05 Feb 2020
Posted in Banking
Early stage funding rounds dominated VC investments volume in Europe during Q4 2019
Europe experienced an increase in the volume of early stage (Seed and Series A rounds) venture capital (VC) deals in the fourth quarter (Q4) of 2019 compared to Q4 2018 and these deals also continued to account for a dominant share of VC investments volume during both quarters, according to GlobalData, a leading data and analytics company.
The number of early stage funding rounds in Europe increased from 276 deals worth US$1.2bn in Q4 2018 to 313 deals worth US$1.4bn in Q4 2019. These deals accounted for more than 80% of VC investments volume during both quarters.
Europe witnessed a total of 375 deals (with disclosed funding rounds) worth US$3.5bn in Q4 2019, representing a growth of 10% and 28.4% in volume and value terms, respectively.
In Q4 2019, the UK topped the region in early stage investments with 121 deals worth US$519.5m, followed by Germany with 54 deals worth US$365.1m and France with 26 deals worth US$200m.
Some of the notable early stage funding rounds announced during Q4 2019 included US$55.6m and US$22.1m secured by Sono Motors GmbH and ToolTime GmbH in seed funding and US$48.9m and US$33.5m secured by Goggo Network and Choco Communications GmbH in Series A funding.
Aurojyoti Bose, Lead Analyst at GlobalData, says: “The UK, being a technology hub with a pool of international talent and a conducive start-up ecosystem, continues to gain significant investors’ traction within Europe.”
Series B funding rounds outpaced both Seed and Series A funding rounds to secure the highest funding among all the rounds. In Q4 2019, Europe saw an increase in the number of Series B funding rounds from 43 deals worth US$624.4m in Q4 2018 to 47 deals worth US$1.1bn in Q4 2019.
The UK also led in Series B round of financing in Q4 2019 with 14 deals worth US$480.7m, followed by Germany with 11 deals worth US$320.1m and France with eight deals worth US$200.8m.
Some of the notable Series B funding rounds announced during Q4 2019 included US$110m secured by Wefox Group, US$60m secured by TIER Mobility GmbH and US$56m secured by Healx.
Among all the funding rounds, only Series D funding rounds experienced decline in both deal volume and value during Q4 2019. Series C also witnessed decline in deal volume, while experiencing growth in deal value during the quarter.