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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 September 2017 and have raised >$5M in total. Source: Diversity VC Gender composition of UK venture capital industry This huge underrepresentation of women is also evident in the European venture capital industry, where just 13% of decision-makers are women 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 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: Diversity VC The State of European Tech 2017 Atomico & Slush 27 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 3/241 TitleNo: 2.1 GroupName: Gender GroupId: 573 ChartId: 181 ArticleId: 75 ChapterId: 10 But the tech community's perception tells a different story. The overwhelming majority strongly agree that gender diversity is positively reflected in employee composition Gender diversity is positively reflected in my company's employee composition and hiring % of respondents52 60 3 3 Strongly agree Strongly disagree Male Female 0 20 40 60 Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 4/241 TitleNo: 2.1 GroupName: Occupation GroupId: 575 ChartId: 181 ArticleId: 75 ChapterId: 10 But the tech community's perception tells a different story. The overwhelming majority strongly agree that gender diversity is positively reflected in employee composition Gender diversity is positively reflected in my company's employee composition and hiring % of respondents59 50 48 3 4 5 Strongly agree Strongly disagree Founder Startup employee Venture capitalist 0 20 40 60 Source: The State of European Tech Survey 2017 Gnder diversity is poitively reflected in my company's employe composition and hiring But the tech community's perception tells a different story. The overwhelming majority strongly agree that gender diversity is positively reflected in employee composition If I look at diversity from an Estonian perspective, we still have a long way to go. We still don't have enough girls going to STEM fields, they do not go to learn programming because there are still these stereotypes as if ICT were only for guys with long hair in ponytails. These stereotypes are still very strong. In that sense, the US is so much bigger than us and are a bit ahead in that they can hire very specific people into their companies who are responsible for building a diverse culture and setting up company diversity policies. This is not something we have adopted yet or at least I have not seen it happening as much. Kristel Kruustk Testlio 2.6 The perception and the reality around gender diversity in European tech are aligned Gender Diversity 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 03 Every founder will tell you that talent is the lifeblood of their company and their sector as a whole Technology is no different. The key questions are how strong is the tech talent pipeline in Europe, how concentrated is it and how competitive is it getting? Talent The State of European Tech 2017 Atomico & Slush 29 www.stateofeuropeantech.comNumber of doctoral graduates in STEM fields per year by region The pipeline of advanced research graduates in STEM fields has been growing consistently since 2000 22/11/2017 The State of European Tech 2017 TitleNo: 3.2 GroupName: Default GroupId: 405 ChartId: 135 ArticleId: 47 ChapterId: 11 The pipeline of advanced research graduates in STEM fields has been growing consistently since 2000 Talent - Number of doctoral graduates in STEM fields per year by region Number of doctoral graduates32,913 36,107 35,986 37,626 39,691 42,165 45,601 46,479 46,899 47,134 48,844 50,935 53,168 56,419 58,941 16,287 16,098 15,393 16,249 13,365 18,767 20,645 22,447 23,146 23,322 23,901 24,792 25,783 26,959 28,328 Europe US 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 10k 20k 30k 40k 50k 60k Source: OECD Global ranking of top-rated European computer science institutions Europe's tech ecosystem is fed by a strong pipeline of world-class talent 3.1 Europe is home to half of the top 10 computer science institutions in the world more PhDs in STEM subjects graduate from European universities than from those in the US Europe is a leading source of doctoral-level technical talent 2x Source: Times Higher Education World University Rankings for Computer Science 2017-2018.co Europe is an amazing place to be a founder. There are so many incredible academic institutions across the continent with such a wealth of talent pouring out of them and producing amazing engineers; incredible market to go and build within. Europe is just a great place to build a team. Herman Narula Improbable The State of European Tech 2017 Atomico & Slush 30 www.stateofeuropeantech.comgraduates of MBA programmes from Europe's leading business schools are entering the tech industry European technical talent is complemented by a hungry pool of commercial- minded talent 1 in 5 3.1 Europe's tech ecosystem is fed by a strong pipeline of world-class talent % of MBA graduates entering tech industry from selected leading European business schools Graduates from Europe's leading MBA programmes continue to join the tech industry at scale 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 37/241 TitleNo: 3.2 GroupName: Default GroupId: 391 ChartId: 129 ArticleId: 47 ChapterId: 11 Graduates from Europe's leading MBA programmes continue to join the tech industry at scale % of MBA graduates entering tech industry from selected leading European business schools % of MBA graduates enteringtech21 25 22 21 20 20 19 17 19 16 23 20 17 16 19 19 Class of 2016 Class of 2015 Av er ag e IE B us in es s Sc ho ol Sa id B us in es s Sc ho ol (O xf or d) Lo nd on B us in es s Sc ho ol Ju dg e Bu sin es s Sc ho ol (C am br id ge ) IE SE IN SE AD HEC Pa ris0 10 20 Source: Business School MBA Graduate Employment Reports I think the job that European policymakers have in relation to fostering entrepreneurship is primarily in building the ambition and doing so by focusing education in the STEM subjects - we have great universities, we need to encourage more of our graduates to study science, technology, engineering and maths, particularly female ones, where we have a big opportunity to increase the quality and breadth of the pool of available talent. Robin Klein LocalGlobe While Europe has always had strong technical talent from world- class universities in cities like Munich, Paris and Stockholm, we're now seeing entrepreneurs with an innovation mindset and commercial DNA as well. Luciana Lixandru Accel The State of European Tech 2017 Atomico & Slush 31 www.stateofeuropeantech.com18/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 36/241 TitleNo: 3.3 GroupName: Top 10 GroupId: 565 ChartId: 179 ArticleId: 49 ChapterId: 11 There has been rapid growth in the size of the professional developer populations in most European countries Number of professional developers by country Number of professional developers837,398 813,500 467,454 368,291 310,048 292,586 268,149 254,682 175,794 172,219 708,249 745,139 2017 2016 Germ an y Un ite d Ki ng do m Fran ceRu ss ia Ne th erla nds Ita ly Spai n Po la ndSw eden Uk ra in e 0 250k 500k 750k Note: Where data for 2016 was not available, this is shown as blank Source: Stack Overflow 18/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 37/241 TitleNo: 3.3 GroupName: 11-20 GroupId: 567 ChartId: 179 ArticleId: 49 ChapterId: 11 There has been rapid growth in the size of the professional developer populations in most European countries Number of professional developers by country Number of professional developers144,382 108,626 105,170 96,324 95,391 92,772 82,874 79,112 124,239 127,306 96,862 80,762 2017 2016 Sw itzer la nd Tu rk ey Be lg iu m Ro m an ia Cz ec h Re pu bl ic De nm ar k Au st ria Fi nl an d No rw ay Hung ar y 0 50k 100k 150k Note: Where data for 2016 was not available, this is shown as blank Source: Stack Overflow 18/11/2017 The State of European Tech 2017 TitleNo: 3.3 GroupName: 21-30 GroupId: 568 ChartId: 179 AricleId: 49 ChapterId: 11 There has been rapid growth in the size of the professional developer populations in most European countries Number of professional developers by country Number of professional developers68,568 59,428 48,940 48,932 47,351 34,059 29,347 22,162 75,672 0 20,271 31,812 2017 2016 Portugal Ireland Greece Bulgaria Belarus Serbia Slovakia Croatia Lithuania Slovenia 0 20k 40k 60k 80k Note: Where data for 2016 was not available, this is shown as blank Source: Stack Overflow Number of professional developers by country Europe's tech workforce and developer population is booming 3.2 There has been rapid growth in the size of the professional developer populations in most European countries Top 10 11-20 21-30 The State of European Tech 2017 Atomico & Slush 32 www.stateofeuropeantech.com3453 5328 2328 2328 2328 2328 1578 6335 18/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 39/241 TitleNo: 3.3 GroupName: 31-40 GroupId: 569 ChartId: 179 ArticleId: 49 ChapterId: 11 There has been rapid growth in the size of the professional developer populations in most European countries Number of professional developers by country Number of professional developers17,531 11,563 11,056 10,414 10,289 7,021 6,892 5,047 1,994 20,853 19,887 0 0 0 2017 2016 Es to nia La tvia Bo sn ia M ol do va Lu xem bo urg M ac edon ia M al ta Cy prus Al ba ni a M on te ne gr o 0 5k 10k 15k 20k Note: Where data for 2016 was not available, this is shown as blank Source: Stack Overflow Number of professional developers by country 31-40 3.2 Europe's tech workforce and developer population is booming European tech is going forward super fast. It is still maybe following the situation in Silicon Valley but I think that this is shifting. Shifting especially because there is so much talent in Europe that wants to stay or wants to come back from wherever they are. For example, we have a lot of really good engineers from Slovenia and Croatia going to work for Facebook or Google for a couple of years in the States but they would wish to come back, they would like to be back in Europe. Urska Srsen BellaBeat professional developers in Europe, compared to 4.4M in the US, according to Stack Overflow Europe's developer pool is large and growing 5.5M The State of European Tech 2017 Atomico & Slush 33 www.stateofeuropeantech.com3.2 Europe's tech workforce and developer population is booming Number of professional developers by country Germany has overtaken the UK as the largest country for professional developers in Europe It is unsurprising that the developer population of Europe is increasing: software is eating the world. Developers are needed in every type of business, from AI to insurance. And as demand for talent continuous to outstrip supply, we are seeing a greater drive from both the public and private sector to enable more people to enter or extend their career in technology. Junior developers are now more likely to have been exposed to coding within their formal education, and we're seeing a surge in demand for non-formal education amongst the wider developer population. Sean Bave Stack Overflow Source: Stack Overflow The State of European Tech 2017 Atomico & Slush 34 www.stateofeuropeantech.com3.2 Europe's tech workforce and developer population is booming Top 20 cities by number of professional developers London is the top European hub for professional developers, followed by Paris, Moscow, Madrid and Berlin France has incredible engineering talent and a unique set of values and aesthetics making its talent and environment uniquely attractive in an international context. Still, there are challenges in hiring and firing, financing, and other ways startups fit into the overall business ecosystem that need to be fixed before can the current startup excitement be a trend and not a fad. Ian Rogers LVMH The State of European Tech 2017 Atomico & Slush 35 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 24/241 TitleNo: 3.1 GroupName: Default GroupId: 524 ChartId: 168 ArticleId: 48 ChapterId: 11 We also highlighted how large global tech companies are expanding their presence in Europe through large - and fast-growing - engineering centres to tap into the local talent pools. This is having an inflationary effect on salary levels Median software engineer salary ($ per year) in selection European cities Median salary per year ($) 59,700 54,800 50,600 40,800 37,300 32,000 24,900 15,000 Median software engineer salary Berlin London Paris Barcelona Milan Lisbon Warsaw Bucharest 0 10k 20k 30k 40k 50k 60k Note: Data captured from Glassdoor in November 2017 Source: Glassdoor Acquisitions of European deep tech companies by US tech giants since December 2016 Median software engineer salary ($ per year) in selection European cities Source: Dealroom.co The presence of tech giants in Europe is changing the dynamics of the region's talent pool 3.3 In last year's report, we highlighted 53 acquisitions made since 2011 by the top 5 largest US tech companies. Since then, they've made 10 further acquisitions in Europe We also highlighted how large global tech companies are expanding their presence in Europe through large - and fast- growing - engineering centres to tap into the local talent pools. This is having an inflationary effect on salary levels The State of European Tech 2017 Atomico & Slush 36 www.stateofeuropeantech.comThere's a lot more competition for talent both from established tech giants and new companies starting up across Europe. European startups need to treat finding, growing and keeping talent just like they would customer acquisition or product development: have it as a key metric on the management dashboard and see it not just headcount but pipeline, attrition, development programmes and succession planning. It's up to leaders to ensure their teams are diverse and there are enough highly capable managers to keep them engaged. Digital talent, particularly the top people, has an ever growing number of options in Europe and choose where and who they want to work for. If founders do not prioritise this from the outset, talent will go elsewhere. Dan Hynes Atomico higher average salaries are offered by Facebook ($87k) or Google ($83k) to software engineers compared to the market average in London ($55K), according to Glassdoor The expansion of global tech giants in European tech hubs is forcing local entrepreneurs to up their game in how they attract and retain talent 1.5x 3.3 European tech continues to diversify geographically, driving cross-border investment activity Photo: Samuli Pentti The State of European Tech 2017 Atomico & Slush 37 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 TitleNo: 3.1 GroupName: Europe GroupId: 584 ChartId: 185 ArticleId: 48 ChapterId: 11 The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring challenge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. In which one area does your company have the most difficulty recruiting talent? % of founder respondents46 14 9 9 7 7 5 2 Europe So ftw ar e en gin ee rin gSa les /B us ine ss de ve lop m en tDa ta sc ien ce Ce ntra l Fu nc ti i on s (O ps , HR , L egal, F ina nc e, et c) De sig ne rs (U I/U X) Ma rk et ing Pr od uc t Cy be rs ec ur ity 0 20 40 Note: Based on survey responses from Founders only Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 TitleNo: 3.1 GroupName: France & Benelux GroupId: 587 ChartId: 185 ArticleId: 48 ChapterId: 11 The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring challenge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. In which one area does your company have the most difficulty recruiting talent? % of founder respondents53 13 10 12 5 3 3 3 France & Benelux So ftw ar e en gin eerin gDa ta sc ien ceDesigners (U I/U X)Ma rk et ingPr oduc t Cy be rsec ur ity 0 20 40 Sa les/B usine ss de ve lopm en t Ce nt ra l Fu nc ti i on s (O ps, HR, Legal, F ina nc e, et c) Note: Based on survey responses from Founders only Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 TitleNo: 3.1 GroupName: UK & Ireland GroupId: 586 ChartId: 185 ArticleId: 48 ChapterId: 11 The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring challenge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. In which one area does your company have the most difficulty recruiting talent? % of founder respondents46 10 10 8 11 6 8 1 UK & Ireland So ftw ar e en gin ee rin gDa ta sc ien ce De sig ne rs (U I/U X) Ma rk et ing Pr od uc t Cy be rsec ur ity 0 20 40 Sa les /B us ine ss de ve lop m en t Ce nt ra l Fu nc ti i on s (O ps , HR, L eg al, F ina nc e, et c) Note: Based on survey responses from Founders only Source: The State of European Tech Survey 2017 In which one area does your company have the most difficulty recruitng talent? The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring challenge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. 3.3 European tech continues to diversify geographically, driving cross-border investment activity UK & Ireland Europe France & Benelux The State of European Tech 2017 Atomico & Slush 38 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 31/241 TitleNo: 3.1 GroupName: Central & Eastern Europe GroupId: 591 ChartId: 185 ArticleId: 48 ChapterId: 11 The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring challenge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. In which one area does your company have the most difficulty recruiting talent? % of founder respondents41 19 4 13 7 7 4 5 Central & Eastern Europe So ftw ar e en gin ee rin g Da ta sc ien ce De sig ne rs (U I/U X) Ma rk et ing Pr od uc t Cy be rsec ur ity 0 10 20 30 40 Sa les /B us ine ss de ve lop m en t Ce nt ra l Fu nc ti i on s (O ps , HR , L eg al, F ina nc e, et c) Note: Based on survey responses from Founders only Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 30/241 TitleNo: 3.1 GroupName: Baltics GroupId: 590 ChartId: 185 ArticleId: 48 ChapterId: 11 The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring challenge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. In which one area does your company have the most difficulty recruiting talent? % of founder respondents37 27 8 6 8 10 3 2 Baltics Softwar e en gin ee rin g Data sc ien ce De sig ne rs (U I/U X) Mark eting Pr od uc tCy be rs ec ur ity 0 10 20 30 40 Sales /Bus ine ss de ve lop men t Ce nt ral Fu nc tiion s (O ps ,HR , L eg al, F inanc e, et c)Note: Based on survey responses from Founders only Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 29/241 TitleNo: 3.1 GroupName: Nordics GroupId: 589 ChartId: 185 ArticleId: 48 ChapterId: 11 The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring challenge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. In which one area does your company have the most difficulty recruiting talent? % of founder respondents46 14 10 9 7 8 5 2 Nordics So ftw are en gin eerin g Da ta scien ceDesigners (U I/U X)Ma rket ingProduct Cy be rs ec ur ity 0 20 40 Sa les /B us iness developm en t Cent ra l Fu nc ti i on s (O ps , HR, Legal, Fina nc e, et c) Note: Based on survey responses from Founders only Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 28/241 TitleNo: 3.1 GroupName: Southern Europe GroupId: 588 ChartId: 185 ArticleId: 48 ChapterId: 11 The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring challenge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. In which one area does your company have the most difficulty recruiting talent? % of founder respondents48 14 8 11 4 8 5 1 Southern Europe So ftw are en gin eerin gData scien ceDesigners (U I/U X)MarketingProductCybers ecurity0 20 40 Note: Based on survey responses from Founders only Source: The State of European Tech Survey 2017 Sales /Bus iness developm en t Cent ral Fu nc ti i on s (O ps , HR, Legal, Financ e, et c) 22/11/2017 The State of European Tech 2017 TitleNo: 3.1 GroupName: DACH GroupId: 592 ChartId: 185 ArticleId: 48 ChapterId: 11 The huge gap between software engineer salaries will see founders adopt different strategies to attract and retain talent, including setting up satellite offices to tap engineering pools in additional cities to their HQ. Unsurprisingly, founders report that finding software engineering talent is their biggest hiring chal enge. It's also noteworthy that the rise of AI is driving an increasing battle for data science talent. In which one area does your company have the most difficulty recruiting talent? % of founder respondents47 8 15 6 3 7 7 6 DACH So ftw ar e en gin eerin g Da ta sc ien ceDe sig ne rs (U I/U X) Ma rk et ing Pr od uc t Cy bers ec ur ity 0 20 40 Sa les /B us ine ss de ve lop m en t Ce nt ra l Fu nc ti i on s (O ps , HR, L eg al, F ina nc e, et c) Note: Based on survey responses from Founders only Source: The State of European Tech Survey 2017 In which one area does your company have the most difficulty recruiting talent? 3.3 European tech continues to diversify geographically, driving cross-border investment activity Southern Europe Baltics DACH Nordics Central & Eastern Europe Source: The State of European Tech Survey 2017 There's never been a better time to be a European angel investor. We're now witnessing a whole new generation of companies being born from alumni of previous European scale-ups and other tech giants based in the region. With the advantage of having been through the pain, failures and successes of building a company before, Europe has never had such an exciting crop of early-stage startups Neil Murray The Nordic Web The State of European Tech 2017 Atomico & Slush 39 www.stateofeuropeantech.comNumber of European companies founded by alumni of major tech companies But while the presence of big tech companies forces founders to up their game on the talent side, it's clear that the presence of these tech giants has a hugely positive effect. Their alumni are prolific at founding companies in the region. 3.3 European tech continues to diversify geographically, driving cross-border investment activity 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 33/241 TitleNo: 3.1 GroupName: Alumni of selected US tech companies GroupId: 593 ChartId: 186 ArticleId: 48 ChapterId: 11 But while the presence of big tech companies forces founders to up their game on the talent side, it's clear that the presence of these tech giants has a hugely positive effect. Their alumni are prolific at founding companies in the region. Number of European companies founded by alumni of major tech companies Number of companies founded 183 182 40 39 34 European startups founded by alumni Microsoft Alphabet (Google) Apple Amazon Facebook 0 100 200 25 50 75 125 150 175 Note: Based on an analysis of founders of European startups that have previously worked at the named companies. Since the underlying dataset is not comprehensive this is intended to provide a representative view of the relative importance of the alumni networks Source: Atomico research based on Crunchbase data 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 34/241 TitleNo: 3.1 GroupName: Alumni of selected European tech companies GroupId: 758 ChartId: 186 ArticleId: 48 ChapterId: 11 But while the presence of big tech companies forces founders to up their game on the talent side, it's clea that the pr sence of these tech giants has a hugely positive effect. Their alumni are prolific at founding companies in the region. Number of European companies founded by alumni of major tech companies Number of companies founded 87 85 53 52 29 European startups founded by alumni Rocket Internet Nokia Skype SAP Ericsson 0 10 20 30 40 50 60 70 80 90 Note: Based on an analysis of founders of European startups that have previously worked at the named companies. Since the underlying dataset is not comprehensive this is intended to provide a representative view of the relative importance of the alumni networks Source: Atomico research based on Crunchbase data 18/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 32/241 TitleNo: 3.1 GroupName: Alumni of selected European tech companies GroupId: 758 ChartId: 186 ArticleId: 48 ChapterId: 11 But while the presence of big tech companies forces founders to up their game on the talent side, it's clear that the presence of these tech giants has a hugely positive effect. Their alumni are prolific at founding companies in the region. Number of European companies founded by alumni of major tech companies Number of companies founded 87 85 53 52 29 European startups founded by alumni Rocket Internet Nokia Skype SAP Ericsson 0 10 20 30 40 50 60 70 80 90 Note: Since the underlying dataset is not comprehensive this is intended to be a representative view of the relative importance of the alumni networks of the respective companies Source: Atomico research Alumni of selected US tech companies Alumni of selected European tech companies 2328 2328 5493 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 40 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 TitleNo: 3.4 GroupName: Default GroupId: 179 ChartId: 54 ArticleId: 50 ChapterId: 11 Germany, France and the Netherlands are the main challengers to the UK in terms of destinations of choice for talent moving into Europe's tech industry from outside the region Top 10 European destinations for non-European movers into European tech industry % of non-European movers 29.8 13.6 12.1 7.7 5.8 5.4 4 2.3 2 2 2017 United Kingdom Germany France Netherlands Spain Ireland Sweden Switzerland Poland Belgium 0 5 10 15 20 25 30 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn Top 10 European dstiations for non-European movers into European tech indusry Germany, France and the Netherlands are the main challengers to the UK in terms of destinations of choice for talent moving into Europe's tech industry from outside the region 22/11/2017 The State of European Tech 2017 TitleNo: 3.4 GroupName: Default GroupId: 177 ChartId: 53 ArticleId: 50 ChapterId: 11 The UK is the #1 destination for tech talent moving into - and within - Europe, but faces strong competition from other countries to attract talent Top 10 European destinations for all international movers into European tech % of all international movers 21.5 13.8 9.1 7.4 7.3 6.1 4.1 3.9 3.3 2.5 2017 United Kingdom Germany France Netherlands Spain Ireland Switzerland Poland Sweden Czech Republic 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn 22/11/2017 The State of European Tech 2017 TitleNo: 3.4 GroupName: Default GroupId: 884 ChartId: 246 ArticleId: 50 ChapterId: 11 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 European destination for all international movers into European tech in 2016 % of all international movers 24.4 12.4 8.6 6.7 6.1 6 3.7 3.6 3 2.4 2016 United Kingdom Germany France Spain Netherlands Ireland Switzerland Poland Sweden Italy 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 25 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn 22/11/2017 The State of European Tech 2017 TitleNo: 3.4 GroupName: Default GroupId: 880 ChartId: 248 ArticleId: 50 ChapterId: 11 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 European destinations for non-European movers into European tech industry in 2016 % of non-European movers 32.6 11.7 10.7 6.2 5.5 5 3.5 2.3 2 1.8 2016 United Kingdom Germany France Netherlands Spain Ireland Sweden Switzerland Italy Poland 0 5 10 15 20 25 30 35 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Top 10 European destinations for all international movers into European tech Top 10 European destination for all international movers into European tech in 2016 Top 10 European destinations for non-European movers into European tech industry in 2016 The UK is Europe's dominant destination for migratory tech talent 3.4 The UK is the #1 destination for tech talent moving into - and within - Europe, but faces strong competition from other countries to attract talent 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 For additional context, it is w rth analysing a similar dataset covering tech talent movement in 2016 provided by LinkedIn for last year's State of European Tech Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn The State of European Tech 2017 Atomico & Slush 41 www.stateofeuropeantech.comNote: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 49/253 TitleNo: 3.4 GroupName: Default GroupId: 181 ChartId: 55 ArticleId: 50 ChapterId: 11 The UK and Germany are the top two countries leading the race to attract talent moving within Europe Top 10 European destinations for intra-European movers within European tech industry % of intra-European movers 14.9 13.8 8.9 7 6.9 6.9 5.7 5.3 3.3 2.9 2017 United Kingdom Germany Spain Netherlands France Ireland Switzerland Poland Czech Republic Sweden 0 2 4 6 8 10 12 14 16 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 50/253 TitleNo: 3.4 GroupName: Default GroupId: 882 ChartId: 247 ArticleId: 50 ChapterId: 11 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 European destinations for intra-European movers within European tech industry in 2016 % of intra-European movers 18 12.8 7.6 6.8 6.8 6 4.9 4.9 2.8 2.6 2016 United Kingdom Germany Spain Ireland France Netherlands Poland Switzerland Italy Sweden 0 10 2.5 5 7.5 12.5 15 17.5 Note: All interp etations of the LinkedIn da a ar made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Top 10 European destinations for intra-European movers within European tech industry Top 10 European destinations for intra-European movers within European tech industry in 2016 The UK and Germany are the top two countries leading the race to attract talent moving within Europe For additional context, it is worth analysing a similar dataset covering tech talent movement in 216 provided by LinkedIn f r last year's State of European Tech 3.4 The UK's position as Europe's dominant destination for tech talent is being eroded Top 5 European city destinations for all migrants into and within European tech industry Source: LinkedIn London is the top city destination both for tech talent moving within Europe, as well as for those entering the tech industry from outside the region The State of European Tech 2017 Atomico & Slush 42 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 52/253 TitleNo: 3.5 GroupName: Default GroupId: 183 ChartId: 56 ArticleId: 51 ChapterId: 11 The UK is the source of the largest share of outbound tech talent leaving to move to another country within Europe Top 10 European source countries of intra-European movers within European tech % of tech movers 17.5 10.1 8.1 6.4 5.9 5.8 4.8 3.7 3.5 2.8 2017 United Kingdom France Germany Spain Italy Ireland Netherlands Ukraine Poland Switzerland 0 10 2.5 5 7.5 12.5 15 17.5 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 53/253 TitleNo: 3.5 GroupName: Default GroupId: 888 ChartId: 249 ArticleId: 51 ChapterId: 11 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 European source countries of intra-European movers within European tech in 2016 % of intra-European movers 14.5 10.4 8 7 6.1 4.9 4.4 4.3 3.7 3.1 2016 United Kingdom France Germany Spain Italy Netherlands Ireland Ukraine Russian Federation Poland 0 2 4 6 8 10 12 14 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Top 10 European source countries of intra- Eur pean movers withi European tech Top 10 European source countries of intra- Euroan movers within European tech in 2016 The UK is the number one source of outbound tech talent moving within Europe's tech industry 3.5 The UK is the source of the largest share of outbound tech talent leaving to move to another country within Europe 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 A lot of smart people I know in tech are moving from London to Berlin after Brexit - they are really open to trying to go elsewhere. Jutta Steiner Parity Technologies Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their rimary employment btw en 2016 and 2015 Source: LinkedIn The State of European Tech 2017 Atomico & Slush 43 www.stateofeuropeantech.com3.5 More people are leaving the UK's tech industry than that of any other European country 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 54/253 TitleNo: 3.5 GroupName: Default GroupId: 191 ChartId: 59 ArticleId: 51 ChapterId: 11 The UK is also significantly larger than other countries as a source of outbound talent leaving Europe's tech industry for a country outside of the region Top 10 European source countries of European movers out of European tech % of tech movers 38 12.4 7.5 5.1 4.2 3.7 3.2 2.7 2.4 2.1 2017 United Kingdom France Germany Ireland Netherlands Spain Ukraine Sweden Switzerland Turkey 0 5 10 15 20 25 30 35 40 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 55/253 TitleNo: 3.5 GroupName: Default GroupId: 890 ChartId: 250 ArticleId: 51 ChapterId: 11 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 European source countries of European movers out of European tech in 2016 % of tech movers 34.3 11.4 7.3 4.5 4.2 4.1 3.5 2.7 2.6 2.4 2016 United Kingdom France Germany Spain Netherlands Ireland Russian Federation Ukraine Sweden Switzerland 0 5 10 15 20 25 30 35 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Top 10 European source countries of European movers ouof European tech Top 10 European source countries of intra- European movers within European tech in 2016 The UK is also significantly larger than other countries as a source of outbound talent leaving Europe's tech industry for a country outside of the region 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 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their rimary employment btw en 2017 and 2016 Source: LinkedIn Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their rimary employment between 2016 and 2015 Source: LinkedIn Photo: Jussi Hellsten The State of European Tech 2017 Atomico & Slush 44 www.stateofeuropeantech.comCharacteristics of European founders Portrait of a European founder 3.6 European founders come from a variety of backgrounds. They are, however, overwhelmingly male 18/11/2017 The State of European Tech 2017 TitleNo: 3.6 GroupName: Gender GroupId: 681 ChartId: 223 ArticleId: 86 ChapterId: 11 European founders come from a variety of backgrounds. They are, however, overwhelmingly male Characteristics of European founders % of founders95 5 % of founders Male Female 0 25 50 75 100 Note: Based on an analysis of the founders of 2,300+ European companies that have raised >1M. Data collected in October and November 2017 Source: Dealroom.co 18/11/2017 The State of European Tech 2017 TitleNo: 3.6 GroupName: First-time versus repeat founders GroupId: 759 ChartId: 223 ArticleId: 86 ChapterId: 11 European founders come from a variety of backgrounds. They are, however, overwhelmingly male Characteristics of European founders % of founders53 47 % of founders First-time founders Repeat founders 0 10 20 30 40 50 Note: Based on an analysis of the founders of 2,300+ European companies that have raised >1M. Data collected in October and November 2017 Source: Dealroom.co 18/11/2017 The State of European Tech 2017 TitleNo: 3.6 GroupName: Educational background GroupId: 684 ChartId: 223 ArticleId: 86 ChapterId: 11 European founders come from a variety of backgrounds. They are, however, overwhelmingly male Characteristics of European founders % of founders27 13 60 % of founders Technology (computer science, etc) Other technical disciplines (maths, physics, etc) Non-technical disciplines (arts, business) 0 20 40 60 Note: Based on an analysis of the founders of 2,300+ European companies that have raised >1M. Data collected in October and November 2017 Source: Dealroom.co 18/11/2017 The State of European Tech 2017 TitleNo: 3.6 GroupName: Sole founders versus founding teams GroupId: 685 ChartId: 223 ArticleId: 86 ChapterId: 11 European founders come from a variety of backgrounds. They are, however, overwhelmingly male Characteristics of European founders % of founders42 58 % of founders Sole founder Part of founding team of 2+ 0 20 40 60 10 30 50 Gender First-time versus repeat founders Educational background Sole founders versus founding teams Note: Based on an analysis of the founders of 2,300+ European companies that have raised >1M. Data collected in October and November 2017 Source: Dealroom.co 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 6335 The State of European Tech 2017 Atomico & Slush 45 www.stateofeuropeantech.com3.6 Portrait of a European founder Top 10 institutions by number of alumni that have founded companies Top 10 companies by number of alumni that have founded companies Note: Based on an analysis of the founders of 2,300+ European companies that have raised >1M. Data collected in October and November 2017 Source: Dealroom.co Note: Based on an analysis of the founders of 2,300+ European companies that have raised >1M. Data collected in October and November 2017 Source: Dealroom.co Europe's top technical and business schools are key sources of entrepreneurial talent Consulting firms and big tech companies are key sources of European founders Photo: Sami Heiskanen 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 04 Over the last couple of years, this report has identified a growing number of tech hubs Some of them have emerged in the continent's biggest cities, which is to be expected, whilst others have grown in smaller towns. Are our tech communities growing broader or getting deeper? Community The State of European Tech 2017 Atomico & Slush 47 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 56/241 TitleNo: 4.1 GroupName: Default GroupId: 863 ChartId: 67 ArticleId: 52 ChapterId: 12 There are hundreds of tech-related events happening daily across Europe's tech ecosystem Number of tech Meetup events per year Number of events per year8,236 16,256 27,173 36,227 51,132 62,884 Meetup events hosted 2012 2013 2014 2015 2016 2017 0 20k 40k 60k Note: 2017 annualised based on data to end of September 2017 Source: Meetup umber of tech-related Meetup events per year and per day in Europe Europe's growing and highly-engaged tech communities 4.1 There are hundreds of tech- related events happening daily across Europe's tech ecosystem tech-related events take place daily across Europe on Meetup's platform Europe's tech community enjoys access to an incredible range of events to network and share knowledge and experiences 172 A small group of successful entrepreneurs can have tremendous impact on building a tech community. It only requires four to five successful entrepreneurs setting up a variety of basic building blocks that become powerful conduits for knowledge transfer through sharing deals, comparing notes and explaining what is globally best- in-class. This includes seed funds, accelerators, creating shared working and meeting spaces. These become talent magnets and inherently form healthy competition between the new generation of entrepreneurs building even more impactful products and businesses. Building a vibrant tech ecosystem is the modern alchemy for any economy serious about becoming a global leader. Mattias Ljungman Atomico The State of European Tech 2017 Atomico & Slush 48 www.stateofeuropeantech.com23/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 64/254 TitleNo: 4.1 GroupName: Default GroupId: 239 ChartId: 70 ArticleId: 52 ChapterId: 12 There are sizeable communities coming together at tech events throughout Europe to swap ideas and experiences Number of active members of tech-related Meetup groups by country Number of active members195,100 116,967 92,475 70,151 36,651 23,368 21,256 17,523 13,871 12,581 10,326 49,929 Active members in tech Meetup groups Un ited Kingdo m Germ an y Fran ceSpai n Neth erla nds Po la ndSw eden Sw itz erla ndTu rk ey Irela ndIta ly Belg iu m No rw ay Ru ss ia Hu ng ary Denm ark Ro m an ia Uk ra in eAu st ria Po rt ug al Re st o f E ur op e 0 50k 100k 150k 200k Source: Meetup Number of active members of tech-related Meetup groups by country There are sizeable communities coming together at tech events throughout Europe to swap ideas and experiences 4.1 Europe's growing and highly-engaged tech communities 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 58/241 TitleNo: 4.1 GroupName: Top 10 hubs GroupId: 860 ChartId: 72 ArticleId: 52 ChapterId: 12 Europe's largest hubs for tech-related Meetups are also its most engaged Number of active members by city and average number of events attended per year per active member Number of active membersAverage number of events attended per year peractive member100,078 45,698 40,277 26,282 22,209 20,613 18,352 17,832 16,628 15,422 5.1 5.4 5.3 3.7 4.4 4.4 3.6 5.2 5.2 4.5 Active members Average Meetups attended per member per year Lo nd on Pa ris Be rli n Am st er da m M ad rid Ba rc el on a St oc kh ol m M un ic h Du bl in Is ta nb ul0 30k 60k 90k 120k 3 3.6 4.2 4.8 5.4 Note: Meetup events attended per member per year data for 2017 is annualised based on data to end of September 2017 Source: Meetup 22/11/2017 The State of European Tech 2017 TitleNo: 4.1 GroupName: Hubs 11-20 GroupId: 867 ChartId: 72 ArticleId: 52 ChapterId: 12 Europe's largest hubs for tech-related Meetups are also its most engaged Number of active members by city and average number of events attended per year per active member Number of active membersAverage number of events attended per year peractive member13,054 12,125 11,296 10,742 10,251 9,544 8,483 7,979 7,039 6,800 4.5 4.5 5 4.1 3.9 3.2 3.1 4.6 3.7 Active members Average Meetups attended per member per year W ar sa wBu da pest Ha mbu rg Os loZu ric h Copenh ag en Brus sels M os cow Vi en na M an ch es ter 0 12k 4k 8k 16k 3 3.6 4.2 4.8 5.4 Note: Meetup events attended per member per year data for 2017 is annualised based on data to end of September 2017 Source: Meetup Number of active members by city and average number of events attended per year per active member Europe's largest hubs for tech- related Meetups are also its most engaged Top 10 Hubs Hubs 11-20 Note: 2017 based on 9M to September 2017 and 2017 annualised based on RSVPs to end of September 2017 Source: Meetup The State of European Tech 2017 Atomico & Slush 49 www.stateofeuropeantech.com4.1 Europe's growing and highly-engaged tech communities We're witnessing several initiatives dedicated to strengthening the connections between local hubs, especially evident in the Nordics and CEE. Unfortunately, Western Europe isn't showing any signs of progress as Paris, London and Berlin continue competing to to be crowned "tech capital" of the continent. Without more ambitious contributions from the private sector to create more sustainable bridges between these tech hubs, we will have no choice but to continue relying on current public initiatives that show little to no sign of solving this issue. Ben Costantini Startup Sesame 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 60/241 TitleNo: 4.1 GroupName: Top 10 hubs GroupId: 229 ChartId: 66 ArticleId: 52 ChapterId: 12 Europe's largest tech communities continue to see significant increases in engagement Top 20 hubs by level of tech Meetup activity in 2017, ranked by number of Meetup attendees # of attendees334,369 162,824 148,709 80,116 66,679 65,668 60,641 50,888 49,877 41,347 267,536 98,705 111,043 37,436 219,825 64,380 85,725 40,151 27,832 19,132 20,870 20,981 2017 2016 2015 Lo nd on Be rli n Pa ris Am st er da m M nc he n Ma dr id W ar sa w Du bl in Ba rc elo na Ha m burg 0 100k 200k 300k Note: 2017 annualised based on RSVPs to end of September 2017 Source: Meetup 56,739 25,595 45,371 49,643 32,199 35,454 25,604 16,55 22/11/2017 The State of European Tech 2017 TitleNo: 4.1 GroupName: Hubs 11-20 GroupId: 717 ChartId: 66 ArticleId: 52 ChapterId: 12 Europe's largest tech communities continue to see significant increases in engagement Top 20 hubs by level of tech Meetup activity in 2017, ranked by number of Meetup attendees # of attendees40,633 38,615 36,868 33,323 29,479 22,957 21,943 20,972 20,587 19,497 22,632 30,347 31,763 21,448 18,104 17,849 12,648 15,401 11,784 8,093 24,268 23,326 15,865 11,832 13,374 7,222 9,573 14,123 2017 2016 2015 Ist an bu l Bu da pest St oc kh ol mOs loZ ric h Krak w Ma nc hest erCopenh ag en Vi en na Br usse ls0 10k 20k 30k 40k Note: 2017 annualised based on RSVPs to end of September 2017 Source: Meetup 8,995 16,482 'Top 20 hubs by level f tech-r lated Metup activityv Europe's largest tech communities continue to see significant increases in engagement Top 10 Hubs Hubs 11-20 The State of European Tech 2017 Atomico & Slush 50 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 62/241 TitleNo: 4.2 GroupName: Default GroupId: 237 ChartId: 69 ArticleId: 53 ChapterId: 12 The density of concentration in primary tech hubs varies significantly between countries, especially as new hubs spring up and prosper with a country Share of active members of tech Meetups in a given city % of nationwide active members in given city87.4 78.2 72 71.9 71.4 68.2 63.6 55.4 51.3 49.4 48.4 45.2 43.9 35.6 34.4 31.7 29.4 15.2 9.7 3.5 % of nationwide active members Bu da pest Du bl in Copenh ag en Os lo Is ta nbul Vi en na St oc kh ol m M os co w Lo ndon Pa ris Brus sels Amst erda m Zu ric h W arsa w Berli n M adridBa rc el on a M un ic h Ha m bu rg M an ch es te r 0 25 50 75 Source: Meetup Share of active members of tech-related Meetup groups in a given country that are located in selected city As tech eats Europe, every city is becoming a tech city 4.2 The density of concentration in primary tech hubs varies significantly between countries, especially as new hubs spring up and prosper within a country of Germany's tech community is based in Berlin of Spain's tech community is based in Madrid of Hungary's tech community, by contrast, is based in Budapest Germany and Spain have the least- centralised tech ecosystems in Europe 34% 32% 87% No one European city has a monopoly on creating tech leaders, either; talent and ambition can come from anywhere, and Europe's entrepreneurs now have increased access to capital, regardless of geography. Luciana Lixandru Accel The State of European Tech 2017 Atomico & Slush 51 www.stateofeuropeantech.com4.2 As tech eats Europe, every city is becoming a tech city 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 63/241 TitleNo: 4.2 GroupName: Default GroupId: 247 ChartId: 74 ArticleId: 53 ChapterId: 12 There are signs that every city is becoming - or will eventually become - a tech city. There are already 160+ hubs across Europe with significant tech communities Number of European cities with >50 tech Meetup events per year Number of cities with >50 Meetup events per year30 54 83 114 143 167 Number of cities with >50 events per year 2012 2013 2014 2015 2016 2017 0 50 100 150 Note: 2017 based on data to 30 September 2017 Source: Meetup 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 64/241 TitleNo: 4.2 GroupName: Default GroupId: 241 ChartId: 71 ArticleId: 53 ChapterId: 12 Looking at what's happening within individual countries, it's clear that Europe is witnessing the spread of tech communities within a growing number of cities Number of cities with >500 active members of tech-related Meetup groups by country Number of cities in given country with >500active members24 21 13 13 13 8 7 5 4 4 4 4 4 4 3 3 3 3 2 2 2 2 2 Number of distinct hubs with >500 active members of tech-related Meetup groups Un ite d Kingdo m Ge rm an y Sp ai n Fr an ce Ne th er la nd s Po la nd Sw itz er la nd Be lg iu m Ita ly Sw ed en Ro m an ia Tu rk ey Uk ra in e No rw ay Ru ss ia Fi nl an d Ire la nd Au st ria De nm ar k Po rt ug al Gr ee ce Se rb ia Czech Re public0 10 20 5 15 25 Source: Meetup Number of European cities with >50 tech-related Meetup events per year Nuber of distinct hubs with >500 active members of tech-related Meetup groups by country There are signs that every city is becoming - or will eventually become - a tech city. There are already 160+ hubs across Europe with significant tech communities Looking at what's happening within individual countries, it's clear that Europe is witnessing the spread of tech communities within a growing number of cities Photo: Jussi Hellsten The State of European Tech 2017 Atomico & Slush 52 www.stateofeuropeantech.com4.2 As tech eats Europe, every city is becoming a tech city It's been magnificent to see the accelerating pace of new tech hubs emerging all across Europe. As such a dispersed continent with so many countries and languages, Europe can find its unique strength in connecting these communities. We just need to keep on fuelling the fire and working together. Marianne Vikkula Slush 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 65/241 TitleNo: 4.2 GroupName: Default GroupId: 245 ChartId: 73 ArticleId: 53 ChapterId: 12 In fact, there are now more tech Meetups happening outside Europe's Top 20 hubs than inside Distribution of tech-related Meetup events in- and outside of Top 20 hubs in Europe % of tech-related Meetup events64 65 59 54 52 49 36 35 41 46 48 51 % in Top 20 cities % outside Top 20 cities 2012 2013 2014 2015 2016 2017 0 25 50 75 100 Note: 2017 based on Meetup events to end of September 2017 Source: Meetup Distribution of tech-related Meetup events in and outside of Top 20 hubs in Europe In fact, there are now more tech-related events happening outside Europe's Top 20 hubs than inside 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 53 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 66/241 TitleNo: 4.3 GroupName: Default GroupId: 377 ChartId: 121 ArticleId: 54 ChapterId: 12 21% of European founders moved to another country to start-up, with highest founder mobility seen in Central & Eastern Europe % of founders that moved to another country to startup by region of origin % of founders 21 29 17 15 12 9 9 % of founders All Central & Eastern Europe Greece, Italy, Portugal & Spain UK & Ireland Nordics & Baltics Benelux France & DACH 0 5 10 15 20 25 30 Source: Startup Heatmap Europe 2017, European Startup Initiative % of founders that moved to another country to start-up by region of origin Despite burgeoning local ecosystems, founders continue to move between countries to start-up 4.3 21% of European founders moved to another country to start-up, with highest founder mobility seen in Central & Eastern Europe Top 10 European hubs selected by European founders as their preferred location to start again Despite concerns about Brexit, London is the #1 most preferred location to start-up by European founders, followed by Berlin and Barcelona Source: Startup Heatmap Europe 2017, European Startup Initiative The State of European Tech 2017 Atomico & Slush 54 www.stateofeuropeantech.com4.3 Despite burgeoning local ecosystems, founders continue to move between countries to start-up When I look at the other examples based in Estonia, such as Jobbatical, Funderbeam, TransferWise and Starship Technologies, they are all building relationships and collaborating outside of Estonia. It is also a good moment since we live during an era of digital disruption and we need to adopt a collaborative approach to stay ahead of the game. European founders no longer think locally. They think continentally, and have grown their ambition to become global players. Europe houses top technical and business schools and entrepreneurship is now a top of mind choice. Kristel Kruustk Testlio Jos del Barrio Samaipata Ventures 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 68/241 TitleNo: 4.3 GroupName: Default GroupId: 379 ChartId: 122 ArticleId: 54 ChapterId: 12 Access to talent is by far the most important factor influencing founder location choices Factors that influence location choice of European founders % of founders indicating 'very important' or 'notimportant'77 62 58 55 52 44 5 9 14 10 15 23 Very important Not important Access to talent Ease & cost of doing business Access to capital Quality of ecosystem Existing Personal Network Proximity to target market 0 20 40 60 80 Source: Startup Heatmap Europe 2017, European Startup Initiative actors hat ifluence location choice of Euopean founders Access to talent is by far the most important factor influencing founder location choices The migratory flow of talent is not evenly distributed; Southern, Central and Eastern Europe continue to see a loss of talent to other regions 0 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 05 Some people like to look at pure financials Are the number of investments in tech companies up or are they down? Is the total amount of money invested in European tech companies still growing? Can this really be another record year for European tech? Is there anything else to be done to attract more capital from LPs? Capital Flows The State of European Tech 2017 Atomico & Slush 56 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 70/241 TitleNo: 5.1 GroupName: Default GroupId: 702 ChartId: 231 ArticleId: 56 ChapterId: 13 Total capital invested into European tech in 2017 will comfortably exceed the record-breaking levels of 2016 Capital invested ($B) and # of deals, annual, 2012 to 2017 Capital invested ($B)# of deals4.1 4.6 8.6 13.2 14.4 19.1 1,276 1,838 2,247 2,837 3,720 3,449 Capital invested ($B) # of deals 2012 2013 2014 2015 2016 2017 0 5 10 15 20 25 600 1200 1800 2400 3000 3600 Note: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.1 GroupName: Default GroupId: 839 ChartId: 242 ArticleId: 56 ChapterId: 13 Europe has seen more than $3B invested per quarter for 11 consecutive quarters Capital invested ($B) and # of deals per quarter Capital invested ($B)# of deals0.8 1.2 1 1.1 0.9 1.2 1 1.5 1.7 2.3 2.6 2.1 3.3 3.4 3.5 3 4.2 3.5 3.2 3.5 3.9 5.4 4.9 293 499 567 688 682 831 886 1,014 793 887 Capital invested ($B) # of deals Q1 2 01 2 Q2 2 01 2 Q3 2 01 2 Q4 2 01 2 Q1 2 01 3 Q2 2 01 3 Q3 2 01 3 Q4 2 01 3 Q1 2 01 4Q2 2 01 4Q3 2 01 4Q4 2 01 4Q1 2 01 5 Q2 2 01 5 Q3 2 01 5 Q4 2 01 5 Q1 2 01 6 Q2 2 01 6 Q3 2 01 6 Q4 2 01 6 Q1 2 01 7 Q2 2 01 7 Q3 201 7 0 6 1.5 3 4.5 1000 250 500 750 1250 Source: Dealroom.co Capital invested ($B) and # of deals, annual, 2012 to 2017 Capital invested ($B) and # of deals per quarter Another record year for European tech investment 5.1 Total capital invested into European tech in 2017 will comfortably exceed the record- breaking levels of 2016 Europe has seen more than $3B invested per quarter for 11 consecutive quarters There's capital out there for starting and scaling companies at a level that has not been seen in Europe historically. We've observed growth in the number of funds across early and growth stage. And with a maturing ecosystem, we're seeing increased investment from US and Asia for scaling companies and a resurgence of the 'mega-round' with companies raising more than $100m. Stephen Lowery Silicon Valley Bank The State of European Tech 2017 Atomico & Slush 57 www.stateofeuropeantech.com5.1 Another record year for European tech investment 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 72/241 TitleNo: 5.1 GroupName: Round size: $0-2M GroupId: 470 ChartId: 156 ArticleId: 56 ChapterId: 13 There has been an increase in capital invested and number of deals for all round sizes, except for <$2M rounds, which declined slightly in 2017 Capital invested ($M) and # of deals by round size Capital invested ($M) / # of deals386 678 586 1,111 720 1,281 943 1,472 1,339 1,885 1,283 1,657 2012 2013 2014 2015 2016 2017 Capital invested ($M) $0-2M # of deals $0-2M 0 500 1000 1500 2000 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 76/241 TitleNo: 5.1 GroupName: Round size: $5-10M GroupId: 744 ChartId: 156 ArticleId: 56 ChapterId: 13 There has been n i cr ase in capital invested and number of deals for all round sizes, except for <$2M rounds, which declined slightly in 2017 Capital invested ($M) and # of deals by round size Capital invested ($M) / # of deals487 65 648 91 1,157 157 1,223 171 1,732 249 2,311 324 2012 2013 2014 2015 2016 2017 Capital invested ($M) $5-10M # of deals $5-10M 0 500 1000 1500 2000 2500 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 73/241 TitleNo: 5.1 GroupName: Round size: $20-50M GroupId: 746 ChartId: 156 ArticleId: 56 ChapterId: 13 There has been an increase in capital invested and number of deals for all round sizes, except for <$2M rounds, which declined slightly in 2017 Capital invested ($M) and # of deals by round size Capital invested ($M) / # of deals1,294 39 1,036 33 1,839 60 3,061 97 3,261 109 4,220 136 2012 2013 2014 2015 2016 2017 Capital invested ($M) $20-50M # of deals $20-50M 0 1k 2k 3k 4k Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 77/241 TitleNo: 5.1 GroupName: Round size: $2-5M GroupId: 743 ChartId: 156 ArticleId: 56 ChapterId: 13 There has been an increase in capital invested and number of deals for all round sizes, except for <$2M rounds, which declined slightly in 2017 Capital invested ($M) and # of deals by round size Capital invested ($M) / # of deals496 144 637 197 879 263 1,102 344 1,841 578 1,854 585 2012 2013 2014 2015 2016 2017 Capital invested ($M) $2-5M # of deals $2-5M 0 500 1000 1500 2000 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 74/241 TitleNo: 5.1 GroupName: Round size: $10-20M GroupId: 745 ChartId: 156 ArticleId: 56 ChapterId: 13 There has been an increase in capital invested and number of deals for all round sizes, except for <$2M rounds, which declined slightly in 2017 Capital invested ($M) and # of deals by round size Capital invested ($M) / # of deals831 57 68 1,039 69 1,736 123 2,075 152 2,745 196 2012 2013 2014 2015 2016 2017 Capital invested ($M) $10-20M # of deals $10-20M 0 500 1000 1500 2000 2500 3000 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 75/241 TitleNo: 5.1 GroupName: Round size: $50M+ GroupId: 747 ChartId: 156 ArticleId: 56 ChapterId: 13 There has been an increase in capital invested and number of deals for all round sizes, except for <$2M rounds, which declined slightly in 2017 Capital invested ($M) and # of deals by round size Capital invested ($M) / # of deals618 7 728 5 2,986 26 5,177 43 4,192 34 6,730 54 2012 2013 2014 2015 2016 2017 Capital invested ($M) $50M+ # of deals $50M+ 0 2k 4k 6k Source: Dealroom.co Capital invstd ($M) and # of deals by round size There has been an increase in capital invested and number of deals for all round sizes, except for <$2M rounds, which declined slightly in 2017 Round size: $0-2M Round size: $5-10M Round size: $20-50M Round size: $2-5M Round size: $10-20M Round size: $50M+ It's nothing like when I launched, when my boss said to me 'Brent, have you ever come across two people under 30 who've raised over $1million from a business plan?' and we were like 'No!'. Now we can think of hundreds of people - it's much better now, there are many more support networks and there is a monetisation system out there for entrepreneurs. Brent Hoberman Founders Factory, Founders Forum, firstminute capital decline in # of deals between $0-2M year-on-year We are seeing the first indications of a stabilisation in the # of earliest stage funding rounds, reflecting a global trend 12% The State of European Tech 2017 Atomico & Slush 58 www.stateofeuropeantech.com5.1 Another record year for European tech investment Trailing 12-month capital invested ($B) and # of deals by quarter Capital invested ($) per capita by country The long-term investment trend in Europe reflects the remarkable expansion of its technology ecosystem But there is still huge headroom. European countries still lag others such as the US and Israel in terms of capital invested per capita 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 78/241 TitleNo: 5.1 GroupName: Default GroupId: 698 ChartId: 229 ArticleId: 56 ChapterId: 13 The long-term investment trend in Europe reflects the remarkable expansion of its echnology ecosystem Trailing 12-month capital invested ($B) and # of deals by quarter Capital invested ($B)# of deals4.1 4.2 4.2 4.2 4.6 5.4 6.4 8 8.6 10.3 11.4 12.3 13.2 14.1 14.3 13.9 14.4 14.2 16.1 17.8 1,671 2,012 2,213 3,355 3,720 Capital invested ($B) # of deals Q4 2 012 Q1 2 013 Q2 2 013 Q3 2 013 Q4 2 013 Q1 2 014Q2 2 014Q3 2 014Q4 2 014Q1 2 015 Q2 2 015 Q3 2 015 Q4 2 015 Q1 2 016Q2 2 016Q3 2 016Q4 2 016Q1 2 017 Q2 2 017 Q3 2 01 7 0 20 5 10 15 2400 800 1600 3200 4000 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.1 GroupName: Default GroupId: 339 ChartId: 109 ArticleId: 56 ChapterId: 13 But there is still huge headroom. European countries still considerably lag others such as the US and Israel in terms of capital invested per capita. To pick just one example, Italy is a market with huge upside potential Capital invested ($) per capita by country Capital invested ($ per capita) 304 246 123 111 59 58 45 33 29 26 25 19 14 9 4 3 2 0 $ per capita Israel USA Sweden Ireland United Kingdom Finland France Denmark Norway Germany Netherlands Belgium Spain Austria Portugal Italy Russia Turkey 0 50 100 150 200 250 300 Note: Based on capital invested ($B) in 2016 Source: Dealroom.co The State of European Tech 2017 Atomico & Slush 59 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Default GroupId: 319 ChartId: 103 ArticleId: 55 ChapterId: 13 The UK remains the largest destination for capital invested in Europe; in addition, 10 countries have now raised >$1B since 2012 Capital invested ($B) by country Capital invested ($B) 5.4 2.5 2.1 0.9 0.8 0.4 0.2 0.3 0.3 0.3 0.1 0.1 13.3 8.9 6.9 3.5 1.8 1.5 1.7 1.4 1.1 1.1 0.7 0.1 0.5 0.2 0.4 0.3 0.5 0.3 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0 0 0.1 0 0 0.1 2017 (YTD) 2012-2016 United Kingdom Germany France Sweden Spain Netherlands Russia Switzerland Ireland Finland Denmark Belgium Austria Italy Norway Poland Iceland Turkey Estonia Luxembourg Lithuania Portugal Cyprus Croatia Romania Ukraine Greece Czech Republic Hungary Rest of Europe 0 10 20 2.5 5 7.5 12.5 15 17.5 Source: Dealroom.co 0.1 0.1 0.1 0.2 Capital invested ($B) by country A deep dive into European tech 5.2 The UK remains the largest destination for capital invested in Europe; in addition, 10 countries have now raised >$1B since 2012 The State of European Tech 2017 Atomico & Slush 60 www.stateofeuropeantech.com5.2 A deep dive into European tech 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 81/241 TitleNo: 5.2 GroupName: United Kingdom GroupId: 483 ChartId: 160 ArticleId: 55 ChapterId: 13 The UK, France and Germany dominate stories about European investment levels, but digging beneath the surface, it's the growth of capital invested into countries such as Belgium, Norway or Romania that tells another important story Capital invested ($M) by country per year Capital invested ($M) by country1,390 1,340 2,404 4,271 3,848 7,177 United Kingdom 2012 2013 2014 2015 2016 2017 0 2k 4k 6k Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 83/241 TitleNo: 5.2 GroupName: Germany GroupId: 486 ChartId: 160 ArticleId: 55 ChapterId: 13 The UK, France and Germany dominate stories about European investment levels, but digging beneath the surface, it's the growth of capital invested into countries such as Belgium, Norway or Romania that tells another important story Capital invested ($M) by country per year Capital invested ($M) by country587 772 2,129 3,273 2,154 3,315 Germany 2012 2013 2014 2015 2016 2017 0 1k 2k 3k Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 95/241 TitleNo: 5.2 GroupName: Norway GroupId: 794 ChartId: 160 ArticleId: 55 ChapterId: 13 The UK, France and Germany dominate stories about European investment levels, but digging beneath the surface, it's the growth of capital invested into countries such as Belgium, Norway or Romania that tells another important story Capital invested ($M) by country per year Capital invested ($M) by country7 25 27 90 151 145 Norway 2012 2013 2014 2015 2016 2017 0 50 100 150 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 82/241 TitleNo: 5.2 GroupName: France GroupId: 485 ChartId: 160 ArticleId: 55 ChapterId: 13 The UK, France and Germany dominate stories about European investment levels, but digging beneath the surface, it's the growth of capital invested into countries such as Belgium, Norway or Romania that tells another important story Capital invested ($M) by country per year Capital invested ($M) by country554 712 1,148 1,552 2,981 2,772 France 2012 2013 2014 2015 2016 2017 0 1k 2k 3k Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 93/241 TitleNo: 5.2 GroupName: Belgium GroupId: 796 ChartId: 160 ArticleId: 55 ChapterId: 13 The UK, France and Germany dominate stories about European investment levels, but digging beneath the surface, it's the growth of capital invested into countries such as Belgium, Norway or Romania that tells another important story Capital invested ($M) by country per year Capital invested ($M) by country38 46 68 174 221 256 Belgium 2012 2013 2014 2015 2016 2017 0 50 100 150 200 250 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 91/241 TitleNo: 5.2 GroupName: Romania GroupId: 801 ChartId: 160 ArticleId: 55 ChapterId: 13 The UK, France and Germany dominate stories about European investment levels, but digging beneath the surface, it's the growth of capital invested into countries such as Belgium, Norway or Romania that tells another important story Capital invested ($M) by country per year Capital invested ($M) by country2 2 1 12 16 53 Romania 2012 2013 2014 2015 2016 2017 0 10 20 30 40 50 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Capital invested ($M) by country per year The UK, France and Germany dominate stories about European investment levels, but digging beneath the surface it's the growth of capital invested into countries such as Belgium, Norway or Romania that tells another important story United Kingdom Germany Nor y France Belgium Romania 45,0232328 2328 5493 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 61 www.stateofeuropeantech.com5.2 A deep dive into European tech 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 118/241 TitleNo: 5.2 GroupName: United Kingdom GroupId: 835 ChartId: 161 ArticleId: 55 ChapterId: 13 France has overtaken the UK for the number of deals closed per year for the first time Number of deals by country per year 423 587 782 787 762 728 United Kingdom 2012 2013 2014 2015 2016 2017 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 103/241 TitleNo: 5.2 GroupName: Germany GroupId: 824 ChartId: 161 ArticleId: 55 ChapterId: 13 France has overtaken the UK for the number of deals closed per year for the first time Number of deals by country per year 191 268 320 395 426 386 Germany 2012 2013 2014 2015 2016 2017 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Norway GroupId: 819 ChartId: 161 ArticleId: 55 ChapterId: 13 France has overtaken the UK for the number of deals closed per year for the first time Number of deals by country per year 2 13 12 24 66 68 Norway 2012 2013 2014 2015 2016 2017 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 101/241 TitleNo: 5.2 GroupName: France GroupId: 488 ChartId: 161 ArticleId: 55 ChapterId: 13 France has overtaken the UK for the number of deals closed per year for the first time Number of deals by country per year 126 172 213 286 627 753 France 2012 2013 2014 2015 2016 2017 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 116/241 TitleNo: 5.2 GroupName: Belgium GroupId: 834 ChartId: 161 ArticleId: 55 ChapterId: 13 France has overtaken the UK for the number of deals closed per year for the first time Number of deals by country per year 18 16 34 60 75 48 Belgium 2012 2013 2014 2015 2016 2017 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Romania GroupId: 836 ChartId: 161 ArticleId: 55 ChapterId: 13 France has overtaken the UK for the number of deals closed per year for the first time Number of deals by country per year 3 5 6 13 20 26 Romania 2012 2013 2014 2015 2016 2017 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Number of deals by country per year France is challenging the UK for the most number of deals closed per year United Kingdom Germany Norway France Belgium Romania 3453 538 2328 2328 2328 2328 1578 6335 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 62 www.stateofeuropeantech.com5.2 A deep dive into European tech Top 20 European hubs by capital invested ($M) The diversification of European tech continues to be reflected by increased capital invested into cities such as Amsterdam, Munich, Vienna and Barcelona... 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 121/241 TitleNo: 5.2 GroupName: Top 5 Hus GroupId: 351 ChartId: 113 ArticleId: 55 ChapterId: 13 The diversification of European tech continues to be reflected by increased capital invested into cities such as Amsterdam, Munich, Oslo and Barcelona... Top 20 European hubs by capital invested ($M) Capital invested ($M)984 386 568 82 367 1,516 1,632 2,878 2,400 999 347 2,473 1,011 1,812 971 5,080 2,054 722 547 2012 2013 2014 2015 2016 2017 London Berlin Paris Barcelona Stockholm 0 1k 2k 3k 4k 5k Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Hubs 6-10 GroupId: 353 ChartId: 113 ArticleId: 55 ChapterId: 13 The diversification of European tech continues to be reflected by increased capital invested into cities such as Amsterdam, Munich, Oslo and Barcelona... Top 20 European hubs by capital invested ($M) Capital invested ($M)62 140 144 97 45 25 32 105 471 117 188 120 217 116 229 393 133 55 249 293 291 218 2012 2013 2014 2015 2016 2017 Dublin Amsterdam Vienna Madrid Munich 0 100 200 300 400 500 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Top 5 hubs Hubs 6-10 The State of European Tech 2017 Atomico & Slush 63 www.stateofeuropeantech.com5.2 A deep dive into European tech Top 20 European hubs by capital invested ($M) 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 123/241 TitleNo: 5.2 GroupName: Hubs 11-15 GroupId: 354 ChartId: 113 ArticleId: 55 ChapterId: 13 The diversification of European tech continues to be reflected by increased capital invested into cities such as Amsterdam, Munich, Oslo and Barcelona... Top 20 European hubs by capital invested ($M) Capital invested ($M)20 8 23 3 54 41 29 187 81 74 44 73 101 105 131 45 129 44 165 110 144 166 304 281 137 168 2012 2013 2014 2015 2016 2017 Hamburg Bristol Cambridge Zurich Helsinki 0 100 200 300 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Hubs 16-20 GroupId: 355 ChartId: 113 ArticleId: 55 ChapterId: 13 The diversification of European tech continues to be reflected by increased capital invested into cities such as Amsterdam, Munich, Oslo and Barcelona... Top 20 European hubs by capital invested ($M) Capital invested ($M)298 3 48 40 22 173 0 10 306 3 16 52 73 38 32 115 16 62 107 93 65 89 76 2012 2013 2014 2015 2016 2017 Oslo Moscow Brussels Manchester Milan 0 100 200 300 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Hubs 11-15 Hubs 16- 45,0232328 2328 6335 5493 3453 5328 2328 2328 23 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 64 www.stateofeuropeantech.com5.2 A deep dive into European tech # of deals in Top 20 European hubs (ranked by capital invested in 2017) ...as well as growing numbers of funding rounds in the region's latest set of emerging tech hubs 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 125/241 TitleNo: 5.2 GroupName: Top 5 Hubs GroupId: 356 ChartId: 114 ArticleId: 55 ChapterId: 13 ...as well as growing numbers of funding rounds in the region's latest set of emerging tech hubs # of deals in Top 20 European hubs (ranked by capital invested in 2017) # of deals288 107 29 34 393 167 101 521 201 60 55 167 91 433 203 312 80 197 151 277 2012 2013 2014 2015 2016 2017 London Berlin Paris Barcelona Stockholm 0 100 200 300 400 500 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Hubs 6-10 GroupId: 358 ChartId: 114 ArticleId: 55 ChapterId: 13 ...as well as growing numbers of funding rounds in the region's latest set of emerging tech hubs # of deals in Top 20 European hubs (ranked by capital invested in 2017) # of deals23 16 46 31 31 53 55 38 69 32 95 16 58 46 83 46 27 55 24 38 38 2012 2013 2014 2015 2016 2017 Dublin Amsterdam Vienna Madrid Munich 0 25 50 75 100 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co T p 5 hubs Hubs 6-10 The State of European Tech 2017 Atomico & Slush 65 www.stateofeuropeantech.com5.2 A deep dive into European tech 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 127/241 TitleNo: 5.2 GroupName: Hubs 11-15 GroupId: 359 ChartId: 114 ArticleId: 55 ChapterId: 13 ...as well as growing numbers of funding rounds in the region's latest set of emerging tech hubs # of deals in Top 20 European hubs (ranked by capital invested in 2017) # of deals12 3 7 4 26 9 4 15 35 15 19 14 19 44 22 9 30 40 34 7 19 55 14 11 13 34 2012 2013 2014 2015 2016 2017 Hamburg Bristol Cambridge Zurich Helsinki 0 10 20 30 40 50 60 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Hubs 16-20 GroupId: 360 ChartId: 114 ArticleId: 55 ChapterId: 13 ...as well as growing numbers of funding rounds in the region's latest set of emerging tech hubs # of deals in Top 20 European hubs (ranked by capital invested in 2017) # of deals1 31 3 5 10 10 37 2 7 19 29 5 7 29 14 16 10 6 40 47 7 34 35 59 7 15 22 2012 2013 2014 2015 2016 2017 Oslo Moscow Brussels Manchester Milan 0 20 40 60 10 30 50 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Hubs 11-15 Hubs 16-20 # of deals in Top 20 European hubs (ranked by capital invested in 2017) 45,0232328 2328 6335 5493 The State of European Tech 2017 Atomico & Slush 66 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 131/241 TitleNo: 5.2 GroupName: Seed GroupId: 450 ChartId: 151 ArticleId: 55 ChapterId: 13 The median Series A round in Europe has increased significantly again and has now risen from $3.3M in 2012 to $5.5M in 2017 Mean and median round size ($M) by stage Round size ($M)0.6 0.6 0.6 0.8 1 0.8 0.3 0.2 0.3 0.5 0.6 0.6 Mean - Seed Median - Seed 2012 2013 2014 2015 2016 2017 0 0.25 0.5 0.75 1 Source: Dealroom.co 5.2 A deep dive into European tech Mean and median round size ($M) by stage The median Series A round in Europe has increased significantly again and has now risen from $3.3M in 2012 to $5.5M in 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 129/241 TitleNo: 5.2 GroupName: Series A GroupId: 448 ChartId: 151 ArticleId: 55 ChapterId: 13 The median Series A round in Europe has increased significantly again and has n w risen from $3.3M in 2012 to $5.5M in 2017 Mean and median round size ($M) by stage Round size ($M)5.5 6 5.4 6.2 6 8.2 3.3 3 4 3.9 4 5.5 Mean - Series A Median - Series A 2012 2013 2014 2015 2016 2017 0 2 4 6 8 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5. GroupName: Series B GroupId: 451 ChartId: 151 ArticleId: 55 ChapterId: 13 The median Series A round in Europe has increased significantly again and has now risen from $3.3M in 2012 to $5.5M in 2017 Mean and median r und size ($M) by stage Round size ($M)12.2 11.3 14.7 13.3 12.4 23.8 8.1 7 8.5 10.6 8.7 13 Mean - Series B Median - Series B 2012 2013 2014 2015 2016 2017 0 5 10 15 20 25 Source: Dealroom.co Series A Series B Seed The State of European Tech 2017 Atomico & Slush 67 www.stateofeuropeantech.com5.2 A deep dive into European tech 5328 2328 2328 2328 2328 1578 6335 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 130/241 TitleNo: 5.2 GroupName: Series C GroupId: 452 ChartId: 151 ArticleId: 55 ChapterId: 13 The median Series A round in Europe has increased significantly again and has now risen from $3.3M in 2012 to $5.5M in 2017 Mean and median round size ($M) by stage Round size ($M)18.6 13.4 30 30.1 27.2 29.4 10.2 11 20.2 23 19 18.5 Mean - Series C Median - Series C 2012 2013 2014 2015 2016 2017 0 10 20 30 Source: Dealroom.co Series C Mean ad median round size ($M) by stage Median Series A round size ($) by country and year A combination of more ambitious founders and an increasingly competitive VC landscape is driving up Series A round sizes, especially in France and Germany 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Default GroupId: 530 ChartId: 170 ArticleId: 55 ChapterId: 13 A combination of more ambitious founders and an increasingly competitive VC landscape is driving up Series A round sizes, especially in France and Germany Median Series A round size ($) by country and year Median round size ($M)3.8 3.4 3 3.7 3.3 5.1 4.5 1.6 3 3.6 4 4.9 5 4.1 2.2 4 3.3 3.3 4 5.1 7 7 3.9 5.5 2012 2013 2014 2015 2016 2017 United Kingdom Germany France Spain Europe 0 2 4 6 Source: Dealroom.co The State of European Tech 2017 Atomico & Slush 68 www.stateofeuropeantech.com5.2 A deep dive into European tech Capital invested ($M) by industry Fintech, food, transportation and healthcare have all seen large capital investments in 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 134/241 TitleNo: 5.2 GroupName: Capital invested >$1B in 2017 GroupId: 329 ChartId: 106 ArticleId: 55 ChapterId: 13 Fintech, food, transportation and healthcare have all seen large capital investments in 2017 Capital invested ($M) by industry Capital invested ($M) by industry536 257 220 292 86 494 1,484 387 476 800 828 2,275 1,620 745 584 1,271 1,105 1,074 4,195 2,022 1,826 1,644 1,558 1,459 1,368 1,296 2012 2013 2014 2015 2016 2017 Fi ntech Fo od Di re ct or y Ba ck o ffi ce Tr an sp or ta tio n He al th ca re An al yt ic s M arke ting 0 1k 2k 3k 4k Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Capital invested $500M-$1B in 2017 GroupId: 332 ChartId: 106 ArticleId: 55 ChapterId: 13 Fintech, food, transportation and healthcare have all seen large capital investments in 2017 Capital invested ($M) by industry Capital invested ($M) by industry488 113 183 465 248 126 230 496 201 335 124 622 162 65 366 194 426 190 963 382 957 456 404 1,457 736 343 697 640 325 1,358 779 263 917 691 973 982 980 908 802 722 708 651 589 518 516 438 2012 2013 2014 2015 2016 2017 Se cu rit y De ve lo pe r t oo ls Ho m e Ga m in g Fa sh io n In tern et o f T hing sClea nt ec h En er gy Co lla bo ra tio n Co nt en t Tr av elHR & R ec ru itm en t Teleco m M us ic 0 500 1000 1500 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Capital invested >$1B in 2017 Capital invested $500M-$1B in 2017 The State of European Tech 2017 Atomico & Slush 69 www.stateofeuropeantech.com5.2 A deep dive into European tech 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 136/241 TitleNo: 5.2 GroupName: Capital invested $100-500M in 2017 GroupId: 333 ChartId: 106 ArticleId: 55 ChapterId: 13 Fintech, food, transportation and healthcare have all seen large capital investments in 2017 Capital invested ($M) by industry Capital invested ($M) by industry260 17 114 12 24 34 125 100 160 125 75 59 26 249 272 272 124 23 54 80 368 194 449 279 98 192 285 276 88 140 150 729 430 607 226 298 86 182 88 79 564 398 355 352 300 265 176 164 124 106 2012 2013 2014 2015 2016 2017 Re al E state Ed ucatio n Pr ice co mpa rison Agen cyRo bo tic sSe mic on du ct or sLe ga l Sp or tsWel ln ess & Be au ty KidsAg rit ec h Ev en tsPu bl ish er to ol sHo st in gM er ch an t t oo ls 0 250 500 750 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.2 GroupName: Capital invested <$100M in 2017 GroupId: 334 ChartId: 106 ArticleId: 55 ChapterId: 13 Fintech, food, transportation and healthcare have all seen large capital investments in 2017 Capital invested ($M) by industry Capital invested ($M) by industry11 19 0 0 61 16 1 2 40 106 2 26 127 10 0 46 17 2 37 9 192 34 47 52 112 6 63 47 13 12 5 2012 2013 2014 2015 2016 2017 Consumer productivity Pets Construction Government Dating Workspaces Gambling 0 50 100 150 200 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Capit l ivested $100-$500M in 2017 Capital invested <$100M in 2017 Europe has had a strong momentum for several years, with a stable and growing market, highly talented engineers and a blooming tech ecosystem, including startups, professional incubators, and new VCs. Access to early stage capital is maturing fairly well already, and the next priority should be to create a favourable environment for startups' growth and exits to bring more liquidity to the market. Fleur Pellerin Korelya Capital 45,0232328 2328 6335 5493 3453 5328 2328 2328 23 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 70 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 138/241 TitleNo: 5.3 GroupName: Default GroupId: 337 ChartId: 108 ArticleId: 57 ChapterId: 13 Around 2,000 unique investors have participated in at least one investment round in Europe in 2017, up around 4x compared to 2012 Number of unique institutions that have participated in at least 1 investment round in Europe per year # of unique investors527 644 922 1,244 1,870 1,952 Unique investors 2012 2013 2014 2015 2016 2017 0 500 1000 1500 2000 Note: Number of unique investors (incl. investment funds, corporate investors & accelerators, but excl. angel investors) that have participated in at least 1 investment round per year. 2017 annualised based on projection for Q4 on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.3 GroupName: Default GroupId: 335 ChartId: 107 ArticleId: 57 ChapterId: 13 A growing number of corporate investors are investing in European tech companies Number of unique corporate investors per year and number of rounds involving at least one corporate investor # of unique corporate investors / deals86 118 162 250 423 580 93 139 179 336 537 637 Number of unique corporate investors # of deals 2012 2013 2014 2015 2016 2017 0 200 400 600 Note: Unique corporate investor count is based on number of corporate (i.e. non investment fund) investors that have participated in at least 1 round per year. 2017 annualised based on projection for Q4 on Q3 2017 Source: Dealroom.co Number of unique institutions that have participated in at least 1 investment round in Europe per year umber of unique corporate investors per yar and number of rounds involving at least one corporate investor The strength of Europe's tech ecosystem is attractive to a diverse set of investors 5.3 Around 2,000 unique investors have participated in at least one investment round in Europe in 2017, up around 4x compared to 2012 A growing number of corporate investors are investing in European tech companies For some years, we didn't look to European market investors with hungry eyes because we didn't see the type of investor we could work with, but over the last few years we've seen a number of investors starting to attract more interest because they clearly have good ambitions, and that alone gives me a feeling that there's cause for optimism. Timo Rein Pipedrive The State of European Tech 2017 Atomico & Slush 71 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 140/241 TitleNo: 5.3 GroupName: Default GroupId: 475 ChartId: 158 ArticleId: 57 ChapterId: 13 Investors from around the world are coming to Europe to invest. More than 200 unique US investment funds participated in funding rounds in Europe in 2017 Number of unique US Investment funds that have participated in at least 1 investment round in Europe per year Number of unique investment funds86 103 146 182 213 234 Unique investors 2012 2013 2014 2015 2016 2017 0 50 100 150 200 250 Note: Number of unique US investment funds (excl. corporate investors & accelerators and angel investors) that have participated in at least 1 investment round per year. 2017 annualised based on projection for Q4 on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 5.3 GroupName: Capital invested ($B) GroupId: 472 ChartId: 157 ArticleId: 57 ChapterId: 13 The level of investment in Europe from Asian investors has grown dramatically in recent years Capital inv st d ($M) by and # of deals involving Asian investors Capital invested ($M)# of deals47 23 634 389 876 1,827 11 13 45 61 117 Capital invested ($M) # of deals 2012 2013 2014 2015 2016 2017 0 500 1000 1500 2000 2500 0 25 50 75 100 125 Source: Dealroom.co Number of unique US Investment funds that have participated in at least 1 investment round in Europe per year apital invested ($M) by and # of deals involving Asian investors Investors from around the world are coming to Europe to invest. More than 200 unique US investment funds participated in funding rounds in Europe in 2017 European tech continues to strengthen and diversify geographically, driving not only cross-border investment activity but also increased interest from our VC peers in the US. World class European companies such as MessageBird, Graphcore, Monzo, TransferWise, Automile and Deliveroo have all attracted US investors in 2017, proving that European tech is not only on fire at home but also abroad. This provides an interesting opportunity moving forward for increased collaboration between US and European VCs which, ultimately, continues to provide even greater runway for European founders to build truly global category leading companies from right here at home. Hiro Tamura Atomico 5.3 The strength of Europe's tech ecosystem is attractive to a diverse set of investors The level of investment in Europe from Asian investors has grown dramatically in recent years invested by Asian investors into European tech companies in 2017 across more than 100 rounds Asian investors are deploying large sums of capital into European tech companies $1.8B The State of European Tech 2017 Atomico & Slush 72 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 142/241 TitleNo: 5.4 GroupName: Funds Raised GroupId: 429 ChartId: 145 ArticleId: 58 ChapterId: 13 European VCs have raised more than 10.6B funds since 2016 VC funds raised (B) and # of VC funds closed per year by fund size Funds raised (B ) / # of funds closed<25M - Funds raised 25-50M - Funds raised 50-100M - Funds raised 100-250M - Funds raised 250M+ - Funds raised 2012 2013 2014 2015 2016 H1 2017 0 2 4 6 Source: Invest Europe / EDC 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 143/241 TitleNo: 5.4 GroupName: Funds Closed GroupId: 431 ChartId: 145 ArticleId: 58 ChapterId: 13 European VCs have raised more than 10.6B funds since 2016 VC funds raised (B) and # of VC funds closed per year by fund size Funds raised (B ) / # of funds closed25M< - Funds closed 25-50M - Funds closed 50-100M - Funds closed 100-250M - Funds closed 250M+ - Funds closed 2012 2013 2014 2015 2016 H1 2017 0 50 100 150 Source: Invest Europe / EDC VC funds raised (B) and # of VC funds closed per year by fund size 2017 has seen another strong year of fundraising for European VCs 5.4 European VCs have raised more than 10.6B across 198 funds since 2016 Global investors are taking notice of the world-class technology companies backed by European venture capital, and the returns being generated. Since 2012, more than 1,800 venture-backed technology companies, born in start-up hubs across the continent, have been exited. The results are clear: last year European VC fundraising hit an all-time high of 6.4 billion Michael Collins Invest Europe Funds raised Funds closed The State of European Tech 2017 Atomico & Slush 73 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 145/241 TitleNo: 5.4 GroupName: Funds Closed GroupId: 434 ChartId: 146 ArticleId: 58 ChapterId: 13 First-time funds account for ~25% of funds raised by VCs in Europe and have raised 3B since the start of 2016, although the data shows a slowdown in number of first-time funds being closed Funds raised (B) and number of funds closed per year by fund type Total funds raised (B) or number of new funds closedFirst-Time VC Fund - Closed First-Time VC Fund of Established Firm - Closed Follow-on VC Fund - Closed 2012 2013 2014 2015 2016 H1 2017 0 50 100 150 Note: First-Time VC Fund of Established Firm refers to first-time VC funds raised by a firm that may already be operating in a different asset class, such as buyout firms. Source: Invest Europe / EDC 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 144/241 TitleNo: 5.4 GroupName: Funds Raised GroupId: 432 ChartId: 146 ArticleId: 58 ChapterId: 13 First-time funds account for ~25% of funds raised by VCs in Europe and have raised 3B since the start of 2016, although the data shows a slowdown in number of first-time funds being closed Funds raised (B) and number of funds closed per year by fund type Total funds raised (B) or number of new funds closedFirst-time VC Fund - Raised First-Time VC Fund of Established Firm - Raised Follow-on VC Fund - Raised 2012 2013 2014 2015 2016 H1 2017 0 2 4 6 Note: First-Time VC Fund of Established Firm refers to first-time VC funds raised by a firm that may already be operating in a different asset class, such as buyout firms. Source: Invest Europe / EDC Funds raised (B) and number of funds closed per year by fund type Selected first-time fund launches in Europe in 2017 First-time funds account for ~25% of funds raised by VCs in Europe and have raised 3B since the start of 2016 across 52 separate funds, although the data shows a slowdown in number of first-time funds being closed 5.4 2017 has seen another strong year of fundraising for European VCs Even if the absolute numbers have slowed, Europe continues to see the emergence of first- time VC fund managers targeting a diverse set of geographies and sectors Funds raised Funds closed Note: First-Time VC Fund of Established Firm refers to first-time VC funds raised by a firm that may already be operating in a different asset class, such as buyout firms. Source: Invest Europe / EDC The State of European Tech 2017 Atomico & Slush 74 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 147/241 TitleNo: 5.4 GroupName: Default GroupId: 309 ChartId: 98 ArticleId: 58 ChapterId: 13 Funds raised in France, Germany and the UK account for two-thirds of VC funds since the start of 2016, but the past few years have seen large increases in funds raised in new geographies, including Spain, Netherlands and beyond VC funds raised by country of GP by year Total VC Funds Raised (M), 2012-H1 2017United Kingdom France Germany Netherlands Spain Rest of Europe 2012 2013 2014 2015 2016 1H17 0 2k 4k 6k Source: Invest Europe / EDC 22/11/2017 The State of European Tech 2017 TitleNo: 5.4 GroupName: Default GroupId: 522 ChartId: 167 ArticleId: 58 ChapterId: 13 The sum of total funds raised is at an all-time high, but since the number of new funds closed has not been increasing, the average fund size - both in terms of mean and median - has increased significantly Median and mean fund size at final closing by year Average fund size (M)21 25 38 37 50 58 49 52 60 86 85 154 Median Mean 2012 2013 2014 2015 2016 H1 2017 0 50 100 150 Source: Invest Europe / EDC C funds raised by cuntrof GP by year edian and mean fund size at final closing by year Funds raised in France, Germany and the UK account for two-thirds of VC funds since the start of 2016, but the past few years have seen large increases in funds raised in new geographies, including Spain, Netherlands and beyond The sum of total funds raised is at an all-time high, but since the number of new funds closed has not been increasing, the average fund size - both in terms of mean and median - has increased significantly European countries can take the lead of the digital revolution. In France alone, investments in start-ups tripled over the past three years. More can and must be done to build the digital champions of tomorrow, with investments in deep technologies and while keeping in mind the requirement of digital inclusion. Mounir Mahjoubi French Secretary of State in charge of Digital 5.4 2017 has seen another strong year of fundraising for European VCs increase in mean VC fund size in Europe since 2012 European VC fund sizes have increased significantly 3x The State of European Tech 2017 Atomico & Slush 75 www.stateofeuropeantech.com18/11/2017 The State of European Tech 2017 TitleNo: 5.5 GroupName: Default GroupId: 285 ChartId: 87 ArticleId: 59 ChapterId: 13 The source of funds for European and US VCs differ significantly VC funds raised by LP type and region % of total funds raised 24 19 17 15 8 6 5 4 3 10 17 5 13 20 13 2 3 16 Europe US Government Agencies Family Offices & Private Individuals Corporate Investors Fund of Funds, Other Asset Managers Pension Funds Academic Institutions, Endowments, Foundations Banks Insurance Companies Other (incl. Capital Markets, Sovereign Wealth Funds) 0 5 10 15 20 25 Note: Europe data based on funds raised between 2012 and 1H 2017. All percentages are only calculated on known LP allocation. Unclassified allocations were extrapolated. US VC LP allocation based on data from Preqin Source: Invest Europe / EDC 18/11/2017 The State of European Tech 2017 TitleNo: 5.5 GroupName: Default GroupId: 69 ChartId: 22 ArticleId: 59 ChapterId: 13 While pension funds hav contributed huge sums to European buyouts, their contribution to VC is still small Funds raised by fund strategy and LP type % of total funds raised 23 18 17 16 8 7 5 4 2 1 2 6 1 20 37 6 4 11 1 13 VC Funds Buyout Funds Government Agencies Family Offices & Private Individuals Corporate Investors Fund of Funds, Other Asset Managers Pension Funds Academic Institutions, Endowments, Foundations Banks Insurance Companies Capital Markets Sovereign Wealth Funds 0 5 10 15 20 25 30 35 40 Note: All percentages are only calculated on known LP allocation. Unclassified allocations were extrapolated Source: Invest Europe / EDC VC funds raised by LP type and region Fund raised by fund strategy and LP type There is still work to be done to further diversify the institutional investor base of Europan VC 5.5 The source of funds for European and US VCs differ significantly While pension funds have contributed huge sums to European buyouts, their contribution to VC is still small Note: Europe data based on funds raised between 2012 and 1H 2017. All percentages are only calculated on known LP allocation. Unclassified allocations were extrapolated. US VC LP allocation based on data from Preqin Source: Invest Europe / EDC Note: All percentages are only calculated on known LP allocation. Unclassified allocations were extrapolated Source: Invest Europe / EDC The State of European Tech 2017 Atomico & Slush 76 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 151/241 TitleNo: 5.5 GroupName: First-time VC fund GroupId: 435 ChartId: 147 ArticleId: 59 ChapterId: 13 Pensions funds are, however, are more important contributors of funding to follow-on VC funds than to first-time funds set up by new VC fund managers Funds raised by fund type and type of LP % of total funds raised0 1 2 6 5 3 13 25 21 24 First-Time VC Fund 0 10 20 So vereign wealt h fu nds Ca pit al m arkets In su ra nc e co m pa nies Ba nk s Ac adem ic ins tit ut ion s & en do wm en ts an d fo un da tio ns Pens ion fu nds s Fu nd o f f un d & Ot heras set m an ag ers orpo ra te in vest ors Fa m i l y o ffi ces & P rivat eindivi du als Go vern m en t a ge nc ies Note: Data based on funds raised between 2012 and 2016. First-Time VC Fund of Established Firm refers to first-time VC funds raised by a firm that may already be operating in a different asset class, such as buyout firms Source: Invest Europe / EDC 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 152/241 TitleNo: 5.5 GroupName: First-time VC funds of established firm GroupId: 781 ChartId: 147 ArticleId: 59 ChapterId: 13 Pensions funds are, however, are more important contributors of funding to follow-on VC funds than to first-time funds set up by new VC fund managers Funds raised by fund type and type of LP % of total funds raised3 11 4 1 26 3 16 5 11 18 First-Time VC Fund of Established Firm 0 10 20 So ve re ign we alt h fu nd s Ca pit al m ar ke ts In su ra nc e co m pa nie s Ba nk s Ac ad em ic ins tit ut ion s & en do wm en ts an d fo un da tio ns Pe ns ion fu nd s s Fu nd o f f un d & Ot he r as se t m an ag er s or po ra te in ve st or s Fa m i l y o ffi ce s & P riv at e ind ivi du als Go ve rnm ent a ge nciesNote: Data based on funds raised between 2012 and 2016. First-Time VC Fund of Established Firm refers to first-time VC funds raised by a firm that may already be operating in a different asset class, such as buyout firms Source: Invest Europe / EDC 22/11/2017 The State of European Tech 2017 TitleNo: 5.5 GroupName: Follow-on VC fund GroupId: 782 ChartId: 147 ArticleId: 59 ChapterId: 13 Pensions funds are, however, are more important contributors of funding to follow-on VC funds than to first-time funds set up by new VC fund managers Funds raised by fund type and type of LP % of total funds raised1 1 4 5 6 10 17 15 18 23 Follow-on VC Fund So ve re ign we alt h fu nds Ca pit al marke ts In su ra nc e compa nie s Ba nk s Ac ademic ins tit ut ion s & en dowmen ts an d foun da tions Pe ns ion fu nds s Fu nd of fun d & Ot he ras se t man ag ers orpora te in ve st ors Fa mi l y offi ce s & P riv at e indivi du als Gove rn ment a ge ncies0 10 20 Note: Data based on funds raised between 2012 and 2016. First-Time VC Fund of Established Firm refers to first-time VC funds raised by a firm that may already be operating in a different asset class, such as buyout firms Source: Invest Europe / EDC C Funds raised by fund type and type of LP Pensions funds are, however, more important contributors of funding to follow-on VC funds than to first-time funds set up by new VC fund managers First-time VC fund First-time VC funds of established firm Follo -on VC fund 5.5 There is still work to be done to further diversify the institutional investor base of European VC amount invested by corporates into European VCs since 2012, equivalent to 17% of total funds raised during this period Corporates are an important source of capital for European VCs 4.8B The State of European Tech 2017 Atomico & Slush 77 www.stateofeuropeantech.com45,023328 5493 3453 5328 2328 2328 2328 2328 1578 6335 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 154/241 TitleNo: 5.5 GroupName: Default GroupId: 289 ChartId: 89 ArticleId: 59 ChapterId: 13 The dependency on governments as a source of capital declines with larger fund size, while the contribution from pension funds and other institutional LP types increases thanks to the ability to deploy larger cheque sizes into the funds VC funds raised by fund size and LP type % 3 7 2 16 24 9 32 3 4 6 5 3 19 16 14 21 7 9 0 9 2 11 14 33 13 13 2 23 0 0 27 8 12 15 0 <100M 100-250M 250-500M 500M+ Academic Institutions, Endowments, Foundations Banks Capital Markets Corporate Investors Family Offices & Private Individuals Fund of Funds, Other Asset Managers Government Agencies Insurance Companies Pension Funds Sovereign Wealth Funds 0 5 10 15 20 25 30 35 Note: Based on total funds raised between 2012 and 2016. All percentages are only calculated on known LP allocation. Unclassified allocations were extrapolated Source: Invest Europe C funds raised by fund size and LP type The dependency on governments as a source of capital declines with larger fund size, while the contribution from pension funds and other institutional LP types increases thanks to the ability to deploy larger cheque sizes into the funds 5.5 There is still work to be done to further diversify the institutional investor base of European VC The role of public funding in Europe has been important in ensuring sufficient capital availability in the early and growth stages. As evidenced by increasing valuations of marquee companies, Europe has been able to close the gap compared to leading technology ecosystems in the world. This is already bringing more private investment into VC funds and innovative companies, which should be the first and foremost objective of our public funding initiatives. Alex Stubb European Investment Bank The State of European Tech 2017 Atomico & Slush 78 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 155/241 TitleNo: 5.5 GroupName: Default GroupId: 295 ChartId: 92 ArticleId: 59 ChapterId: 13 While European buyout funds raise a significant share of capital from international LPs, European VC funds are overwhelmingly raised from within the region Funds raised by fund strategy and region of LP % of total funds raisedEurope North America Asia & Australasia Rest of World VC Funds Buyout Funds 0 25 50 75 100 Note: Total funds raised between 2012 and 2016. All percentages are only calculated on known LP allocation. Unclassified allocations were extrapolated Source: Invest Europe / EDC 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 156/241 TitleNo: 5.5 GroupName: Default GroupId: 293 ChartId: 91 ArticleId: 59 ChapterId: 13 This varies, however, depending on the fund size. Larger funds of 250M+ raise a much larger share of capital from outside the region, where investors are typically looking to deploy larger cheque sizes Funds raised by VC fund size and location of LP, sum of 2012-2016 % of total funds raised4 4 35 28 96 96 65 72 LPs from outside Europe LPs from inside Europe <100M 100-250M 250-500M 500M+ 0 25 50 75 100 Note: All percentages are only calculated on known LP allocation. Unclassified allocations were extrapolated Source: Invest Europe / EDC Funds raised by fund strategy and region of LP Funds raised by VC fund size and location of LP, sum of 2012-2016 While European buyout funds raise a significant share of capital from international LPs, European VC funds are overwhelmingly raised from within the region This varies, however, depending on the fund size. Larger funds of 250M+ raise a much larger share of capital from outside the region, where investors are typically looking to deploy larger cheque sizes 5.5 There is still work to be done to further diversify the institutional investor base of European VC There is an increased interest from institutional investors in European venture capital, driven by higher expectations of financial returns from European tech and the low interest rate environment, which has turned the attention of these investors towards alternative assets. We have noticed as well an increased interest from non- European institutional investors - notably sovereign wealth funds - in recent years, which reinforces the message that European tech is drawing worldwide attention. Oscar Farres European Investment Fund 0 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 06 Last year, the standout finding from this report was that deep tech was thriving and diversifying across the continent In 2016, we discovered deep tech firms attracting large amounts of investment and interest from US and Asian tech giants as well as European corporates. Has Europe been able to maintain its deep tech momentum, have its deep tech roots deepened or broadened across the region and is Europe taking a lead in any particular area of deep tech? Deep Tech The State of European Tech 2017 Atomico & Slush 80 www.stateofeuropeantech.comEuropean deep tech continues to attract large investment 6.1 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 157/241 TitleNo: 6.1 GroupName: Default GroupId: 345 ChartId: 111 ArticleId: 61 ChapterId: 14 Europe is on track for $3.5B invested into deep tech companies in 2017 across more than 600 deals Capital invested ($B) in and # of deals closed by European deep tech companies Capital invested ($B)# of rounds0.4 0.8 0.9 1.9 2.5 3.5 120 220 359 549 692 Capital invested ($M) # of rounds 2012 2013 2014 2015 2016 2017 0 0.8 1.6 2.4 3.2 4 0 150 300 450 600 750 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Capital invested ($B) in and # of deals closed by European deep tech companies Europe is on track for $3.5B to be invested into deep tech companies in 2017 across more than 600 deals 22/11/2017 The State of European Tech 2017 TitleNo: 6.1 GroupName: Capital invested GroupId: 869 ChartId: 244 ArticleId: 61 ChapterId: 14 European AI companies have raised more than $4.6B since 2012 across over 1,000 deals Capital invested ($B) and # of deals by deep tech sub-category Capital invested ($B)4.6 4 2.9 2.3 1.1 1 0.8 0.6 0.6 0.5 0.4 0.3 0.2 0.1 Capital invested ($B) Artificial IntelliSaaS modelsHardware manufacturingInternet of ThingsSemiconductorsVirtual realityDeveloper toolseCommerceRoboticsMarketplaceMeta-searchBlockchainComputer visionSpeech0 2 4 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 6.1 GroupName: # of deals GroupId: 873 ChartId: 244 ArticleId: 61 ChapterId: 14 European AI companies have raised more than $4.6B since 2012 across over 1,000 deals Capital invested ($B) and # of deals by deep tech sub-category Capital invested ($B)1,092 957 692 631 172 107 86 178 221 77 57 108 47 18 # of deals Artificial IntelligenceSaaS modelsHardware manufacturingInternet of ThingsSemiconductorsVirtual realityDeveloper toolseCommerceRoboticsMarketplaceMeta-searchBlockchainComputer visionSpeech0 500 1000 Capital invested ($B) and # of deals by deep tech sub-category European AI companies have raised more than $4.6B since 2012 across over 1,000 deals ital invested # of deals Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Source: Dealroom.co The State of European Tech 2017 Atomico & Slush 81 www.stateofeuropeantech.comThe next stage of the Information Revolution is underway, made possible by rapid technological progress that is changing every industry and creating new ones. Europe is particularly well placed to take advantage. Last year, this report highlighted the growing strength of deep tech in Europe. This was no surprise to us at SoftBank. In the last 18 months alone we invested in some of Europe's most exciting deep tech companies, ARM and Improbable. David Thevenon SoftBank 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 167/254 TitleNo: 6.1 GroupName: Top 10 countries GroupId: 874 ChartId: 245 ArticleId: 61 ChapterId: 14 Deep tech companies based in the UK, France and Germany lead the way in attracting capital investment Capital invested ($B) in European deep tech companies by country Capital invested ($M)2,400 1,006 883 349 339 213 166 199 195 207 1,801 509 400 2012-2016 2017 United KingdomFranceGermanySwitzerlandSwedenIrelandFinlandNetherlandsSpainAustria0 1k 2k 3k 4k Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 168/254 TitleNo: 6.1 GroupName: Countries 11-20 and Rest of Europe GroupId: 876 ChartId: 245 ArticleId: 61 ChapterId: 14 Deep tech companies based in the UK, France and Germany lead the way in attracting capital investment Capital invested ($B) in European deep tech companies by country Capital invested ($M)89 91 56 52 52 40 0 23 34 17 50 87 57 52 25 4 7 40 16 15 3 2012-2016 2017 BelgiumNorwayRussiaDenmarkPortugalItalyRomaniaPolandEstoniaLuxembourgRest of Europe0 50 100 150 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Capital invested ($B) in European deep tech companies by country Deep tech companies based in the UK, France and Germany lead the way in attracting capital investment Top 10 countries Countries 11-20 and the rest of Europe Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 6.1 European deep tech continues to attract large investment 2328 2328 5493 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 82 www.stateofeuropeantech.com6.1 European deep tech continues to attract large investment Europe's most promising deep tech companies are raising large rounds and actively choosing to stay independent to continue to build and take on global opportunities European entrepreneurs are catalysing the development of AI technology and the proliferation of AI-powered applications. As AI reaches an inflection point in adoption, early-stage AI companies will empower buyers that have the vision to embrace them and disrupt those that do not. With 900 AI startups (70% of the US total), world-class talent (a quarter of the world's top 50 universities) and a flourishing ecosystem for entrepreneurship, Europe has much to contribute as we move to a world that is AI-first. David Kelnar MMC Ventures Note: There is typically a lag between a company being founded and it being recognised in private company databases. As such, more recent cohorts likely under-represent actual company formation. Source: Tracxn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 158/241 TitleNo: 6.1 GroupName: Default GroupId: 532 ChartId: 171 ArticleId: 61 ChapterId: 14 European entrepreneurs continue to form deep tech companies at very high levels, led by companies focused on AI Number of European deep tech companies founded per category per year Number of companies foundedArtificial Intelligence AR & VR Robotics Blockchain Autonmous Vehicles 2012 2013 2014 2015 2016 0 200 400 600 100 300 500 Note: There is typically a lag between a company being founded and it being recognised in private company databases. As such, more recent cohorts likely under-represent actual company formation. Source: Tracxn European entrepreneurs continue to form deep tech companies at very high levels, led by companies focused on AI Number of European deep tech companies founded per category per year Selected investment rounds raised by European deep tech companies in 2017 The State of European Tech 2017 Atomico & Slush 83 www.stateofeuropeantech.comAI & crypto are seen as major opportunities for European tech leadership on the global stage 6.2 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 160/241 TitleNo: 6.2 GroupName: Occupation GroupId: 596 ChartId: 187 ArticleId: 63 ChapterId: 14 AI & blockchain are viewed as the areas where Europe is best-positioned to attain world-leading status In which one area of technology is Europe best positioned to become a world leader over the next five years? % of respondents27 15 12 8 8 6 2 3 2 1 18 20 17 11 7 6 6 4 4 3 2 21 Investors Founders Artificial IntelligenceCrypto/blockchainCybersecurityAutonomous VehiclesRoboticsGenomicsVirtual RealityAugmented RealityQuantum ComputingDronesNone of these areas0 10 20 Note: 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 TitleNo: 6.2 GroupName: Geography GroupId: 763 ChartId: 187 ArticleId: 63 ChapterId: 14 AI & blockchain are viewed as the areas where Europe is best-positioned to attain world-leading status In which one area of technology is Europe best positioned to become a world leader over the next five years? % of respondents35 17 10 3 7 2 3 8 3 4 17 14 14 12 6 6 5 17 8 21 25 4 4 6 7 28 11 8 4 5 20 16 14 6 2 4 18 UK & Ireland France & Benelux DACH Nordics Baltics Southern Europe Central & Eastern Europe Europe Artificial IntelligenceCrypto/blockchainCybersecurityAutonomous VehiclesRoboticsGenomicsVirtual RealityAugmented RealityQuantum ComputingDronesNone of these areas0 10 20 30 Note: Numbers may not add to 100 due to rounding Source: The State of European Tech Survey 2017 In which one area of technology is Europe best positioned to become a world leader over the next five years? AI & blockchain are viewed as the areas where Europe is best-positioned to attain world- leading status Occupation Geography The State of European Tech 2017 Atomico & Slush 84 www.stateofeuropeantech.comMost cited responses for question: which European country do you think is best placed to capture this opportunity? The UK and Germany are viewed as the two countries best positioned within Europe to build world-leading positions in key deep tech fields Berlin is, or at least used to be, the single place in Europe that was still cheap, a bit edgy, married to the slightly anarchist outlook of crypto. It's a great place for people who want to change things to establish an office and work from here. London is much more in line with the establishment, they still want to disrupt but not really. Jutta Steiner Parity Technologies 6.2 AI & crypto are seen as major opportunities for European tech leadership on the global stage Source: The State of European Tech Survey 2017 The blockchain boom certainly is coming - and London is in a great position to capitalise on it. The bristling tech scene in London combines strong support for innovation and new startups with a magnetism for top tech talent from around the globe. There are several prestigious universities here which are and will be undertaking cutting edge academic research in the blockchain space. Angus Maidment & Alastair Band Blockchain Beginners London (Meetup group) The State of European Tech 2017 Atomico & Slush 85 www.stateofeuropeantech.comThere is a density of machine learning talent in London that rivals even the Valley. Every year UK universities produce a roster of world-class machine learning engineers, coming straight out of the most innovative labs. To maintain the momentum in European AI, we'll need to keep up that flow of expert and ambitious engineers, both by ensuring continued investment in higher education, and by guaranteeing that engineers are supported through accelerators once they graduate. Barnaby Hussey-Yeo Cleo 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 163/241 TitleNo: 6.2 GroupName: Default GroupId: 127 ChartId: 39 ArticleId: 63 ChapterId: 14 Germany is perceived to be a clear leader amongst European countries in the race to build a world-leading position in autonomous vehicles and robotics, but in other fields there is a much greater distribution of votes between different countries Which one European country do you think is best placed to capture this opportunity? % of respondents voting for #1 most cited country 84 69 35 30 29 28 24 22 22 21 % of non-partisan responses for #1 country Autonomous Vehicles - Germany Robotics - Germany Quantum Computing - Germany Genomics - Germany Artificial Intelligence - United Kingdom Augmented Reality - Germany Cybersecurity - Germany Crypto/blockchain - United Kingdom Virtual Reality - Germany Drones - France 0 10 20 30 40 50 60 70 80 90 Note: Ranking based on votes from respondents choosing a country home than their home country only Source: The State of European Tech Survey 2017 Which one European country do you think is best placed to capture tis ppotunity? Germany is perceived to be a clear leader amongst European countries in the race to build a world-leading position in autonomous vehicles and robotics, but in other fields there is a much greater distribution of votes between different countries 6.2 AI & crypto are seen as major opportunities for European tech leadership on the global stage The State of European Tech 2017 Atomico & Slush 86 www.stateofeuropeantech.comEurope is home to the world's leading AI research community 6.3 European organizations in the Top 100 ranked organizations by most- cited AI-related research papers Europe is home to the largest share of the top 100 AI research institutions worldwide research institutions in the global top 100 for AI-related research paper citations vs 30 from the US and 15 from China Europe accounts for largest share of top 100 AI research institutions worldwide 32 Source: The Nikkei & Elsevier The State of European Tech 2017 Atomico & Slush 87 www.stateofeuropeantech.com45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 European research in deep tech is at a crossroads, and we strongly believe that greater collaboration between public and private bodies is key to ensure it continues to thrive. Europe is currently taking action to enable this by developing a framework for public-private partnerships, which is a step in the right direction. Facebook Artificial Intelligence Research (FAIR) Paris is an example of this approach in action. We hope that FAIR, in close cooperation with public universities and institutes such as INRIA or Pierre et Marie Curie University, proves how impactful and effective this public-private cooperation can be. Our model has allowed us to grow in two years from five to forty researchers from across Europe, despite a very selective hiring process, and will help us continue to develop our FAIR lab in Paris. Antoine Bordes Facebook Artificial Intelligence Research 22/11/2017 The State of European Tech 2017 TitleNo: 6.3 GroupName: Default GroupId: 613 ChartId: 189 ArticleId: 62 ChapterId: 14 There has been an explosion of events to bring together Europe's AI community Number of machine learning-related Meetup events by year Number of machine learning-related Meetups170 413 925 1,927 4,330 6,215 Machine Learning 2012 2013 2014 2015 2016 2017 0 2k 4k 6k Note: 2017 data annualised based on data to 30 September 2017 Source: Meetup Number of machine learning-related Meetup events by year There has been an explosion of events to bring together Europe's AI community 6.3 Europe is home to the world's leading AI research community The State of European Tech 2017 Atomico & Slush 88 www.stateofeuropeantech.com6.3 Europe is home to the world's leading AI research community Top 15 European hubs of AI talent London and Paris are Europe's two leading hubs for AI talent Top cities by number of LinkedIn members with AI skills Top cities by density of members with AI skills versus all LinkedIn members Note: Cities with >450k members only so excludes cities such as Cambridge and Oxford. Cambridge would be 16th in absolute terms and first by density. Oxford would be 28th and fourth by density. Source: LinkedIn 328 2328 2328 8 8 6335 The State of European Tech 2017 Atomico & Slush 89 www.stateofeuropeantech.comSource: Stack Overflow Source: Hired Top 10 most in-demand technologies in Europe The war for AI talent has seen Python rise to number three most in-demand programming language in Europe Top 10 most in-demand technical roles at technology companies in the UK and France Top 10 most in-demand programming languages in Europe, as sought by employers 6.3 Europe is home to the world's leading AI research community Photo: Sami Heiskanen The State of European Tech 2017 Atomico & Slush 90 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 TitleNo: 6.4 GroupName: Bitcoin GroupId: 765 ChartId: 82 ArticleId: 64 ChapterId: 14 There has been an explosion of European developer engagement with cryptocurrencies, most notably on Ethereum-related topics Number of views of blockchain-related question tags on Stack Overflow by topic Number of views6,177 5,784 5,042 6,075 7,435 7,824 7,567 7,999 7,625 8,365 10,411 11,794 15,889 18,842 22,042 24,246 Bitcoin Jan 2015Feb 2015Mar 2015Apr 2015May 2015Jun 2015Jul 2015Aug 2015Sep 2015Oct 2015Nov 2015Dec 2015Jan 2016Feb 2016Mar 2016Apr 2016May 2016Jun 2016Jul 2016Aug 2016Sep 2016Oct 2016Nov 2016Dec 2016Jan 2017Feb 2017Mar 2017Apr 2017May 2017Jun 2017Jul 2017Aug 2017Sep 20170 5k 10k 15k 20k 25k Source: Stack Overflow Europe is well-positioned to play a key role in crypto space 6.4 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 170/241 TitleNo: 6.4 GroupName: Blockchain GroupId: 275 ChartId: 82 ArticleId: 64 ChapterId: 14 There has been an explosion of European developer engagement with cryptocurrencies, most notably on Ethereum-related topics Number of views of blockchain-related question tags on Stack Overflow by topic Number of views110 173 155 223 357 592 628 853 1,372 2,052 2,575 3,631 5,318 6,770 8,243 11,608 13,029 14,500 Blockchain Jan 2015Feb 2015Mar 2015Apr 2015May 2015Jun 2015Jul 2015Aug 2015Sep 2015Oct 2015Nov 2015Dec 2015Jan 2016Feb 2016Mar 2016Apr 2016May 2016Jun 2016Jul 2016Aug 2016Sep 2016Oct 2016Nov 2016Dec 2016Jan 2017Feb 2017Mar 2017Apr 2017May 2017Jun 2017Jul 2017Aug 2017Sep 20170 5k 10k 15k Source: Stack Overflow 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 171/241 TitleNo: 6.4 GroupName: Ethereum GroupId: 766 ChartId: 82 ArticleId: 64 ChapterId: 14 There has been a explosion of Europe n developer engagement with cryptocurrencies, most notably on Ethereum-related topics Number of views of blockchain-related question tags on Stack Overflow by topic Number of views0 0 0 0 0 2 0 353 671 1,593 3,980 2,513 2,982 2,492 3,427 4,310 6,098 9,751 19,290 17,691 19,420 Ethereum Jan 2015Feb 2015Mar 2015Apr 2015May 2015Jun 2015Jul 2015Aug 2015Sep 2015Oct 2015Nov 2015Dec 2015Jan 2016Feb 2016Mar 2016Apr 2016May 2016Jun 2016Jul 2016Aug 2016Sep 2016Oct 2016Nov 2016Dec 2016Jan 2017Feb 2017Mar 2017Apr 2017May 2017Jun 2017Jul 2017Aug 2017Sep 20170 5k 10k 15k 20k Source: Stack Overflow Number of views of blockchain-related question tags on Stack Overflow by topic There has been an explosion of European developer engagement with cryptocurrencies, most notably on Ethereum-related topics Blockchain Ethereum Bitcoin Source: Stack Overflow 3453 5328 2328 2328 2328 2328 1578 6335 The State of European Tech 2017 Atomico & Slush 91 www.stateofeuropeantech.com18/11/2017 The State of European Tech 2017 TitleNo: 6.4 GroupName: Default GroupId: 397 ChartId: 132 ArticleId: 64 ChapterId: 14 Europe is the largest source of reachable nodes on the Bitcoin network Global distribution of reachable Bitcoin nodes by region 5,221 3,375 622 142 106 1,162 # of Bitcoin network nodes Europe US China Japan Korea Rest of world Note: Data as of 31 October 2017 Source: Bitnodes Global distribution of reachable Bitcoin nodes by region Europe is the largest source of reachable nodes on the Bitcoin network When it comes to Europe, the cultural and economic diversity, as well as a world class heritage in adjacent sectors like gaming and asset management coupled with a large tech talent pool, play strongly in favour of driving growth in this space. We are seeing a vibrant crypto ecosystems developing in places like Berlin, Paris, Lisbon, Barcelona, Eastern Europe, and the Baltics. Europe has traditional strength in cryptography, with key figures from the International Association for Cryptologic Research, being from European Academic institutions, and industry clusters relying on cryptographic expertise in France, Denmark, Estonia, Belgium and Switzerland. The designers of both US standard hash function and block cipher are European a testament to this expertise (AES and SHA3). Europe is especially strong in symmetric cryptography and embedded systems. Ironically, the depth of expertise around crypto in Europe is associated historically with the US export control regimes on cryptography. Stefano Bernardi & Yannick Roux Token Economy George Danezis University College London 6.4 Europe is well-positioned to play a key role in crypto space Note: Data as of 31 October 2017 Source: Bitnodes The State of European Tech 2017 Atomico & Slush 92 www.stateofeuropeantech.comNumber of blockchain development projects by country The UK, Germany and Russia are the most active blockchain developers on GitHub active blockchain projects in Europe (versus 9,565 in US), according to Deloitte analysis of GitHub data European developers are hugely actively in driving blockchain development 8,265 6.4 Europe is well-positioned to play a key role in crypto space Note: Analysis is presented for GitHub projects for which geographical information is available Source: Deloitte analysis of GH Torrent data and GitHub API data Photo: Jussi Hellsten The State of European Tech 2017 Atomico & Slush 93 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 175/241 TitleNo: 6.4 GroupName: Default GroupId: 459 ChartId: 154 ArticleId: 64 ChapterId: 14 London, Paris and Moscow are the primary centres of European blockchain development Top 30 European cities for blockchain development 914 298 201 132 104 92 89 88 78 77 72 63 61 60 57 50 44 41 38 35 35 34 34 33 30 28 26 26 26 26 26 Number of blockchain projects Pa risMo sc owAmsterda mPragueMa dridStoc khol mDubl inMunic hBa rc elo na W arsa w Go thenburg Kiev Oslo He lsi nk i Ha m bu rg Bu da pe st Ly on Ist an bu l To ul ou se Mi lan Ca m br idg e Fr an kf ur t Vi ln ius At he ns W ro cla w Mi ns k St ut tg ar t Bu ch ar es t Zu g Ma nc he ster Ro me Bo ch umNote: Analysis is presented for GitHub projects for which geographic information was available. Berlin is notably absent and is likely due to the absence of city-level information for 1,069 projects in Germany Source: Deloitte analysis of GH Torrent data and GitHub API data Lo ndon22/11/2017 The State of European Tech 2017 http://review.stateofuropeantech.com/all-charts/ 175/241 TitleNo: 6.4 GroupName: Default GroupId: 459 ChartId: 154 ArticleId: 64 ChapterId: 14 London, Paris and Moscow are the primary centres of European blockchain development Top 30 European cities for block hain dev lopment 914 298 201 132 104 92 89 88 78 77 2 63 61 60 57 50 44 1 38 35 35 34 34 33 0 28 26 26 26 26 26 Number of blockchain projects Pa risMo sc owAmsterda mPragueMa dridStoc khol mDubl inMunic hBa rc elo na W arsa w Go thenburg Kiev Oslo Helsink i Ha m bu rg Bu da pe st Ly on Ist an bu l To ul ou se Mi lan Ca m br idg e Fr an kf ur t Vi ln ius At he ns W ro cla w Mi ns k St ut tg ar t Bu ch ar es t Zu g Ma nc he st er Ro me Bo ch umNote: Analysis is presented for GitHub projects for whic geographic information was vailable. Berlin is notably absent and is l kely due to he absence of city-level information for 1,069 projects in Germany Source: Deloitte analysis of GH Torrent data and GitHub API data Lo ndon/1/2017 The State of European Tech 2017 http://preview.statefeuropeantech.com/all-charts/ 175/241 TitleNo: 6.4 GroupName: Default GroupId: 459 ChartId: 154 ArticleId: 64 ChapterId: 14 London, Paris and osco are the pri ary centres of European blo kchain d velop ent Top 30 European cities for blockchain development 914 298 201 132 104 92 9 8 8 7 72 3 1 60 7 50 4 41 8 5 4 3 30 8 26 Number of blockchain projects Pa risMo sc owAmsterda mPragueMa dridStoc kho mDubl inMunic hBa rc elo na W arsa w Go thenburg Kiev Oslo He lsi nk i Ha m bu rg Bu da pe st Ly on Ist an bu l To ul ou se Mi lan Ca m br idg e Fr an kf ur t Vi ln iu At he ns W ro cla w Mi ns k St ut tg ar Bu ch ar es t Zu g Ma nc he st er Ro me Bo ch umNote: Analy is is presented for GitHub projects for which eographic information was availabl . Berli is notably abse t and is likely due to the abs nce of city- evel informati n for 1,069 projects in Germany Source: Deloitte analysis of GH To ren d ta and GitHub API data Lo ndonTop 30 European cities for blockchain development Lonon, Paris and Moscow are the primary centr s of European blockchain development Given how people in Europe look at things like data protection, there's a stronger sense of urgency here than somewhere like the US to find solutions. But for entrepreneurs it's really hard to run a business in this space. There's currently no certainty, neither for the entrepreneurs nor the establishment, on what we can do and could do. There are things like regulatory sandboxes that people try but I am not convinced these will work, since ultimately you need to get out of the sandbox and will then face the same problems again. It's important that policymakers are really understanding what this technology is and do not regulate too early, giving startups a certain certainty that they would not get punished for what they are doing. Jutta Steiner Parity Technologies 6.4 Europe is well-positioned to play a key role in crypto space Note: Analysis is presented for GitHub projects for which geographic information was available. Berlin is notably absent and is likely due to the absence of city- level information for 1,069 projects in Germany Source: Deloitte analysis of GH Torrent data and GitHub API data The State of European Tech 2017 Atomico & Slush 94 www.stateofeuropeantech.comEurope leads the race to tokenize assets and the ICO fundraising boom 6.5 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 176/241 TitleNo: 6.5 GroupName: Default GroupId: 704 ChartId: 232 ArticleId: 84 ChapterId: 14 Differences in national regulatory frameworks mean that one in four ICO projects is legally registered in a different county to that of its CEO/Founder Share of ICO projects where location of legal entity is different to location of CEO/Founder % of ICO projects75 75 80 66 62 67 63 25 25 20 34 38 33 38 CEO/Founder and legal entity location are the same CEO/Founder and legal entity location are different All ICOs Europe North America Asia Latin America Middle East Africa 0 25 50 75 100 Note: Geographical data sourced by TokenData from ICO websites, white papers and social media. Data is based on ICO projects where the legal entity and CEO/Founder location are both known Source: TokenData Share of ICO projects where loction of legal entity is dif erent to location of CEO/Founder Differences in national regulatory frameworks mean that one in four ICO projects is legally registered in a different county to that of its CEO/Founder 22/11/2017 The State of European Tech 2017 TitleNo: 6.5 GroupName: Default GroupId: 671 ChartId: 218 ArticleId: 84 ChapterId: 14 There are more ICO projects coming from Europe-based entities and European founders than any other region Number of ICO projects by region of legal entity versus region of CEO/Founder Number of ICO projects446 244 124 19 28 13 412 373 234 105 16 15 10 533 Number of ICO projects by region of legal entity Number of ICO projects by region of CEO/Founder Europe North America Asia Middle East Latin America Africa Unknown 0 100 200 300 400 500 Note: Geographical data sourced by TokenData from ICO websites, white papers and social media. Unknown captures all ICOs where the region of the legal entity or of the CEO/Founder is not known Source: TokenData Number of ICO projects by region of legal entity versus region of CEO/ Founder There are more ICO projects coming from Europe-based entities and European founders than any other region Looking beyond the exponential increase in capital and cryptocurrency assets in 2017, we see a pattern of geographical diversity between ICO founding teams and also within the teams themselves. If the future of business ideas lies in decentralisation, then decentralised founding teams will be a key aspect of it. Ricky Tan Token Data The State of European Tech 2017 Atomico & Slush 95 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 178/241 TitleNo: 6.5 GroupName: Default GroupId: 673 ChartId: 219 ArticleId: 84 ChapterId: 14 While entities registered in Europe have raised the most capital via ICOs, founders from North America have marginally out-raised those from Europe Total capital raised ($M) via ICOs by region of legal entity versus region of CEO/Founder Total capital raised ($M)1,076 1,755 453 286 29 48 177 1,315 1,226 596 277 178 6 227 Total capital raised ($M) via ICOs by region of legal entity Total capital raised ($M) via ICOs by region of CEO/Founder North America Europe Asia Latin America Middle East Africa Unknown 0 500 1000 1500 Note: Geographical data sourced by TokenData from ICO websites, white papers and social media. Unknown captures all ICOs where the region of legal entity or of the CEO/Founder is not known Source: TokenData Total capital raised ($M) via ICOs by region of legal entity versus region of CEO/Founder While entities registered in Europe have raised the most capital via ICOs, founders from North America have marginally out-raised those from Europe raised by ICO projects registered in Europe but whose founders are based elsewhere Switzerland's openness to ICOs has attracted ICO projects that have raised significant capital $529M 6.5 Europe leads the race to tokenize assets and the ICO fundraising boom 18/11/2017 The State of European Tech 2017 TitleNo: 6.5 GroupName: Default GroupId: 710 ChartId: 235 ArticleId: 84 ChapterId: 14 Switzerland is a leading home to the legal entities behind ICO projects, but not always to their founders Top 10 countries by capital raised ($M) via ICO based on country of legal entity location and country of CEO/Founder location Capital raised ($M) 905 828 325 208 202 128 105 54 53 1,131 104 373 372 185 197 2 Capital raised ($M) - Legal entity Capital raised ($M) - CEO/Founder USA Switzerland Singapore UK Cayman Islands Canada Russia Germany France Serbia 0 200 400 600 800 1000 1200 Source: Token Data Top 10 countries by capital raised ($M) via ICO based on country of legal entity location and country of CEO/Founder location Switzerland is a leading home to the legal entities behind ICO projects, but not always to their founders Note: Geographical data sourced by TokenData from ICO websites, white papers and social media Source: TokenData The State of European Tech 2017 Atomico & Slush 96 www.stateofeuropeantech.comMap of funds raised ($M) via ICO by country The ICO fundraising model has allowed founders from around the world to raise capital 6.5 Europe leads the race to tokenize assets and the ICO fundraising boom Photo: Jussi Hellsten The State of European Tech 2017 Atomico & Slush 97 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 181/241 TitleNo: 6.5 GroupName: Default GroupId: 675 ChartId: 220 ArticleId: 84 ChapterId: 14 Central & Eastern Europe dominates the number of ICO projects launched from Europe Number of ICO projects in Europe by sub-region of legal entity versus CEO/Founder Number of ICO projects162 90 78 46 25 35 10 171 66 48 37 24 19 8 Number of ICO projects by sub-region in Europe of legal entity Number of ICO projects by sub-region in Europe of CEO/Founder Central & Eastern Europe UK & Ireland DACH France & Benelux Southern Europe Baltics Nordics 0 50 100 150 Note: Geographical data sourced by TokenData from ICO websites, white papers and social media. Unknown captures all ICOs where the region of the legal entity or of the CEO/Founder is not known Source: TokenData Number of ICO projects in Europe by sub-region of legal entity versus CEO/Founder Central & Eastern Europe dominates the number of ICO projects launched from Europe 6.5 Europe leads the race to tokenize assets and the ICO fundraising boom 22/11/2017 The State of European Tech 2017 TitleNo: 6.5 GroupName: Default GroupId: 677 ChartId: 221 ArticleId: 84 ChapterId: 14 ...but looking at the sum of capital raised by founders, the UK is just ahead of CEE Total capital raised ($M) via ICOs in Europe by sub-region of legal entity versus CEO/Founder Total capital raised ($M)271 209 976 111 60 97 31 369 373 211 93 92 73 15 Total capital raised ($M) via ICOs by sub-region in Europe of legal entity Total capital raised ($M) via ICOs by sub-region in Europe of CEO/Founder Central & Eastern Europe UK & Ireland DACH France & Benelux Southern Europe Baltics Nordics 0 250 500 750 1000 Note: Geographical data sourced by TokenData from ICO websites, white papers and social media Source: TokenData Totl capital raised ($M) via ICOs in Europe by sub-region of legal entity versus CEO/Founder ...but looking at the sum of capital raised by founders, the UK is just ahead of CEE The State of European Tech 2017 Atomico & Slush 98 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 183/241 TitleNo: 6.5 GroupName: Default GroupId: 712 ChartId: 236 ArticleId: 84 ChapterId: 14 European cities make up 5 of the Top 10 hubs globally for ICO projects, including the #1 hub Top 10 cities by number of ICO projects based on location of CEO/Founder Number of ICO projects48 38 27 20 13 10 9 8 8 7 Number of ICO projects M os co w Si lic on Val ley New Y ork Lo ndon To ro nt o St P et ersburg Lo s An geles Pa ris Zu ric h Be rli n 0 10 20 30 40 50 Note: Geographical data sourced by TokenData from ICO websites, white papers and social media Source: TokenData Top 10 cities by number of ICO projects based on location of CEO/ Founder European cities make up 5 of the Top 10 hubs globally for ICO projects, including the #1 hub 6.5 Europe leads the race to tokenize assets and the ICO fundraising boom 22/11/2017 The State of European Tech 2017 TitleNo: 6.5 GroupName: Default GroupId: 706 ChartId: 233 ArticleId: 84 ChapterId: 14 But this is an area where everything is distributed, including the teams. Two out of three ICO projects have founding teams located in different countries Share of ICO projects where founders are distributed in different countries % of ICO projects36 35 29 54 38 56 50 64 65 71 46 63 44 50 Founders are located in same country Founders are located in different countries All ICO projects Europe North America Asia Latin America Middle East Africa 0 25 50 75 100 Note: Geographical data sourced by TokenData from ICO websites, white papers and social media. Based on stated location of founders. ICO projects are considered to have distributed founding teams where at least two founders are located in different countries Source: TokenData Share of ICO projects where founders are distributed in different countries But this is an area where everything is distributed, including the teams. Two out of three ICO projects have founding teams located in different countries 2328 2328 5493 3453 5328 2328 2328 2328 2328 1578 6335 0 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 07 Last year we discovered how European corporates were awakening to tech and realising its potential and opportunity This year we are seeing clear signs that this trend is evolving at pace. Across the board, Europe is playing to its traditional strengths and industrial heritage, and the relationship between old and new industry is now characterised by partnership and collaboration. Corporate The State of European Tech 2017 Atomico & Slush 100 www.stateofeuropeantech.comThe perception in Europe's tech industry is that startups need to forge closer ties with traditional industry 7.1 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 185/241 TitleNo: 7.1 GroupName: Occupation GroupId: 576 ChartId: 182 ArticleId: 65 ChapterId: 15 Europe is united behind the idea that the region's tech startups need stronger ties with traditional industries The European tech ecosystem needs stronger ties with traditional industries % of respondents56 57 58 49 53 60 58 48 56 2 2 2 2 1 1 1 2 1 Strongly agree Strongly disagree AllFounderInvestorStartup 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 TitleNo: 7.1 GroupName: Geography GroupId: 578 ChartId: 182 ArticleId: 65 ChapterId: 15 Europe is united behind the idea that the region's tech startups need stronger ties with traditional industries The European tech ecosystem needs stronger ties with traditional industries % of respondents56 38 45 49 44 47 56 41 2 5 5 6 4 5 4 6 Strongly agree Strongly disagree EuropeUK & IrelandFrance & BeneluxDACHNordicsBalticsSouthern EuropeCentral & Eastern Europe0 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 The European tech ecosystem needs stronger ties with traditional industries Europe is united behind the idea that the region's tech startups need stronger ties with traditional industries I think that traditional industries are fuelling the European tech ecosystem in three ways. First, they can be direct investors in startups. Second, these big companies are pools of talents for startups. They have recruited and trained highly skilled engineers and invested a lot in R&D, which contributes to the deep tech disruptions. Finally, the existence of strong historic players in key sectors such as automotive stimulates a new generation of leading innovative players to provide tomorrow's solutions. Fleur Pellerin Korelya Capital Occupation Geography 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 State of European Tech 2017 Atomico & Slush 101 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 187/241 TitleNo: 7.2 GroupName: Default GroupId: 399 ChartId: 133 ArticleId: 66 ChapterId: 15 Trillions of dollars in enterprise value could be put in play Aggregate market cap ($T) for European-listed public companies by selected industry sectors Market cap ($T) 2 2 1.6 1.2 1.1 0.7 0.6 0.5 Market cap ($T) Industrial Goods & Services Banks Healthcare Oil & Gas Food & Beverage Insurance Retail Automobiles & Parts 0 0.25 0.5 0.75 1 1.25 1.5 1.75 2 Note: Market cap as of 30 September 2017 Source: London Stock Exchange Europe's corporates are battling to defend trillions of dollars of enterprise value 7.2 Aggregate market cap ($T) for European-listed public companies by selected industry sectors Trillions of dollars in enterprise value could be put in play Most of these traditional companies have created innovation teams that actively look for collaboration with interesting tech companies - for example, with companies focused on deep tech - and are looking for ways to introduce these technologies into their standard offerings and make their companies smarter. That's a great opportunity for technology companies in Europe today. Samuel Mueller Scandit The State of European Tech 2017 Atomico & Slush 102 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 TitleNo: 7.2 GroupName: Default GroupId: 389 ChartId: 127 ArticleId: 66 ChapterId: 15 European corporates have different levels of focus and engagement with European technology Innovation activity of top European corporates % of top European corporates 84 84 71 52 50 36 % of Top European Corporates Have established a dedicated open innovation unit Procured from startups/scaleups Invested in startups/scaleups Run an accelerator Invest via a dedicated Corporate VC fund Acquired at least one startup/scaleup in 2016 0 20 40 60 80 Note: Based on an analysis of 32 leading European corporates Source: Open Innovation in Europe. A Snapshot of 2017 SEP Europe's Corporate Startup Stars. Mind the Bridge & Nesta, 2017 22/11/2017 The State of European Tech 2017 TitleNo: 7.2 GroupName: Default GroupId: 389 ChartId: 127 ArticleId: 66 ChapterId: 15 European corporates have different levels of focus and engagement with European technology Innovation activity of top European corporates % of top European corporates 84 84 71 52 50 36 % of Top European Corporates Have established a dedicated open innovation unit Procured from startups/scaleups Invested in startups/scaleups Run an accelerator Invest via a dedicated Corporate VC fund Acquired at least one startup/scaleup in 2016 0 20 40 60 80 Note: Based on an analysis of 32 leading European c r r Source: Open I novation in Europe. A Snapshot of 2017 t rtup Stars. Mind the Bridge & Nesta, 2017 Innvation activity of top European corporates European corporates have different levels of focus and engagement with European technology They are doing all the things now - running accelerators, investing in funds. In our fund, we have at least twenty corporates and two thirds of those are from France. You go to Station F and when you walk through the building, there are corporate names everywhere, everyone wants to launch there - there are twenty corporate accelerators in the building. Eventually this is getting the startup and the corporate world closer. Romain Lavault Partech Ventures Selected partnerships between European tech companies and incumbent corporates announced in 2016 or 2017 Leading European startups are building meaningful partnerships with corporates for mutual benefit It's an interesting one for us because we have limited activity in actual corporate investment. For us we take a broader, portfolio approach in terms of partnerships, looking at strategically interesting companies that we can partner with. I think there are different ways we can extract value from it and we can deliver value to the startups. One way is certainly equity and direct investment but there are obviously other areas where we can get value out of it, too. Exclusivity in our category or long-term commitment and investment in the actual partnership. Benjamin Lickfett Diageo 7.2 Europe's corporates are battling to defend trillions of dollars of enterprise value The State of European Tech 2017 Atomico & Slush 103 www.stateofeuropeantech.com18/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 184/241 TitleNo: 7.2 GroupName: Default GroupId: 381 ChartId: 123 ArticleId: 66 ChapterId: 15 There is a wide variance in the level of media coverage that different European corporates have received in articles discussing technology Most cited STOXX Europe 50 constituents in media articles discussing "technology" Article count indexed to #1 most cited company 100 97 91 68 53 43 39 34 29 23 22 20 16 13 10 9 9 8 6 6 5 5 4 4 3 3 3 1 # of citations, indexed to #1 most cited (BMW) BMW SAP Daimler Siemens BNP Adidas Deutsche Telekom Allianz Bayer Volkswagen Vivendi BASF BBVA Groupe Danone Schneider Electric Philips L'Oreal Essilor Fresenius Intesa Sanpaolo Munich Re E.ON Total S.A. Iberdrola Vinci 0 10 20 30 40 50 60 70 80 90 100 110 Note: Company list based on STOXX Europe 50 consituents as of 30 September 2017. Article count based on unique articles containing "technology" and named company. Overall source set based on representative list of 100 European business and tech publications Source: Signal 67 51 41 34 Telefonica Unilever Nokia Deutsche Bank Airbus Orange LVMH AXA Santander ING Group Engie Sanofi Safran Societe Generale Deutsche post ASML Inditex Air Liquide Anheuser Saint-Gobain Eni Enel Unibail-Rodamco Ahold 13 9 8 6 6 5 7 4 4 3 3 3 2 Most cited STOXX Europe 50 constituents in media articles discussing "technology" There is a wide variance in the level of media coverage that different European corporates have received in articles discussing technology If you think about well-established companies, ten years ago they were saying that there might be a big tech company in the future - whereas now they think "Guys, we need to put technology at the heart of our business or otherwise we're going to be killed." It's the beginning of a new era. Juan Urdiales Jobandtalent 7.2 Europe's corporates are battling to defend trillions of dollars of enterprise value The State of European Tech 2017 Atomico & Slush 104 www.stateofeuropeantech.comSpotting patterns in the flow of talent between tech & traditional industry 7.3 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 201/253 TitleNo: 7.3 GroupName: Default GroupId: 197 ChartId: 61 ArticleId: 67 ChapterId: 15 Professional and financial services are the most important source sectors of tech industry talent, but there are material numbers coming from sectors such as retail and auto Top 10 source sectors for inbound tech talent ("joiners") by industry % of joiners 21.6 13.1 9.8 9.2 7.9 7.5 6.2 5.3 5.1 4.9 2017 Professional Services Financial Services & Insurance Retail & Consumer Products Government/Education/Non-profit Telecommunications Media & Entertainment Aero/Auto/Transport Architecture & Engineering Technology - Hardware Healthcare & Pharmaceutical 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 203/254 TitleNo: 7.3 GroupName: Default GroupId: 896 ChartId: 252 ArticleId: 67 ChapterId: 15 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 source sectors for inbound tech talent ("joiners") by industry in 2016 % of joiners 21.7 12.9 9.4 9.3 9 7.5 5.9 5.2 5 4.7 2016 Professional Services Financial Services & Insurance Government/Education/Non-profit Retail & Consumer Products Telecommunications Media & Entertainment Aero/Auto/Transport Technology - Hardware Architecture & Engineering Healthcare & Pharmaceutical 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Top source sectors for inbound tech talent ("joiners") by industry Top 10 source sectors for inbound tech talent ("joiners") by industry in 2016 Professional and financial services are the most important source sectors of tech industry talent, but there are material numbers coming from sectors such as retail and auto 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 If you look at Europe, you have a combination of world class universities and world class companies historically building world class products, be that supplying to the US or elsewhere. What we as entrepreneurs and young startups are now benefiting from is that knowledge and those people who have worked in those industries - they're coming on board and building the next generation of technologies. Remo Gerber Lilium Aviation Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mver' is dfine by LinkedIn as smebody nw working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn The State of European Tech 2017 Atomico & Slush 105 www.stateofeuropeantech.comNote: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 203/253 TitleNo: 7.3 GroupName: Default GroupId: 193 ChartId: 60 ArticleId: 67 ChapterId: 15 The auto sector is attracting a meaningful share of talent from the European tech industry, although companies in professional and financial services are the biggest destination for outbound tech talent Top destination sectors for outbound tech talent ("leavers") by industry % of leavers 21.2 15.3 8.3 8.3 7.8 7 6.8 5.8 5.7 5.2 2017 Professional Services Financial Services & Insurance Government/Education/Non-profit Retail & Consumer Products Media & Entertainment Telecommunications Aero/Auto/Transport Healthcare & Pharmaceutical Architecture & Engineering Technology - Hardware 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2017 and 2016 Source: LinkedIn 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 204/253 TitleNo: 7.3 GroupName: Default GroupId: 894 ChartId: 251 ArticleId: 67 ChapterId: 15 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 destination sectors for outbound tech talent ("leavers") by industry in 2016 % of leavers 21.1 15.8 8.2 8 8 7.4 6.3 5.8 5.5 5.5 2016 Professional Services Financial Services & Insurance Government/Education/Non-profit Media & Entertainment Retail & Consumer Products Telecommunications Aero/Auto/Transport Healthcare & Pharmaceutical Technology - Hardware Architecture & Engineering 0 2.5 5 7.5 10 12.5 15 17.5 20 22.5 Note: All interpretations of the LinkedIn data are made by Atomico, not LinkedIn. A 'mover' is defined by LinkedIn as somebody now working in the tech industry that has moved country or industry sector for their primary employment between 2016 and 2015 Source: LinkedIn Top destination sectors for outbound tech talent ("leavers") by industry Top 10 destination sectors for outbound tech talent ("leavers") by industry in 2016 The auto sector is attracting a meaningful share of talent from the European tech industry, although companies in professional and financial services are the biggest destination for outbound tech talent 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 7.3 Spotting patterns in the flow of talent between tech & traditional industry For a lot of corporates it's a big challenge to attract talent that is very strong in tech, that has an innovation, growth mindset. I think it's an ongoing issue for corporates for us this is a big priority. I think a lot of the answer is in culture, and orchestrating the kind of processes to give these types of candidates the ability to have impact, and to minimise the traffic and frustrations, obstacles and processes that are associated with big corporates. If you look at my team, my background is in startups, most of my team were in startups - so corporates are starting to attract this kind of talent. Benjamin Lickfett Diageo The State of European Tech 2017 Atomico & Slush 106 www.stateofeuropeantech.com18/11/2017 The State of European Tech 2017 TitleNo: 7.3 GroupName: Default GroupId: 207 ChartId: 63 ArticleId: 67 ChapterId: 15 Given the size of the auto sector in France and Germany, it's not surprising to see that there is a higher share of talent joining the tech industry from auto companies in those two countries Top source sectors for inbound tech talent ("joiners") by industry and country % of joiners Aero/Auto/Transport Architecture & Engineering Financial Services & Insurance Government/Education/Non-profit Healthcare & Pharmaceutical Manufacturing/Industrial Media & Entertainment Oil & Energy Professional Services Retail & Consumer Products Staffing Technology - Hardware Telecommunications United Kingdom Germany France Spain Netherlands Ireland 0 10 20 30 40 50 60 70 80 90 100 110 Note: LinkedIn defined a sector migrant as someone who is working in an industry (e.g. tech) of as July 2017 that is different to the industry they were working in July 2016 Source: LinkedIn Top source sectors for inbound tech talent ("joiners") by industry and country Given the size of the auto sector in France and Germany, it's not surprising to see that there is a higher share of talent joining the tech industry from auto companies in those two countries I am really optimistic because we are running out of sectors to digitise and the market is getting very crowded which requires more niche expertise. This sort of niche expertise within specific verticals, such as industrial or logistics, is what we can grow out of Europe and build strong global players. Dr. Jeannette Frstenberg La Famiglia 18/11/2017 The State of European Tech 2017 TitleNo: 7.3 GroupName: Default GroupId: 199 ChartId: 62 ArticleId: 67 ChapterId: 15 But migration flow of talent between the tech and auto industry is a two-way flow. In France and Germany more than one in ten people leaving the tech industry are taking up positions at auto companies Top destination sectors for outbound tech talent ("leavers") by industry and country % of leavers Professional Services Financial Services & Insurance Government/Education/Non-profit Media & Entertainment Retail & Consumer Products Telecommunications Healthcare & Pharmaceutical Architecture & Engineering Aero/Auto/Transport Technology - Hardware Manufacturing/Industrial Oil & Energy Staffing United Kingdom Germany France Spain Netherlands Ireland 0 10 20 30 40 50 60 70 80 90 100 110 Note: LinkedIn defined a sector migrant as someone who is working in an industry (e.g. tech) of as July 2017 that is different to the industry they were working in July 2016 Source: LinkedIn Top destination sectors for outbound tech talent ("leavers") by industry and country But migration flow of talent between the tech and auto industry is a two-way flow. In France and Germany more than one in ten people leaving the tech industry are taking up positions at aero/auto/transport companies 7.3 Spotting patterns in the flow of talent between tech & traditional industry Note: LinkedIn defined a sector mover as someone who is working in an industry (e.g. tech) of as July 2017 that is different to the industry they were working in July 2016 Source: LinkedIn The State of European Tech 2017 Atomico & Slush 107 www.stateofeuropeantech.comEurope's traditional incumbents are cash-rich and hungry 7.4 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 195/241 TitleNo: 7.4 GroupName: Default GroupId: 845 ChartId: 243 ArticleId: 68 ChapterId: 15 The global tech industry sits on more cash than any other industry Total global cash holdings of all publicly-listed companies ($T) by industry Total cash holdings ($T)1.6 1.5 1.3 0.7 0.7 0.6 0.5 0.5 0.4 0.3 Total cash holdings ($T) TechIndustrialsConsumer DiscretionaryHealthcareMaterialsEnergyConsumer StaplesReal EstateUtilitiesTelecommunication Services0 0.5 1 1.5 Note: Based on total cash and cash equivalents held by public equities per industry as of 30 September 2017. Non-tech includes all industries except Financials. Source: S&P CapitalIQ Platform Total global cash holdings of all publicly-listed companies ($T) by industry The global tech industry sits on more cash than any other industry share of total global cash holdings that are held by non- tech companies Non-tech companies, however, still control four out of every five dollars sat on publicly-listed balance sheets 80% 22/11/2017 The State of European Tech 2017 TitleNo: 7.4 GroupName: Default GroupId: 427 ChartId: 144 ArticleId: 68 ChapterId: 15 While Europe controls a tiny share of cash held by public tech companies, it is the largest holder of non-tech cash globally, equating to $1.5 trillion Share of total global cash holdings of public companies by type and region % of global cash holdings5 53.6 11.7 9.3 6.7 13.6 23.2 18.7 20.1 13.1 3.2 21.7 Tech Non-Tech Europe United States China Japan Korea Rest of world 0 10 20 30 40 50 Note: Based on total cash and cash equivalents held by public equities per industry as of 30 September 2017. Non-tech includes all industries except Financials. Source: S&P CapitalIQ Platform Share of total global cash holdings of public companies by type and region While Europe controls a tiny share of cash held by public tech companies, it is the largest holder of non-tech cash globally, equating to $1.5 trillion Europe's share of the global total of $6T in cash held on the balance sheets of all non- tech publicly-listed companies (excluding companies in the financials sectors) European non-tech corporates sit on more cash than those from other regions 23% The State of European Tech 2017 Atomico & Slush 108 www.stateofeuropeantech.com18/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 191/241 TitleNo: 7.4 GroupName: Investments GroupId: 370 ChartId: 119 ArticleId: 68 ChapterId: 15 Non-tech companies have made a record number of investments into European tech companies in 2017 and acquired ~100 tech companies since 2016 Investments and M&A activity of non-tech corporates involving European tech companies # of deals / # of M&A transactions34 58 82 154 164 Investments 2013 2014 2015 2016 2017 0 50 100 150 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co 18/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 192/241 TitleNo: 7.4 GroupName: M&A GroupId: 372 ChartId: 119 ArticleId: 68 ChapterId: 15 Non-tech companies have made a record number of investments into European tech companies in 2017 and acquired ~100 tech companies since 2016 Investments and M&A activity of non-tech corporates involving European tech companies # of deals / # of M&A transactions10 17 39 50 44 M&A 2013 2014 2015 2016 2017 0 10 20 30 40 50 Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Investments ad M&A activity of non-tech corporates involving European tech companies Non-tech companies have made a record number of investments into European tech companies in 2017 and acquired ~100 tech companies since 2016 Acquisitions of tech companies by non-tech companies European non-tech corporates have made a number of significant acquisitions - in some cases for $100Ms - of tech companies in 2017 One interesting question - most countries have a tax credit for R&D for large corporates, and that is mostly for the internal R&D work they do. Would we extend that tax credit to startup acquisitions because in a way, when you acquire a startup, you are supporting innovation? I do not make a big difference between spending your money on your own R&D versus spending your money to acquire a startup to innovate. In the end, it's the same result. It would be interesting to extend those R&D tax credits to startup acquisitions as a way to boost the M&A market by corporates in Europe. Romain Lavault Partech Ventures 7.4 Europe's traditional incumbents are cash-rich and hungry Investments M&A Note: 2017 based on 9M to September 2017 and projection for Q4 2017 based on Q3 2017 Source: Dealroom.co Source: Dealroom.co 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 08 Regulation has often been seen as a constraint on technological development: a handcuff rather than an enabler. Tax, data protection and employment regulation has historically dominated news and policy agendas - and entrepreneurial mindsets. As the ecosystem matures, however, there are increasing signals which suggest regulation is emerging as a source of distinct competitive advantage for European tech, at a government, industry and company level. Regulation The State of European Tech 2017 Atomico & Slush 110 www.stateofeuropeantech.comRegulation is viewed as a barrier to scaling European tech 8.1 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 200/241 TitleNo: 8.1 GroupName: Geography GroupId: 615 ChartId: 190 ArticleId: 69 ChapterId: 16 Founders in the southern European countries of Italy and Spain are the most challenged by regulation Does European regulation make it harder to start and scale a technology business? % of respondents28 25 28 34 20 21 50 27 13 16 14 10 14 14 8 9 Strongly agree Strongly disagree EuropeUK & IrelandFrance & BeneluxDACHNordicsBalticsSouthern EuropeCentral & Eastern Europe0 20 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 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 201/241 TitleNo: 8.1 GroupName: Occupation GroupId: 617 ChartId: 190 ArticleId: 69 ChapterId: 16 Founders in the southern European countries of Italy and Spain are the most challenged by regulation Does European regulation make it harder to start and scale a technology business? % of respondents31 28 29 27 27 18 25 27 14 16 14 11 11 12 7 8 Strongly agree Strongly disagree FounderInvestorStartup employeeCompany employee (public tech co)Company employee (non-tech)Public sector employeeStudentOther0 10 20 30 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 Does European regulation make it harder to start and scale a technology business? Founders in the southern European countries of Italy and Spain are the most challenged by regulation The main challenge for European companies to scale up is the size of the market. A truly unified market with more common rules can help a lot of entrepreneurs. Furthermore, entrepreneurs need legal stability in order to launch new products and to innovate, they cannot do it if the legal ecosystem threatens to change. Entrepreneurs need to have faith in Europe, that means Europe needs to show them they can. Xavier Niel Station F Geography Occupatin The State of European Tech 2017 Atomico & Slush 111 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 202/241 TitleNo: 8.1 GroupName: Sub-regional level GroupId: 547 ChartId: 178 ArticleId: 69 ChapterId: 16 Tax, data protection/privacy and employment regulations are the biggest challenges for European founders overall, but the top challenges vary significantly by country and sub-region Which one area of regulation do you view as most challenging for your company? % of founder respondents24 4 4 19 3 2 24 5 12 35 4 7 5 7 3 22 23 11 8 28 30 14 5 2 1 5 38 6 6 2 24 11 6 6 5 23 20 18 2 0 4 2 UK & Ireland France & Benelux DACH Southern Europe Nordics Baltics Central & Eastern Europe TaxData protection and privacyEmploymentLicensing & certificationPatentsCompetitionNone of these areasData localisationConsumer protectionCopyright0 20 40 Note: Founder respondents 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/ 203/241 TitleNo: 8.1 GroupName: Country level GroupId: 723 ChartId: 178 ArticleId: 69 ChapterId: 16 Tax, data protection/privacy and employment regulations are the biggest challenges for European founders overall, but the top challenges vary significa tly by cou try and sub-region Which one area of regulation do you view as most challenging for your company? % of founder respondents24 19 5 5 4 4 3 26 19 24 12 0 9 4 33 7 7 4 4 2 0 32 12 0 12 8 12 4 36 22 16 7 2 3 3 12 35 21 6 5 5 7 3 Europe France Germany Italy Spain United Kingdom TaxData protection and privacyEmploymentLicensing & certificationPatentsCompetitionNone of these areasData localisationConsumer protectionCopyright0 10 20 30 Note: Founder respondents only. Numbers may not add to 100 due to rounding Source: The State of European Tech Survey 2017 Which one area of regulatio do you view as mos challenging for yur company? Tax, data protection/privacy and employment regulations are the biggest challenges for European founders overall, but the top challenges vary significantly by country and sub-region 8.1 Regulation is viewed as a barrier to scaling European tech Sub-regional level Country level We need a smart regulatory environment that appropriately addresses market abuse and distortion without limiting innovation and adoption of new technologies. It is also important that the policymakers and governments adapt to the changing world of work. Preserving vested interests and protecting old structures should not be used as reasons not to allow new innovations to break through, as we will once again see that creative destruction will open new opportunities and generate further prosperity and wellbeing to our societies. Alex Stubb European Investment Bank The State of European Tech 2017 Atomico & Slush 112 www.stateofeuropeantech.comRegulation is an opportunity for competitive advantage at all levels 8.2 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 204/241 TitleNo: 8.2 GroupName: Sub-regions GroupId: 129 ChartId: 40 ArticleId: 70 ChapterId: 16 There is broad agreement across Europe's tech community that regulatory change to incentivise the development of AI, blockchain and autonomous vehicles should be prioritised If your government was to prioritise regulatory changes to incentivise one new area of technology, which should it be? % of respondents35 22 4 3 41 17 26 12 36 24 23 4 28 27 31 8 4 33 22 28 7 36 25 21 11 3 27 18 34 5 14 30 22 31 9 4 Europe UK & Ireland France & Benelux DACH Southern Europe Nordics Baltics Central & Eastern Europe Artificial Intelligence Autonomous Vehicles Crypto/blockchain Drones Gene editing Personal Aircraft ("flying cars") 0 10 20 30 40 Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 205/241 TitleNo: 8.2 GroupName: Countries GroupId: 730 ChartId: 40 ArticleId: 70 ChapterId: 16 There is broad agreement across Europe's tech community that regulatory change to incentivise the development of AI, blockchain and autonomous vehicles should be prioritised If your government was to prioritise regulatory changes to incentivise one new area of technology, which should it be? % of respondents26 18 47 2 42 23 21 8 3 29 29 29 3 23 17 37 8 13 2 38 29 21 8 25 41 5 5 41 17 25 12 Denmark France Germany Latvia Sweden Switzerland United Kingdom Artificial Intelligence Autonomous Vehicles Crypto/blockchain Drones Gene editing Personal Aircraft ("flying cars") 0 10 20 30 40 50 Source: The State of European Tech Survey 2017 22/11/2017 The State of European Tech 2017 TitleNo: 8.2 GroupName: Occupation GroupId: 731 ChartId: 40 ArticleId: 70 ChapterId: 16 There is broad agreement across Europe's tech community that regulatory change to incentivise the development of AI, blockchain and autono ous vehicles should be prioritis If your government was to prioritise regulatory changes to incentivise one new area of technology, which should it be? % of respondents35 20 4 3 31 24 29 11 35 40 23 21 4 4 37 25 11 25 18 6 5 30 21 12 36 28 4 1 Founder Investor Startup employee Company employee (public tech co) Company employee (non-tech) Public sector employee Student Other Artificial Intelligence Autonomous Vehicles Crypto/blockchain Drones Gene editing Personal Aircraft ("flying cars") 0 10 20 30 40 Source: The State of European Tech Survey 2017 If your government was to prioritise regulatory changes to incentivise one new area of technology, which should it be? There is broad agreement across Europe's tech community that regulatory change to incentivise the development of AI, blockchain and autonomous vehicles should be prioritised of founders would prioritise regulatory changes to incentivise the development of AI Founders seek greater clarity on how AI can be applied in regulated industries 35% Sub-regions Countries Occupation Source: The State of European Tech Survey 2017 The State of European Tech 2017 Atomico & Slush 113 www.stateofeuropeantech.comIn the past few decades tech entrepreneurs have transformed unregulated industries. Now tech is turning to regulated industries, such as health or education. We're going after the most difficult societal issues, and searching for the greatest solutions. We also need to continue to push our European policy on both competition and regulation in the EU market. New regulatory frameworks at EU level are necessary to support the development of emerging tech and market trends, like blockchain or eSports. Barnaby Hussey-Yeo Cleo Fleur Pellerin Korelya Capital Priority technology area for regulatory changes to incentivise development by country of survey respondent There are different views on the key area for regulatory change depending on the country We are seeing very encouraging approaches to regulation across various European states, from the UK to France, from Estonia to Malta and Slovenia; additional guidance from the EU at this stage would certainly be welcome and should not be delayed. This is a very fluid and distributed industry, a heavy hand from the regulator could be very costly, but so would protracted uncertainty and doubt. The ideal scenario would be for a European authority to enable fully-tokenised equity structures, which would be a complete game changer. Stefano Bernardi & Yannick Roux Token Economy 8.2 Regulation is an opportunity for competitive advantage at all levels Note: Both Germany and the Netherlands voted for AI/blockchain in equal measure Source: The State of European Tech Survey 2017 The State of European Tech 2017 Atomico & Slush 114 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 208/241 TitleNo: 8.2 GroupName: Default GroupId: 383 ChartId: 124 ArticleId: 70 ChapterId: 16 European media attention has concentrated heavily on the role of regulation and technology in the financial services sector. There is far less discussion around key verticals, such as healthcare or education Relative level of media coverage by industry vertical of articles mentioning technology and regulation Indexed article count rebased to #1 mostcited industry vertical, where FinancialServices = 100100 39 34 26 13 5 1 1 1 0 Indexed article count, rebased to Financial Services Fina nc ia l Servic es Tran sporta tio n Au to m ot iveAg ric ul tu reLo gi st ic s In su ra nc eEduc at io n Lega l Heal th ca reRe al E st at e 0 25 50 75 100 Note: Based on unique articles containing "technology" and "regulation" and selected industry verticals. Overall source set based on representative list of 100 leading European business and tech publications between Jan & Oct 2017 Source: Signal Relative level of media coverage by industry vertical of articles mentioning technology and regulation European media attention has concentrated heavily on the role of regulation and technology in the financial services sector. There is far less discussion around key verticals, such as healthcare or education Whilst Natural Cycles becoming the first app to be certified as a contraceptive might be considered a competitive advantage, we like to think of it as us paving the way for other medical apps and creating a new standard for the industry as a whole. Regulation requires high quality clinical research and ensures that the rights and safety of consumers and society at large are protected. Elina Berglund-Scherwitzl CTO & Co-founder | Natural Cycles birth control app to be certified as a contraception method by European authorities Companies such as Sweden's Natural Cycles are seeing regulation as a source of competitive advantage 1st 8.2 Regulation is an opportunity for competitive advantage at all levels The State of European Tech 2017 Atomico & Slush 115 www.stateofeuropeantech.comStatus of the regulatory landscape in selected European countries for the commercial use of key new technologies Current regulatory frameworks in Europe are not ready for the commercial deployment of key new technologies Public policy is a mid-to long-term game. We can either have a digital single market that tries to preserve what Europe was strong at for the last 50 years or we can have a digital single market that opens up to what Europe will be strong at for the next 20 to 50 years. So if we speak about what single market we want, this is really about where we set the bar in terms of new market entrants and whether we make it easy for them to access the market or whether we make it harder. Lenard Koschwitz Allied for Startups 8.2 Regulation is an opportunity for competitive advantage at all levels Note: This is intended as an indicative overview of the state of European regulation as of November 2017 Source: Atomico research 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 09 Europe doesn't always do a great job of championing its successes European tech has had a standout year: we have some serious billion dollar success stories in our midst. Success Stories & Exits The State of European Tech 2017 Atomico & Slush 117 www.stateofeuropeantech.comEurope's billion-dollar success stories 9.1 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 210/241 TitleNo: 9.1 GroupName: Default GroupId: 453 ChartId: 152 ArticleId: 71 ChapterId: 17 Europe has now produced 41 tech companies that have achieved $B+ valuations through private market investment rounds, via an acquisition or through a valuation in the public markets post-IPO Number of European $B+ companies founded since 2003 Cumulative # of $B+ companies founded since 20031 2 3 7 11 19 28 34 41 Cumulative 2005 2010 2011 2012 2013 2014 2015 2016 2017 0 10 20 30 40 Note: Several companies that were formerly valued above $B+ have since fallen below that mark. These include Home24, Monitise, Powa, Soundcloud, Ulmart, Ve Interactive, Wonga Source: Atomico research Number of Europea$B+ companies founded since 2003 Europe has now produced 41 tech companies that have achieved $B+ valuations through private market investment rounds, via an acquisition or through a valuation in the public markets post-IPO Today in Europe we've created so many fantastic companies over the last seven to ten years, so now there is so much talent. More smart people from universities are choosing to go into tech. You have everything in Europe to create billion dollar companies, ten billion dollar companies or maybe even hundred billion dollar companies. Niklas Zennstrm Atomico The State of European Tech 2017 Atomico & Slush 118 www.stateofeuropeantech.comEuropean billion-dollar companies by valuation The UK has produced the most $B+ companies, but they have now emerged from 11 different countries across Europe since 2003 I believe Europe will continue to lead in industries where creativity, tradition and craftsmanship are key, such as fashion. It is no coincidence that the largest players in online luxury fashion are European. In fact, even in the more mass market companies like Zalando. ASOS, inditex, Adidas, are clearly leading the way both off- and online with a high degree of technological innovation. Jos Neves Farfetch 9.1 Europe's billion-dollar success stories The State of European Tech 2017 Atomico & Slush 119 www.stateofeuropeantech.comEuropean companies that surpassed a $B+ valuation for the first time in 2017, either through a private investment round, via an acquisition or through passing a $B+ valuation in the public markets for the first time since IPO Europe has seen seven companies surpass a billion-dollar valuation for the first time in 2017 9.1 Europe's billion-dollar success stories Netherlands UK Slovenia UK Finland France UK Photo: Samuli Pentti The State of European Tech 2017 Atomico & Slush 120 www.stateofeuropeantech.com45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 Europe is on track for another $75B+ of M&A exit value in 2017 9.2 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 212/241 TitleNo: 9.2 GroupName: M&A exit value GroupId: 361 ChartId: 115 ArticleId: 73 ChapterId: 17 Company Sector Company status Year founded Year first reached $B+ Country Latest valuation ($B) Funding Circle Financial Services Private 2010 2015 UK 1 Qiwi Enterprise Apps Public 2007 2013 Russia 1 Source: Dealroom.co Total M&A exit value is tracking towards another $75B+ year in 2017 European M&A exit value ($B) by company type (VC-backed or not) 4.1 13.6 43.5 47.6 48.7 25.7 11 27.7 57.3 30.9 129.2 53.5 VC-backed exit value ($B) Non-VC-backed exit value ($B) 2012 2013 2014 2015 2016 2017 9M Note: M&A exit value based on total enterprise value of all tracked transactions Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 9.2 GroupName: M&A exit count GroupId: 363 ChartId: 115 ArticleId: 73 ChapterId: 17 Total M&A exit value is tracking towards another $75B+ year in 2017 European M&A exit value ($B) by company type (VC-backed or not) 45 72 111 228 262 223 41 61 113 449 406 395 VC-backed exit count Non-VC-backed exit count 2012 2013 2014 2015 2016 2017 9M Note: M&A exit value based on total enterprise value of all tracked transactions Source: Dealroom.co European M&A exit value ($B) by company type (VC-backed or not) Total M&A exit value is tracking towards another $75B+ year in 2017 M&A exit value M&A exit value The State of European Tech 2017 Atomico & Slush 121 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 214/241 TitleNo: 9.2 GroupName: Exit value: $0-100M GroupId: 366 ChartId: 117 ArticleId: 73 ChapterId: 17 Europe is on track for a record high number of VC-backed exits in 2017 VC-backed M&A exit count by deal size # of deals9 17 24 41 44 44 $0-100M 2012 2013 2014 2015 2016 2017 9M 0 10 20 30 40 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 216/241 TitleNo: 9.2 GroupName: Exit value: $250-500M GroupId: 856 ChartId: 117 ArticleId: 73 ChapterId: 17 Europe is on track for a record high number of VC-backed exits in 2017 VC-backed M&A exit count by deal size # of deals2 3 4 9 11 6 $250-500M 2012 2013 2014 2015 2016 2017 9M 0 2.5 5 7.5 10 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 TitleNo: 9.2 GroupName: Exit value: Undisclosed GroupId: 858 ChartId: 117 ArticleId: 73 ChapterId: 17 Europe is on track for a record high number of VC-backed exits in 2017 VC-backed M&A exit count by deal size # of deals28 43 59 155 180 161 Undisclosed 2012 2013 2014 2015 2016 2017 9M 0 50 100 150 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 215/241 TitleNo: 9.2 GroupName: Exit value: $100-250M GroupId: 855 ChartId: 117 ArticleId: 73 ChapterId: 17 Europe is on track for a record high number of VC-backed exits in 2017 VC-backed M&A exit count by deal size # of deals5 4 12 13 15 7 $100-250M 2012 2013 2014 2015 2016 2017 9M 0 5 10 15 Source: Dealroom.co 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 217/241 TitleNo: 9.2 GroupName: Exit value: $500M+ GroupId: 857 ChartId: 117 ArticleId: 73 ChapterId: 17 Europe is on track for a record high number of VC-backed exits in 2017 VC-backed M&A exit count by deal size # of deals1 5 12 10 12 5 $500M+ 2012 2013 2014 2015 2016 2017 9M 0 2.5 5 7.5 10 12.5 Source: Dealroom.co VC-backed M&A exit count by deal size Europe is on track for a record high number of VC-backed exits in 2017 Exit value: $0-100M Exit value: $250M-500M Exit value: Undisclosed Exit value: $100M-250M Exit value: $500M+ 9.2 Europe is on track for another $100B of M&A exit value in 2017 The State of European Tech 2017 Atomico & Slush 122 www.stateofeuropeantech.com22/11/2017 The State of European Tech 2017 TitleNo: 9.2 GroupName: Default GroupId: 368 ChartId: 118 ArticleId: 73 ChapterId: 17 European tech companies are overwhelmingly acquired by European buyers M&A exits by buyer country by year # of deals19 34 46 122 152 127 23 51 60 53 3 2 3 11 8 3 10 8 24 21 21 Europe USA and Canada Asia Other (Incl. unknown buyer country) 2012 2013 2014 2015 2016 2017 (9M) 0 50 100 150 Source: Dealroom.co M&A exits by buyer country by year European tech companies are overwhelmingly acquired by European buyers 9.2 Europe is on track for another $100B of M&A exit value in 2017 Photo: Samuli Pentti The State of European Tech 2017 Atomico & Slush 123 www.stateofeuropeantech.comEuropean tech has delivered another strong year of IPOs 9.3 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 221/241 TitleNo: 9.3 GroupName: Tech IPOs GroupId: 407 ChartId: 136 ArticleId: 74 ChapterId: 17 Europe has had the most tech IPOs globally in 2017 Number of tech IPOs by region Number of tech IPOs22 29 41 43 49 38 31 34 39 26 20 17 Europe - Tech IPOs US - Tech IPOs 2012 2013 2014 2015 2016 2017 (9M) 0 10 20 30 40 50 Source: London Stock Exchange 22/11/2017 The State of European Tech 2017 TitleNo: 9.3 GroupName: Sponsor-backed Tech IPOs GroupId: 410 ChartId: 136 ArticleId: 74 ChapterId: 17 Europe has had the most tech IPOs globally in 2017 Number of tech IPOs by region Number of tech IPOs1 3 9 10 3 4 16 10 10 13 7 5 Europe - Sponsor US - Sponsor 2012 2013 2014 2015 2016 2017 (9M) 0 5 10 15 Source: London Stock Exchange Number of tech IPOs by region Europe has had the most tech IPOs globally in 2017 Tech IPOs Sponsor-backed Tech IPOs The State of European Tech 2017 Atomico & Slush 124 www.stateofeuropeantech.comNumber of tech IPOs by market cap at IPO by year and region There have been 6 $B+ tech IPOs from Europe in the first nine months of 2017 9.3 European tech has delivered another strong year of IPOs 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 223/241 TitleNo: 9.3 GroupName: Market cap of $1B+ GroupId: 417 ChartId: 139 ArticleId: 74 ChapterId: 17 There have been 6 $B+ tech IPOs from Europe in the first nine months of 2017 Number of tech IPOs by market cap at IPO by year and region Number of tech IPOs by market cap at IPO0 0 10 5 3 6 8 11 10 11 5 9 Europe - $1B+ US - $1B+ 2012 2013 2014 2015 2016 2017 (9M) 0 2.5 5 7.5 10 Source: London Stock Exchange 22/11/2017 The State of European Tech 2017 TitleNo: 9.3 GroupName: Market cap of <$1B GroupId: 774 ChartId: 139 ArticleId: 74 ChapterId: 17 There have been 6 $B+ tech IPOs from Europe in the first nine months of 2017 Number of tech IPOs by market cap at IPO by year and region Number of tech IPOs by market cap at IPO22 29 31 38 46 32 23 23 29 15 15 8 Europe - <$1B US - <$1B 2012 2013 2014 2015 2016 2017 (9M) 0 10 20 30 40 50 Source: London Stock Exchange Market cap of $1B+ Market cap of < $1B The State of European Tech 2017 Atomico & Slush 125 www.stateofeuropeantech.comProceeds raised ($B) by funding type and region European tech companies have raised $6B+ via the public capital markets in the first nine months of 2017, exceeding proceeds raised in US tech IPOs 9.3 European tech has delivered another strong year of IPOs 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 225/241 TitleNo: 9.3 GroupName: IPO GroupId: 411 ChartId: 137 ArticleId: 74 ChapterId: 17 European tech companies have raised $6B+ via the public capital markets in the first nine months of 2017, exceeding proceeds raised in US tech IPOs Proceeds raised ($B) by funding type and region Proceeds raised ($B)0.3 20.6 1.4 7.1 9.9 7.7 10.6 8.7 4.6 2.2 6.4 6.3 2012 2013 2014 2015 2016 2017 (9M) Europe - IPO US - IPO 0 5 10 15 20 Source: London Stock Exchange 22/11/2017 The State of European Tech 2017 TitleNo: 9.3 GroupName: Follow-on GroupId: 413 ChartId: 137 ArticleId: 74 ChapterId: 17 European tech companies have raised $6B+ via the public capital markets in the first nine months of 2017, exceeding proceeds raised in US tech IPOs Proceeds raised ($B) by funding type and region Proceeds raised ($B)4.7 6.2 12.8 19.7 7.3 15.2 8.4 15 15.2 9.8 5.5 14.4 2012 2013 2014 2015 2016 2017 (9M) Europe - Follow-on US - Follow-on 0 5 10 15 20 Source: London Stock Exchange IPO Follow on The State of European Tech 2017 Atomico & Slush 126 www.stateofeuropeantech.comNumber of tech IPOs by proceeds raised at IPO by year and region Europe is traditionally stronger for smaller listings, but since 2012 the region has also seen more large offerings of $500M+ than the US 9.3 European tech has delivered another strong year of IPOs 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 227/241 TitleNo: 9.3 GroupName: Europe GroupId: 414 ChartId: 138 ArticleId: 74 ChapterId: 17 Europe is tradit onally stronger for smaller listings, but since 2012 the region has also seen more large offerings of $500M+ than the US Number of tech IPOs by proceeds raised at IPO by year and region Number of tech IPOs20 25 25 30 40 29 2 4 8 9 8 7 0 0 8 4 1 2 Europe - <$100M Europe - $100-500M Europe - $500M+ 2012 2013 2014 2015 2016 2017 (9M) 0 10 20 30 40 Source: London Stock Exchange 22/11/2017 The State of European Tech 2017 TitleNo: 9.3 GroupName: US GroupId: 416 ChartId: 138 ArticleId: 74 ChapterId: 17 Europe is traditionally stronger for smaller listings, but since 2012 the region has also seen more large offerings of $500M+ than the US Number of tech IPOs by proceeds raised at IPO by year and region Number of tech IPOs11 14 12 10 9 7 17 19 24 11 11 9 3 1 3 5 0 1 US - <$100M US - $100-500M US - $500M+ 2012 2013 2014 2015 2016 2017 (9M) 0 5 10 15 20 25 Source: London Stock Exchange Europe US The State of European Tech 2017 Atomico & Slush 127 www.stateofeuropeantech.comAverage share of primary versus secondary shares sold at IPO by region European markets better understand the importance of liquidity and so are more open to existing investors selling down their position at IPO. As a result, there is a much higher share of secondary share sales than in the US 9.3 European tech has delivered another strong year of IPOs 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 229/241 TitleNo: 9.3 GroupName: Europe GroupId: 419 ChartId: 140 ArticleId: 74 ChapterId: 17 European markets better understand the importance of liquidity and so are more open to exi ting investors selling down their position at IPO. As a result, there is a much higher share of secondary share sales than in the US Average share of primary versus secondary shares sold at IPO by region % share of primary versus secondary shares sold at IPO99 87 73 72 67 77 2 13 27 25 33 23 Average of Primary % Sold - Europe Average of Secondary % Sold - Europe 2012 2013 2014 2015 2016 2017 (9M) 0 25 50 75 100 Source: London Stock Exchange 22/11/2017 The State of European Tech 2017 TitleNo: 9.3 GroupName: US GroupId: 787 ChartId: 140 ArticleId: 74 ChapterId: 17 European markets better understand the importance of liquidity and so are more open to existing investors selling down their position at IPO. As a result, there is a much higher share of secondary share sales than in the US Average share of primary versus secondary shares sold at IPO by region % share of primary versus secondary shares sold at IPO86 87 89 97 98 95 14 13 11 3 2 5 Average of Primary % Sold - US Average of Secondary % Sold - US 2012 2013 2014 2015 2016 2017 (9M) 0 25 50 75 100 Source: London Stock Exchange Europe US The State of European Tech 2017 Atomico & Slush 128 www.stateofeuropeantech.com45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 231/241 TitleNo: 9.3 GroupName: Default GroupId: 421 ChartId: 141 ArticleId: 74 ChapterId: 17 European tech IPO vintages have often outperformed those in the US in aftermarket performance, including in 2017 Weighted aftermarket performance of European tech IPOs by vintage year Weighted aftermarket performance, offer date to 30September 201730 56 22 74 37 24 333 27 71 43 66 6 Europe US 2012 2013 2014 2015 2016 2017 (9M) 0 100 200 300 Source: London Stock Exchange Weighted aftermarket performance of European tech IPOs by vintage year European tech IPO vintages have often outperformed those in the US in aftermarket performance, including in 2017 22/11/2017 The State of European Tech 2017 TitleNo: 9.3 GroupName: Default GroupId: 423 ChartId: 142 ArticleId: 74 ChapterId: 17 Europe still has a long way to go. Despite adding nearly $350B in total market value since 2012 and more than doubling the total market cap of public European tech companies to $657B, this has been eclipsed by value creation from US and China in that period Total market cap ($B) of public tech companies by region Aggregate market cap ($B)331 2,956 213 675 5,455 1,011 2012 2017 Europe US China 0 1k 2k 3k 4k 5k 6k Source: London Stock Exchange Total market cap ($B) of public tech companies by region Europe still has a long way to go. Despite adding nearly $350B in total market value since 2012 and more than doubling the total market cap of public European tech companies to $657B, this has been eclipsed by value creation from US and China in that period 9.3 European tech has delivered another strong year of IPOs The State of European Tech 2017 Atomico & Slush 129 www.stateofeuropeantech.comMost valuable public companies by region and type There are no tech companies in the top 10 most valuable companies in Europe, whereas the top five from the US and the top two from China are all tech companies market cap of SAP, Europe's most valuable tech company Europe's most valuable tech company is much more valuable than most people think $135B Note: Market cap as of 31 October 2017 Source: S&P CapitalIQ Platform 9.3 European tech has delivered another strong year of IPOs 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 10 Taking a data-fuelled sledgehammer to some of the biggest myths about the European tech ecosystem Part of the reason we feel so passionate about this research is the opportunity to challenge common misconceptions about European technology, and truly reflect the reality of what's happening on the ground. Mythbusting The State of European Tech 2017 Atomico & Slush 131 www.stateofeuropeantech.com10.1 Myth #1: European venture does not deliver returns 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 236/241 TitleNo: 10.1 GroupName: Default GroupId: 748 ChartId: 239 ArticleId: 78 ChapterId: 18 Since the dotcom era, European venture capital performance has improved dramatically Top quartile performance (net internal rate of return) of EIF-backed VC funds by vintage year Net internal rate of return (%)-5.5 6.6 3 0 11.9 7.4 16.7 23.1 22.3 16.1 18.5 12.5 24.9 19.1 Net IRR 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 -10 0 10 20 Note: Data for VC funds raised in 2003 is not meaningful Source: European Investment Fund Top quartile performance (net internal rate of return) of EIF-backed VC funds by vintage year Since the dotcom era, European venture capital performance has improved dramatically Photo: Sami Vlikangas The State of European Tech 2017 Atomico & Slush 132 www.stateofeuropeantech.com10.2 Myth #2: European VCs don't cross borders 22/11/2017 The State of European Tech 2017 TitleNo: 10.2 GroupName: Default GroupId: 541 ChartId: 175 ArticleId: 77 ChapterId: 18 Again, not so. For rounds of $10M+, European VCs actually invest outside of their domestic market more often than they make investments at home % of investments made by European VCs into international (non-domestic) companies by size of round ($M) % of investments 23 32 38 51 53 65 % of 2017 investment rounds $0-2M $2-5M $5-10M $10-20M $20-50M $50M+ 0 10 20 30 40 50 60 70 Source: Dealroom.co % of investments made by European VCs into international (non-domestic) companies by size of round ($M) Again, not so. For rounds of $10M+, European VCs actually invest outside of their domestic market more often than they make investments at home The State of European Tech 2017 Atomico & Slush 133 www.stateofeuropeantech.comMyth #3: Europe's public market investors don't get tech 10.3 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 238/241 TitleNo: 10.3 GroupName: Default GroupId: 539 ChartId: 174 ArticleId: 76 ChapterId: 18 Untrue. Europe is building an increasingly sophisticated base of public market investors with strong tech investment credentials Most active public market investors in publicly-listed European tech companies # of public tech company holdings 24 21 21 21 19 19 18 16 14 # of public tech companies invested in SwedbankRobur Fonder NorgesBank Investment Management Schroder Investment Management FIL Investment Advisors Legal & General Investment Management Standard Life Investments Old Mutual Global Investors Allianz Global Investors Baillie Gifford 0 5 10 15 20 25 Source: London Stock Exchange Most active public market investors in publicly-listed European tech companies Untrue. Europe is building an increasingly sophisticated base of public market investors with strong tech investment credentials In recent years we have witnessed deepening sophistication of the European investor base across a range of tech sectors. We see that evidenced in London where the "valuation gap" to US competitors is no longer a factor. Tech IPOs in the US this year have seen mixed success, yet across Europe we have seen good tech companies deliver solid IPOs backed by knowledgeable institutional investors. Nikhil Rathi London Stock Exchange PLC 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 11 As we close the door on 2017, we cast our eyes to the year ahead Some say that making predictions is a dangerous game, but making educated guesses based upon the latest data can be quite smart. Having analysed the shifts and trends of European technology in 2017, here are four key trends that Tom Wehmeier, the report's author, foresees in 2018. What's next The State of European Tech 2017 Atomico & Slush 135 www.stateofeuropeantech.comPredictions for European tech in 2018 from report author, Tom Wehmeier 11.1 Founders will come to see regulation as a source of potential competitive advantage The 'move fast and break things' mentality has never sat well with heavily-regulated markets. As founders realise that they can gain an advantage through regulatory compliance, it will go from being seen as a perceived handcuff to being a potential source of competitive advantage. Think of Natural Cycles, Kry or Babylon in the healthcare market. They are all early examples of companies that have embarked upon - and come out of the other side of - lengthy regulatory approval processes to gain an an advantage on their competitors. A venture-backed European tech startup will exit for a $B+ to a traditional non-tech European giant Non-tech European corporates have already made billion-dollar tech acquisitions (Anglo-Dutch Unilever picked up Dollar Shave Club), but acquisitions within Europe have typically been in the hundreds of millions (for example, BNP Paribas and Compte Nickel). This will change in 2018 as European non-tech corporates put some of their combined $1.5 trillion cash holdings to work. European founders will increase efforts to tap engineering talent pools outside of traditional hubs A top-tier, established European VC will participate in a token offering/ICO In 2017, top-tier US funds (including Andreessen Horowitz and Union Square Ventures) actively invested directly in tokens via Initial Coin Offerings. They were joined by some of Europe's newest funds, such as Blueyard. But the region's most established funds have yet to participate. This will change in 2018. The battle for talent in Europe is intensifying. Not only are there more venture-backed startups that are better funded and hungrier for engineering talent than ever, but global tech giants are also expanding aggressively in the region with inflated salaries on offer for the most talented. At the same time, European corporates are fighting back, ensuring talent flows are not a one-way street into tech. In order to stay competitive in this context, European founders will look for creative ways to best exploit the untapped engineering talent pools in less obvious places. For example, we expect to see more satellite offices opening up across the region in upcoming hubs. Prediction #1 Prediction #2 Prediction #3 Prediction #4 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 12 The State of European Tech Report 2017: how we did it In these pages we share the methodologies behind the data in this report, including the State of European Tech Survey 2017. Sign up to the Atomico mailing list http://atomico.com/signup if you'd like to take part in next year's. Appendix The State of European Tech 2017 Atomico & Slush 137 www.stateofeuropeantech.comSurvey respondents 12.1 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 251/253 TitleNo: 12.1 GroupName: Default GroupId: 97 ChartId: 30 ArticleId: 80 ChapterId: 20 Geographic origin of survey respondents % of respondents 25 21.4 12.1 11.1 10.5 7.8 6.6 3.5 2 % Nordics UK & Ireland Southern Europe (Greece, Italy, Portugal, Spain) France & Benelux DACH Rest of Europe Baltics Rest of world United States 0 5 10 15 20 25 Note: Number may not add to 100 due to rounding Source: Survey 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 253/253 TitleNo: 12.1 GroupName: Default GroupId: 93 ChartId: 28 ArticleId: 80 ChapterId: 20 Gender of respondents % of respondents 74.8 24.3 0.9 % Male Female Prefer not to say 0 10 20 30 40 50 60 70 80 Note: Number may not add to 100 due to rounding Source: Survey 22/11/2017 The State of European Tech 2017 http://preview.stateofeuropeantech.com/all-charts/ 252/253 TitleNo: 12.1 GroupName: Default GroupId: 95 ChartId: 29 ArticleId: 80 ChapterId: 20 Occupation of survey respondents % of respondents 32.7 16.4 15.9 13.3 6.4 5.9 5.1 4.3 % Founder Investor Startup employee Company employee (non-tech) Company employee (public tech co) Student Other Public sector employee 0 5 10 15 20 25 30 35 Note: Number may not add to 100 due to rounding Source: Survey Geographic origin of survey respondents Gender of respondents Occupation of survey respondents The State of European Tech 2017 Atomico & Slush 138 www.stateofeuropeantech.comMore about our partners 12.2 About Craft About Dealroom.co About Invest Europe About European Investment Fund Craft is a machine-learning powered data and analytics platform building the "Source of Truth" on companies and mapping the global economy. The Company organizes financial, operating and human capital data from thousands of sources to provide comprehensive, up-to-date sector and company profiles, ranging from early-stage to the largest companies in the world. Dealroom.co helps corporations, investment firms and governments to track innovative companies and identify strategic opportunities, through data-driven software. Invest Europe is the association representing Europe's private equity, venture capital and infrastructure sectors, as well as their investors. Invest Europe's members take a long-term approach to investing in privately held companies, from start-ups to established firms. They inject not only capital but dynamism, innovation and expertise. This commitment helps deliver strong and sustainable growth, resulting in healthy returns for Europe's leading pension funds and insurers, to the benefit of the millions of European citizens who depend on them. Invest Europe aims to make a constructive contribution to policy affecting private capital investment in Europe. We provide information to the public on our members' role in the economy. Our research provides the most authoritative source of data on trends and developments in our industry. Invest Europe is the guardian of the industry's professional standards, demanding accountability, good governance and transparency from our members. Invest Europe is a non-profit organisation with 25 employees in Brussels, Belgium. For more information please visit www.investeurope.eu The European Investment Fund is a specialist provider of risk finance to benefit small and medium-sized enterprises (SME) across Europe. It forms part of the EIB Group. Its shareholders are the European Investment Bank (EIB), the European Union, represented by the European Commission, and a wide range of public and private banks and financial institutions. The EIF carries out its activities using either its own resources or those provided by the European Investment Bank, the European Commission, by EU Member States or other third parties. By developing and offering targeted financial products to intermediaries, such as banks, guarantee and leasing companies, micro-credit providers and private equity funds, EIF seeks to enhance SME's access to finance. The State of European Tech 2017 Atomico & Slush 139 www.stateofeuropeantech.comAbout London Stock Exchange About LinkedIn London Stock Exchange is the world's most international capital market. Over 2,400 companies from more than 90 countries are quoted across its markets, with a combined value of over 4 trillion. London Stock Exchange's markets include the Main Market London's flagship venue for equity, debt and exchange traded products, offering businesses access to Europe's most liquid pool of capital and AIM the world's leading market for small and growing companies. LinkedIn connects the world's professionals to make them more productive and successful and transforms the ways company hire and sell. Our vision is to create economic opportunity for every member of the global workforce through the ongoing development of the world's first Economic Graph. LinkedIn has more than 467 million members and has offices around the world. About Signal Signal Media is an Artificial Intelligence company developing smart technology for smart organisations to power informed decision- making. Using the power of AI, Signal Media have created solutions that enable the real-time discovery and analysis of relevant information and news. 12.2 More about our partners About Stack Overflow Stack Overflow is the largest, most trusted online developer community for developers to learn, share their knowledge, and build their careers. More than 50 million professional and aspiring programmers visit Stack Overflow each month to help solve coding problems, develop new skills, and find job opportunities. Founded in 2008, Stack Overflow partners with businesses to help them understand, hire, engage, and enable the world's developers. To learn more about Stack Overflow's business solutions - technical recruiting, advertising, market research, and enterprise knowledge sharing visit stackoverflowbusiness.com. The State of European Tech 2017 Atomico & Slush 140 www.stateofeuropeantech.comAbout Startup Europe Partnership About Quid Established by the European Commission in January 2014 at the World Economic Forum in Davos, SEP is the first pan-European open innovation platform dedicated to transforming European startups into scaleups by linking them with global corporations and stock exchanges. By participating in the SEP program, global companies have access to the best technologies and companies with the goal of initiating business partnerships and venture corporate investments. Scaleups are exposed to qualified sales/strategic opportunities as well as funding options either via venture capital, private placements, or IPOs. SEP is led by Mind the Bridge, a global organization based in Europe and Silicon Valley. SEP is a Startup Europe initiative. Partners include leading corporates and the European Investment Fund/ European Investment Bank Group, London Stock Exchange Group, Nesta, EBAN, European Startup Network, The ScaleUp Institute. For more info: http://startupeuropepartnership.eu | @sep_eu Quid is software that reads millions of documents and offers immediate insight by organising that content visually. We power human intuition with machine intelligence, enabling organisations to make decisions that matter. For more info: https://quid.com/ 12.2 More about our partners 1 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 13 A few acknowledgements This report wouldn't be possible without the help of many people - here we say a big thank you to all involved. Acknowledgements The State of European Tech 2017 Atomico & Slush 142 www.stateofeuropeantech.comContributors 13.1 Bryce Keane Atomico Matt Muir Atomico Sabrina Wangday Atomico Tom Wehmeier Atomico Ilya Levtov Craft Karthik Suresh Craft Julien Puls Dealroom.co Yoram Wijngaarde Dealroom.co Oscar Farres European Investment Fund Uli Grabenwarter European Investment Fund Jean-Loup Karst Hired Cornelius Mueller Invest Europe Julien Krantz Invest Europe Claire-Louise Fagan LinkedIn Declan McNamara LinkedIn James Upsher LinkedIn Hetal Patel London Stock Exchange James Clark London Stock Exchange Sarah Baker London Stock Exchange Odile Beniflah Meetup Ben Novick Milltown Partners Britta Tarvis Milltown Partners Francesca Burton Milltown Partners Jenny Craig Milltown Partners Alberto Onetti Mind the Bridge Denisa Florea Perep Analytics Jrgen Furian Pioneers Festival Sam Waudby Quid Shashi Reddy Quid Kerstin Bock Openers Carolin Lessoued Openers Daniel Bowman Signal Laura Karinen Slush Marianne Vikkula Slush John Muskett Stack Overflow Natalia Radcliffe-Brine Stack Overflow Natalie Novick Startup Heatmap Europe Thomas Kosters Startup Heatmap Europe Benjamin Constantini Startup Sesame Joanna Kirk Startup Sesame Moojan Asghari Startup Sesame Ricky Tan TokenData Joe Lovelock Studio Lovelock Ben Jakob Studio Lovelock Matt Collins Studio Lovelock Mike Allanson Studio Lovelock Tiffany Beucher Studio Lovelock Amir Mizroch 45,0232328 2328 6335 5493 3453 5328 2328 2328 2328 2328 1578 6335 Now go and explore the data at www.stateofeuropeantech.com
