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Software Most Popular Sector For European Venture Investment In Third Quarter This Year

LONDON, Oct. 29, 2012 /PRNewswire/ -- Venture-backed companies based in Europe raised just over €1 billion through 216 venture capital deals during the third quarter of 2012, an 11% decrease in capital raised and a 22% decline in deals from the same period last year, according to Dow Jones VentureSource. 

Information Technology received the largest investment allocation of any industry during the third quarter with a 31% share, showing the only gains of the quarter when compared with the same period last year. The industry accumulated €314 million, an increase of 50%, though deal flow was down 27%, with 59 deals completed during the period. The software sector remained the most popular investment area, raising €164 million through 42 deals during the third quarter, a 26% increase in investment albeit with a drop of 31% in deals completed.

"With European fundraising on track to surpass 2011 figures, we're anticipating that companies will continue to attract more financing", said Anne Malterre, European research manager, Dow Jones VentureSource. "At the moment, investors are being cautious due to the pressure of limited partners waiting for their returns, but we see the renewed trust in the information technology and consumer services industries, as well as early-stage companies, as a positive sign." 

During the third quarter, 31 European venture-backed companies were acquired, a 39% drop in deals from the same period last year, and two companies went public, compared to three in the third quarter of 2011.

Through the first nine months of this year, venture capital investment totaled €3.34 billion for 805 deals, a 6% decrease in capital and 10% fall in deals from the year-ago period.

Consumer Information Services Sector Helps Bolster Consumer Services Industry

Consumer Services, the leading industry for capital invested during the second quarter, dropped to second place this time around, raising €256 million through 58 deals, a decline of 18% in amount invested and 2% in the number of deals completed compared with the same period last year.  A total of 43% of the capital collected by the Consumer Services industry went to the Consumer Information Services sector, compared to the 33% share the sector garnered during the same period last year, but well below the 63% allocation the sector received during the last quarter.

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