Statistics - Venture Capital in Europe

The September 2003 study of private equity by Price Waterhouse Coopers / 3I provides a global picture of private equity and venture capital activities in the world. Due to methodology revisions, the new figures might slightly differ from those previously displayed.


Amounts invested (B$)
1998 1999 2000 2001 2002

Total World 90    159    206    103    102

North America 63.5 120.1 152.0 66.3 64.3

Western Europe 16.2 26.8 32.0 21.5 26.0

Asia Pacific 4.9 9.1 12.3 11.2 9.0

The global picture is that $ 102 billion has been invested in 2002, a decrease of 1% from previous year. Technology received $ 39 billion, 38% of that amount, down from $ 57 billion. Buyouts took the lead with $ 64 billion invested. North America represents 63% of global investment, Western Europe 25%, followed by Asia Pacific 9%.

In Western Europe, $ 26.0 billion was invested in Private Equity and Venture Capital, a 21 % increase over 2001. Technology investments there dropped 12% from 2001 level to $ 7.3 billion. In the US, they fell to $ 27.2 billion versus 41.5 billion invested in buyouts.

EVCA figures show how the amounts raised in Europe have shot up starting in 1997 to explode in 2000 before starting to subside in 2001. Figures have been drawn from their yearbooks.

New Funds raised (M€)	1995	1996	1997	1998	1999	2000	2001	2002
Total Europe	4 398	7 960	20 002	20 343	25 401	48 023	40 012	27 533

Amounts invested have progressed and remain at a new historical high level. Germany however, which had taken no. 2 position in 2001, fell back harshly in 2002.

Amounts invested (M€)	1995	1996	1997	1998	1999	2000	2001	2002
Total Europe	5 546	6 788	9 655	14 461	25 116	34 986	24 331	27 648
UK	2 681	2 973	4 428	7 105	11 501	13 180	6 926	10 385
Germany	652	715	1 326	1 948	3 159	4 767	4 435	2 626
France	855	885	1 248	1 777	2 817	5 304	3 287	5 851

The share of investments (by amount) going to start-ups has more or less doubled from pre-1997 level. Germany stands out with 20% of investment money going to start-ups.

Share of investments in start-up	1995	1996	1997	1998	1999	2000	2001	2002
Total Europe	5.2%	5.5%	6.5%	10.2%	11.0%	16.7%	15.0%	9.5%
UK	1.1%	1.4%	2.1%	2.2%	1.9%	11.7%	11.6%	5.8%
Germany	10.4%	8.3%	10.5%	17.7%	25.4%	26.5%	22.1%	19.3%
France	3.0%	9.5%	7.1%	14.4%	16.6%	20.4%	16.2%	6.0%

200 to 250 VC teams are present in Germany, with 3 concentrations in Munich, and Berlin and Heidelberg for biotechs. However, these trends have been linked to the development of the Neuer Markt, the German stock market for innovative companies. The question is how its strong and recent decline will affect the trend.

UK has been for long a country where most of the amounts invested go to buy-outs despite the 2000 hick-up probably linked to the excesses we have all come to witness.

Share of investments in buy-out	1994	1995	1996	1997	1998	1999	2000	2001	2002
Total Europe	44.1%	46.4%	46.4%	50.1%	51.2%	52.8%	41.2%	45.0%	61.2%
UK	64.8%	70.3%	71.7%	64.7%	70.9%	75.7%	52.9%	55.8%	71.8%
Germany	35.6%	20.1%	21.1%	35.9%	28.9%	14.7%	17.6%	37.3%	45.7%
France	29.1%	39.7%	27.8%	37.8%	45.9%	38.1%	38.1%	58.9%	76.8%

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