Europe Records More IPOs Than the U.S. for the First Time Since 2001,
According to the European Liquidity Report From Dow Jones VentureOne
LONDON -- (MARKET WIRE) -- 01/19/06 -- Sixty venture-backed European
companies completed initial public offerings (IPOs) in 2005, raising
EUR 2.03 billion -- the most in a single year since 2000, according
to the European Liquidity Report from VentureOne, a unit of Dow Jones
Newswires and the publisher of VentureSource. The 2005 total reflects
a 185% increase over 2004, when EUR 712.5 million was raised in 35
venture-backed IPOs.

The fourth quarter of 2005 alone was the busiest quarter in five
years, with 23 IPOs completed -- raising EUR 1.08 billion. In
comparison, the fourth quarter of 2004 posted 13 IPOs, which raised
EUR 189.9 million.

The total number of European venture-backed IPOs in 2005 also
surpassed the activity in the U.S. last year, in which 41 U.S.-based,
venture-backed companies completed IPOs. This is the first time this
has occurred since 2001.

"Venture-capital supported companies in Europe are once again finding
exits in the public markets, thanks to exchanges such as AIM that
provide a marketplace for relatively young entrepreneurial
companies," said Stephen Harmston, director of global research for
VentureOne. "What is particularly interesting is that both
information-technology and health-care companies achieved IPOs in
almost equal numbers in 2005, showing the market is not tied to
trends around a specific industry. Now, we shall see if new companies
in both these industries garner the interests of venture capitalists
in 2006."

By industry, 22 of last year's IPOs were healthcare companies and 25
were information-technology (IT) companies. By country, 21 of the IPOs
were companies based in the United Kingdom, 13 were based in France
and eight were based in Germany. The median premoney valuation of the
European IPO companies was EUR 42.0 million -- up from EUR 34.9
million in 2004. The median amount raised in equity prior to the IPO
was EUR 11.1 million -- down from EUR 13.3 million a year ago.
Companies did require more time to go from initial equity financing
to IPO: 5.9 years in 2005, compared to 4.3 years in 2004.

The largest IPO of the fourth quarter and the year was renewable
energy company Q-Cells (XETRA: QCE) of Thalheim, Germany, which raised
EUR 313.2 million in its October offering and was valued at EUR 1.09
billion.

In other exit transactions, there were 163 mergers-and-acquisitions
(M&A) deals for European venture-backed companies in 2005, a decline
from the 195 that occurred in 2004. In the fourth quarter, there were
27 M&As, down from the 51 that took place in the same quarter a year
ago.

However, more was paid for acquired companies in 2005: a median
amount of EUR 22.5 million, compared to EUR 17.8 million in 2004. The
median amount invested in these acquired companies was EUR 6 million,
about the same as a year ago. The companies being acquired took about
4.9 years from the time of initial equity financing to reach an
acquisition, slightly longer than in 2004, when the median time from
initial equity to acquisition was 4.2 years.

By industry segment, more than half of the year's M&A deals -- 86 --
were in the IT segment, while 47 were in the healthcare industry and
25 were products-and-services companies. By geography, 47 of the M&A
companies were based in the U.K., 27 were based in France, and 26
were based in Germany.

The largest venture-backed M&A of the year was the EUR 2.08 billion
acquisition of voice-over-IP software provider Skype Technologies of
London by eBay (NASDAQ: EBAY).

The investment figures included in this release are based on
aggregate findings of VentureOne's proprietary European research. This
data was collected by surveying professional venture capital firms,
through in-depth interviews with company CEOs and CFOs, and from
secondary sources. These venture capital statistics are for equity
investments into early-stage, innovative companies and do not include
companies receiving funding solely from corporate, individual, and/or
government investors. No statement herein is to be construed as a
recommendation to buy or sell securities or to provide investment
advice.

Copyright Copyright 2006, VentureOne.

About VentureOne
VentureOne (www.ventureone.com or www.venturecapital.dowjones.com), a
unit of Dow Jones Newswires, has been the leading provider of finance
and investment data to the venture capital industry for almost 20
years. VentureSource, a sophisticated electronic database on the
venture capital industry, is published by VentureOne.

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For more information:
Michelle Jeffers
Dow Jones VentureOne
(415) 439-6666 or (415) 215-5357
michelle.jeffers@dowjones.com
mjeffers@ventureone.com