The “credit crunch” has just recently celebrated its first anniversary on the 9th of August. There have been some big name casualties as a result of the credit crunch in the finance sector, such as the collapse of Bear Sterns and subsequent acquisition by JP Morgan in the US, and the collapse of Northern Rock here in the UK. There have also been more severe flow-on effects, for example in world share-markets, particularly in the banking sector, as well as a general economic downturn. Consumers are changing their buying habits in response to this new economic landscape.

We have also observed some changes in attitude in the VC sector, with companies increasingly opting for trade sales as an exit option, over IPO. A compilation of the preferences of senior management of European, venture-backed companies towards an exit via a trade sale or an IPO in 2007 and H1 2008 shows this shift is currently only slight. See: Fig 1.

The percentage of projected exits via trade sale has increased by 4.5%, from 42.5% in 2007 to 47% in 2008, suggesting trade sales are more popular now than in 2007, which could be a response to the current economic climate.

There is also some anecdotal evidence that companies are postponing their IPOs in response to current economic conditions. For example, Jan Nerdal, Chief Executive of Silex Microsystems, a manufacturer of electronics for the medical, biotech, and telecommunications sectors, recently told Library House that the company postponed its IPO in February 2008 due to unfavourable market conditions. Mr Nerdal stated that the company would instead seek to exit via an IPO in the summer of 2009.

Top level analysis of companies tracked by Library House since 2004 indicates that companies exiting via trade sale have required 31.5 per cent less investment on average, than those exiting via an IPO (€9.66m average invested for exit via IPO vs €6.62m average for a trade sale). This makes trade sale a favorable option in leaner times, where sufficient funding to bring a company to a state where it can be assured a successful IPO is less available.

Such an economic climate may actually prove very favourable for corporates seeking to make strategic acquisitions, as many cash strapped companies could go at knock down prices.

Library House has been commissioned by Merrill DataSite to examine the awareness and knowledge of Virtual Data Rooms in the European VC and Institutional investor community. Merrill DataSite is the leading global provider of turnkey VDR solutions. Merrill DataSite has hosted virtual data rooms for thousands of clients and millions of visitors, representing transactions totalling multiple billions of dollars in asset value.


Library House has constructed a short survey aimed at privately held companies, investment firms, LPs and large corporations. The survey should take you no longer than 10 minutes to complete, but should supply an insight into Virtual Data Room usage.


Merrill Corporation and Library House will donate £5 to the Prince's Trust for every completed survey.


Please follow this link: VDR Survey

BrainsGate, the Israel-based developer of medical devices, has raised $27.5m (€18.8m) in series C funding from new investors Johnson & Johnson Development Corporation and Agate Medical Investments, and existing investors Elron Electronic industries, Pitango Venture Capital and Alice Ventures. BrainsGate has developed a therapeutic platform technology based on electrical neurostimulation of the Spheno-Palatine Ganglion, in order to treat patients suffering from central nervous systems (CNS) diseases. The funding will be used to accelerate key stage clinical studies in order to gain market approval.

Serentis, the UK-based biopharmaceutical company, has raised £10m (€12.7m) from existing investors MVM Life Science Partners, Apposite Capital and Novo, and new investors East Hill Management Company and Healthcare Private Equity. Serentis is establishing a pipeline of medicinal products and has series of compounds in either early-stage or late-stage clinical development. The funding will be used to advance and expand the company's dermatology product pipeline.

Siano Mobile Silicon, the Israel-based developer of integrated receivers for the mobile digital TV (MDTV) market, has raised $17.5m (€11.9m) from new investor DFJ Tamir Fishman Ventures, and existing investors JVP, Bessemer Venture Partners, Inventec Appliances, STAR Ventures and Walden International. Siano Mobile Silicon provides multi-standard, low power, silicon receiver and antenna chips for handheld and mobile devices. The funding will be used to expand the company's sales and customer support facilities, establish an silicon inventory to meet product demand, and for product development.

More companies' intelligence at www.libraryhouse.net

Polarmetrix, the UK-based developer of distributed optical fibre sensing technology, has been acquired by Fotech Solutions for an undisclosed amount. Polarmetrix specialises in developing sensors for spatial profiling of vibration, temperature, pressure and strain over long distances, and has developed fibre sensor projects for client applicatrions in the security, oil and gas sectors. The acquisition will enable Fotech Solutions to commercialise its monitoring and surveillance solutions for oil and gas wells and pipelines.

Tollit & Harvey, the UK-based manufacturer and distributor of stationery and art & craft products to trade customers, has been acquired by Exacompta Clairefontaine for an undisclosed amount. Tollit & Harvey was founded in 1897, and was the first company to manufacture and supply pre-ruled analysis sheets to accountants and book-keepers. The acquisition will enable Exacompta Clairefontaine to add to its pan European activities and will see Tollit & Harvey expand their products and brands into a global market.

More companies' intelligence at www.libraryhouse.net

ecolutions, the Germany-based power producer and provider of investment for climate protection projects, has appointed Petra Leue-Bahns as chief financial officer. Prior to joining the company, Ms Leue-Bahns held the position of director at Global Capital Finance, having joined the company as vice president. Before that, she held the positions of analyst at InnoCap and investment assistant at GIC Government of Singapore Investment Corporation.

Think Global, the Norway-based manufacturer of battery powered cars, has appointed Richard Canny as president and chief operating officer. Prior to joining the company, Mr Canny served as worldwide director of strategic planning at Ford Motor Company. Before that, he held a variety of executive positions at Ford Motor Company, including: managing director, Ford Malaysia; president, Ford Argentina; and president, Ford South America.

Eyeworks Holdings, the Netherlands-based television production company, has appointed Tobias Bringholm as managing director, Scandinavia. Prior to joining the company, Mr Bringholm co-founded the creative investment company, Red Capital. Before that, he served as program director at Swedish broadcaster, TV4, founded Metronome and served as the company’s senior manager and was a member of the Endemol creative board between 2000 and 2004.

More companies' intelligence at www.libraryhouse.net

EpiSensor, the Ireland-based developer of products based on wireless sensor networks, has revealed to Library House that the company intends to seek additional funding in October 2008. Mr Gary Carroll, EpiSensor’s founder and executive chairman, stated that the company intends to raise approximately double the amount raised in the last round of funding, in which the company raised £789k (€1m) in August 2008. He went on to say that the investment would be used to grow the business in terms of sales and marketing expansion.

Wildfire Communications, the UK-based integrated media publishing group, has informed Library House that the company intends to seek additional funding in Q1 2009. Mr Ashley Howden, Wildfire Communications’ managing director, revealed that the company intends to seek £2.5m (€3.2m) in order to expand its acquisition portfolio.

More companies' intelligence at www.libraryhouse.net