Dow Jones: European VC Investment Drops in Q1 of 2018

Dow Jones VentureSource is out with their quarterly report and their numbers indicate a decline in venture capital funding during the first quarter of 2018.

According to the report, investment declined by 16% in the number of funds and delivered a 29% drop in capital raised compared to the last quarter. In looking at same quarter in year prior, capital raised declined by 22%.

European venture backed companies generated €4.36 billion through 656 deals in 1Q 2018. This was a 19% drop in investment and 17% decrease in number of deals versus prior quarter. When comparing same quarter year prior, the capital raised increased slightly (4%) while the number of deals decreased by 14%.

While we have come to expect the UK to always be at the top of the heap, during Q1 Germany ranked first for equity financing in VC backed firms. Germany attracted €1.24 billion for 84 deals, representing an 82% increase in capital and a 4% raise in the number of deals when compared with the previous quarter.

The UK came in second at €1.06 billion through 175 deals and France came in third in capital raised with €722.60 million, it took the second place in number of transactions, with 103 deals in Q1 2018.

Germany was aided by the largest Fintech round as N26, the digital challenger bank, raised €129.86 during the quarter. This was the 4th largest European VC round overall during Q1.

VentureSource said later stage financing rounds trended higher both in terms of number of rounds closed and in capital raised.

Download here: Dow Jones VentureSource-Europe-1Q2018_final1


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