Information technology reigned as a top investment sector for private equity and venture capital deal-makers in the first quarter, with 466 entries worth a combined €5.25 billion announced, according to S&P Global Market Intelligence data.

Gross transaction value was down 29.5% year on year, but deal volume rose 2.9%. IT entries accounted for 38% of the 1,225 deals signed across all sectors during the first quarter.

The COVID-19 pandemic has catalyzed demand for technology-focused assets since the first quarter of 2020. Employees working from home, and people across the globe seeking online alternatives to in-person interactions has increased demand for software and social media platforms. Investors deem it a safe haven.

The sector's largest fundraise during the quarter was that of Spanish delivery app Glovoapp23 SL, or Glovo, which received €450 million in a series F financing round. Lugard Road Capital and the Luxor Capital Group LP led the round, with participation from returning investors such as Delivery Hero SE, Drake Enterprises AG and GP Bullhound LLP, according to S&P Global Market Intelligence data.

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Elsewhere in the market

The healthcare sector accounted for the second-highest number of entries in the 2021 first quarter. They rose 13.5% year over year to 177, while the aggregate value totaled €4.31 billion, a 130.5% increase compared with the 2020 first quarter.

The largest deal struck in the sector in the three months to March 31 was the acquisition of London-based pharmaceutical company Advanz Pharma Corp. Ltd. by Swedish private equity firm Nordic Capital for $17.26 in cash per share, or a total value of about $846 million. The transaction is expected to complete July 31, according to S&P Global Market Intelligence data.

Industrials was the third-most active sector in terms of deal volume during the first quarter, with the sector's 148 entries valued at an aggregate €4.80 billion. While deal volume nudged up from 139 a year earlier, gross transaction value was down from €22.03 billion.