Some great information from the BVCA and Winston & Strawn on the emerging Venture Debt industry in Europe. If you don’t know what venture debt is, this is a great primer. If you do know what venture debt is and want to geek out over the data, this is a great source.
“Through one of the very first quantitative studies on venture debt in Europe we found that from 1999 to the end of 2009:
- The amount of venture debt investment peaked in 2007 at £309m invested in 123 deals. Venture debt as a percentage of venture capital was 10.2% in the UK and 5.8% in Europe in the same year, its highest on record.
- Close to 400 companies have received venture debt from UK venture lenders with £425m invested into UK companies, £362m into
- European companies and £199m into the rest of the world (mostly in Israel).
- The average size of a venture loan is £2.1m with a range of £860,000 to £9m. Companies in the internet, biotech and semiconductor sectors had the highest average loan size.
- Companies raising their second round of equity were the number one recipient of venture debt. Only 18 investments have been in a first round.
- 33% of companies in one venture lenders portfolio had a turnover of less than €1m at the time of receiving a loan whereas another 41% had a turnover greater than €5m.”
You can download the excellent full report The Rise of Venture Debt in Europe right here.
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