European Venture Fundraising Down

And so it seems that while fundraising in the European venture market has slowed somewhat, the appetite remains for those funds that have a proven track record in their chosen niche.

European venture fundraising has slumped by over 31% so far in 2011. European venture funds during the year have raised €2.66 billion ($3.6 billion), through Nov. 7, according to data from Thomson Reuters (publisher of VCJ). This is down from €3.87 billion ($5.2 billion) for the same period the previous year.

A total of 62 funds were out fundraising in 2010, compared to 39 so far this year.

Of these funds, Germany took the lion’s share of capital with 13 vehicles based in the country on the fundraising trail. The United Kingdom and Spain were second, as both had five venture fundraisings so far this year.

France followed with four and Finland with three.

The largest European venture fund raised this year is French CDC Enterprises SAS’ €400 million ($550 million) Fonds National pour la Societe Numerique PME FCPR, which is a tech-focused fund in France aimed at investing in startups.

Two German funds come in second and third place in ranking of fund size. High-Tech Gruenderfonds Management’s, High-Tech Gruenderfonds II has raised €288.5 million ($390 million) for investment in German tech companies. Deutsche Beteiligungs’ DBAG Expansion Capital Fund closed in June with €251.8 million ($340 million) to invest in mid-sized companies seeking expansion capital in the German region.

U.K.-based Scottish Equity Partners boosted fundraising figures with the closing of Scottish Equity Partners Fund IV on €212.1 million ($286 million). The fund will invest in high growth companies in the IT, health care and energy sectors across the United Kingdom.

London-based cleantech investor Zouk Ventures in June celebrated the final close of its second fund Cleantech Europe II at €230 million ($310 million), comfortably ahead of the fund’s target of €200 million ($270 million). Cleantech Europe II is Europe’s largest dedicated growth equity fund in the cleantech space.

Hummingbird Ventures closed one of the first European funds to focus on the burgeoning Turkish market. the firm in July closed its third fund on €30 million ($40 million), targeting early stage, high growth, Internet, ecommerce and cloud computing companies in the Europe, Middle East and Africa (EMEA) region. The fund has offices in Antwerp, London and Istanbul.

Angela Sormani is based in London and can be reached at angela.somrani@thomsonreuters.com.