There may have been money flowing into China, but Europe certainly wasn’t feeling the venture capital love. The continent sustained its lowest deal count in history in Q3 2011, according to Dow Jones VentureSource. A mere €951 mn was put to work across 219 transactions. Invested capital plunged 12 per cent, with deal flow off 13 per cent year over year. That’s the worst performance since Dow Jones VentureSource started keeping score back in 2000
‘The ongoing European debt crisis, drop in consumer and business confidence and general uncertainty surrounding global economic conditions continue to affect levels of venture capital financing activity in the region significantly,’ says Anthony Sheldon, research manager, Dow Jones VentureSource, in a statement. ‘With no clear indication of an improving global economic environment, it remains to be seen whether the small gains made this quarter in the consumer and business sectors are a genuine cause for optimism looking forward to 2012.’
The median venture capital deal in Q3 2011 was €2 mn, consistent with the 2010 level. Investment in the consumer services sector was up 12 per cent to €274 mn across 39 deals, even though deal flow was down 26 per cent. Consumer web, which is where social media is located, raised €104 mn across 21 transactions. Capital raised fell 33 per cent, with deal flow off 34 per cent.
Source: Dow Jones VentureSource (via email)
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