European Innovation Financing H1-2013

Leveraging data provided by WhoGotFunded.com, the Digimind text mining engine monitoring worldwide funding activity, Clipperton Finance has analyzed the financing trends amongst European innovative companies in the first two quarters of 2013. This publication, following the first paper released in April 2013, aims to provide the European ecosystem (entrepreneurs, investors, public-decision makers) with a detailed view of the financing trends in innovation per country, sector, stage etc. This report illustrates that despite on-going uncertainty amongst macro-economists as to whether the Euro zone is emerging from recession, the financing of Innovation in Europe continues to show real signs of a rebound. Whilst this rebound may not be a spectacular one, the +13% increase in investment value in Q2 vs. Q1 demonstrates a clearly positive trend.Key takeaways from this H1 2013 report include:

• $1.6bn have been invested into European Technology start-ups during Q2 2013;

• The DACH¹ region topped the ranking in value in Q2, while France and the UK were head-to-head at similar levels in terms of investment value;

• Germany experienced a strong momentum in Q2 with large deals across several sectors for companies such as Numberfour, Research Gate or FoodPanda;

• Sector-wise, IT maintains a strong lead (60%+ of all value in Q2). However, Life Sciences posted a solid Q/Q growth (+100% vs. Q1) with a handful of large financings (>$50m) in Medtech and Biotech;

• There is a severe financing gap vs. the US in Business Cloud & Software, although the segment has shown positive signs in H1 2013.

The next update will be released in January 2014, with a full-year review.