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Friday, February 3, 2023

Venture capital in Spain breaks all records and closes the first half of the year with 850 million invested



Venture capital in Spain broke all records in the first half of the year, closing June with 850 million euros invested in 298 operations, which is 18% more than the same period last year, according to data published by Spaincap (old Ascri) this Thursday .

The association has pointed out that this record is mainly due to the number of operations in excess of 10 million euros, with international companies contributing 704 million euros at investment peaks.

The federation’s vice-president, Elena Rico, stressed that the data for the semester shows that the sector is solid and maturing.

The total volume of private capital investments reached 5.165 million euros in 390 investments, 170% more in volume and 5% less in number of operations.

The association’s president, Oriol Pinya, explained at a meeting with the media that investments in the last five years have been similar to the previous 15 years. “A lot has to go wrong for it not to be a record year, it’s going really well,” he said.

However, he added that the second half will be more complicated due to economic uncertainty, but stressed that the asset class is highly regarded globally and in Spain.

The appetite for international funds, both private equity and venture capital, has continued in the first six months of the year: these entities accounted for 88% of the total volume. The number of transactions by these investors was a maximum of 132 transactions.

The country managers, on the other hand, “slightly” increased their investment volume with 157 million euros in 207 investments compared to 426 million in the same period of the previous year.

In terms of company size, “Mittelstand” broke all records with a volume of 1,330 million in 56 companies.

According to the association, this segment, which until two years ago was managed by national private equity houses, is now divided between national and international managers, with venture capital becoming more important.

Spaincap also underlines the strength of the “megadeals”, ie deals with a value of more than 100 million euros. Eight transactions of this type were completed during this period, accounting for 64% of the total investment and reaching 1,845 million, a new investment peak.

The sectors that received the largest volume of capital were other services with 25% of the total, followed by IT and construction with 23.5% and 19% respectively.

Fundraising, ie the funds raised by private capital for investments, reached a value of 1,297 million euros, 6% more than in the first half of the previous year.

Dispositions (at cost, not capital gains) were $548 million across 125 operations, down 61% in size and 7% in number of disposals due to fewer exits from large operations.


Source europapress.es

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