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Quarterly European Venture Capital report 10 October 2018 Q3 2018 1. Europe & Israel 2. Investment by country 3. Investment by category 4. Exits Contents 2 6.1 billion invested in Q3, a slowdown compared to previous quarters Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. Quarterly investment in European VC rounds 3 Top-10 Investment Rounds in Q3 2018 Location Round Letgo Platform for buying and selling second hand goods Spain $ 500 m SERIES E $1.5B valuation About You Fast growing e-commerce retailer for fashion Germany $ 300 m GROWTH EQUITY $1.0B valuation Greensill Financial services firm specialising in Supply Chain Finance United Kingdom $ 250 m GROWTH EQUITY $1.6B valuation Deezer Online music streaming service available on any device France 160 m LATE VC $1.0B valuation Orchard Therapeutics Treating rare disorders through innovative gene therapies United Kingdom $ 150 m SERIES C Glovo On-demand mobile application connects customers with independent local couriers Spain 115 m SERIES C Talan Business Analysis, Support, IT Engineering and IT Architecture France 100 m GROWTH EQUITY Deposit Solutions The open architecture platform for retail deposits Germany $ 100 m SERIES D OakNorth Bank Surgical robotics company United Kingdom $ 100 m SERIES B SEBA Crypto The gateway that facilitates movement of assets between the crypto and traditional financial markets Germany 88 m EARLY VC Top 3 Top 10 3.2B 3.4B 2.9B 2.9B 3.5B 3.9B 4.5B 4.8B 4.0B 5.8B 4.4B 4.8B 4.6B 3.9B 4.3B 4.5B 5.9B 7.0B 6.3B 6.0B 7.4B 6.1B 1.0B 2.0B 3.0B 4.0B 5.0B 6.0B 7.0B 8.0B Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2018 All other rounds Top 10 largest rounds Top 3 largest rounds Show online data 17B 24B 19B 5B 10B 15B 20B 25B Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 1,245 1,663 1,285 200 400 600 800 1,000 1,200 1,400 1,600 1,800 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 As a result, investment activity to date in 2018 is well ahead of 2017 (which was a record year itself) Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 1. Rounds below $2M are often reported with a delay of several months. Therefore, only rounds above $2M are shown here for better like-for-like comparison. 4 Cumulative amount invested 2018 vs. 2017 (B) Cumulative number of rounds 2018 vs. 2017 (>2M) Excluding Israel and biotech, 5.0 billion invested in Q3 2018, in line with previous quarters Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. Investment in Europe, Israel & Biotech 5 Investment in Europe by key geography 3.9B 3.6B 3.0B 3.3B 3.8B 4.9B 5.0B 4.7B 4.8B 5.8B 5.0B 0.4B 0.5B 0.2B 0.6B 0.4B 0.4B 1.3B 0.8B 0.6B 0.6B 0.6B 0.6B 0.5B 0.7B 0.3B 0.4B 0.6B 0.8B 0.8B 0.6B 1.0B 0.5B 4.8B 4.6B 3.9B 4.3B 4.5B 5.9B 7.0B 6.3B 6.0B 7.4B 6.1B 1.0B 2.0B 3.0B 4.0B 5.0B 6.0B 7.0B 8.0B Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2018 Europe Biotech Israel Why do we break this out: VC firms typically prefer to see data excluding Israel & Biotech, whereas corporate firms (EMEA teams) typically prefer to see the data including. 1.3B 1.3B 1.1B 0.9B 1.1B 2.1B 2.0B 2.3B 1.2B 1.9B 2.0B 0.5B 0.4B 0.4B 0.6B 0.6B 1.0B 0.6B 0.6B 1.8B 0.6B 0.7B 0.5B 0.5B 0.7B 0.9B 0.6B 0.7B 0.6B 0.6B 0.7B 1.3B 0.8B 0.6B 0.5B 0.7B 0.3B 0.4B 0.6B 0.8B 0.8B 0.6B 1.0B 0.5B 4.8B 4.6B 3.9B 4.3B 4.5B 5.9B 7.0B 6.3B 6.0B 7.4B 6.1B 1.0B 2.0B 3.0B 4.0B 5.0B 6.0B 7.0B 8.0B Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2016 2017 2018 United Kingdom Germany France Israel Other Europe 1. Europe & Israel 2. Investment by country 3. Investment by category 4. Exits Contents 6 The UK, Germany, France and Israel (the big four) continue to receive 70% of total investment Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 7 11% YoY growth 87% 17% 10% (35%) (10%) (11%) (17%) 10% 43% Number of rounds Jan-Sep '18 Investment by country (B) Jan-Sep '18 5.2B 3.1B 2.8B 2.1B 1.1B 0.8B 0.8B 0.4B 0.4B 0.4B 0.3B 0.3B 0.3B 0.3B 0.2B 0.2B 0.2B 0.1B 0.1B United Kingdom Germany France Israel Spain Switzerland Sweden Netherlands Ireland Portugal Belgium Finland Denmark Russia Italy Norway Estonia Cyprus Austria 588 431 246 216 176 171 120 120 114 83 70 65 62 47 45 29 12 11 3 United Kingdom France Sweden Germany Israel Netherlands Italy Spain Switzerland Norway Russia Denmark Finland Ireland Belgium Austria Greece Estonia Romania Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 1. Rounds below $2M are included here. 8 The United Kingdom leads, followed by Germany (by amount invested) and France (by number of rounds) 2018 cumulative number of rounds (1) 2018 cumulative amount invested by country 5.2B 3.1B 2.8B 2.1B 1.0B 2.0B 3.0B 4.0B 5.0B 6.0B Jan Feb Mar Apr May Jun Jul Aug Sep United Kingdom Germany France Israel 588 216 431 176 100 200 300 400 500 600 Jan Feb Mar Apr May Jun Jul Aug Sep United Kingdom Germany France Israel 0.7B 1.0B 1.0B 0.6B 1.0B 1.2B 0.2B 0.2B 0.3B 0.3B 0.2B 0.4B 0.4B 0.4B 0.4B 0.4B 0.7B 0.3B 0.3B 0.4B 0.3B 0.2B 0.4B 0.2B 1.0B 1.0B 1.2B 1.1B 1.5B 1.1B 2.1B 2.0B 2.3B 1.2B 1.9B 2.0B 1.0B 0.6B 0.6B 1.8B 0.6B 0.7B 0.7B 0.6B 0.6B 0.7B 1.3B 0.8B 0.6B 0.8B 0.8B 0.6B 1.0B 0.5B $ 1.5B $ 3.0B $ 1.9B $ 1.7B $ 2.6B $ 2.0B 40 80 120 160 200 240 0.5B 1.0B 1.5B 2.0B 2.5B 3.0B 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 All other rounds (below top 10) Top 10 largest rounds Top 3 largest rounds Number of rounds >$2M In Q3, the impact of mega rounds is more significant in France than in the UK, Germany and Israel Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. United Kingdom Germany France Israel Rest of Europe 9 In Q3, Germany showed an increase in total investments below top 10 largest rounds, surpassing France and Israel. 1. Europe & Israel 2. Investment by country 3. Investment by category 4. Exits Contents 10 Health, fintech and enterprise software continue to be the most invested industries Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. Note: industries, business models and keywords can and do overlap. 11 By industry vertical Business model By keyword Number of rounds 2018 Jan - Sep Amount (B) invested 2018 Jan - Sep 551 437 405 218 206 196 142 155 148 114 101 80 74 58 53 45 35 1,131 617 339 192 164 610 365 132 80 42 4.0B 3.9B 3.2B 2.1B 2.0B 1.2B 1.1B 1.0B 0.9B 0.9B 0.6B 0.6B 0.4B 0.4B 0.3B 0.3B 0.3B 7.1B 4.8B 3.7B 2.5B 2.1B 3.9B 2.1B 0.7B 0.6B 0.2B Noticeable increase in focus on deep tech related areas such as robotics and blockchain 12 Absolute change vs. last year (in B) % change vs. last year (number of rounds) Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. Note: industries, business models and keywords can and do overlap. By industry vertical Business model By keyword 1.0B 0.7B 0.3B 0.3B 0.3B 0.2B 0.1B 0.1B 0.0B ( 0.0B) ( 0.1B) ( 0.2B) ( 0.2B) ( 0.4B) ( 0.4B) ( 0.5B) ( 0.7B) 1.0B 0.9B 0.5B ( 0.4B) ( 0.7B) 0.5B 0.0B ( 0.1B) ( 0.5B) ( 0.9B) 69% 35% 33% 15% 14% 14% 12% 9% 7% (5%) (6%) (6%) (6%) (8%) (8%) (29%) (31%) 43% 23% 13% (21%) (22%) 75% 39% 12% (35%) Industry vertical investment heatmap Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 13 Number of rounds in 2018 to date by country Europe & Israel total United Kingdom Germany France Israel Sweden Netherlands Spain Russia Switzerland Ireland Number of rounds % of total Investment (B) % of total Industry vertical Enterprise software 126 51 82 44 29 26 33 7 15 12 551 20% 3.2B 17% Health 101 24 60 34 49 34 12 2 37 9 437 16% 4.0B 21% Fintech 134 33 38 26 29 10 18 6 17 8 405 15% 3.9B 20% Transportation 33 26 36 16 18 18 12 19 12 1 218 8% 2.1B 11% Marketing 43 21 37 10 10 11 16 6 4 4 206 8% 0.9B 5% Energy 36 12 48 12 20 25 3 11 4 196 7% 1.2B 6% Food 24 6 25 12 13 3 6 3 6 3 142 5% 0.6B 3% Biotech 35 5 21 17 14 10 5 20 155 6% 2.0B 10% Security 33 7 10 55 12 3 5 1 6 2 148 5% 1.0B 5% Home 19 8 20 12 13 8 8 5 3 114 4% 1.1B 6% Travel 21 10 13 2 5 8 15 4 1 101 4% 0.9B 5% Fashion 12 9 7 3 18 3 7 4 2 1 80 3% 0.6B 3% Robotics 13 3 18 7 2 6 1 6 8 74 3% 0.4B 2% Gaming 9 4 3 2 11 1 1 3 1 58 2% 0.4B 2% Semiconductors 10 7 9 6 4 4 2 5 2 53 2% 0.3B 2% Insurance 21 7 5 3 3 3 45 2% 0.3B 1% Telecom 8 1 7 7 6 2 1 1 35 1% 0.3B 2% Business model SaaS 240 103 179 109 72 55 52 24 39 18 1,131 42% 7.1B 37% Manufacturing 119 32 108 51 50 73 14 6 46 14 617 23% 4.8B 25% Marketplace 74 35 59 8 30 11 27 14 11 2 339 12% 3.7B 19% eCommerce 35 23 30 13 25 6 10 6 5 1 192 7% 2.1B 11% Mobile app 32 5 19 11 27 5 12 10 8 3 164 6% 2.5B 13% Keywords Deep Tech 144 38 81 85 28 40 24 16 30 7 610 22% 3.9B 20% Artificial intelligence 101 16 42 55 20 24 15 7 8 1 365 13% 2.1B 11% InternetOfThings 18 15 32 20 7 3 3 1 8 5 132 5% 0.7B 3% Blockchain 17 8 3 6 5 5 4 12 2 80 3% 0.6B 3% Virtual reality 12 2 3 4 4 5 1 3 4 42 2% 0.2B 1% Total 588 216 431 176 246 171 120 70 114 47 2,721 100% 19.5B 100% 1. Europe & Israel 2. Investment by country 3. Investment by category 4. Exits Contents 14 The third quarter included high profile exits like Farfetch, Funding Circle and Mendix Source: Dealroom.co NOTABLE EXITS IN Q3 2018 INDUSTRY LOCATION ACQUIROR SELLER VC BACKED ROUND Farfetch Global community that unites independent boutiques around the world with fashion lovers Fashion UK Advent , e.ventures Index Ventures $ 5.8B IPO SodaStream Home-Made Sparkling Water and Soda Beverages Food Israel PepsiCo Aggregate Media $ 3.2B ACQUISITION Linxens Design and manufacture of smart card connectors Electronics France Tsinghua Unigroup Astorg CVC Capital Partners 2.2B ACQUISITION Funding Circle Peer-to-peer business loans Fintech UK Index Ventures Accel Partners Ribbit Capital 1.5B IPO Esure Group One of UK's leading providers of insurance products Insurance UK Bain Capital Private Equity Penta Capital Souter Investments Lloyds Bank 1.2B BUYOUT Mazor Robotics Robotic-based technology for Healthcare Robotics Israel Medtronic IHCV $ 1.3B ACQUISITION CRF Health Technology solutions for the assessment of clinical trial outcomes Health UK Finland Genstar Capital Vitruvian Partners 1B ACQUISITION Tusk Therapeutics Immunotherapies to ignite the immune system against cancer Health UK Roche Holding Innovate UK $ 655M ACQUISITION Mendix Complete platform to build, integrate and deploy enterprise apps faster Enterprise Software Netherlands Siemens HENQ Invest Prime Ventures Battery Ventures $ 628M ACQUISITION CCP Games An independent developer of massively multiplayer online (MMO) games Gaming Iceland Pearl Abyss New Enterprise Associates, Novator $ 425M ACQUISITION 15 Go to online data 34B 41B 85B 10B 20B 30B 40B 50B 60B 70B 80B 90B Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 2018 With 85 billion in VC-backed exits including Spotify, Adyen and Farfetch, 2018 is far ahead of 2017 Source: Dealroom.co 1. Market Cap of 10/10/2018 16 Cumulative value of VC-backed exits 2018 vs. 2017 EXITS IN 2018 VALUE AT EXIT VALUE TODAY (1) Spotify Music streaming service $ 26.5B $ 29.1B Adyen Leading next generation global payments company 7.1B 17.5B Farfetch Online luxury fashion retail platform $ 5.8B $ 6.2B Yoox Net-a-Porter Global Internet retailing partner for leading fashion & design brands 5.0B - Sky Betting & Gaming The leading operator in the UK's online betting and gaming market $ 4.7B - Ablynx Development of Nanobodies, proprietary therapeutic proteins 3.9B - Zoopla Property website for the British residential market 2.2B - iZettle Mobile payments company $ 2.2B - Funding Circle Peer-to-peer business loans 1.5B 1.3B Mazor Robotics Robotic-based technology for healthcare $ 1.3B - 27.8B 24.9B 8.6B 5.0B 4.0B 3.9B 3.6B 0.9B 0.4B 0.4B 0.2B 0.2B 0.1B 0.1B Sweden United Kingdom Netherlands Italy France Belgium Germany Turkey Switzerland Iceland Austria Ireland Poland Finland Sweden and the UK are leading by VC-backed exits Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 17 Acquisitions & IPOs of venture-backed companies (B) Jan-Sep '18 Acquisitions & IPOs of venture-backed companies (B) Jan-Sep '18 (Yoox) (mainly Adyen) (mainly Spotify) 50 23 23 17 13 10 9 7 6 4 4 3 3 2 United Kingdom France Germany Sweden Spain Netherlands Switzerland Ireland Italy Belgium Poland Denmark Russia Turkey The global database to identify & track growth opportunities and innovative companies
