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February 03, 2006
Deal size in Europe on the increase
Investors are putting more capital to work in European technology ventures. Last year, fifteen tech companies raised rounds larger than €20 million, more than double the number of the two previous years combined, according to a report from Go4Venture, a company that advises startups on raising venture capital.
Looking at the names of the companies in the list below, there are some semiconductor and hardware firms. With their need for large swathes of cash, that is to be expected. Also unsurprising is an investment in CSG Solar. Its VCs will likely be looking to float it in Germany, where there is an as yet unsaturated demand for this type of energy stock.
What is new is the popularity of online services and content-developers. Five out of fifteen are active in this segment: Vibrant Media (online advertising), Poliris (online real-estate search), Photoways (online photo lab), MidasPlayer (arranges small-stake tournaments for casual gaming), and Codemasters (games developer).
But make no mistake about a return of the old bubble-like investment activity where immature dotcoms garnered huge rounds of VC with little or no due diligence. These were all late stage deals and none are Web 2.0 startups. They are established, have earned profit, and are generating sales. Expansion is the goal with the new capital.
Here is the list from Go4Venture for 2005. (Note: it covers publicly announced deals where the amount raised was disclosed.)
In 2005, fifteen tech companies raised rounds of greater than €20 million. There were only five in 2004 and just three in 2003.
Posted on February 3, 2006 11:14 AM | Posted to Venture Capital | Permalink
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