All time high for venture capital

All time high for venture capital2017 was a record breaking year for venture capital and private equity in Spain with 4,958 million euro being put into 715 investments.

This was the standout news from the annual conference for the Venture Capital & Private Equity Association – ASCRI – which took place at the beginning of June.

Another record high was announced as international investment came in at €3,590.8 million euros throughout the year, accounting for 72 % of the total in Spain. This figure was reached as 13 megadeals – over 100 million – were closed. The middle market also had its say as it continued to bounce back from the crisis, delivering 28 % of the investment and 13 more operations.

Looking to other areas, during 2017, 1,266 million euros were invested by private national funds, accounting for 452 operations. And 100.8 million euros came from national public funds covering 169 investments.

Regional rankings

Of all sectors, consumer products took the highest volume of investment enjoying 14.5 % of the total. Transport and logistics brought in 13.7 % while financial services mopped up 13.2 %.

The most successful area geographically was Madrid which alone accounted for almost half of the investment last year at 49.6 %. Catalonia came in second with 21 % and the Balearic Islands took in a 9.2 % share as the action continued to be spread out among more than just the big two.

However, the number of investments turned this round a little as Barcelona topped this table, followed by Madrid, with 213 and 148 respectively. Galicia reported 85 operations while the Basque Country contributed at 68.

If last year’s figures weren’t encouraging enough, 2018 is already showing signs that it can surpass them with a ten per cent improvement in investment from private equity companies when compared to the same period of 2017.

The charge accelerates in 2018

This news also emerged from the event as it was announced that 918.2 million euros were invested in various projects in the first three months of this year.

This covered 167 investments, two of them being so-called megadeals. Fifteen were in the mid section of between 10 million and 100 million, while 132 were in the venture capital field. Another 35 came from private equity.

Miguel Zurita was recently appointed chairman of ASCRI and addressed an audience of over 300 when he spoke of the investment news of 2017 and 2018.

He said, ‘Everyone should take great satisfaction in the great moment that the venture capital and private capital sector is currently undergoing in Spain. These figures should generate the trust needed to continue our leading role in socially responsible, value-generating investments and to continue working with public administrations to build a regulatory framework comparable to our neighboring countries, and [one that] that allows for sustained growth and international competitiveness of the sector.’

For more information, please contact corporate law firm Argali Abogados

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