Building Momentum in Venture Capital across Europe (NEFI - Network of European Financial Institutions for SMEs)

Summary

• Between 2007 and 2015, VC firms in the EU raised EUR 40 billion, with government agencies contributing more than a fifth of the total funds committed.p.17
• From 2007 to 2015, VC firms located in the EU financed more than 28,000 companies with about EUR 35 billion in venture capital.p.18
• US venture capital investors provided funding equivalent to 0.211 % of GDP per annum on average, compared to 0.028 % of GDP in the EU.p.19
• In Germany, VC firms raised more than EUR 1.2 billion in 2007 and 2008 before fundraising plunged to EUR 400–600 million during the financial crisis.p.37
• In Italy, total VC fundraising reached EUR 44.5 million in 2015, with early-stage focused funds decreasing 82 % to EUR 29.5 million.p.43

Key insights

1. Limited Partners provide almost all of a VC fund's capital, while General Partners typically provide a marginal share of 1 %.p.15
2. In the EU VC market, 46 % of the EUR 40 billion raised between 2007 and 2015 was dedicated to early-stage ventures.p.17
3. Average VC deal size in the EU is EUR 1.3 million, whereas VC-backed companies in the United States receive an average of EUR 6.3 million per funding round.p.20
4. Three states—California, Massachusetts, and New York—accounted for 77.5 % of total US VC invested in 2015.p.21
5. Canada's Venture Capital Action Plan raised CAD 1.4 billion, leveraging CAD 2 of private sector investment for every CAD 1 of public sector commitment.p.23
6. Bpifrance managed more than 10 funds of funds that invested almost EUR 2 billion in over 130 VC funds alongside private investors.p.35
7. Fond-ICO Global allocated EUR 256 million across 7 public tenders to first-stage focused funds in Spain, leveraging EUR 793 million in target investments.p.26
8. In Germany, repayments of silent partnerships accounted for 51 % of exit deals between 2007 and 2015 but represented only 12 % of exit amounts at cost.p.40
9. As of Q4 2015, British Business Bank venture capital programmes supported 634 businesses with approximately GBP 2.7 billion of equity funding.p.57