Market Statistics

January 21, 2007

2006 Early Stage Venture Capital into European Web2.0

I have now pulled together all the numbers for European Seed and First Rounds into consumer and internet businesses in 2006.  (The final list is  at the bottom of the post in all its glory). 

So what are the headlines?

European Web2.0 investments are BIG and have skyrocketed from last year. 

More than £144mn was raised in Europe across seed and first rounds in 2006 by 54 European web2.0 companies.  This total doesn’t include the “undisclosed investment” rounds, of which there were 16.

The growth is remarkable. 

In the UK in 2005, just £24mn was invested into web2.0 companies.  In 2006 that figure increased threefold with £79mn worth of early stage investments into 21 companies.

VC investment patterns are changing

Active VCs

Index Ventures is the most active. No surprises there.  But a quick look at their syndicate partners shows the (re) arrival of the Americans. Sequoia doing a first round in Europe!? Rather surprisingly the active investors aren’t just the London based mega-funds like Benchmark and Accel: Great to see Mangrove coming out on the front foot after the success of Skype.  Finally the activity of not usually headline grabbing Nordic Venture Partners.

Investment strategy

Astonishing that we don’t see any investments in the area from 3i.  I would have expected to see something from them, not just because they’re the biggest and oldest player in Europe, but also because in 2006 they recruited the incredibly web-savvy Daniel Waterhouse from Yahoo!  Maybe 2007 Daniel?

Also interested to see Atlas Ventures back with a vengeance.  Their investment strategy seems to be following copycat models Daily Motion (YouTube), Koodos (Yoox), and I understand another business (to be announced) is also directly competitive to a UK venture backed web property.  Is this accident or design Fred

Range of web businesses

Companies that make money

Good to see that many of this new breed of web company has very explicit revenue generating capabilities; they are either stores/services (Wiggle, Stardoll,, or they facilitate the process of buying/selling somehow.

Models that build on models

I am really interested to see two types of companies using third-party web-services as a platform. Firstly, eBay is the platform for two VC backed businesses.  Autoquake  helps people sell their cars on eBay, auctioning4u helps anyone sell anything on ebay.  Secondly there are web-services which serve parts of their sites onto other peoples. Examples include Reevoo  serving their genuine customer reviews onto retailers sites, or Dailymotion allowing bloggers to show video on their

Ecosystem 2.0

European politicians should be delighted that we have a thriving entrepreneurial ecosystem which they have been attempting (hoping) to build to compete with the USA, principally the West Coast. 

Interestingly, this ecosystem is not centering on the Universities or the government sponsored funds.

It is instead the Silicon Valley model of second time round entrepreneurs, experienced business angels and VCs who have already been through a few cycles.  So we see the team behind Active Hotels either as Execs or Angel investors at .  We see Mel Morris of as an angel investor into  Firebox founder Michael Smith doing it again with Mindcandy. Pierre Chapaz, founder of is now at Index Ventures. We see  second time round entrepreneurs are Eyeka (CEO Giles Babinet sold Musiwave), the Skype guys doing The Venice Project & Fon's Martin Vavarsky previously founded and Jazztel.

CompanyInvestorsDescription £MMLocationRoundDate
Aggregator Amadeus , Intel Capital , 3i WebTV 9 UK 1 Jul-06
All Peers Index Ventures , Mangrove Private P2P media sharing W/H UK 1 Mar-06
Auctioning4u Foresight Venture Partners eBay drop-off stores 2.2 UK 1 May-06
AutoQuake Accel Partners Sell cars over the web 3.4 UK 1 Jul-06
Bebo Benchmark Capital Social networking community 8.5 UK 1 May-06
Exabre Eden Ventures itunes plug-in. W/H UK 1 N/D
Koodos Atlas Venture End of line retail. W/H UK 1 Jun-06 Index Ventures, Atomico Consumer audio filter 2 UK 1 May-06
Mform Artemis Online mortgage comparison 2.5 UK 1 Sep-06
Mind candy Index Ventures , New Media Spark Online / offline games 3.97 UK 1 Oct-06
Moo Print Atlas Venture, Index Venture Customized printing solutions 2.83 UK 1 Apr-06
Murcia Solstice Enterprise Ventures Web and text social network 0.55 UK 1 N/D
Netvibes* Index Ventures , Accel Partners Ajax desktop / DLA /Filter 8.17 UK 1 Aug-06
Reevoo Eden Ventures Online publisher of genuine customer reviews 2.5 UK 1 Dec-06
Seat Wave Not disclosed Viagogo lookalike W/H UK 1 N/D
Skinkers New Media Spark RSS publishing 2 UK 1 Jan-06
Soflow Kodiak , Northbridge Social networking for  professionals 2.8 UK 1 Mar-06
Viagogo Index Ventures, Atomico Online Ticket exchange 9.9 UK 1 Jun-06
Wayn Esprit, Angels Social Network for travel 5.5 UK 1 Nov-06
Wiggle Isis ecommerce: online retail 12.5 UK 1 Jul-06
Yuuguu Enterprise Ventures Enterprise collaboration 0.6 UK 1 Oct-06
Jalbum Nordic Venture Partners Web photo album tool W/H Sweden 1 Jul-06
Polar Rose Nordic Venture Partners Online photo search 2.72 Sweden 1 Jul-06
Stardoll * Index Ventures , Sequoia Online dress-up community 6 Sweden 1 Jun-06
Fon * Sequoia , Google , Index WiFi sharing 12.33 Spain 1 Feb-06
Properazzi Mangrove, Angels  Property Search W/H Spain 1 Nov-06
ebuddy Lowland Capital Multiformat IM 3.41 Netherlands 1 Oct-06
Spotzer Undisclosed Ready to air video advertising W/H Netherlands 1 Jun-06
Pigsback Angels Consumer coupon and discount site 2 Ireland 1 Oct-06
SevenLoad New Media Ventures, Stroer Video platform & white label service W/H Germany 1 Nov-06
CoComment Netage Capital Partners Blog comment tracking 0.75 Germany 1 Dec-06 High Tech Gründerfonds Online music Download 0.3 Germany 1 Dec-06
Imageloop Angels European 0.6 Germany 1 Dec-06
Kimeta High Tech Gründerfonds Vertical Search (jobs) W/H Germany 1 Dec-06
Locr High Tech Gründerfonds Photo Tagging 0.39 Germany 1 Dec-06
Nachtagenten Burda Digital Ventures German Clubbing Social Network W/H Germany 1 Dec-06
Page Flakes Benchmark Ajax desktop / DLA /Filter W/H Germany 1 May-06
Qype Partech , Advent Ventures Local search services W/H Germany 1 Aug-06
Spreadshirt Accel Partners  Consumers design  T-shirts, W/H Germany 1 Jun-06
Wazup Innovacom & Wellington Partners Game Search Engine 5.20531 Germany 1 Dec-06
Criteo Elaia, AGF Private Equity Recommendation engine 2 France 1 Apr-06
Dailymotion Atlas Venture , Partech Euro YouTube 4.77 France 1 Aug-06
Eyeka DN Capital , Ventech Mobile video and image market 2.72 France 1 Feb-06
Kewego Banexi Ventures Partners UGC Video 3.4 France 1 Apr-06
Olfo Members-only e-commerce Edmond de Rothschild, OTC Asset Man. 2.1 France 1 Dec-06
Viaduc AGF Private Equity , Ventech is social networking for  professionals 3.4 France 1 Jun-06 Innovacom, Angels Online video 2.5 France 1 May-06
W2.Media Angels "consumer expert" decision-making 0.8 France 1 May-06
Wikio Loic Le Meur, Martin Varsavsky, Pierre Chappaz, Jeff Clavier User managed news search engine W/H France 1 Jun-06
Yoono Social Bookmarking AGF Private Equity 1.02 France 1 Aug-06
Igglo Benchmark , Taivas UGC Real estate 8.51 Finland 1 Oct-06
Quintura Mangrove , OpenView Visual Search W/H Europe 1 Nov-06
Joost Not disclosed Non-linear webTV W/H Europe 1 N/D
Zyb Nordic Venture Partners MobilePhone backup 0.6 Denmark 1 Oct-06

A vintage year for investing. I am honoured to be working with the entrepreneurs who are driving it. Of course, the real test for us all comes of course at exit….

Methods. This has been a mixture of old fashioned primary research, desk research and most significantly help from readers: thanks to all those who posted or wrote with deal deals, many of which were missed by the mainstream deal databases.

*These deals have had Seed and First rounds in 2006 and total funding has been summed in the table

Reference sources used: Venture Source, CalibreOne research

November 22, 2006

2006 Venture Capital Investment into European Web companies

2006 Internet and media investments

It’s a little premature to be releasing any numbers, but I have been taking some time to look over the deals done so far this year at Seed and Series A Level.

As I noted when First Capital ran the web2.0 event last year, I was convinced that we would see not only more deals into European web companies but also a significant up-tick in the amount invested. Just from the list of companies noted below, you can see we’re already far ahead of last year’s numbers.

The list is interesting as it shows new investors to Europe (who’d have thought we’d see Sequoia active here?), some other investors appear to have woken up. The type of companies are fascinating too: Far more online-offline models such as Moo and Spreadshirt, some of the filter technologies that excite me so much like Netvibes, PageFlakes and, and also a new breed of online media properties like the wonderfully named DailyMotion.

Worryingly I also see a few directly competitive investments from competing VC firms… feels like 2000 again.

Dear reader, this is not yet a complete list, and I need your help. Which have I missed or got wrong? I know are few are missing but they not closed yet ;) but there's others I will have just overlooked.

Send me mails if I’ve missed stuff off (remember only seed and first rounds, only European companies) and I will publish the complete list with investment amounts at the end of the year.

2006 Consumer internet and media investments

Seed and Series A Level

The story so far...


January 09, 2006

2005 Venture Capital Web 2.0 investment statistics: US entrepreneurs raise ten times more than Europe

We have used the traditionally-quiet holiday period to keep ourselves very busy running some research on venture capital investment into Web2.0* companies.

Why did I want to run these numbers?

It is obvious to me that there is a high interest-level amongst European VCs in the sector, yet I was seeing a very low level of Web2.0 “done deals” in VC portfolios and on the deal sheets.

Furthermore, when we ran our Web 2.0 European event, we noted an under-supply of European entrepreneurs with compelling Web2.0 businesses.

So I was expecting the stats to show low levels of investment into Web2.0 companies in European compared to the US. However the discrepancy was even greater than I had expected.

In 2005, US-based Web2.0 companies reported raising £200mn whilst European businesses raised just £24mn.

Both geographies had similar (ish) proportions of investment at the first round: 59% of US deals were first rounds compared to 47% in Europe.  Tellingly however, there was a skew in Europe towards earlier stage deals: seed rounds constituted 13% of all activity in Europe compared to 6% of deals in USA.

Be warned however, because I think it’s too early to start drawing any harsh conclusions on European entrepreneurs or VCs.

Frequently, we see European VC software investment trends trailing the US by anywhere from 3 – 12 months.  I’m pretty excited by the range of European Web2.0 entrepreneurs that I’m meeting today. I also know there are some interesting deals currently “in process” at many VC houses.  I’m looking forward to seeing the European numbers catch-up.

* A quick word on methodology: “Europe” refers to West and East Europe and also Israel. Web2.0 is defined as company fitting the Tim O’Reilly description (see previous posts). Data was sourced by primary research, press releases, techcrunch, company calls and the VentureSource data base.