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Venture activity in Europe rebounds in Q4

Venture activity in Europe bounced back during the final three months of last year with a big jump in capital coming into funds and a modest rise in investments made.

During the fourth quarter, 26 funds raised about $2.8 billion, or a 45 percent jump in capital from the third quarter, according to Dow Jones VentureSource.

That brought all of 2017 to about $11.1 billion, a slight decrease from 2016, the VentureSource data show.

The largest funds raised in the quarter were Balderton Capital‘s sixth fund, at about $393 million, and ING launched its ING Ventures fund with about $367 million.

Investments in European startups rose 4 percent in capital to about $4.2 billion. Deal volume rose 8 percent to 548, the data show.

Capital for first-round financings rose 50 percent from an unusually weak third quarter, and 40 percent of all investments went to startups in business and financial services sector.

The United Kingdom remained the favored place for venture investing with 48 percent of capital deployed to startups based there.

Europe saw 13 IPOs of venture-backed companies in the fourth quarter, up from 8 in the third quarter. The largest offering came from HelloFresh in Germany.

Photo of euro banknotes courtesy of Wibofoto/iStock/Getty Images.