We were wondering in our previous release whether trees grew to heaven in the tech space. Deceleration experienced in H2 2015 provides a first answer to the question ($5.8B, -16% vs. H1) but might actually be a positive sign for the eco-system.
Clipperton Finance, in partnership with Digimind, releases its European Innovation Financing newsletter covering second semester of 2015.
Click here to download the newsletter
After a record semester in H1, European Innovation Financing showed first signs of deceleration in H2 but remains on high levels: $5.8B invested, +40% vs. the same period last year:
- 2015 was undoubtfully a record vintage: more than $12B invested in European Innovation, i.e. +60% vs. 2014
- Fintech and Life Sciences/Biotech posted a strong semester while Consumer Internet experienced a real slowdown
We were wondering whether “trees grew to heaven” in tech financing in our latest newsletter following the record 7bn$ invested in Europe in H1 2015. The deceleration experienced in H2 might actually be positive for the ecosystem. Coupled with the contraction of the Tech IPO market, it already enables to reduce the over-heating that was sometimes affecting valuations in private funding rounds.
On the other hand, vast amounts of capital are more than ever available for European tech companies as star VCs have raised larger funds (e.g. Index Ventures new $550m fund), new VCs have appeared (Mosaic, Daphni, Paua Ventures…) and Corporates of various industries, from Financial Services (Axa, Santander, Barclays…) to Hardware (eg. Foxconn with Ginko,Cisco) are investing in European innovators. The pace of the digital transformation in almost all industries is now widely seen as a secular trend which will not be fundamentally changed by a more bearish stock-market. Valuations will adjust, but the need for corporates to partner with, and sometimes acquire, digital champions will not disappear.
The next update will be released in July 2016 covering H1 2016.
Thibaut Revel, Partner, firstname.lastname@example.org
Martin Vielle, Associate, email@example.com
Clipperton is a European independent corporate finance advisory firm exclusively dedicated to the Technology space, advising innovative companies on M&A transactions, debt financings and equity offerings. With offices in London, Berlin, and Paris and an international reach, Clipperton is a European leader in Technology financial advisory. Over the past 15 years, the team has successfully completed more than 150 high profile transactions globally.
About Digimind and WhoGotFunded.com
Digimind is a SaaS intelligence software company based in Paris, Boston and Singapore, providing advanced information management platforms and technologies that perform massive data collection, automatic intelligence extraction and visualisation. Using its unique web mining expertise, Digimind developed WhoGotFunded.com, the world’s most comprehensive funding database, discovering over 100 fresh funding deals every day in real time all across the world.