Deal Flow: European Venture Capital Deal Term Review 2020

With a record $40+ billion in investment in 2020, European tech has navigated a year of intersecting crises—a global pandemic, economic uncertainty, racial injustice and climate change—and continued on its growth trajectory. Orrick’s European Technology practice has analysed its closed venture financing transactions and convertible loan note financings (including UK Future Fund deals) across our European offices throughout 2020, to offer strategic insight into the European venture capital market.

To read the report, click here: Deal Flow: European Venture Capital Deal Term Review 2020

Key insights from the report include:

• Record levels of investment in 2020: the number of deals and total capital raised held strong with more than $40bn+ invested across Europe.
• #TeamOrrick was involved in transactions amounting to more than $8.1bn across Europe in 2020, more than 20% of the total capital raised across the region.
• Average deal size increased by almost 60% from 2019.

• A steady growth in:

  • Energy-related companies and purpose-driven investments as companies move towards a sustainable global future.
  • The number of deals in the SaaS and Platforms space as companies adapt to COVID-19, virtual working and online hosting platforms.
  • The number of deals in the Health sector focussing on technological developments due to COVID-19.

• Investors sharpened their focus on diversity with an increasing number of deals requiring that companies put plans in place at earlier stages in the company lifecycle.
• A more “engaged” cohort of Founders, investing in the deal process to “future proof” not only their positions and protections within the company, but also the company’s bargaining position for future rounds.