Where European Investors Hesitate, US Investors See Opportunity: US Investors Now Core to the European Venture & Growth Equity Market

LONDON, October 9, 2014 /PRNewswire/ --

New research by tech investment banking boutique Go4Venture Advisers shows that two-thirds of European financing rounds of $10 million or more now involve a US investor*  

Exclusive data released today by Go4Venture Advisers, a London-based investment banking boutique specialising in tech M&A and financing rounds, has revealed the dramatic rise of US investment into European tech companies over the last five years, demonstrating the coming of age of Europe's tech scene and the increasing internationalisation of venture and growth funding.

Key findings include:

• US investors now participate in two-thirds of European financings ≥ $10mn.
• UK and German companies together attract 60% of US investment.
• US investment focuses on game-changing plays: later-stage deals, large bets and/or disruptive technologies.
• 50% of US investment is in internet companies, and of that more than a third is in Fintech.
• Since 2010, 10 European companies have each raised ≥ €100mn thanks to US investors' involvement (compared to just 4 from European investors alone).
• US investors with offices in Europe are naturally the most active, with a group of 5 (Accel, Intel Capital, Highland, Greylock and DFJ Esprit) leading the pack.
• Outside this group of 5, which are well ahead of others, top US investors "roaming" in Europe are surprisingly just as active as those with a European office.
• Leading European investors are adept at involving US investors in their deals.
• US investors are often better pan-European investors than their European brethren.

"The common wisdom is that US investors are wary of investing in Europe. The research we carried out debunks this myth," commented Jean-Michel Deligny, Founder and Managing Director of Go4Venture Advisers. "A lot has to do with US funds that have a presence in Europe, and have become more active than many local players, but it is also down to the ability of some of the leading European venture firms such as Index and Balderton to draw US syndication partners."

David Russell, Associate Director, added: "This data shows that the European venture ecosystem is segmenting into smaller, local early-stage or niche investors, and those with the global connections to bring in the kind of investment rounds that back businesses for the entire journey. It proves that European entrepreneurs with global ambitions need to be strategic in choosing their investment partners. A US partner or a European fund syndicating with their US peers is often key to great exits and IPOs, and only this success in the US will allow Europe to build a vibrant local market in the future."

Deligny concluded: "In some respects, US investors are showing more confidence in the European tech scene than many of the local players, which are often constrained by their home country investment mandate, size of fund and/or risk aversion. By contrast, successful European funds will be increasingly defined by their ability to syndicate with US partners."

* US investors have been classified as such according to their headquarters and heritage, therefore include US firms which have European offices and/or funds (such as Accel Partners), as well as European firms which are members of the partner networks of US-based firms (such as DFJ Esprit, a member of the DFJ Global Network)

About Go4Venture Advisers  

Go4Venture Advisers is a London-based investment banking firm helping fast-growing European technology companies and their investors develop and execute growth strategies. Go4Venture offers Mergers & Acquisitions (M&A) services as well as fund-raising support. The breadth and size of projects supported is second to none, and reflects Go4Venture's ability to work with Europe's best emerging tech companies.

In 2004 Go4Venture Advisers created the Headline Transactions Index (HTI), a monthly indicator of activity in the European growth and venture market. The HTI is published as part of Go4Venture's Monthly European Venture & Growth Equity Market Bulletin, which also comments on the largest European funding and M&A transactions. The Bulletin goes out to 11,000 recipients worldwide, making it a must-read for the industry, and the only pan-European publication dedicated to the European growth and venture capital market.

Further information and a copy of the supporting report is available at http://go4venture.com/reports/: "European Growth Tech Companies: Why US Investors Matter".

Editor's note: all raw data points can be made available in an Excel file upon request

For more information please contact:  

Go4Venture Advisers    +44-(0)20-7529-5400
David Russell    Associate Director    dr@go4venture.com