According to the 2012 report of the Spanish Venture Capital Association (ASCRI), the Spanish venture capital market is dominated by small deals in SMEs with an average amount invested of €4.6 billion per deal (151bTP1T less than in 2011).
60% of operations, in SMEs with less than 100 employees.
Of the 543 deals closed in 2012, 451 were targeted at SMEs with less than 100 employees. Of these, 438 (97%) were led by domestic ECRs, as the international investor, for the most part, is oriented towards larger transactions in consolidated companies.
"It would be useful to analyze the sector separately, distinguishing between large transactions (>€100 million) and the rest. The first group accounts for only 1.3% and has been dominated by international funds. You can count them on one hand—there have been six transactions: Advent International in Maxam, Bain Capital in Atento, Bridgepoint in Borawind, Doughty Hanson in USP Hospitales, Trilantic and Investindustrial in Euskaltel, and Investindustrial in Portaventura,” says Diego Gutierrez (ABRA INVEST)specialist in corporate finance in SMEs.
Smaller and smaller operations: 72% less than €1 billion.
Venture Capital activity in Spain, mainly focused on SME financing, means that the size of the operations carried out by the sector is normally small. Of the 543 transactions accounted for, almost half (49%) were for less than 250,000 euros. 721 PTY1T received less than EUR 1 million, 21.71 PTY1T between EUR 1 and 10 million, 2.91 PTY1T between EUR 10 and 25 million and 21 PTY1T between EUR 25 and 100 million. The remaining 1.31T% were transactions in excess of EUR 100 million.
“It is encouraging to see funding being channelled towards SMEs and growth-stage companies. It is important to bear in mind that Spain’s business sector is primarily made up of SMEs which, now more than ever, need fresh injections of capital to tap into new markets, expand through mergers with other companies, or pursue other growth strategies,” says Diego Gutierrez Zarza.
The average amount invested per company fell to €4.6 million per transaction (in 2011 the average was €5.4 million), a 15% year-on-year decline.