Initial analysis on European deal activity in 2008 has shown that there have been more deals in Germany than any other country in Europe. With the UK traditionally leading Europe by a hefty margin in terms of the number of deals and amount invested, this is an interesting start to 2008.

Over the last two years, German venture capital has thrived, largely due to increased activity in the two boom sectors of the moment, Mediatech and Cleantech. In the Mediatech sector, German ‘me-too’ companies such as StudiVZ have carved out local language market niches and delivered healthy returns to investors. The 2007 Cambridge Cluster Report have highlighted Berlin as one of the top Mediatech clusters in Europe. In Cleantech, the German Government’s positive stance on environmental issues has led to Germany becoming one of the global leaders in this sector. Germany is also strong in Biotech, with both Berlin and Munich attracting considerable amounts of venture capital for companies operating in this sector. A total of 23 German companies have so far received venture capital backing in January 2008.

This month Adscale raised a second undisclosed round of funding from the European Founders Fund and Holtzbrinck Ventures to develop a real time market place for online advertisement. The company, founded last year, also appointed Matthias Pantke as Chief Executive.

Innovative German software company iOpener recently participated in the European Space Agency Business incubation initiative and this month received a €4.1m venture funding round from Triangle Venture Capital. The company develops software that maps real-time data into virtual environments. Its first product will integrate global navigation systems and real-time race car telemetry into a computer game, allowing users the opportunity to race against professional drivers whilst an actual race is in progress. The game is expected to launch in the consumer market in Q4 2008.

Hamburg-based Immunservice raised seed funding this month from the High-Tech Gründerfonds for product development. The public-sector backed High-Tech Gründerfonds has consistently been the most active co-investor in Germany since its inception in late 2005 and has played a large part in the vibrancy of the country’s venture capital market. Immunservice is focused on the development and commercialisation of innovative biomimetic treatments for cancer and infectious diseases.

However, this increased level of investment activity in Germany is not totally unexpected. Additional unreleased analysis carried out for Library House's Q4 2007 Quarterly Briefing showed that out of the ‘big 4’ countries in terms of European venture capital (UK, Israel, France and Germany), Germany was the only one to record an increase in the total disclosed amount invested between Q3 2007 and Q4 2007 and between Q4 2006 and Q4 2007. In fact, the UK, Israel and France all recorded drops in investment over both time periods. In 2007, German companies received a total of €501m disclosed venture capital investment compared to €432m in 2006. The number of deals over the period also increased to 258 in 2007 from 208 in 2006.

In terms of venture capital, Germany has certainly exploded out of the blocks in 2008. Although the UK will undoubtedly overtake Germany in the coming months, early indications suggest that 2008 will be good year for German entrepreneurs and investors alike.

The Week's Deals

Boomerang TV, the Spain-based audiovisual company, has received €36.4m from 3i in return for 40 per cent of the company, valuing it at €91m.   Boomerang produces television programmes for the Spanish market for both nationwide broadcasters and transmitting in autonomous regions.  The capital will be used to aid the company to triple in size over the next five years.

Endotis Pharma, the France-based biopharmaceutical company, has raised €25m in its second round of funding.  Original investor Sofinnova Partners participated in the round, joined by new investors Endeavour Vision, NIF SMBC and Wellcome Trust.  The funding will be used to develop Endotis’s portfolio of clinical and preclinical drugs for the treatment of thrombosis and cancer.

Cachelogic, the UK-based peer-to-peer service provider, has raised $25m (€17m) in its fourth round of funding from existing investors, including 3i, Amadeus Capital Partners and Pentech Ventures.  The company has developed a content delivery system for large digital assets to be distributed online.

More companies' intelligence at www.libraryhouse.net

The Week's Exits

CallServe Communications, the UK-based internet telephone provider, has been acquired by Vyke Communications for £2.9m (€3.9m) in shares.  In November 2007, Vyke had released a letter of intent to purchase a VoIP service provider for £3.5m (€4.7m). 

UK-based Iconium, the corporate governance and risk compliance vendor, has been acquired by Logicalis for an undisclosed amount.  Logicalis stated that Iconium’s intellectual property would save its clients money on enterprise content management projects.

K2 Group, the UK-based communications service provider, has been acquired by Dsi CMM for an undisclosed sum.   Dsi CMM has expanded its customer base through the acquisition of the multimedia marketing company, both geographically and into sectors including telecoms, utilities, healthcare and electoral services.

More companies' intelligence at www.libraryhouse.net

People Moves

Sweden-based Resistentia Pharmaceuticals, the developer of immunotherapies for the treatment of asthma and allergies, has appointed Jonas Frick as chief executive.  Mr Frick was previously chief executive at SLS Venture and has held positions at Medivir and Pharmacia.

Crospon, the Ireland-based developer of medical devices, has appointed Hugh Kavanagh as chief financial officer, a newly-created role.  Mr Kavanagh was previously finance director at Vascular Devices and has held senior finance management positions at RSA Security, Tyco Healthcare, Transitions Optical and Oracle.  Crospon develops minimally-invasive devices for the treatment of diabetes and gastroesophageal reflux disorder.

AngloINFO, the UK-based media company, has appointed Paul Frew as chairman.  Previously, Mr Frew is a partner at Elderstreet, which invested into AngloINFO in Q3 2006, and also sits on the board of Whereonearth, Peramon, Interbizz and Vordel.  AngloINFO provides English-language local business directory and information services for ex-pats in 37 locations.

More companies' intelligence at www.libraryhouse.net

Selected Recent Updates

Israel-based Bluebird Aero Systems, which designs, develops and produces unmanned aerial vehicles (UAVs), informed Library House that the company is seeking around $10m (€6.8m).  Mr Ronen Nadir, the chief executive and founder, stated that the company’s products have been used by the Israeli Air Force and US Army.  The company is bidding for a tender with Rafael Advanced Defense Systems and the Israeli Army.

Germany-based online shopping site Preisbock has informed Library House that the company intends to raise €500k for marketing and to increase its user base.  Managing director and co-founder Christian Grötsch also said that the company will seek a trade sale to a larger online sales company in two to three years.  Preisbock offers a different energy-saving product for sale at a reduced price each day, until it has sold out.

More companies' intelligence at www.libraryhouse.net

Subscribe to VenturePedia

Key Features

• Dashboard service - Providing an accurate and up-to-date snapshot of key activities such as recent deals and exits
• Company profiles - The most complete research into fast-growing private companies including company overview, management, financing history and news
• Investor summaries - In-depth analysis of money invested, portfolio and investments by sector
• Guided navigation and advanced search - Powerful guided navigation and advanced search features
• Portfolio service - A portfolio builder for quick access to the companies of interest
• Alert service - Email notifications regarding relevant changes in companies or portfolios

To arrange a demonstration of VenturePedia, please contact our business development team.