Research has revealed capital firms are becoming more involved in larger than normal deals, a sign that many are not as keen on riskier smaller-sized businesses.
According to Dow Jones VentureSource, the average size of European venture capital deal in H1 was US$2.9m, a rise from US$2.2m when compared to H2 in 2009.
When examining the past ten years, the figure is also the second highest amount for an average venture capital deal. The venture capital deal average of US$3.4m from H1 2008 was the only other time an amount has exceeded the current statistics in this time frame.
The report concluded that a rise in value per deal suggests venture capital firms are avoiding smaller deals as they are viewing them as more risky.
However, although the deal amount average was high, there were a lower number of deals in total compared to the same period last year. Although the report suggested that there are indicators of increased activity in Europe in the second quarter of this year, with an almost 50% increase on a year ago.
ACQ Magazine