepreneurship Heart on the Vienna College of Economics and Enterprise.
There have been solely 5 new company enterprise capital buyers in Europe general final 12 months, bringing the full quantity to 62. When it comes to fund volumes below administration, Novo Holdings from Denmark takes first place, adopted by Deutsche Telekom’s enterprise capital arm – DTCP, Novartis Enterprise Fund from Switzerland, and Rabo Company Investments from the Netherlands.
The submit Europe’s largest report on the Enterprise Capital ecosystem appeared first on Fintech Information.