State of European Tech 2017 by Atomico

Dec 4, 2018 | Publisher: Techcelerate Ventures | Category: Technology |  | Collection: Startups | Views: 4 | Likes: 1

45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 2017 The State of European tech presents In collaboration with sponsored by The State of European Tech 2017 Atomico & Slush 2 www.stateofeuropeantech.comSince we began this project in 2015, our ambition has been to build a rich and nuanced narrative of European technology and how it is evolving. A multi-layered story, not just a moment in time. At Atomico, we believe it is only possible to do this based on a number of data sources and different factors. Which is why we've worked with an incredible set of data partners, surveyed thousands of people within Europe's tech ecosystem, and spoken with those at the heart of it all - to develop meaningful, localised data insights that tell the real story about what's happening on the ground. This year's findings reveal the state of European tech in 2017 is the strongest it has ever been. Europe is building a tech ecosystem in its own image, defined by deep tech expertise, incredible geographic diversification, and a uniquely collaborative approach with traditional industry. The solid foundations that have been laid - a huge and deep talent pool, founders with global ambition levels, and a large, growing and increasingly sophisticated investor base - means that Europe marches to its own beat. The question of whether Europe can produce world-class innovation has been put to bed. The question of whether it can produce a $100Bn company has been put to bed. And the probability that the next industry-defining company could come from Europe - and become one of the world's most valuable companies - has never been higher. We hope you enjoy diving into this year's report, which we believe is the single, most comprehensive data-driven story of European technology today. Tom Wehmeier Partner and Head of Research, Atomico Welcome to the third edition of the State of European Tech Report The State of European Tech 2017 Atomico & Slush 3 www.stateofeuropeantech.comWe are excited to share the third edition of The State of European Tech report with you all and hope you will find it to be the singular, most comprehensive and data-driven portrait of Europe's technology ecosystem to date. As in previous years, we've been ambitious about the data partners we've partnered with: teaming up again with LinkedIn, Stack Overflow, Meetup, Dealroom.co, the London Stock Exchange, Quid, European Startup Initiative, Signal and Invest Europe, and adding new partners including the European Investment Fund, Craft.co, and TokenData. The strength and integrity of our report relies on being able to draw meaningful insights from a number of different sources and data points. With the support of our data partners we have been able to carefully build the most accurate picture of what is going on in European tech, right now. One area we wanted to double down on in 2017 was geographic diversity, to ensure our report had roots across Europe's broad and diverse ecosystem - not just the traditional hubs. So this year we have worked with a number of strategic distribution partners to help us delve deep into Europe's ecosystem. Our survey was conducted from 6th September - 15th October 2017 and with the help of our distribution partners we received over 3,500 responses - including over 1,000 European founders from across the continent. The survey enabled us to gather thousands of qualitative insights from those right at the heart of what's happening on the ground, across the wide European ecosystem, not just London, Paris and Berlin but also Reykjavik, Sevilla, Sofia and everywhere in between. We have also spoken intimately with a select group of over 50 founders, entrepreneurs, investors and policymakers at the cutting edge of Europe's technology landscape - capturing their insights in different sections of the report to bring the hard data to life. In the process of putting together this report we spoke to Jos Neves (Farfetch), Herman Narula (Improbable), Ian Rogers (LVMH), Mounir Mahjoubi (Macron's digital minister), Dr Jeannette zu Frstenberg (La Famiglia), Ilkka Paananen (Supercell), Urska Srsen (BellaBeat), Antoine Bordes (Facebook Artificial Intelligence Research - FAIR), Fleur Perellin (Korelya Capital), Reshma Sohoni (Seedcamp) and Robin Klein (LocalGlobe) - to name just a few. As well as the magazine you are now holding in your hands, for the very first time the report is also being housed on its very own interactive website where you can explore the data in even more detail. You can find us on www.stateofeuropeantech.com About this report The State of European Tech 2017 Atomico & Slush 4 www.stateofeuropeantech.comOur experienced team includes entrepreneurs and executives from the world's most successful technology firms who partner with our companies as they scale to become global winners. We're not a traditional venture capital firm. We exist for more than returns, even though it is our lifeblood. Since we began our work in 2006, we've always set our sights much higher. At our core, we believe entrepreneurs are the ultimate agents of positive, transformational change across every aspect of our society and economy. To us, our work is our mission. When you spend time with us, you'll see that our firm is built by, and for, founders. It's why we invest from Series A onwards, because we want to help founders take a product that works and make it a global success. And it's why we've built the most experienced team possible, with a clear and systematic approach, to help founders turn their vision into something that changes the world for the better. While we invest globally, our focus is Europe. The strength and depth of European founders is increasing all the time, and we strive to help them succeed globally. We believe many of the next truly transformative companies will come from Europe. We look for the most ambitious founders, the people who want to build the next leader in their category or the company that changes a fundamental component of our economy and society. The founders who want to use technology to rewire the world in favour of something better for as many people as possible. You can find out more by visiting our website, reading our manifesto, and looking at the companies we invest in - but in the meantime, we hope you enjoy the State of European Tech Report 2017. Atomico invests in disruptive technology companies with ambitious founders from Series A onwards. About Atomico The State of European Tech 2017 Atomico & Slush 5 www.stateofeuropeantech.comIn 2017, Slush gathered more than 45,000 people in its 75 events all around the world from South Africa to Tokyo. The non-profit initiative was established by a group of entrepreneurs in Helsinki in 2008. Today, the year of Slush culminates every November when 20,000 founders, investors, media and executives from +130 countries gather in Helsinki. Despite having grown in just a few years from a 300-person assembly to a world-renown event, the philosophy has remained the same: supporting world-conquering founders. Slush is a global movement supporting the next generation of groundbreaking founders. About Slush Photo: Samuli Pentti The State of European Tech 2017 Atomico & Slush 6 www.stateofeuropeantech.comDistribution Partners Data Partners Supported by data from our amazing partners Powered by Europe's startup community The State of European Tech 2017 Atomico & Slush 7 www.stateofeuropeantech.comInterviewees We gathered insights from over 50 people across sectors, across Europe Alex Stubb VP & Member of the Management Committee EIB Alastair Band Co-Founder Blockchain Beginners Antoine Bordes Research Lead Facebook Artificial Intelligence Research (FAIR) Andreas Saari Co-Founder & CEO Wave Ventures Angus Maidment Co-Founder Blockchain Beginners Benjamin Lickfett Head of Technology & Innovation Diageo Ben Pugh CEO Farmdrop Brent Hoberman Executive Chairman; Founders Factory, Founders Forum, firstminute capitalv Barnaby Hussey-Yeo Co-Founder & CEO Cleo Fleur Pellerin CEO & Founder Korelya Capita Dr. Jeannette zu Frstenberg Managing Partner La Famiglia Erik Engellau-Nillson CEO Norrsken Foundation George Danezis Professor of Security and Privacy Engineering, University College London Jimmy Wales Founder Wikipedia, WikiTribune Ella Goldner Founding Partner & General Manager Zinc VC David Kelnar Investment Director & Head of Research MMC Ventures Dan Hynes Partner & Head of Talent Atomico Christopher Grew Partner Orrick Daniel Wiegand Co-Founder & CEO Lilium Aviation Jos Neves Founder & CEO Farfetch Jan Erik Solem CEO & Co-Founder Mapillary Jutta Steiner Founder Parity Technologies Juan Urdiales Co-Founder & Co-CEO Jobandtalent Kati Levoranta CEO Rovio Stefano Bernardi Co-Founder Token Economy The State of European Tech 2017 Atomico & Slush 8 www.stateofeuropeantech.comLuciana Lixandru Partner Accel Michael Collins CEO Invest Europe Neil Murray Angel Investor The Nordic Web Kristel Kruustk Founder & CEO Testlio Mounir Mahjoubi French Secretary of State in charge of Digital Affairs Lenard Koschwitz Director for European Affairs Allied for Startups Reshma Sohoni Founding Partner Seedcamp Robin Klein General Partner LocalGlobe Oscar Farres Head of Unit, Investments Technology & Innovation EIF Samuel Mueller CEO and Co-Founder Scandit Niklas Zennstrm CEO & Founding Partner Atomico Remo Gerber Chief Commercial Officer Lilium Aviation Xavier Niel Entrepreneur Station F Jos del Barrio Founding Partner Samaipata Ventures Urska Srsen CPO & Co-Founder BellaBeat Carolina Brochado, Atomico Partner Sean Bave General Manager Stack Overflow Talent Stephen Lowery Managing Director Silicon Valley Bank UK Yannick Roux General Partner First Matter Elina Berglund Scherwitzl CTO & Co-Founder Natural Cycles Mattias Ljungman Atomico Partner Marianne Vikkula CEO Slush Hiro Tamura Atomico Partner Nikhil Rathi CEO London Stock Exchange PLC Timo Rein Co-Founder Pipedrive Romain Lavault General Partner Partech Ventures The State of European Tech 2017 Atomico & Slush 9 www.stateofeuropeantech.comAs a firm originating out of Silicon Valley which has expanded into Europe, with offices in Germany, France, UK and Italy, our pan-European footprint reflects our belief that Europe is an important geographical area for the technology industry. We also feel well placed to comment on the trends driving the technology ecosystem in Europe. We believe we have a role in the ecosystem but to play a full role you need to make sure you fully understand the environment in which you operate. That is why we support the publication of the State of European Tech report, now in its third year providing a complete analysis of European tech to entrepreneurs, VCs, governments, law firms like ours, students and other stakeholders. Whilst Europe can be viewed as fragmented on a country-by-country basis with a plethora of different languages, there are certain strengths to celebrate across the continent. Europe has historically played a pioneering role in the technology industry: a world leader in areas such as mobile and fintech, where Europe has been well-advanced and way ahead of Silicon Valley and the US as a whole. Europe also outnumbers the US for programming talent, and we believe it is going to continue to succeed on the global stage, as it doubles down on the advances it is already making in AI, cryptocurrencies and deep tech. This report makes it clear the funding environment for European technology companies is still very healthy and the appetite for investments in European technology companies is unsurpassed. We're talking not just early stage and venture funds but the growth funds, late stage funds and Softbanks of the world. The times are-a-changing. Traditionally, European companies looking to be acquired have looked to Silicon Valley for their salvation. Today, they're looking to the US as a destination to acquire, demonstrate their success or to expand internationally. What is most interesting to us as a law firm is the changing regulatory landscape. Yes, you will see in the Regulation section of the report that more needs to be done by governments to incentivise the development of new technologies such as drones, autonomous vehicles and crypto currencies. At the same time we are starting to see the green shoots of regulatory maturity. The government in Sweden is allowing for the reimbursement of mobile-only doctor services, the Estonian government is enabling delivery robots to use the country's sidewalks, the UK is a cheerleader for new open banking rules whilst the Swiss government is embracing the potential of crypto currencies. We're thrilled to be involved with the State of European Tech report this year, contributing to one of the most nuanced and data-driven portrayals of what's happening in European technology today. As evidenced in the pages of this report European technology has undoubtedly had a breakthrough year but what excites us the most are the opportunities that lie ahead. A word from Orrick Christopher Grew Partner, Technology Companies Group Orrick As a law firm, Orrick focuses on the tech industry and technology entrepreneurs. The State of European Tech 2017 Atomico & Slush 10 www.stateofeuropeantech.comAbout Silicon Valley Bank REPORT PARTNER DESIGN REPORT PARTNER SVB provides a range of targeted financial services and expertise through its office in the UK. With commercial and international banking services, SVB helps address the unique needs of innovators. The UK's leading technology and life science businesses, in all stages of development, look to SVB's niche expertise, 30 years of experience and unparalleled network, as they grow at home and tackle new markets abroad. Learn more at svb.com/uk For more than 30 years, Silicon Valley Bank (SVB) has helped innovative businesses, enterprises and their investors move bold ideas forward, fast. About Studio Lovelock About Orrick Since 2012 they've been helping exciting brands grow, engage and delight their audiences. They collaborate on charismatic design that cuts through the noise, makes an authentic connection, and takes their clients branded communication to the next level. Their team brings experience, intelligence and a playful enthusiasm to each and every design brief. They focus on brand identity, websites, animation and social media content. Visit www.studiolovelock.com to view their portfolio. Orrick counsels more than 1,800 tech companies, as well as the most active funds, corporate venture investors and public tech companies worldwide. Our focus is on helping disruptive companies tap into innovative legal solutions. We are a top 10 law firm for global M&A volume (MergerMarket) and the #1 most active law firm in European venture capital, and M&A exits (Pitchbook). We offer holistic solutions for companies at all stages, executing strategic transactions but also protecting intellectual property, managing cybersecurity, leveraging data and resolving disputes. We are helping our clients navigate the regulatory challenges raised by new technologies such as crypto currencies, autonomous vehicles and drones. A leader in traditional finance, we work with the pioneers of marketplace lending. We innovate not only in our legal advice but also in the way we deliver legal services, earning us the #1 spot on Financial Times' list of the most innovative law firms in North America in 2016. Studio Lovelock are a digital design studio in South East London powered by a love of ambitious ideas and distinctive design. Orrick is a global law firm focused on serving the technology, energy & infrastructure and finance sectors. Structured as one team, our lawyers work across 25+ markets in Europe, the United States, Asia and Africa. 0 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 02 A lot has happened since last year's report Emmanuel Macron is the new President in France, the Eurozone posted a second solid quarter of growth and continuing Brexit negotiations dominate the news in both the UK and occasionally across the continent. Macro political and economic upheavals are to be expected. The question we explore in these pages is, to what degree is the tech world immune to these developments - and could it be entering bear territory? Evolving Europe The State of European Tech 2017 Atomico & Slush 12 www.stateofeuropeantech.comIt's been a big year for European tech 2.1 Slovenian games compa- ny Outfit7 acquired for $1.1B The UK's Funding Circle raises $100M Series D The UK triggers Article 50 to formally start the Brexit process Picnic raises 100M Series B in the Nether- lands Germany's Soundcloud lays off 40% of staff, but European tech industry rallies around Tezos raises $232M in a then landmark ICO The UK's Transferwise raises $280M Series E Election of Emmanuel Macron injects huge optimism into La French Tech Official launch of London HQ'd Softbank Vision Fund and investment of $500M into the UK's Improbable Spain's Cabify raises $100M Series D Germany's Lilium raises $90M Series B from Tencent Finland's Rovio IPOs for $1B The UK's Deliveroo raises $385M Series F Spain's Social Point acquired for $267M by Take-Two Romania's UIPath raises largest ever Series A ($30M) from Accel UK's Ve Interactive goes into administration Germany's Delivery Hero raises $1.1B at IPO UK's Prodigy Finance announces $200M in equity and debt funding, led by Index Ventures UK-based DeepMind introduces AlphaGo Zero using novel form of reinforcement learning France's Zenly acquired for $213M by Snap JAN FEB MAR JUL SEP APR JUN OCT NOV MAY AUG A year marked by a number of hugely important milestones for European tech year-on-year growth in European tech worker population in 2017, compared to just 0.8% growth in overall EU employment in 2017, according to the European Commission's latest economic forecast for Winter 2017 Europe's tech workforce is growing significantly faster than overall EU employment 3x 22/11/2017 The State of European Tech 2017 TitleNo: 2.1 GroupName: Default GroupId: 679 ChartId: 222 ArticleId: 42 ChapterId: 10 Europe's tech industry is creating jobs faster than the rest of the European economy Tech industry workforce growth, 2017 versus 2016 % growth YoY2.6 2.1 Tech workforce growth YoY 2017 2016 0 0.5 1 1.5 2 2.5 Note: Based on an analysis of sample pool of LinkedIn members and the difference between those in Oct 2016 working in the Tech Sector in each country from this sample pool and those in Oct 2017 Source: LinkedIn Tech industry workforce growth versus forecast EU employment growth, 2017 versus 2016 Europe's tech industry is creating jobs faster than the rest of the European economy Note: Based on an analysis of sample pool of LinkedIn members and the difference between those in Oct 2016 working in the Tech Sector in each country from this sample pool and those in Oct 2017 Source: LinkedIn The State of European Tech 2017 Atomico & Slush 13 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 3/254 TitleNo: 2.1 GroupName: Default GroupId: 663 ChartId: 214 ArticleId: 42 ChapterId: 10 Europe's fastest-growing tech worker populations are growing at an even faster rate Top 10 fastest-growing tech worker populations of 2017 % growth YoY 5.3 4.6 4.2 4 3.6 3.3 3.2 2.8 2.8 2.7 2017 Ireland Netherlands Germany Switzerland France Czech Republic United Kingdom Austria Norway Portugal 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 5.5 Note: Based on an analysis of sample pool of LinkedIn members and the difference between those in Oct 2016 working in the Tech Sector in each country from this sample pool and those in Oct 2017. Source: LinkedIn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 4/254 TitleNo: 2.1 GroupName: Default GroupId: 902 ChartId: 253 ArticleId: 42 ChapterId: 10 For additional context, it is worth analysing a similar dataset covering tech talent movement in 2016 provided by LinkedIn for last year's State of European Tech Top 10 fastest-growing tech worker populations of 2016 % growth YoY 5.5 3.3 3 3 2.7 2.5 2.5 2.5 2.3 1.7 2016 Ireland Germany United Kingdom Netherlands Poland France Switzerland Czech Republic Belgium Romania 0 1 2 3 4 5 6 Note: Based on an analysis of sample pool of LinkedIn members and the difference between those in 2016 working in the Tech Sector in each country from this sample pool and those in 2015 Source: LinkedIn Top 10 fastest-growing tech worker populations of 2017 Top 10 fastest-growing tech worker populatins of 2016 Europe's fastest-growing tech worker populations are growing at an even faster rate For additional context, it is worth analysing a similar dataset covering tech talent movement in 2016 provided by LinkedIn for last year's State of European Tech It's been a busy year for European tech 2.1 Of course Europe is a fantastic place to start and grow a company. Just look at companies like Spotify, Skype, TransferWise, or BlaBlaCar: they are European unicorns. The biggest startup events take place in Europe, the level of capital available has skyrocketed in the past years. Europe is made of tens of different cultures, it's our biggest advantage. The more diversity you can find among entrepreneurs, the more you will find innovative businesses, creativity, and value created. Xavier Niel Station F Note: Based on an anlysis of sample ol of LikedIn members and the difference between those in Oct 2016 working in the Tech Sector in each country from this sample pool and those in Oct 2017. Source: LinkedIn The State of European Tech 2017 Atomico & Slush 14 www.stateofeuropeantech.comof UK founders are less confident about the future of European tech compared to 12 months ago, compared to just 6% of founders from all other countries of European founders are either more optimistic about the future of European tech, or maintain the same levels compared to 12 months However, confidence levels in the UK are materially lower The level of optimism among European founders is strong 27% 90% Europe has a strong sense of optimism about the future of its tech ecosystem 2.2 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 7/241 TitleNo: 2.3 GroupName: Geography GroupId: 690 ChartId: 226 ArticleId: 43 ChapterId: 10 While there are notable differences across countries, Europe as a whole demonstrates bullishness about the future of its tech ecosystem Are you more or less optimistic about the future of European tech today than you were 12 months ago? % of respondents42 70 56 54 58 55 58 55 25 38 41 37 42 32 37 18 5 5 6 6 2 10 9 More About the same Less UK & IrelandFrance & BeneluxDACHSouthern EuropeNordicsBalticsCentral & Eastern EuropeEurope0 25 50 75 Source: The State of European Tech Survey 2017 39 22/11/2017 The State of European Tech 2017 TitleNo: 2.3 GroupName: Occupation GroupId: 692 ChartId: 226 ArticleId: 43 ChapterId: 10 While there are notable differences across countries, Europe as a whole demonstrates bullishness about the future of its tech ecosystem Are you more or less optimistic about the future of European tech today than you were 12 m nths ago? % of respondents54 57 54 55 57 51 54 59 36 36 36 36 36 41 36 32 10 7 10 9 7 8 10 9 More About the same Less FounderInvestorStartup employeeCompany employee (public tech co)Company employee (non-tech)Public sector employeeStudentOther0 25 50 Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 TitleNo: 2.3 GroupName: Occupation GroupId: 692 ChartId: 226 ArticleId: 43 ChapterId: 10 While the e are notable differences across countries, Europe as a whole demonstrates bullishness about the future of its tech ecosystem Are you more or less optimistic about the future of European tech today than you were 12 months ago? % of respondents54 57 54 55 57 51 54 59 36 36 36 36 36 41 36 32 10 7 10 9 7 8 10 9 More About the same Less Fo un de r Inv es to r St ar tu p em pl oy ee Co m pa ny e m pl oy ee (p ub lic te ch c o) Co m pa ny e m pl oy ee (n on -t ec h) Pu bl ic se ct or e m pl oy ee St ud en t Ot he r 0 25 50 Source: The State of European Tech Survey 2017 Are you more or less optimistic about the future of European tech today than you were 12 months ago? While there are notable differences across countries, Europe as a whole demonstrates bullishness about the future of its tech ecosystem I was optimistic about European tech 12 months ago, and feel just as positive about the state of European tech today. The ecosystem is constantly evolving, and its momentum is accelerating. You can find world-class levels of ambition, innovation and disruption across the continent in more established tech hubs like London, Paris and Stockholm, as well as in emerging hubs like Amsterdam or Barcelona. Luciana Lixandru Accel Geography Occupation The State of European Tech 2017 Atomico & Slush 15 www.stateofeuropeantech.comIt is absolutely easier to build a European tech company today than it was five years ago. If you look at the mobile games business or where mobile is a platform, the app store distribution model has completely democratised distribution, there are things like cloud technologies that make it easier than ever to scale your service. What it really means is that great companies today can come from any country and it is way easier than it was five or ten years ago. Ilkka Paananen Supercell Europe has a strong sense of optimism about the future of its tech ecosystem 2.2 Photo: Jussi Hellsten The State of European Tech 2017 Atomico & Slush 16 www.stateofeuropeantech.comEurope's tech ecosystem is feeling the impact - positive and negative - of macro events 2.3 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 9/241 TitleNo: 2.4 GroupName: Geography GroupId: 693 ChartId: 227 ArticleId: 44 ChapterId: 10 Europe's tech community views the UK's triggering of Article 50 as the most material event of the past 12 months Which event of the past 12 months has had the most material impact - positive or negative - on Europe's tech ecosystem? % of respondents71 38 44 49 51 46 38 52 9 11 19 11 21 24 26 15 25 9 31 6 9 7 6 9 9 10 11 15 1 4 4 UK triggering Article 50 to start the process of exiting the EU Emergence of Initial Coin Offerings (ICOs) as a new way to raise capital Election of Donald Trump Election of Emmanuel Macron Investment activities of the European Investment Fund (EIF) Launch of SoftBank Vision Fund UK & Irela ndFran ce & B en elu x DA CH No rdics Ba lti cs So ut hern E uropeCe nt ra l & E as tern E uropeEu ro pe 0 25 50 75 Note: Numbers may not add to 100 due to rounding Source: The State of European Tech Survey 2017 2 2 5 5 6 10 4 13 13 11 4 4 7 3 12 12 9 22/11/2017 The State of European Tech 2017 TitleNo: 2.4 GroupName: Occupation GroupId: 751 ChartId: 227 ArticleId: 44 ChapterId: 10 Europ 's tech community vi ws he UK's trigg ri g of Article 50 as the most material event of the past 12 months Which event of the past 12 months has had the most material impact - positive or negative - on Europe's tech ecosystem? % of respondents49 45 54 67 57 60 41 57 16 15 15 15 16 12 12 18 9 8 8 16 8 5 5 4 3 3 4 UK triggering Article 50 to start the process of exiting the EU Emergence of Initial Coin Offerings (ICOs) as a new way to raise capital Election of Donald Trump Election of Emmanuel Macron Investment activities of the European Investment Fund (EIF) Launch of SoftBank Vision Fund Fo un de r Inv es to r St ar tu p em pl oy ee Co m pa ny e m pl oy ee (p ub lic te ch c o) Co m pa ny e m pl oy ee (n on -t ec h) Pu bl ic se ct or e m pl oy ee St ud en t Ot he r 0 50 Note: Numbers may not add to 100 due to rounding Source: The State of European Tech Survey 2017 12 10 4 811 11 8 6 11 11 11 5 14 13 14 6 3 3 7 7 5 Which event of the past 12 months has had the most material impact - positive or negative - on Europe's tech ecosystem? Europe's tech community views the UK's triggering of Article 50 as the most material event of the past 12 months Compared to 12 months ago, I have actually got less excited about European tech and the European tech scene. "Less excited" is maybe not right the word "more pessimistic." I am deeply concerned about - frankly - the train wreck of Brexit. I am afraid of it spiralling out of control. Jimmy Wales WikiTribune & Wikipedia Geography Occupation The State of European Tech 2017 Atomico & Slush 17 www.stateofeuropeantech.comof survey respondents cited the triggering of Article 50 as the most material event to have impacted the European tech industry in the past 12 months More than any other event, the Brexit process is singled out for its impact on the European tech ecosystem 52% 18/11/2017 The State of European Tech 2017 TitleNo: 2.3 GroupName: n/a GroupId: n/a ChartId: n/a (chartImage) ArticleId: 44 ChapterId: 10 Europe's tech community is feeling the impact of Brexit in different ways How, if at all, has the UK triggering Article 50 to start the Brexit process impacted your company? Note: Respondents that selected 'the UK triggering Article 50 to start the process of exiting the EU' only Source: Quid, The State of European Tech Survey 2017 How, if at all, has the UK triggering Article 50 to start the Brexit process impacted your company? Europe's tech community is feeling the impact of Brexit in different ways 2.3 Europe's tech ecosystem is feeling the impact - positive and negative - of macro events Text Analytics Background: Quid reads any text to identify keywords, phrases, people, companies and institutions. Quid then compares words from each document to create links between them based on similar language. Quid repeats the process at immense scale, producing a network that shows how similar all the documents are to one another. How to Read a Network: Similar nodes cluster together, and clusters are grouped by color. Each node represents a written response. Connections represent similar language used across nodes. Centrally located nodes are core concepts in the network and share language with many other nodes, while peripheral clusters represent more outsider takes on the topic. The density of a cluster indicates how similar or diverse the nodes are within it. The State of European Tech 2017 Atomico & Slush 18 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 12/241 TitleNo: 2.4 GroupName: Geography GroupId: 159 ChartId: 51 ArticleId: 44 ChapterId: 10 The ongoing uncertainty caused by the Brexit vote and exit process is impacting hiring, fundraising and office location decisions How, if at all, has the UK triggering Article 50 impacted your company? % of respondents 24 21 17 9 9 2 18 9 17 8 7 17 3 38 UK Non-UK Talent and hiring Investment and fundraising Heightened uncertainty or risk Attractiveness and ease of doing business in or with UK Attractiveness of rest of Europe for relocation of HQs and staff General ecosystem No impact 0 5 10 15 20 25 30 35 40 Note: Respondents that selected 'UK triggering Article 50 to start the process of exiting the EU' only. Numbers may not add to 100 due to rounding Source: Quid, The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 TitleNo: 2.4 GroupName: Founders GroupId: 754 ChartId: 51 ArticleId: 44 ChapterId: 10 The ongoing uncertainty caused by the Brexit vote and exit process is impacting hiring, fundraising and office location decisions How, if at all, has the UK triggering Article 50 impacted your company? % of respondents 30 23 18 10 10 1 8 9 14 7 11 21 2 35 UK founders Non-UK founders Talent and hiring Investment and fundraising Heightened uncertainty or risk Attractiveness and ease of doing business in or with UK Attractiveness of rest of Europe for relocation of HQs and staff General ecosystem No impact 0 5 10 15 20 25 30 35 Note: Respondents that selected 'UK triggering Article 50 to start the process of exiting the EU' only. Numbers may not add to 100 due to rounding Source: Quid, The State of European Tech Survey 2017 How, if at all, has the UK triggering Article 50 impacted your compay? The ongoing uncertainty caused by the Brexit vote and exit process is impacting hiring, fundraising and office location decisions 2.3 Europe's tech ecosystem is feeling the impact - positive and negative - of macro events Geography Founders Note: Respondents that selected 'UK triggering Article 50 to start the process of exiting the EU' only. Numbers may not add to 100 due to rounding Source: Dealroom.co Quid, The State of European Tech Survey 2017 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 19 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 14/241 TitleNo: 2.4 GroupName: Default GroupId: 163 ChartId: 52 ArticleId: 44 ChapterId: 10 Meanwhile, in France, Macron's electoral victory has injected huge optimism into the French ecosystem, creating a renewed sense of entrepreneurial spirit How, if at all, has the election of Emmanuel Macron impacted your company? % of respondents 25 22 8 8 37 % of respondents choosing 'Election of Macron' Optimism and confidence in France and Europe Impact on French tech ecosystem Increased opportunities Injecting entrepreneurial spirit No impact 0 5 10 15 20 25 30 35 40 Note: Respondents that selected 'the election of Emmanual Macron' only Source: Quid, The State of European Tech Survey 2017 How, if at all, has the election of Emmanuel Macron impacted your cmpny? Meanwhile, in France, Macron's electoral victory has injected huge optimism into the French ecosystem, creating a renewed sense of entrepreneurial spirit There was a lot of self-bashing in France, lots of people saying that "it is much better in the West - especially in the tech ecosystem, it is much better in Silicon Valley, it is better in London, and so on." We were kind of self-hating on ourselves. I thought it was a generation thing, and it would take a long time to make that shift. But that happened overnight with Macron being elected. The day after he got elected there was no-one complaining in France, there was a new burst of positivity in the country. Romain Lavault Partech Ventures 2.3 Europe's tech ecosystem is feeling the impact - positive and negative - of macro events 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 20 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 15/241 TitleNo: 2.4 GroupName: Geography GroupId: 579 ChartId: 183 ArticleId: 44 ChapterId: 10 These events have had a significant impact on the perception of founders and investors. The UK is the only country in Europe where more founders think it's got harder to raise capital compared to 12 months ago In your opinion, is it easier or harder to raise venture capital in Europe than it was 12 months ago? % of respondents27 60 44 32 40 36 45 32 14 18 23 22 21 27 23 49 40 27 38 32 39 Easier Harder About the same UK & Ireland France & Benelux DACH Nordics Baltics Southern Europe Central & Eastern Europe 0 20 40 60 Note: This question was answered by Founders and Investors only. Numbers may not add to 100 due to rounding Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 16/241 TitleNo: 2.4 GroupName: Occupation GroupId: 581 ChartId: 183 ArticleId: 44 ChaperId: 10 These events have had a significant impact on the perception of founders and investors. The UK is the only country in Europe where more founders think it's got harder to raise capital compared to 12 months ago In your opinion, is it easier or harder to raise venture capital in Europe than it was 12 months ago? % of respondents34 47 27 17 40 37 Easier Harder About the same Founder Investor 0 10 20 30 40 50 Note: This question was answered by Founders and Investors only. Numbers may not add to 100 due to rounding Source: The State of European Tech Survey 2017 In your opinion, is it easier or harder to raise venture capital in Europe than it was 12 months ago? These events have had a significant impact on the perception of founders and investors. The UK is the only country in Europe where more founders think it's got harder to raise capital compared to 12 months ago 2.3 Europe's tech ecosystem is feeling the impact - positive and negative - of macro events Geography Occpation 3453532823282328232815786335 The State of European Tech 2017 Atomico & Slush 21 www.stateofeuropeantech.comEurope is entering a new age of entrepreneurship where technology is used to address the world's biggest societal challenges 2.4 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 17/241 TitleNo: 2.5 GroupName: Occupation GroupId: 570 ChartId: 180 ArticleId: 45 ChapterId: 10 There is strong agreement across Europe that the region's technology entrepreneurs will play a critical role in helping to tackle major societal issues, such as climate change, food sustainability and access to healthcare European technology entrepreneurs will do more to address societal challenges in the next decade than European governments % of respondents55 47 55 57 57 43 54 59 5 5 4 5 5 7 2 4 % Strongly agree % Strongly disagree FounderInvestorStartup employeeCompany employee (public tech co)Company employee (non-tech)Public sector employeeStudentOther0 25 50 Note: 'Strongly agree' is composed of respondents answering 6 or 7 on a 7-point Likert scale. Strongly disagree is composed of founders answering 1 or 2 on the same scale Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 18/241 TitleNo: 2.5 GroupName: Geography GroupId: 756 ChartId: 180 ArticleId: 45 ChapterId: 10 There is strong agreement across Europe that the region's technology entrepreneurs will play a critical role in helping to tackle major societal issues, such as climate change, food sustainability and access to healthcare European technology entrepreneurs will do more to address societal challenges in the next decade than European governments % of respondents47 56 47 56 58 56 61 54 7 3 9 4 3 4 3 5 % Strongly agree % Strongly disagree UK & Ir el an d Fr an ce & B en el ux DA CH No rd ics Ba lti cs So ut he rn E ur op e Ce nt ra l & E as te rn E ur op e Eu ro pe 0 20 40 60 Note: 'Strongly agree' is composed of respondents answering 6 or 7 on a 7-point Likert scale. Strongly disagree is composed of founders answering 1 or 2 on the same scale Source: The State of European Tech Survey 2017 Europan technologentrepreneurs wil do mre to address societal challenges in the next decade than European governments There is strong agreement across Europe that the region's technology entrepreneurs will play a critical role in helping to tackle major societal issues, such as climate change, food sustainability and access to healthcare Occupation Geography 2328 2328 5 5493 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 22 www.stateofeuropeantech.com2.4 Europe is entering a new age of entrepreneurship where technology is used to address the world's biggest societal challenges of respondents strongly agree that European entrepreneurs will have a bigger impact on solving major global issues than European governments Europe believes that its tech entrepreneurs will play an important role in tackling issues such as climate change, food sustainability and access to healthcare 55% Today's generation are looking for a higher purpose: something more than simply earning their living - I think this generation will play a much bigger role over the next decade, as they've grown up in a world where entrepreneurship is extremely powerful and when directed in the right way it can solve big and complex problems. To tackle the big issues in societies - social mobility, mental health, lifelong learning, the problems of ageing, and so on - entrepreneurs need to ignore the silos in which current solutions operate. The reality is that more money is being injected into the current systems, but the problems just keep growing. New solutions need to empower individuals to sort these issues out for themselves. Why keep waiting for others to sort it out for us? Europe has 500m consumers who will buy solutions to these issues if tech entrepreneurs can create attractive and effective products, rather than relying on existing systems to do that. Increasingly, citizens turn to science and technology to obtain an answer for mitigating climate change, improving citizens' health or enhancing energy and resource efficiency. This is something that Finnish, Nordic and European companies are among the best in the world at. One example of that is the rising trend of biohacking where close monitoring of yourself through tech leads to changes in your living habits. Done right, this may be a good road to healthier and longer working life and thereafter healthier ageing, and thus create a meaningful impact. Daniel Wiegand Lilium Aviaton Ella Goldner Zinc VC Kati Levoranta Rovio The State of European Tech 2017 Atomico & Slush 23 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 19/241 TitleNo: 2.5 GroupName: Default GroupId: 147 ChartId: 46 ArticleId: 45 ChapterId: 10 The potential social and ethical impact of investments is playing an increasingly significant role in the decisions made by angel investors and VCs The likely social and ethical impact of a company plays a significant role in my decision to invest % of respondents43 39 27 11 5 14 Strongly agree Strongly disagree Angel investor Other investor Venture capitalist 0 10 20 30 40 Note: Strongly agree is composed of respondents answering 6 or 7 on a 7-point Likert scale. Strongly disagree is composed of founders answering 1 or 2 on the same scale Source: The State of European Tech Survey 2017 The likely social and ethical impact of a company plays a significant role in my decision to invest The potential social and ethical impact of investments is playing an increasingly significant role in the decisions made by angel investors and VCs I think we in Europe are very well-suited to producing the founders that are going to solve some of the biggest challenges. This is thanks to more and more investors who are willing to back some super ambitious teams and plans, but we are also starting to see more entrepreneurs who are willing to move into that space, inspired by the example set by other European entrepreneurs. Andreas Saari Wave Ventures 2.4 Europe is entering a new age of entrepreneurship where technology is used to address the world's biggest societal challenges of European angel investors strongly agree that the potential social and ethical impact of their investments plays a significant role in their decision to invest Europe's angel investors demonstrate a strong social and ethical consciousness 43% The State of European Tech 2017 Atomico & Slush 24 www.stateofeuropeantech.comSelected European tech companies with a strong focus on solving a major global societal challenge It's not surprising then that European entrepreneurs that are taking on the world's biggest problems are now raising from the region's leading VCs 2.4 Europe is entering a new age of entrepreneurship where technology is used to address the world's biggest societal challenges The only limit to the impact we can have is our own imagination and commitment. At Norrsken, we're aiming to enable impact unicorns, companies positively influencing more than one billion people. We are already seeing incredible solutions being developed in Europe, and the beauty of technology is that if they are successful they can scale globally, quickly. Erik Engellau-Nilsson Norrsken Foundation Photo: Jussi Ratilainen The State of European Tech 2017 Atomico & Slush 25 www.stateofeuropeantech.comEuropean tech continues to diversify geographically, driving cross-border investment activity 2.5 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 21/241 TitleNo: 2.6 GroupName: Default GroupId: 343 ChartId: 110 ArticleId: 46 ChapterId: 10 For the past two years, European VCs have made around 1,000 investments per year in countries outside their home market Number of non-domestic European investments by European VCs Number of non-domestic European investments byEuropean VCs326 378 535 763 1,025 980 Number of investments made outside 2012 2013 2014 2015 2016 2017 0 250 500 750 1000 Note: Non-domestic investments refer to investments made by VCs in European countries other than their domestic (home) market. 2017 based on 9M to September 2017 and projection for Q4 based on Q3 Source: Dealroom.co Number f nn-domestic European investments by European VCs For the past two years, European VCs have made around 1,000 investments per year in countries outside their home market of investments made by European VCs are into companies based in countries outside of the VC's domestic market There is a huge level of cross-border investment activity by European VCs 33% 18/11/2017 The State of European Tech 2017 TitleNo: 2.5 GroupName: Default GroupId: 149 ChartId: 47 ArticleId: 46 ChapterId: 10 This is unsurprising, as European VCs are increasingly seeing attractive opportunities outside their traditional footprint As an investor, high-quality investment opportunities are increasingly opening up in European areas outside of our typical geographic focus % of respondents41 36 35 5 4 2 Strongly agree Strongly disagree Venture capitalist Angel investor Other investor 0 10 20 30 40 Note: Investor respondents only. Strongly agree is composed of respondents answering 6 or 7 on a 7-point Likert scale. Strongly disagree is composed of founders answering 1 or 2 on the same scale As an investor, high-quality investment opportunities are increasingly openig up in Eur pean areas outside of our typical geographic focus This is unsurprising, as European VCs are increasingly seeing attractive opportunities outside their traditional footprint We continue to see smaller ecosystems develop across Europe but there is certainly a long way to go -- which presents us with great untapped opportunity. While countries like Spain are on fire with multiple new startups, nice exits and ambitious teams, its neighbour Portugal is still coming up the curve and Italy, despite its $1.85T GDP, has not yet been able to generate a venture ecosystem commensurate to its potential. It is encouraging that more funds are willing to invest further from home so that founders in less well known tech scenes, who might have been overlooked a few years ago, can now access best-in-class expertise and the global capital necessary to scale. Carolina Brochado Atomico Note: Investor respondents only. Strongly agree is composed of respondents answering 6 or 7 on a 7-point Likert scale. Strongly disagree is composed of founders answering 1 or 2 on the same scale Source: The State of European Tech Survey 2017 The State of European Tech 2017 Atomico & Slush 26 www.stateofeuropeantech.comThe perception and the reality around gender diversity in European tech are not aligned 2.6 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 1/241 TitleNo: 2.1 GroupName: Default GroupId: 385 ChartId: 125 ArticleId: 75 ChapterId: 10 The gender diversity reality is that women make up just 9% of CxO positions at venture-backed European startups, including just 2% of CTOs and only 6% of CEOs Gender composition by job title for Executive-level positions of selected European Series A and B venture-backed companies % of executives 2 6 9 14 14 15 19 23 98 94 91 86 86 85 81 77 Female Male Chief Technology Officer Chief Executive Officer Chief Operating Officer Chief Financial Officer Chief Strategy Officer Chief Product Officer Chief Commercial Officer Chief Marketing Officer 0 20 40 60 80 100 Note: Based on a sample of 1,400 executives in CxO positions at 500+ European VC-backed tech companies that have raised a Series A or B round between 1 January 2016 and 30 September 2017 and have raised >$5M in total. Source: Craft.co Gender compositin by jb title for Executive-level positins of selected European Sers A and B venture-backed companies The gender diversity reality is that women make up just 9% of CxO positions at venture-backed European startups, including just 2% of CTOs and only 6% of CEOs 22/11/2017 The State of European Tech 2017 TitleNo: 2.1 GroupName: Default GroupId: 387 ChartId: 126 ArticleId: 75 ChapterId: 10 This huge underrepresentation of women is also evident in the European venture capital industry, where just 13% of decision-makers are women Gender composition of UK venture capital industry % of employees 47 27 18 13 53 73 82 87 Female Male UK workforce VC employees VC investment teams VC decision-makers 0 10 20 30 40 50 60 70 80 90 100 110 Note: Based on a sample of 1,400 executives in CxO positions at 500+ European VC-backed tech companies that have raised a Series A or B round between 1 January 2016 and 30

This year’s findings reveal the state of European tech in 2017 is the strongest it has ever been. Europe is building a tech ecosystem in its own image, defined by deep tech expertise, incredible geographic diversification, and a uniquely collaborative approach with traditional industry. The solid foundations that have been laid - a huge and deep talent pool, founders with global ambition levels, and a large, growing and increasingly sophisticated investor base - means that Europe marches to its own beat. The question of whether Europe can produce world-class innovation has been put to bed. The question of whether it can produce a $100Bn company has been put to bed. And the probability that the next industry-defining company could come from Europe - and become one of the world’s most valuable companies - has never been higher.

About Techcelerate Ventures

Tech Investment and Growth Advisory for Series A in the UK, operating in £150k to £5m investment market, working with #SaaS #FinTech #HealthTech #MarketPlaces and #PropTech companies.

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