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In Europe, ICT sector dominates innovation funding


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Integral service around a transaction
BY : Diego GutiérrezMay Thu, 2013
According to a report by Clipperton Finance, the ICT sector dominates with two thirds of the total investment volume in the first quarter of 2013. Within IT, consumer Internet is the number one segment in Europe.
The financing of innovative companies continues to be driven by IT investments. Consumer-facing internet transactions are the top investment destination in Europe with more than 40% of European funding value in the last 6 months, while Business Internet (cloud and Enterprise Software) is second.

Comparison with investment in the USA

This balance, which leans towards consumer-oriented start-ups, is particular to Europe as opposed to the US, where the Internet business (enterprise software, cloud, etc.) is the one that captures the attention of investors.

"It is worth noting that the famous US VC fund Sequoia Capital has invested $ 11.5 million in the Dutch company Pyramid Analytics (business inteleigence platform). ABRA INVEST.

Analysis by size of operations

In terms of deal size, the "hardware and telecommunications" startup segment enjoys the highest median deal size with US $ 3.3 million per year - twice as much as "Internet and New Media". The lowest transaction value is for the consumer-oriented Internet segment (US $ 1.7 million) which is not very surprising considering that this segment attracts most of the seed stage rounds. Also worth mentioning is the disappointing drop in "cleantech" investments in Europe, which together accounted for only 7% of the total investments made in the last 6 months.

"In Spain in 2012, the ICT sector also led the way in investment, with a total of 44% of total investments. The total investment of Venture Capital(VC), amounted to 230.6 million euros in a total of 1,063 transactions in 2012. But the most surprising aspect of the comparative analysis is that the average amount per transaction was 456,000 euros," says Diego Gutierrez (ABRA INVEST).

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