[Report] H1 2013 European Tech; France tops in deal flow, Germany tops in investment size, the UK slips

Sep 26, 2013
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Clipperton

Clipperton Finance has released[pdf] their quarterly report on the European Private Equity & Venture Capital, in collaboration with Digimind, looking at over 200 venture deals in Q2 2013 alone across Europe. The report, which looks at IT, Life Sciences & CleanTech investments, gives a broad overview of the ecosystems, excluding out investments under $500K as well as fundraising via IPOs to the public market.

Clipperton & Digimind newsletter This quarter, France topped in terms of number of deals – its 72 deals easily trumped the UK’s 59 and the DACH region’s 39 deals; however, similar to the Q1 2013 report from Clipperton, German deal sizes are still larger, and thus the DACH region brought in more capital than France or the UK – $372M(DE) as opposed to $338M(FR), to be precise.

Within these deals, IT deals made up more than 60% of the deals, highlighting the ongoing VC preference towards relatively minimal investment into a sector that is still making great returns regularly.

While the top investments in each sector and country are displayed (seen above), the majority of the 200 investments are not disclosed, and are assembled by Digmind’s text-mining algorithms. Nonetheless, I imagine that they have not missed any of the larger deals, so any mistakes or mischaracterizations of innovation (one of the prerequisites to being included is being ‘innovative’ as determined by Clipperton) would have nominal effects on the overall ranking.

Update: Clipperton has 3 offices in Europe, not two, as previously suggested

Despite having offices in Paris, London & Berlin, Clipperton’s report favors the Franco-Allemand regions of Europe; however, I am inclined to invoke the idea that “numbers don’t like.” What’s interesting to note, in terms of London-based activity, is the prevalence of UK investors like Atomico Ventures & Index Ventures in Non-UK investments. UK may be dipping in terms of its startups receiving funding, but the money is still flowing steadily from the channel. This, however, may not be enough to keep the European VC crown on the UK’s head; VC funds like Sofinnova, T-Ventures, Xange, and Iris are slipping into the top European deals, as seen above, and as larger deals continue to come from mainland Europe, the UK may find itself drifting out to sea.