Europe’s tech markets, including the UK and Germany, have been pulling in increasing amounts of VC funding as of late and also attracting investment from non-local investors (including US venture capital firms). Interestingly, the influx of US-based VCs appears to be driving up round sizes.
We looked at the median VC-backed round sizes for European Tech companies since 2011 where a US-based VC participated in the round, and when they did not. We saw that across all stages ranging from Seed to Series D, deals which included a US-based VC were higher, and often times, by a large margin.
At the seed level we found that the median size for rounds with US VC participation was $1.3M, still below the typical US seed round, but over 60% higher than seed rounds where no US-based VCs participated.
The median round size for Series C tech financings in Europe with a US-based VC was $22.5M, versus just $9.6M for rounds with no US VC. When looking at average instead of median figures, Series C rounds increase to $16.3M for non-US VC rounds, and $30.3M for rounds in which a US VC participated in. The large divergence could be caused by US VCs rushing into some of the hottest deals in European Tech, including Series C financings for Wonga, iZettle, and SoundCloud
Tech median round sizes in Asia followed a similar trend, with median round sizes which included US-based VCs being larger than those that did not have US venture investors. However, unlike Europe, the trend was not across the board as Series D financings in Asia were larger when non-US VCs participated.
Image credit: Epsos.de // Flickr
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