Atomico has published the third “State of European Tech” report supported by by both Silicon Valley Bank and Orrick at the Slush event held between 4 and 5 December 2017 in Helsinki.   The full report can be found here but given it is a very comprehensive 143 pages long and a weighty 42Mb file I have pulled out some of the most interesting data points from a fund raising perspective:

  • European VC fund have raised more than €10bn since start of 2016, double the 2012 run rate.
  • Annual investment rate is up from $4.1bn into 1,276 deals in 2012 to a forecast $19.1bn in 3,449 deals ( 3.65 x growth in $ invested and 1.7 x growth in deal count)
  • The number of deals peaked in 2016 at 3,720, up from 1,276 in 2012 but down 7% to 3,449 in 2017
  • Trailing 12 month capital invested in up from 4.1bn in Q1 2012 to $17.8bn in Q3 2017, a 3.4 x expansion
  • Quarterly investment run rate is around $4.3bn into 800 deals
  • In 2017 there were 585 deals raising between $2 and $5m in Europe
  • In 2017 there were 324 deals raising between $5 and $10m in Europe
  • Median Series A is up from $3.3m in 2012 to $5.5m in 2017 (mean is $8.2m)
  • Median Series B is up from $8.1m to $13m (mean level is $23m in 2017)
  • Of total amount invested, 33% is cross-border within Europe with many new new funds have been established outside the UK
  • The venture ecosystem is expanding across Europe with the number of tech-related Meetup events reaching an average of 172 daily
  • The number of European cities with more than 50 tech Meetup events a year is up from 30 in 2012 to 167 in 2017
  • The UK remains the largest destination for capital invested with $13.3bn between 2012 and 2016 and $5.4bn in 2017 YTD
  • Companies in ten European countries have raised more than $1bn over the period 2012 to 2017 YTD
  • The number of unique institutions that have participated in at least one investment round is up from 527 in 2012 to 1,952 in 2017 with unique corporate investors at 637 and unique US investment funds at 234 showing highly divers sources of capital
  • European VCs have raised more than €10.6Bn across 198 funds since 2016
  • Of funds raised in venture, 23% comes from government agencies while family offices and private individuals provide 18% and corporate venture 17%, together representing 58% of the total
  • European venture returns are improving with top quartile performance for EIF backed funds averaging 20% net IRR since 2007.

The reports covers many other aspects of the innovation economy and is worth the time taken to digest fully.

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