Business & Economics
1 June 2018 "Which investors should I be talking to?" It's an everyday question for founders, executives and limited partners (LPs). The Most Prominent ranking makes it easy to find the answer. The ranking determines the order of search results on Dealroom.co similar to Google search results. This makes navigating thousands of investor profiles more manageable, whatever your search goals are (see page 9 for more). The ranking criteria Like last year, the 2018 ranking is only based on quantitative criteria, using Dealroom.co data. We've analysed over 22,000 firms globally and compared them based on eight indicators. Each indicator is discussed in the appendix of this report. But broadly speaking, they measure (i) the level of European investment activity in the last 12 months, (ii) total number of meaningful European exits and (iii) the number of successful European companies still in the portfolio. The ranking is not purely a measurement of investment performance; that's just one of the factors. After all, historical performance is not the only important factor for a founder, especially if the investor hasn't been very active lately. Objective The appendix (see last page) of this report explains the methodology and changes compared to last year in more detail. About Dealroom.co Founded in Amsterdam in 2013, Dealroom.co is a global database to discover and track innovative companies and identify investment opportunities. World-leading tech firms, multinational corporations and investment funds use Dealroom's software, API and custom research to stay at the forefront of technology and innovation. Founders use Dealroom.co for market research and finding potential investors. 2 Europe's Most Prominent Venture Capital Investors, 2018 The number of active venture investors in Europe has dramatically increased in recent years. As a result, navigating the VC landscape can be a daunting task for founders, LP's and corporates. This ranking, based purely on quantitative criteria, is meant as a useful guide. Yoram Wijngaarde Founder Dealroom.co The 25 most prominent investors in 2018 Over 22,000 investors were analysed for this report, of which over 10,000 have been ranked. The table below presents the top 25. On page 9 you can learn more about how to access the entire list and use the ranking to your advantage. 3 Europe's Most Prominent Venture Capital Investors, 2018 Rank Investor Country Notable investments #1 Index Ventures United Kingdom #2 Accel Partners United Kingdom/US #3 HV Holtzbrinck Ventures Germany #4 Northzone Sweden/UK #5 Balderton Capital United Kingdom #6 Insight Venture Partners United States #7 Atomico United Kingdom #8 LocalGlobe United Kingdom #9 Lakestar Switzerland #10 Rocket Internet Germany #11 Goldman Sachs United States #12 Creandum Sweden #13 Sofinnova Partners France #14 idinvest Partners France #15 Point Nine Capital Germany #16 Naspers South Africa #17 General Atlantic United States #18 Sequoia Capital United States #19 Intel Capital United States #20 SoftBank Japan #21 Summit Partners United States #22 Target Global Germany #23 KKR United Kingdom #24 Founders Fund United States #25 Vitruvian Partners United Kingdom View over 10,000 results online The rise of European big tech 4 The current wave of big exits is the result of investments made (and work done) in the past ten years. Looking ahead, Dealroom has already identified another 485 potential future unicorns, valued at 200 million or more, with a combined value of 85 billion. Furthermore, private equity firms are invested in European tech companies worth an additional 51 billion. Europe's Most Prominent Venture Capital Investors, 2018 In the tech world where borders are increasingly irrelevant, the next generation of large companies will be global by default, no matter where they're born. That gives European founders, who operate internationally almost from day one, an edge. The new wave of giants emerging from the continent -- from Adyen to Farfetch and Spotify -- shows just how vital that deep-rooted competitive advantage is. Jan Hammer GP, Index Ventures April 24B IPO (now 28B ) June 7B IPO (now 12B) May 2.0B acquisition April 1.3B acquisition Pending ~4-5B IPO Pending ~4B IPO So far 2018 already saw the birth of 15 new unicorns (i.e. startups valued over $1 billion). This brings the current number of unicorns to 37, worth a combined 57 billion ($62 bn, see page 7). Two companies achieved decacorn status: Spotify and Adyen. Europe now has five VC-backed companies surpassing this $10 billion mark (the other three are Supercell, Zalando and IHS Markit). Meanwhile, the exits Spotify, Adyen and Farfetch return more capital to investors than all VC-backed exits of 2017 combined. With a 24 billion ($28 bn) IPO valuation, Spotify is Europe's largest VC-backed exit and most valuable VC-backed company ever. Spotify is ranked in Europe's top-ten most valuable tech companies of all-time. Adyen's market valuation of 12 billion ($14 bn) instantly places it in the top-15 most valuable European tech companies. Selected big exits in 2018 No other investor has put its mark on the advent of European big tech and venture capital more than Index Ventures. This year's ranking places more emphasis on unicorns than last year. And by this metric Index Ventures also leads by far: It backed 17 European unicorns (of which ten $1B+ exits and another 8 confirmed unicorns currently in portfolio). And it continues to be among Europe's most active investors. It's followed by Accel Partners, which climbed to #2 from #7 last year. Accel was an early investor in Spotify, plus 10 other European unicorns. It has also been highly active in the last 12 months. Special mention is deserved for seed stage investors who've backed unicorns early on. LocalGlobe has been among the most active European seed investors and backed three European unicorns. It leaped to a #8 position this year. Punching above their weight Unicorn hunters 5 Europe's Most Prominent Venture Capital Investors, 2018 After twenty years of development, European startups are really starting to consistently show that their mindset, ambition and ability to execute is world-class. Skype may have started the race but these days the list of European unicorns grows every year with 9 in just London alone. There's never been a better time to be investing early in Europe and Israel. Saul Klein Co-founder LocalGlobe Seed Investors European unicorns LocalGlobe Seedcamp Point Nine Hoxton Ventures Point Nine, Seedcamp and Hoxton Ventures are other examples of seed investors punching above their weight. Some new players entered the top ranks, such as Softbank which leaped to #20 from #189. Other top ranked late stage investors include General Atlantic, Goldman Sachs, Vitruvian and KKR. The ranking also includes corporate investors (idinvest, Naspers, Intel, Tencent), angels, accelerators (Seedcamp, Entrepreneur First), and crowdfunding platforms. 6 Europe's Most Prominent Venture Capital Investors, 2018 United Kingdom Notable Investments #1 Index Ventures #2 Accel Partners #3 Balderton capital #4 Atomico #5 LocalGlobe France #1 idinvest partners #2 Sofinnova #3 Elaia Partners #4 Bpifrance #5 Oleg Tscheltzoff Netherlands #1 BOM Capital #2 Forbion #3 Prime Ventures #4 Endeit #5 BioGeneration Italy #1 Innogest #2 United Ventures #3 LVenture Group #4 Digital Magics #5 Invitalia Ventures United States #1 Insight VP #2 Goldman Sachs #3 General Atlantic #4 Sequoia #5 Intel Capital DACH region (1) Notable Investments #1 HV Ventures #2 Lakestar #3 Rocket Internet #4 Point nine #5 Target Global Sweden #1 Northzone #2 Creandum #3 Industrifonden #4 Kinnevik #5 EQT Ventures Spain #1 Nauta Capital #2 Ysios Capital #3 Kibo Ventures #4 Seaya Ventures #5 Cabiedes Russia #1 DST Global #2 Baring Vostok #3 Runa Capital #4 InVenture Partners #5 IIDF Asia #1 SoftBank #2 Horizons Ventures #3 Temasek #4 Tencent #5 Rakuten Country ranking 1) DACH region = Germany, Switzerland, Austria. Source: Dealroom.co estimates based on public reports and comparable valuation methods. European unicorns 7 Europe's Most Prominent Venture Capital Investors, 2018 Complete your investor profile 8 Dealroom.co Kabelweg 43 1014 BA Amsterdam The Netherlands Yoram Wijngaarde Founder & CEO email@example.com Dominik Vacikar Head of Investment Solutions firstname.lastname@example.org Europe's Most Prominent Venture Capital Investors, 2018 Contact us about premium access, research, API a) Add directly online Visit app.dealroom.co to lookup & claim your profile. Then simply edit your portfolio and exits directly. We're always happy to assist you. Talk with us directly using the customer contact tool in the bottom right. b) Send it to us Get in touch via email (see below) or talk with us on the customer contact tool online. We will be happy to receive your data in any format you have it ready, and make sure your profile is updated. The prominence rank will be regularly re-balanced, based on the latest data. Dealroom continuously updates the database with new investment activity, using automated and manual processes. To make sure your investor profile is complete, you can provide us information in two ways: Using the ranking online Visit app.dealroom.co/investors to explore all 22,000 investors, sorted by rank. Use the filters to narrow down your search (as shown below). View detailed investor profiles (portfolio, exits, focus, fund size and more). Bonus tip for founders: use the investor matching tool to find the most suitable investors for your company's next round, in an instant! 9 Dealroom.co Kabelweg 43 1014 BA Amsterdam The Netherlands Yoram Wijngaarde Founder & CEO email@example.com Dominik Vacikar Head of Investment Solutions firstname.lastname@example.org Europe's Most Prominent Venture Capital Investors, 2018 Appendix: methodology 10 Europe's Most Prominent Venture Capital Investors, 2018 The ranking is based on eight indicators, with equal weighting 1. Portfolio size in Europe Number of portfolio companies in Europe (incl. Israel), all time. 2. Number of rounds in last 12 months Number of rounds which investor participated in during last 12 months. 3. Amount raised via participated rounds in last 12 months ( millions) This measures the total amount raised in each round that the investor participated in. For example, if the investor invested 1M in a 20M round, the full 20M is counted. However if a portfolio company raised 20M in a round where the investor did not participate, then this is not counted. 4. Number of exits > 100 million (total firm value, all time) 5. Number of exits > 500 millions (total firm value, all time) 6. Number of exits > 800 million (i.e. unicorn exits total firm value, all time) NEW 7. Number of portfolio companies valued > 500 million (i.e. potential unicorns) 8. Number of portfolio companies valued > 800 million (i.e. current unicorns) NEW These factors were also used last year, except number 6 and 8, which are new. The effect is that more emphasis is placed on unicorns - both currently in portfolio and realised exits (over $1 billion 800 million). Indicators from last year that were excluded this year: 1. Exits number Number of exits, global. This was removed to reduce the weighting of age of a fund (older funds have more exits) 2. Exit score Number of exits relative to total portfolio, all time. This was removed because it was impacted by too many outliers. 3. Capital efficiency Total amount of all exits relative to the amount of capital invested, all time. The effect of removing these three is less emphasis on total size (exits number) and less emphasis on non-meaningful exits (exits without any disclosed value). As a result, the ranking gives slightly more room for early stage and emerging funds. This year's ranking still is relatively underweighted on first-time funds, as they tend to have far fewer realised exits. We are considering launching a separate "emerging funds" ranking later this year.