30 Jan 2020
Posted in Business Fundamentals
Low-value deals dominated European venture capital investments volume in Q4 2019
Europe experienced an increase in the number of low-value venture capital (VC) deals (investment <=US$10m), which also accounted for the majority share in terms of volume in the fourth quarter (Q4) of 2019, according to GlobalData, a leading data and analytics company.
The region saw an increase from 511 low-value deals with disclosed funding value (accounting for 79.6% share) worth US$1.4bn in Q4 2018 to 597 deals (accounting for 79.9% share) worth US$1.6bn in Q4 2019. The UK topped with a total of 222 deals worth US$544m, followed by France with 86 deals worth US$265.6m and Germany with 54 deals worth US$200m.
Some of the notable low value deals announced during Q4 2019 included US$10m each secured by SenSat, The Founders and LabGenius.
A total of 748 deals (with disclosed funding value) worth US$6.6bn were announced in Europe in Q4 2019 compared to 642 deals worth US$5.3bn in Q4 2018. Deals across all funding size ranges except >US$20-50m witnessed both volume and value growth in Q4 2019 compared to Q4 2018.
The region saw an increase in the volume and value of deals ranging between US$0-$1m from 151 deals worth US$73.2m in Q4 2018 to 176 deals worth US$77.2m in Q4 2019.
Some of the notable deals announced within this range included US$1m secured by Five Vectors, US$0.75m by PerfOps, and US$4m secured by UnderTheDoor.
The number of deals valued between US$1m-$5m also increased from 272 deals worth US$670.5m in Q4 2018 to 322 deals worth of US$779.8m in Q4 2019.
Some of the notable deals announced within this range included US$5m secured by Vega Holdings, US$4.9m secured by Vertical Future Limited, US$3.9m secured by Urania Therapeutics, US$3m secured by Oceano Fresco, US$2.5m secured by Augmenta and US$1.7m secured by Geowox.
Europe also witnessed an increase in the volume and value in deals ranged between US$100-$500m from seven deals worth US$963.39m in Q4 2018 to eight deals worth US$1.36bn in Q4 2019. Germany topped in this funding size with a total of four deals worth US$713m.
Some of the notable deals announced within this range included US$290m secured by Celonis, US$220.3m secured by Picnic Technologies, and US$166.9m secured by Glovo.
The region saw a decline in the number of deals ranged between US$20m-$50m from 59 deals worth US$1.79bn in Q4 2018 to 47 deals worth US$1.39bn in Q4 2019.
In funding size ranging between US$10m-$20m, there was an increase from 60 deals worth US$866.3m in Q4 2018 to 78 deals worth US$1.06bn in Q4 2019. The UK topped in this funding size with 28 deals worth US$396.5m and France stood second with 19 deals worth US$261.69m.
Some of the notable deals announced within this funding range included US$20m secured by Wayve Technologies, US$19.32m secured by Cuvva, and US$18m secured by pureLiFi.