Pace of venture deals continues decline in fourth quarter – Dow Jones VentureSource

The amount of venture capital and the number of associated deals in Europe continued a year-on-year decline in the fourth quarter of 2012, according to Dow Jones VentureSource.

Europe-based companies raised €967m from 233 venture capital deals over the quarter. This represents a 26% decrease in capital and a 22% decrease in deals from the same period in 2011.

Over the full 2012 year, venture capitalists put €4.4bn into a total of 1,074 deals, a drop of 9% in capital invested and 11% in the number of deals compared with 2011.
The median size of a European venture capital deal in 2012 was €1.9m, up from €1.6m in 2011.

Anne Malterre, European research manager at Dow Jones VentureSource, said: “With M&A at its lowest since VentureSource started tracking data in Europe, investors appear trapped in their current investments, needing to wait longer to recoup their financial returns while at the same time lacking funds to fuel new venture. However, the renewed trust in early-stage companies and the consumer services industry are positive signs. Due to the growing interest in social media, online shopping and entertainment, the industry should remain attractive in 2013 provided it can transform that appetite into revenues.”


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