News Article
Chips contribute to revival in European venture capital investment
Venture capital investment in European companies leapt to euro 880.3 million in the first quarter of 2005, according to a new report by market analysts Ernst and Young and VentureOne.
Venture capital investment in European companies leapt to euro 880.3 million in the first quarter of 2005, according to a new report by market analysts Ernst and Young and VentureOne.
This is a 19% rise on the same period in 2005 and the largest amount invested in the first quarter in Europe since 2005. The jump in investment also comes against a decline in investment in US firms.
However, European deal flow dropped to less than 200 deals - a 27% decline on the same quarter a year ago.
The overall median deal size in Europe reached its highest level in more than six years at euro three million, compared to euro 1.5 million in the same quarter last year. Much of the increase was related to larger investments in first-round deals - a median euro 2.6 million, also the highest amount since 1999.
The median size of later-round deals grew to euro four million, compared to euro two million in the first quarter of last year. This is the highest median for later rounds since the third quarter of 2000.
A sector-by-sector breakdown of deals shows that the semiconductor industry performed strongly this quarter, with investment in European chip firms tripling to euro 121.9 million on a level deal flow.
This is a 19% rise on the same period in 2005 and the largest amount invested in the first quarter in Europe since 2005. The jump in investment also comes against a decline in investment in US firms.
However, European deal flow dropped to less than 200 deals - a 27% decline on the same quarter a year ago.
The overall median deal size in Europe reached its highest level in more than six years at euro three million, compared to euro 1.5 million in the same quarter last year. Much of the increase was related to larger investments in first-round deals - a median euro 2.6 million, also the highest amount since 1999.
The median size of later-round deals grew to euro four million, compared to euro two million in the first quarter of last year. This is the highest median for later rounds since the third quarter of 2000.
A sector-by-sector breakdown of deals shows that the semiconductor industry performed strongly this quarter, with investment in European chip firms tripling to euro 121.9 million on a level deal flow.
