In the past year, more venture capital has been invested in European companies than in any other year since 2007, when Preqin began comprehensively tracking this data.
The 6.3bn ($8.3bn) is a significant increase on the 4.6bn (US$5.9bn) invested throughout 2012, and is a clear indicator that significant growth and confidence is returning to the continent.
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North America was again the most prominent region for venture capital investment, with 3,686 venture capital deals in 2013 valued at a total of $31.6bn, compared to 4,233 deals totaling a combined $32.9bn during 2012. The region accounted for 62% of the global number of deals and 68% of the aggregate value throughout 2013.
Other Key Facts:
- There were 5,973 venture capital financings announced globally in 2013 with an aggregate value of US$46.3bn, representing a 6% fall in number and a 5% rise in aggregate value compared to 2012.
- The number of deals in Europe was 8% up on the year before, with 1,352 deals in 2013 compared to 1,250 in 2012.
- The number of deals in economies outside the main venture capital hubs of North America, Europe, Greater China, India and Israel rose by 38% to 319 from 231 in 2012, along with a 148% increase in value to US$2.1bn from US$856mn.
- Series A financings rose in prominence, comprising 15% of all deals in 2013 compared to 13% in the previous year.
- 2013 saw increases in average value for every investment stage across the board, with Series D and later stage deals witnessing a 23% increase in average investment size to US$37.3mn from US$30.3mn in 2012, the highest for this category in the period 2007 to 2013.
- Software & related companies received 21% of the global aggregate value of investment during 2013, up from 14% in 2012, with the number of deals in this sector as a proportion of the global total rising from 18% in 2012 to 22% in 2013.
Ignatius Fogarty, head of Private Equity Products, Preqin, said: "The European venture capital industry has witnessed significant growth throughout 2013, with a record number of investments taking place, as well as a record amount of capital being invested in companies throughout the continent. This should be welcome news to many economies across the region that are looking to young, entrepreneurial firms to boost growth and development. Across the globe, even though there has been a slight decline in the number of venture capital financings taking place in 2013 compared to the previous year, the amount of capital and average investment size across all venture capital stages has increased, providing firms with more capital to help grow their companies and ideas."
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