16 November 2020
Today, the CMVM published the 2019 Report on Venture Capital. This edition provides information in a clearer and more objective way, making sector trends easier to read and for the first time, contains a feature theme on venture capital.
In this report, the theme "Venture capital and the dynamism of the market and admission of companies on the stock exchange" is further elaborated upon, revealing that at European level, IPOs represented 11% of the value of divestment in venture capital in 2019, while in Portugal, sales to third parties have been the main route for venture capital exit. The analysis also presents the characterisation carried out by the OECD on venture capital in Portugal and specifies its recommendations regarding the relevance of alternative sources of financing for the dynamization of companies and the economy.
The 2019 report reveals that assets under management in the national venture capital sector increased by 6.6%, up to 5.1 billion euros. At the end of the year, 52 companies and 135 venture capital funds operated in the Portuguese venture capital sector, with the average amount of assets under management per fund standing at 36.0 million euros, down by 3.5 million euros compared to 2018.
The venture capital sector reinforced share capital investment rather than investment via supplementary and ancillary contributions which reflects a strengthening of shareholder positions. There was also an increase in the amount invested in holdings in excess of 80% of the capital, which now represents 21.3% of the total value of the holdings (17.1% in 2018). With regard to the investment activity sectors, information and communication activities, real estate and accommodation and catering were the main sectors for capturing the amount invested in venture capital, representing one third of the investment portfolio.
The importance of companies that intend to redirect their strategy (turnaround) decreased by 13.3% down to 998.7 million euros at the end of 2019, while support for expansion and replacement capital increased 2.9% up by 792.1 million euros and 58.6% to 316.2 million euros, respectively. Investment in venture capital also increased 10.5% compared to the previous year, as a result of the growth in the amount invested in companies that are in the seed capital stage (+ 40.2%) and early-stage (+ 14.4%).
Of the 1165 transactions that took place in 2019, 64.8% corresponded to acquisitions totalling 263.2 million euros, while disposals reached 464.1 million euros, resulting in a net divestment of 200.9 million euros (184.4 million euros in 2018).