Spanish VC beats all-time record highs
According to the first estimates obtained by the Spanish Venture Capital & Private Equity Association (ASCRI), through the European platform EDC, the volume of investment in Spain reached EUR2,056.8 million in the first half of the year in a total of 394 investments, 27 per cent more than in the same period of 2020.
Venture Capital has surpassed all record highs, with EUR731 million in a total of 316 investments.
Aquilino Peña, President of ASCRI, says: "International investors continue to bet on Spain, which shows that, despite the uncertainty of this period, our country remains attractive and the Venture Capital & Private Equity industry maintains part of the investment pattern that has characterised recent years since the recovery."
According to the type of investor, the investment appetite of international funds, both Private Equity and Venture Capital, which have abundant liquidity and remain interested in Spain, has been maintained. In the first half of the year, they contributed more than 75 per cent of the total volume invested in Spanish companies (maintaining the weight of recent years). The number of investments remains at record highs (in 10 years they have gone from closing 28 investments (record of the first half of 2011) to 96 in the first half of 2021). The interest in Venture Capital stood out (69 investments) as well as the maximum number of investments in Private Equity (27). Domestic managers slightly increased investment volume (EUR482 million in 1H 2021 vs EUR463 million in H1 2020) in 298 investments in Spanish companies.
By size of investments, the middle market continues to be very active and this year has maintained the dynamism of recent years, both in terms of volume (EUR805 million) and number of transactions (31 estimated investments). Until two years ago, this segment was led by national Private Equity managers, and now it is divided between national and international managers and with a high presence of Venture Capital in this first half of the year.
Eliminating the impact of large deals (EUR750 million in H1 2021) on total investment (EUR2,056 million), investment in tickets below EUR100 million grew, reaching a peak in investment volume in investments between 0 and EUR100 million (EUR1,306.8 million).
Venture Capital has surpassed all-time highs, partly due to the high number of tickets above EUR10 million that contributed to finance the large rounds of Job&Talent, Wallapop, Travelperck or Copado, which were led by international funds. New all-time high in late stage Venture (EUR530 mbillion in 1s 2021 vs EUR83 million in 1s 2020). International Venture Capital again recorded record highs in investment (EUR588 million). These figures highlight the maturity and strength of the technology ecosystem, with increasingly innovative projects with an international vocation.
The sectors that received the highest volume of investment were IT (77 per cent), Medicine/Health (6 per cent), Biotechnology (5 per cent) and Energy (4 per cent).
Fundraising (funds raised by private capital firms to invest) by domestic private investors reached EUR693M. For the first time, fundraising by Venture Capital vehicles exceeded that of Private Equity.
The volume of divestments recorded an estimated figure (at cost) of EUR1,016.3 million in 139 divestments. Despite the economic downturn, the recognition of capital losses remains at very low levels. The most used divestment mechanism (in terms of volume) was "Sale to another Private Equity entity" (49 per cent), followed by "Sale to third parties" (24 per cent).