European private equity and venture capital fundraising up 40%

European private equity and venture capital fundraising reached €45.6bn in the first half of 2018, a 40% increase on the second half of last year, according to new data from Invest Europe.

This figure makes it the third highest six-month period since 2007, according to the European private equity and venture capital association. Venture capital investment in European start-ups surpassed €3bn, reveals the new data, in the highest half-year result since 2007.

Michael Collins, Invest Europe’s CEO said: “Demand is high for European private equity and venture capital and it continues to thrive with healthy levels of fundraising and investment in the first half of the year. The wave of interest we’re receiving in our Venture Capital Forum in Paris follows high-profile public offerings from European VC-backed start-ups in the last six months, including Spotify, Adyen and Farfetch. The venture capital market in Europe has never been better.”

Following another €3bn of commitment from investors in the first half of the year, venture capital has now raised almost €11bn in new funding for start-ups in Europe since the start of 2017. Overall, European companies received €30.5bn from private equity and venture capital funds in the first six months of 2018, above the five-year average.

Invest Europe’s findings come as the European economy enjoys high growth rates and continues to benefit from low interest rates. The European Union growth rate beat expectations in 2017 to reach a 10-year high and is expected to remain strong in 2018 at 2.3% GDP, according to the European Commission’s spring economic forecast.