Innovation funding grows by 24% in Europe

Integral service around a transaction
BY : Diego GutiérrezMay Tue, 2013

Innovation funding in Europe has seen a rebound in value in Q1 2013 compared to Q4 2012, with total investment of $ 1.4 billion(+24%), according to a Clipperton Finance report on European innovative companies during Q4 2012 and Q1 2013.

"Despite this, compared to the much more active and developed North American investment market, it represents an investment volume four times smaller". According to Diego Gutierrez (Ceo of Abra Invest), a company specialising in alternative financing for SMEs.

5 operations above 100MM$ (Q4 2012-Q1 2013)

This upturn was led by a couple of so-called 'mega-funding' transactions:

- The $130 million round of funding received by the Finnish game company Supercell

- And the $ 119 million round led by Russian tycoon Roman Abramovich for UK-based new next-generation mobile operator Truphone.

These deals followed several large funding rounds in Q4 2012, including major music platforms Deezer ($ $132 million) and Spotify ($100 million). "I would also highlight the softonic by the Spanish internet fund Intercom for 109M$", says Diego Gutierrez.

Value per transaction: either large or small. And the necessary bridge?

Q1 2013 saw a very significant increase in seed funding with 52 deals of a size below $ 1 million (60% vs Q4 2012). The European total
Seed funding was US $$ 42 million during the last quarter (compared to USD 26 million during the previous quarter).

Small-sized rounds ($ 1-5m) maintained activity over the last six months with 191 offerings during the period. By value, these rounds were almost half a billion USD with $ 238m during Q4 2012 and $ 239m during the last quarter.

Medium-sized rounds ($ 5-30m) accounted for a limited share of the total deal volume. Only 21 deals (+15%) were closed in the $ 5-10m range during Q1 2013 (vs. 18 in the previous quarter) for an amount of $ 151m (+10%) (which compares to US $ 139m in Q4 2012).

On the other hand, accelerator rounds ($ 10-30m) still represent only one third of the total investment value, the same amount as larger deals (> 30m USD). According to Diego Gutierrez (ABRA INVEST) "this shortage of funds in acceleration phases is a sign of the high demand from VCs for second rounds asking for very high levels of turnover growth".

The M&A Professionals

Meet our services



Do you want to be up to date?


Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?