PRINT THIS PAGE European venture capital investment in 2007 down seven per cent from previous year16/01/2008. Source: AltAssets. 
The amount of disclosed venture capital invested in companies in Europe dropped to €5.27bn in 2007, a decrease of 6.6 per cent from the €5.64bn invested in 2006, according to Library House. For the fourth quarter of 2007 the investment amount was €1.21bn, down from the €1.36bn invested in the previous quarter and the €1.52bn invested in Q4 2006.
Of note is that the European cleantech sector continued its growth, breaking the €200m barrier for the first time, attracting a total of €206m of disclosed venture capital in Q4 2007, compared to €196m in the previous quarter. The number of deals also increased from 33 in Q3 to 37 in Q4.
In 2007 the European cleantech sector attracted €712m in venture capital, almost doubling the €317m invested in 2006.
On an annual basis, the UK accounted for 27 per cent of all venture capital invested in 2007, compared to 29 per cent in 2006. However, in the fourth quarter of 2007 the UK saw its share of the total amount of European venture capital invested drop to 22 per cent, the lowest quarterly share in two years.
Countries that have increased their total share of venture capital investment include the Netherlands (to 6.9 per cent in Q4 2007 from 0.2 per cent in Q1 2006), Switzerland (to 6.4 per cent in Q4 2007 from 2.7 per cent in Q1 2006), Germany (to 11.4 per cent in Q4 2007 from 9.3 per cent in Q1 2006) and France (to 15.2 per cent in Q4 2007 from 13.6 per cent in Q1 2006).
In Q4 2007 Sofinnova Partners took the crown as the largest investor in terms of amount invested, taking part in four deals for a total of €91m.
With regards to exits, a total of 202 European venture-backed companies were acquired in 2007. The second half of the year was weaker than the first, with 70 trade sales compared to 132 in the first half. The number of venture-backed IPOs was also down between the first half and the second half of 2007 with only 31 per cent of the year's total recorded during the last two quarters.
John Owen, CEO of Library House, said, 'The lack of European exits in the second half this year is concerning, especially considering recent data showing that 2007 was a record year for venture-backed liquidity in the US.'
Library House provides business information and analysis to investors, private companies, governments, universities and professional services advisors.
Copyright © 2008 AltAssets
|
