PRINT THIS PAGE European venture capital investment in 2007 reaches highest total since 200205/02/2008. Source: AltAssets. 
Venture capital investment in European companies topped 4.56bn in 2007, the highest annual total since 2002, when it reached 5.14bn, according to the quarterly European Venture Capital Report published by Dow Jones VentureSource. However, Europes deal count fell for the sixth year in a row with 897 deals completed, ten per cent fewer than in 2006 (998). The overall median round size climbed to 2.8m in 2007, the highest median seen since Dow Jones VentureSource began compiling European data.
It is just a sign of the times in Europe, said Jessica Canning, director of global research for VentureSource. With a sputtering IPO market and mergers and acquisitions hard to come by, only the most viable of European companies are winning over venture capitalists. At the same time, investors are equipping these promising companies with the capital they need to compete globally and to best position them for a liquidity event.
Venture capitalists invested 1.04bn in second rounds, up 12 per cent over 2006, while later stage rounds accounted for 2.07bn, up 13 per cent compared to last year and the most investment since 2001.
By country, the UK saw both deal count and the amount invested drop. With only 267 deals completed, deal flow was down seven per cent compared to 2006, while investments dipped three per cent to 1.42bn. In France capital investment jumped 30 per cent to 1.02bn - its highest level since 2001 - as its deal counted climbed up 26 per cent to 236.
Capital investment in Germany ticked up seven per cent to reach 591m, but its 113 deals were down nine per cent from the preceding year.
The Netherlands saw investment skyrocket 130 per cent as 223m was invested in 35 deals, according to the report, while Belgium watched investment plummet from 228m to 77m.
Capital investment and deal flow in both Sweden and Denmark was also down in 2007.
Switzerland counted six more deals (32) completed in 2007 and garnered 277m in investment, 63 per cent more than last year.
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