PitchBook together with Merrill Corporation has prepared a report about activities on Venture Capital market in Q2 2016.
Ekaterina Voronova from InnMind had a quick look at the main figures presented in this report.
First of all, so far we can observe the decrease in VC activity compared to 2015. It is still quite early to say, but the activity seems to be closer to 2014 results. VCs have already invested 5.4 bln euro in 1,279 deals within first 6 months of 2016, compared to the total results equal to 10.5 bln euro in 4,231 deals in 2014 and 14.6 bln euro in 3,641 deals in 2015. That also shows that the closed deals this year are higher in value than in 2014.
Based on the graph below we can conclude that the activity of each of three groups of investors (angel, early VC and late VC) is decreasing, meaning that it is a general trend, not depending on the technological development of a startup.
The attention of investors switched from the UK and Irish markets, which were dominating in the past few years representing more than 35% since Q3 2013, to the other countries in Europe. Now it is interesting to observe which regions will “overtake the place” spared by British market. At the moment the regions that faced rise in VC activities are DACH (Germany, Austria and Switzerland) and Nordic region (Denmark, Finland, Iceland, Norway and Sweden).
Taking a closer look at investment rounds in different sectors, we can note that Media and Pharma&Biotech remain dominant, but, in general, the number of rounds is significantly lower than during last three years.
And finally, looking at the number and value of exits, we should mention that while exits value stays on quite a high level, the amount of deals closed dropped significantly comparing to 2015 and even 2014 and is expected to be at the same level as in 2013.