1 In Partnership with & www.stateofeuropeantech.com In Partnership with & The State of European Tech The most comprehensive data-driven analysis of European technology stateofeuropeantech.com 2 In Partnership with & www.stateofeuropeantech.com 2019 Key Findings 3 In Partnership with & www.stateofeuropeantech.com Cumulative investments by European cities ($M), 2015 - 2019 9M We are on track to surpass $110B capital invested in Europe since 2015 CAPITAL INVESTED IN EUROPE Key findings 01 Countries (United Kingdom, Germany and France) surpassed $10B cumulative capital invested since 2015 Cities across Europe attracting over $100M of capital invested in 2019 alone 3 29 Click here to explore our interactive charts on our website. 4 In Partnership with & www.stateofeuropeantech.com Cumulative number of VC-backed European tech companies by country and by year of reaching a $B+ valuation Meet Europe’s billion-dollar success stories $B+ COMPANIES Key findings 01 countries with a VC-backed tech company reaching a $B+ valuation of $B+ European tech companies founded after 2010 were VC-backed 20 100% Click here to explore our interactive charts on our website. 5 In Partnership with & www.stateofeuropeantech.com Cumulative VC funds raised 2010-2014 vs. 2015-2019 Cumulative VC funds raised ($B) for selected time periods (includes 'unclassifieds') We had another record year in 2018 with European VCs raising more than $13 billion VC FUNDS RAISED Key findings 01 funds raised by European VCs from 2015-2019 H1 record investments by pension funds in European VC in 2018 $50B $902M Click here to explore our interactive charts on our website. 6 In Partnership with & www.stateofeuropeantech.com Key findings 01 lived comfortably/met basic expenses with extra left over of founder respondents self-identify as female 81% 21% European founders survey responses (anonymised) We surveyed more than 1,200 founders from across Europe - explore the dataset! EUROPEAN TECH FOUNDERS Click here to explore our interactive charts on our website. 7 In Partnership with & www.stateofeuropeantech.com in every $100 invested in Europe went to founding teams that are all men For every woman executive, there are 12 men executives $92 1 in 12 Capital invested ($B) by founding team gender and round size, 2015-2019 There is no material improvement in the share of capital invested in European tech companies going to diverse founding teams. DIVERSITY & INCLUSION Key findings 01 Click here to explore our interactive charts on our website. 8 In Partnership with & www.stateofeuropeantech.com capital invested in purpose-driven European tech companies in 2019 of total capital invested into European tech in 2019, more than double any previous years $4.4B 12.3% There are more than 500 European tech companies founded since 2005 that are tackling at least one of the UN’s Sustainable Development Goals as a core part of their mission. Purpose-driven investment PURPOSE Key findings 01 Click here to explore our interactive charts on our website. 9 In Partnership with & www.stateofeuropeantech.com The State of European Tech 2019 Why can’t Europe do tech? It’s time to stop asking this question. We have irrefutable evidence that the European tech ecosystem can support great companies. We’re seeing a growing band of big investment rounds, and an increase in ‘purpose-driven’ companies attacking some of the world’s biggest challenges, and a pool of developer talent bigger than the US Yet challenges - such as a lack of diversity and divergent priorities between policymakers and the public - remain. 10 In Partnership with & www.stateofeuropeantech.com 5 Years of SoET At this point, we were amongst a growing but still limited number of people who truly believed in the ecosystem’s potential. Belief is as vital as talent or capital when it comes to building tech companies. However, in 2015, belief in the European ecosystem was limited to the European tech industry itself. Fast forward to 2019, and while the world’s media may have focused on Chinese-US trade disputes and volatility on the public markets, European tech has quietly increased its number of external believers. We see this everywhere, from the increased time top US investors are spending on the ground here to the fact that a fifth of European rounds this year had at least one US or Asian investor participating - a proportion which grows as the deal size increases. VCs are reporting increasing interest from global LPs, while previously unconvinced European Institutional Investors are now fully engaged. We’re also seeing valuations and pre-emptive term sheets on the increase in Europe - always a sign that competition to invest in the best tech companies is accelerating, as well as a reflection on the quality of the opportunity. In fact, European tech companies are performing at a level exceeding the expectations of all but the most optimistic. In 2015, we celebrated $10B of investment into the region’s tech companies. This year, $35B seems par for the course. That year, our report concerned itself with the late-stage funding gap: in 2019, 40 different European tech companies were able to raise $100M+ rounds. To date, there are now at least 174 European tech companies that have scaled to a valuation of over $1B - including 99 venture-backed companies. However, we can’t afford to be complacent - or to lose focus. Now that we’ve instilled the external as well as internal belief, it’s up to us to shape our own destiny when it comes to the future of European tech. We hope this report provides inspiration and guidance: we need to address our D&I issues, acknowledge the importance of well-being, foster a generation of purpose-driven companies, reinforce the density of our networks of people and capital, and end the disconnect between policymakers and founders. A word on our D&I issues: we won’t realise our full potential until we stop squandering talent and value. If we can ensure that all demographics and experiences feel safe and confident to participate, we will have a huge competitive advantage over other parts of the world that are less inclusive. We hope this report is a useful piece of research which acts as an evidence-based riposte to lazy clichés about the ability of Europeans to build tech companies. However, this report isn’t the last or only word on European tech. We encourage you to take the time to travel to the cities beyond those you’d normally visit, and live and breathe the wide and varied tech scenes that together represent the biggest driver of economic growth across Europe. We write this report to shine a light on the European tech system. It deliberately provides a macro look at the landscape, and is intended as a study useful to as many people as possible. This means we have to sacrifice the telling of many granular stories that really bring European tech to life. The fact is, every hub has its own incredible story with its own micro cast of founders, employees, companies, investors and universities helping to advance tech locally as well as regionally. Here at Atomico, we have invested in 20 European cities in 15 countries, but we are very mindful of the fact we have blindspots. Each year we’re delighted that European tech is getting more interconnected - it’s on each of us to bring this to fruition, and to ensure these connections continue to be made. By building a density of talent and experience, we’ll see the European tech community’s common knowledge more efficiently passed on to future and current generations of European founders. Doing this will help us achieve density in Europe: by ensuring talented developers and researchers are being matched with capital evenly across the continent, our already rapid progress will accelerate still more. When we started in 2015, we believed that European success was being ignored. Today, belief in European tech comes from both outside our ecosystem as well as from within. It’s accepted that you can raise the money you need, hire the best team, and scale internationally without having to migrate to the US. In fact, nothing demonstrates this shift more than the influx of US capital to the ecosystem - commitments to European VC funds from US LPs increased five-fold in 2018. A Foreword to the 2019 Report Much has changed since we presented the first State of European Tech report in 2015. That year, President Obama was marking the first anniversary of the climate agreement with China, while the European Council was reflecting on UK Prime Minister David Cameron’s letter outlining the UK’s future relationship with the bloc. The future has a habit of making a mockery of past predictions, but sometimes they do hit the mark. Back then we believed that tech in Europe had experienced a breakthrough year which would become the platform for greater success. This belief was not misplaced. 11 In Partnership with & www.stateofeuropeantech.com 5 Years of SOET 02.1 That said, we do need to make sure we don’t fixate on the US or even China. We need to chart our own course and build our own tech ecosystem upon our own strengths and values. Our strong investor base, developing from seed to growth stage, has contributed to a real diversification of European tech. As you’ll see, where once we were mostly consumer, we’ve developed a strength in areas like enterprise software and frontier tech too. Finally, we also hope that this report also serves another purpose - that it provides information which leads to genuine change and improvement in our ecosystem. We have much to be proud of, and much to work on. This year we celebrate the fifth birthday of our report. More importantly, we are celebrating five years of astonishing growth in the European tech ecosystem. A comparison between where we are now with where we were in 2015 shows how far Europe has come: from the proliferation of unicorns to our deepening pools of talent, we have much to be proud of. Unfortunately, as the chart below shows, we have not made nearly enough progress with our funding of teams with diverse leaders. 5 years ago Now 2015-2019 2010-2014 22 99 $1B+ VC-backed companies before 2015 $1B+ VC-backed companies now $B+ COMPANIES 3 7 countries attracting $1b+ capital per year countries attracting $1b+ capital per year UNICORNTRIES $34B $113B cum. 2010-2014 cum. 2015-2019 CAPITAL INVESTED 76 148 2010-2014 2015-2019 EXITS >$100M $25B >$50B funds raised from LPs funds raised from LPs VC FUNDS RAISED 9 40 mega rounds in 2014 mega rounds in 2019 $100M+ ROUNDS 10% 21% of rounds in 2014 of rounds in 2019 % OF ROUNDS WITH 1+ US OR ASIAN INVESTOR 4.7m 6.1m 4.1m for the United States 4.3m for the United States PROFESSIONAL DEVELOPERS 7.2% 8.4% of capital invested in 2014 of capital invested in 2019 % CAPITAL INVESTED IN MIXED/WOMEN TEAM 12 In Partnership with & www.stateofeuropeantech.com Executive Summary In 2019, 92% of funding went to all men teams, a similar level to the figures which shocked readers last year. When you break down the data by race, age, education and socioeconomic background, we see more problems emerge: 43% of Black/ African/Caribbean founders have experienced discrimination - of which 80% link it to their ethnicity. Black founders made up only 1% (0.9%) of our more than 1,200 founder respondents, which tells its own story. We also found that people from a lower socioeconomic background are less likely to become entrepreneurs: 81% of founders surveyed told us they were living comfortably before they founded their company, against a European norm of 39%. What is also becoming increasingly clear is that women VCs are being left to fix Europe’s diversity problem: 63% of women VCs told us they increased their focus on attending events with stronger participation of diverse founders, though only 36% of men told us they had. This is particularly problematic as this year’s report shows that VCs have not increased the share of women at partner level. One positive - in quantum computing, a rapidly growing deep tech sub-sector, we found that 23% of European quantum companies had a mixed or woman-led founding team, more than double the European average of 13%. This shouldn’t be surprising given the large proportion of researchers and scientists who are women: as the report shows, women actually account for more than half of the population of scientists and engineers in Lithuania, Bulgaria, Latvia and Denmark. A number of insights emerged in the process, from granular information on how the earliest-stage founders financed their businesses, to the age-makeup of companies that scale to billion-dollar valuations. We were also able to examine the intense personal journey that company building entails through this year’s report. From balancing professional and personal lives, to loneliness at the top and concerns over sourcing talent, we’ve assembled a data set which demonstrates beyond doubt that mental well-being is an active concern- and that many founders want help. As many as 57% of founders who have raised external capital said they would appreciate receiving support from the board or by investors to help manage the pressure of being a founder. Elsewhere, there are positives: we found that Europe’s professional developer pool continues to be deeper than in the US (6.1M v 4.3M), while at the later stages European companies are closing the gap with the US on the use of stock options to incentivise talent. The State of Diversity and Inclusion People This report shows that European diversity and inclusion is still not good enough. Drawing on our founder survey responses, we have sketched a portrait of what a typical European tech founder looks like in 2019, and how their concerns change as their company scales. 13 In Partnership with & www.stateofeuropeantech.com Executive Summary 02.2 Now, this promise is being fulfilled, with twenty countries fostering billion-dollar tech companies. Founders have never had more choice, but our report outlines that they prefer to found in their home market when they can, while rent prices in popular hubs like London are reflecting demand. The result? Greater geographic diversification as activity moves away from the main hubs. Eastern European cities dominate the list of growing hubs by Meetup members, as top tech hubs like London, Berlin and Paris are losing popularity amongst founders thinking about where to locate their businesses. The report also outlines the critical role played by universities, and explores the recurring criticism that Europe is failing to effectively commercialise its cutting-edge research. Places Each year our data highlights a range of tech hubs that are showing promise. Investors have supported purpose-driven European tech companies with more than $5B in capital investment in 2019, up more than 5x over the past five years - taking the cumulative total invested since 2015 to close to $10B. To measure investment into purpose-driven companies, Dealroom.co created a framework to assess venture-backed European tech companies based on their alignment with the United Nations Sustainable Development Goals. The analysis focused on a subset of seven of the seventeen Sustainable Development Goals (SDGs), selecting only those where Dealroom has observed greater levels of European venture-backed startup activity. We found over 500 European tech companies founded since 2005 tackling at least one of these seven SDGs as a core part of their mission. Purpose Margrethe Vestager’s observation that European tech differentiates itself through purpose is explored in this report. Too many founders are still in the dark about the European policy vision for technology: 40% of founders and startup employees we surveyed told us they do not feel informed about the European Commission’s digital priorities. Our report finds tech founders are calling for simplified employment regulations, while Politico data suggests policymakers’ attention is elsewhere: they are less focussed on the Digital Single Market than two years ago, and more focussed on the creation of a digital tax and the activities of big US tech firms. European success stories like fintech and digital health are also rarely discussed by policymakers. We need to ensure European policymakers and founders are pulling in the same direction if Europe is to fulfil its potential. Policy To fulfil the potential of European tech, sophisticated and clear policy will be key, and dialogue essential. 14 In Partnership with & Europe’s most promising companies are choosing to go bigger and stay private longer, and are arriving at multibillion dollar valuations on the back of raising $100M+ rounds at record levels. We are on track to reach $34.3B invested in European tech in 2019, with $11.B invested in Q2 alone. Much of this has been driven by large funding rounds: 40% of all funding raised by European tech companies in the first nine months of 2019 was in deals larger than $100M. While there hasn’t been a European $1B+ venture-backed tech IPO in 2019, we are truly seeing the ambition to scale to huge outcomes in the ecosystem. IPOs are no longer on every founder’s agenda, but no matter how much capital flows into the region, they will always be cautious about raising the next round. Investments Unlike in the US and China, investment in European tech continues to grow. Cambridge Associate data on VC returns shows that European VC performance is either on par or significantly outperforming indices for both US VC and, importantly, European Private Equity. Accordingly, appetite from LPs from both inside and outside Europe is increasing, and even though government agency investment in VCs dropped almost $1B in 2018, we’re finally seeing a spike in pension fund investment - in fact, a 203% increase on last year. This year’s report tracks more investors than ever before, from angels, who are now more likely to have been founders themselves, to the 2,600 unique institutional investors involved in a European deal in 2019. And let’s not forget the corporate investors like Unilever Ventures or Next47, who participated in 1 in 5 deals in 2019, or rising investor interest from abroad: last year 21% of European rounds had at least one US or Asian investor - up from 10% in 2015. Investors Following the success of the European tech ecosystem in the last five years, it’s perhaps no surprise to see the European venture industry in rude health. Executive Summary 02.2 www.stateofeuropeantech.com Photo by: Jussi Hellsten 15 In Partnership with & www.stateofeuropeantech.com A word from Slush At Slush, we believe that entrepreneurship is one of the most effective ways to create change in the world. According to this year’s survey data, in Europe, already the majority of entrepreneurs and especially investors are looking to measure the long-term societal and environmental impact their business or portfolio has. The five-fold growth in investment into purpose- driven businesses during the last five years in Europe speaks the same language. In 2019 alone, more than $5B was deployed in these companies. This is a development we’re happy to see, and one where we see Europe being able to take a driver’s seat globally. However, Europe is only waking up to the diversity issue as a whole, and to the fact that entrepreneurship is not equally accessible to everyone. We all are more prone to solve problems we can see, and it takes different people to see different problems – and to see them as openings for business. Slush continues being committed to highlighting a wider variety of role models for the next generation of founders through our events and newly launched media. With these developments in mind, the record investment into European tech is a clear sign of a vibrant ecosystem. One of the most encouraging developments is the increased entrepreneurial ambition shown by the numbers of late-stage investment rounds: European companies are no longer selling early, but continue to grow as independent businesses. This builds the promise of exceptionally interesting times ahead with the founders and key employees of these success stories starting their second round of company-building. Andreas Saari CEO, Slush 16 In Partnership with & www.stateofeuropeantech.com A word from Orrick Technology advancement continues to outpace regulation. The report demonstrates that AI and deep fakes are top of mind for regulators. Yet 40% of survey respondents reported that they don’t feel sufficiently informed to comment about the EC’s tech and digital regulatory priorities. We’ve seen the great benefits of collaborating on policymaking – for example, in the UK fintech market – but it starts with greater transparency from policymakers. We also encourage policymakers to consider opportunities to simplify and streamline compliance requirements, scaling the burden as the company (and the risk) expands. This is especially important in the employment regulatory arena. Otherwise, we risk placing an outsized burden on startups – and stifling their ability to grow, innovate and create those very jobs. Inclusion continues to be a challenge for the sector with only 8% of funding going to companies led by mixed-gender and women- led teams. However, at the company level, more than 40% of team members see improvement. The report also notes that more than half of investors and startup employees have not yet had the benefit of unconscious bias training. The social science leaves no doubt that more inclusive leadership will generate greater innovation and returns. The European Commission needs to clarify its regulatory priorities. Tech is THE engine of European growth, as this year’s State of European Tech Report makes clear. Europe’s tech ecosystem is well-established and robust, with record funding, sophisticated founders and investors, and accelerating growth. European tech companies will likely reach $34B in funding in 2019, up from $25B in 2018. Funding has more than doubled in five years. This includes more than 40 $100M+ deals so far this year – more than ever before. Across Europe, there now are 174 $1B+ tech unicorns. In 2010, there were only 18 – a 10x increase in less than a decade. And 20 countries now have at least one unicorn, twice the number only five years ago. Today, 170 cities have tech communities, compared to 70 four years ago. While M&A exits are down this year, there were more than double the number of exits in the past five years than the previous five years. And M&A deal value is on track to surpass last year’s total of $100B. What will it take to sustain this Europe’s success? The report points to four things: Attitudes are changing about the value of inclusion; investment needs to follow. 17 In Partnership with & A word from Orrick 02.4 More than 85% of founders say they care about the social and environmental impact of their companies – and investors are backing that commitment. Almost 50% of VCs say they take into account the societal or environmental impact of a prospective company before deciding whether to invest. We’d like to see even greater focus on social impact. We also applaud the 15% of VCs who continue to track their portfolio companies’ social impact metrics on an ongoing basis. Almost 20% of founders say that launching a company has had a “mostly negative” impact on their mental health, and the vast majority said they would welcome greater support from investors on managing the pressures they face. Founder wellness is an important factor in the overall health of the ecosystem. We believe a focus on inclusion can help here, too. We’re incredibly grateful to Atomico for collecting and sharing the rich market insights in this report. At Orrick, we look forward to continuing our work with the European tech community to build an even stronger European platform. Over the past 15 quarters, we’ve advised on more venture capital deals in Europe than any other law firm – by a factor of 2.5. And we’ve backed 20+ unicorns with legal, regulatory and commercial advice since their inception. It’s an incredible honor to be part of your success story. Sustainability is top of mind – but there’s room for greater focus. Likewise, as a community, we need to look out for mental health and career sustainability. Keep disrupting. Chris Grew Partner Technology Companies Group Orrick www.stateofeuropeantech.com Photo by: Jussi Hellsten 18 In Partnership with & www.stateofeuropeantech.com Investments How much are venture capitalists investing in European tech? How are European tech’s returns? European founders are looking at the best time in the region’s history to get funding; they raised a record amount in 2019. That included a record number of$100M+ rounds, something that European tech sceptics once thought was not possible. undefined20 In Partnership with & www.stateofeuropeantech.com It does feel like we are in a golden age for Europe now: the quality of talent, the level of ambition and availability of capital are at a completely different scale. We have always had world class technology and invention in the region but it does feel like we are in a golden age for Europe now: the quality of talent, the level of ambition and availability of capital are at a completely different scale. European startups are building globally- defining consumer and enterprise businesses with great success. Spotify, UiPath, Adeyn are all strong examples. I think these and other role models have been decisive in inspiring a new and accomplished generation of founders, who are now choosing entrepreneurship as their career path. Sonali de Rycker Accel Partner Investment Snapshot 03.1 There will inevitably be ups and downs in terms of the sequential quarterly sums invested into European tech companies, but taking a trailing 12-month view on capital invested shows the long-term, upward trajectory of capital invested in the region. The increase in large-scale deals of more than $100 million is driving the growth of total capital invested in Europe. In 2019, these deals accounted for 36% of all funding raised by European tech companies. # OF DEALS CAPITAL INVESTED ($B) There will inevitably be ups and downs in terms of the sequential quarterly sums invested into European tech companies, but taking a trailing 12-month view on capital invested shows the long-term, upward trajectory of capital invested in the region. Trailing 12-month capital invested ($B) SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. Capital invested ($B)2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 0.0 10.0 20.0 30.0 40.0 The increase in large-scale deals of more than $100 million is driving the growth of total capital invested in Europe. In 2019, these deals accounted for 36% of all funding raised by European tech companies. Capital invested ($B) and number of deals by round size SOURCE:Dealroom LEGEND $0M-$2M $2M-$5M $5M-$10M $10M-$20M $20M-$50M $50M-$100M $100M+ NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: CAPITAL INVESTED ($B) Capital invested ($M) / # of deals2015 2016 2017 2018 2019 0.0 10.0 20.0 30.0 The increase in large-scale deals of more than $100 million is driving the growth of total capital invested in Europe. In 2019, these deals accounted for 36% of all funding raised by European tech companies. Capital invested ($B) and number of deals by round size SOURCE:Dealroom LEGEND $0M-$2M $2M-$5M $5M-$10M $10M-$20M $20M-$50M $50M-$100M $100M+ NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: # OF DEALS Capital invested ($M) / # of deals2015 2016 2017 2018 2019 0.0 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 There will inevitably be ups and downs in terms of the sequential quarterly sums invested into European tech companies, but taking a trailing 12-onth view on capital invested shows the long-term, upward trajectory of capital invested in the region. Trailing 12-month capital invested ($B) SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. Capital invested ($B)2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2 0.0 10.0 20.0 30.0 40.0 The increase in large-scale deals of more than $100 million is driving the growth of total capital invested in Europe. In 2019, these deals accounted for 36% of all funding raised by European tech companies. Capital invested ($B) and number of deals by round size SOURCE:Dealroom LEGEND $0M-$2M $2M-$5M $5M-$10M $10M-$20M $20M-$50M $50M-$100M $100M+ NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: CAPITAL INVESTED ($B) Capital invested ($M) / # of deals2015 2016 2017 2018 0.0 10.0 20.0 30.0 There will inevitably be ups and downs in terms of the sequential quarterly sums invested into European tech companies, but taking a trailing 12-month view on capital invested shows the long-term, upward trajectory of capital invested in the region. Trailing 12-month capital invested ($B) SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. Capital invested ($B)2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2 0.0 10.0 20.0 30.0 40.0 The increase in large-scale deals of more than $100 million is driving the growth of total capital invested in Europe. In 2019, these deals accounted for 36% of all funding raised by European tech companies. Capital invested ($B) and number of deals by round size SOURCE:Dealroom LEGEND $0M-$2M $2M-$5M $5M-$10M $10M-$20M $20M-$50M $50M-$100M $100M+ NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: CAPITAL INVESTED ($B) Capital invested ($M) / # of deals2015 2016 2017 2018 0.0 10.0 20.0 30.0 undefinedundefinedundefined24 In Partnership with & www.stateofeuropeantech.com Investment Snapshot Europe saw an increase in mega funding rounds of $100M+ in 2019, including six rounds of more than $500M. Europe saw an increase in mega funding rounds of $100M+ in 2019, including six rounds of more than $500M. Top 20 largest VC-backed fundraising deals in 2019 (by round size) Company Country City Stage Round Size ($) Date 1 Northvolt Sweden Stockholm Growth Equity $1000M June 2019 2 Deliveroo United Kingdom London Series G $575M May 2019 3 UiPath Romania Bucharest Series D $568M April 2019 4 Babylon Health United Kingdom London Series C $550M August 2019 5 Veeam Switzerland Baar Growth Equity $500M January 2019 6 FlixBus Germany Munich Series F $500M July 2019 7 GetYourGuide Germany Berlin Series E $484M May 2019 8 Klarna Sweden Stockholm Growth Equity $460M August 2019 9 N26 Group Germany Berlin Series D $300M January 2019 10 GitLab Netherlands Utrecht Series E $268M September 2019 11 CMR Surgical United Kingdom Cambridge Series C $240M September 2019 12 Meero France Paris Series C $230M June 2019 13 Checkout.com United Kingdom London Series A $230M May 2019 14 Adjust Germany Berlin Late VC $227M June 2019 15 Relex Solutions Finland Helsingfors Late VC $200M February 2019 16 Glovo Spain Barcelona Series D $186M April 2019 17 Signavio Germany Berlin Series C $177M July 2019 18 WorldRemit United Kingdom London Series D $175M June 2019 19 N26 Group Germany Berlin Series D $170M July 2019 20 Doctolib France Paris Late VC $170M March 2019 SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. We are on an overall good wave: more capital, more startups from seed to large, late rounds, more exits. I take a long view on European tech, I’m old enough to remember how far we have come and to understand we still have a way to go yet. Plus, Brexit has changed the picture a lot, so progress based on the work done the year before isn’t as inevitable as it perhaps was. There is still a large capital gap regarding the US and China situations, but we can see very encouraging recent signals: the €100 billion EU Commission future fund and the €5 billion investment announcement from President Macron in France, for instance. Antoine Hubert Steve O’Hear Ÿnsect CEO TechCrunch Journalist 03.1 Europe saw an increase in mega funding rounds of $100M+ in 2019, including six rounds of more than $500M. Top 20 largest VC-backed fundraising deals in 2019 (by round size) Company Country City Stage Round Size ($) Date 1 Northvolt Sweden Stockholm Growth Equity $1000M June 2019 2 Deliveroo United Kingdom London Series G $575M May 2019 3 UiPath Romania Bucharest Series D $568M April 2019 4 Babylon Health United Kingdom London Series C $550M August 2019 5 Veeam Switzerland Baar Growth Equity $500M January 2019 6 FlixBus Germany Munich Series F $500M July 2019 7 GetYourGuide Germany Berlin Series E $484M May 2019 8 Klarna Sweden Stockholm Growth Equity $460M August 2019 9 N26 Group Germany Berlin Series D $300M January 2019 10 GitLab Netherlands Utrecht Series E $268M September 2019 11 CMR Surgical United Kingdom Cambridge Series C $240M September 2019 12 Meero France Paris Series C $230M June 2019 13 Checkout.com United Kingdom London Series A $230M May 2019 14 Adjust Germany Berlin Late VC $227M June 2019 15 Relex Solutions Finland Helsingfors Late VC $200M February 2019 16 Glovo Spain Barcelona Series D $186M April 2019 17 Signavio Germany Berlin Series C $177M July 2019 18 WorldRemit United Kingdom London Series D $175M June 2019 19 N26 Group Germany Berlin Series D $170M July 2019 20 Doctolib France Paris Late VC $170M March 2019 SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. Europe saw an increase in mega funding rounds of $100M+ in 2019, including six rounds of more than $500M. Top 20 largest VC-backed fundraising deals in 2019 (by round size) Company Country City Stage Round Size ($) Date 1 Northvolt Sweden Stockholm Growth Equity $1000M June 2019 2 Deliveroo United Kingdom London Series G $575M May 2019 3 UiPath Romania Bucharest Series D 568M April 2019 4 Babylon Health C 50 August 2019 5 Vee m Switzerland aar Growth Equity 00 January 2019 6 FlixBus Germany Mu ich F 0 J ly 2019 7 G tYourGuide Germany erlin Series E 484 May 2019 8 Klarna Swede Stock olm Growth Equity 46 A gust 2019 9 N26 Group D 300 J nuary 2019 10 GitLab Netherlands U rec t Series E 2 8 September 2019 11 CMR Surgical United Kingdom Cambridge C 24 September 2019 2 Meero France Pa is C 30 June 2019 3 hec kout. om London A 3 May 2019 4 Adjust Germany Be lin Late V 27 5 Relex Solutions Finland Helsingfors Late VC 0 February 2019 6 Glovo Spain a celona Series D 186 April 1 7 Signavi Germany B rli Series C 177M July 2019 8 W rldRemit United Kingdom London 75 June 1 9 N26 Group D 0 20 Doctolib France Paris Late VC 0 March 2019 SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. We are on an overall good wave: more capital, more startups from seed to large, late rounds, more exits. We should all keep up the good work to position Europe as the key place for technology! undefinedundefinedundefined28 In Partnership with & www.stateofeuropeantech.com The fastest-growing industries in terms of percentage change year-on-year in 2019 include security, energy and food. Investments into European deep tech companies are on track to break another record of $8.4B in 2019, up from $6.7B in 2018 and $3.0B in 2015. the investment level of 2015. CAPITAL INVESTED IN DEEP TECH 2.8x Investment by Industry 03.2 The fastest-growing industries in terms of percentage change year-on-year in 2019 include security, energy and food. % change by industry vertical of capital invested ($M), 2018 vs 2019 SOURCE: NOTE: Includes only verticals with $450M+ capital invested in 2018. All Dealroom data exclude: biotech, secondary transactions, debt, lending capital, grants. Note the data also excludes Israel. 2019 annualised based on data up to September 2019. YoY growth (%) 193% 186% 124% 90% 80% 76% 69% 56% 47% 34% 23% -9% -15% -19% -20% -30% -33% -35% -40% -53% -59% -68% Security Energy Food Jobs recruitment Health Fintech Travel Enterprise software Real estate Marketing Robotics Gaming Transportation Media Education Sports Telecom Internet of Things Home living Semiconductors Fashion Music -100 -75 -50 -25 0 25 50 75 100 125 150 175 200 225 Investments into European deep tech companies are on track to break another record of $8.4B in 2019, up from $6.7B in 2018 and $3.0B in 2015. CAPITAL INVESTED IN DEEP TECH 2.8x the investment level of 2015. Capital invested ($B) in European deep tech companies SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. Capital invested ($B)$3.0B $3.9B $6.0B $6.7B $8.4B 2015 2016 2017 2018 2019 0.0 2.5 5.0 7.5 The fastest-growing idustries in terms of percentage change year-on-year in 2019 include security, energy and food. % chae by industry vertical of capital invested ($M), 2018 vs 2019 SOURCE: NOTE: Includes only verticals with $450M+ capital invested in 2018. All Dealroom data exclude: biotech, secondary transactions, debt, lending capital, grants. Note the data also excludes Israel. 2019 annualised based on data up to September 2019. YoY growth (%) 124% 90% 80% 76% 69% 56% 47% 34% 23% -9% -15% -19% -20% -30% -33% -35% -40% -53% -59% -68% Security Energy Food Jobs recruitment Health Fintech Travel Enterprise software Real estate Marketing Robotics Gaming Transportation Media Education Sports Telecom Internet of Things Home living Semiconductors Fashion Music -100 -75 -50 -25 0 25 50 75 100 125 150 % change by industry vertical of capital invested ($M), 2018 vs 2019 SOURCE: NOTE: Includes only verticals with $450M+ capital invested in 2018. All Dealroom data exclude: biotech, secondary transactions, debt, lending capital, grants. Note the data also excludes Israel. 2019 annualised based on data up to September 2019. YoY growth (%) 124% 90% 80% 76% 69% 56% 47% 34% 23% -9% -15% -19% -20% -30% -33% -35% -40% -53% -59% -68% Security Energy Food Jobs recruitment Health Fintech Travel Enterprise software Real estate Marketing Robotics Gaming Transportation Media Education Sports Telecom Internet of Things Home living Semiconductors Fashion Music -100 -75 -50 -25 0 25 50 75 100 125 150 Investments into European deep tech companies are on track to break another record of $8.4B in 2019, up from $6.7B in 2018 and $3.0B in 2015. CAPITAL INVESTED IN DEEP TECH 2.8x the investment level of 2015. Capital invested ($B) in European deep tech companies SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. Capital invested ($B)$3.0B $3.9B $6.0B $6.7B 2015 2016 2017 2018 0.0 2.5 5.0 7.5 Investments into European deep tech companies are on track to break another record of $8.4B in 2019, up from $6.7B in 2018 and $3.0B in 2015. CAPITAL INVESTED IN DEEP TECH 2.8x the investment level of 2015. Capital invested ($B) in European dep tech compnies SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. Capital invested ($B)$3.0B $3.9B $6.0B $6.7B 2015 2016 2017 2018 0.0 2.5 5.0 7.5 undefinedundefinedundefined32 In Partnership with & www.stateofeuropeantech.com Investments by Geography Cumulative capital investment since 2015 has surpassed $10 billion in three European countries (UK, Germany, France) and more than $1 billion in a further eleven countries. COUNTRIES 11-20 OTHERS TOP 10 COUNTRIES Cumulative capital investment since 2015 has surpassed $10 billion in three European countries (UK, Germany, France) and more than $1 billion in a further eleven countries. Capital invested ($M) by country, cumulative since 2015 and per year SOURCE:Dealroom LEGEND 2015 2016 2017 2018 2019 NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: TOP 10 COUNTRIES Capital invested ($M)United Kingdom Germany France Sweden Spain Switzerland Netherlands Ireland Finland Italy 0 10,000 20,000 30,000 40,000 Cumulative capital investment since 2015 has surpassed $10 billion in three European countries (UK, Germany, France) and more than $1 billion in a further eleven countries. Capital invested ($M) by country, cumulative since 2015 nd per year SOURCE:Dealroom LEGEND 2015 2016 2017 2018 2019 NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: COUNTRIES 1 1-20 Capital invested ($M)Russia Denmark Belgium Romania Norway Luxembourg Austria Poland Portugal Estonia 0 500 1,000 1,500 2,000 Cumulative capital investment since 2015 has surpased $10 billion in three European countris (UK, Germany, France) and more than $1 billion in a further eleven countries. Capitl invested ($M) by country, cumulative since 2015 and per year SOURCE:Dealroom LEGEND 2015 2016 2017 2018 2019 NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: OTHERS Capital invested ($M)Cyprus Turkey Iceland Lithuania Hungary Croatia Czech Republic Guernsey Ukraine Montenegro 0 100 200 300 400 Cumulative capitl investment sinc 2015 has surpassed $10 billion in three European countries (UK, Germany, France) and more than $1 billion in a further eleven countries. Capital invested ($M) by country, cumulative since 2015 and per year SOURCE:Dealroom LEGEND 2015 2016 2017 2018 2019 NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: TOP 10 COUNTRIES Capital invested ($M)United Kingdom Germany France Sweden Spain Switzerland Netherlands Ireland 0 10,000 20,000 30,000 40,000 Cumulative capital investment since 2015 has surpassed $10 billion in three European countries (UK, Germany, Fr nce) and more thn $1 billion in a further eleven countries. Capital invested ($M) by country, cumulative since 2015 and per year SOURCE:Dealroom LEGEND 2015 2016 2017 2018 2019 NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: TOP 10 COUNTRIES Capital invested ($M)United Kingdom Germany France Sweden Spain Switzerland Netherlands Ireland 0 10,000 20,000 30,000 40,000 33 In Partnership with & www.stateofeuropeantech.com London is Europe's tech capital, as measured by the total number of unique companies that have raised funding since 2015, with more than twice the number of the second city by size, Paris. In total, Europe is home to more than 13,000 unique companies that have raised funding since 2015. EUROPEAN TECH COMPANIES 13,000 of unique European tech companies that have raised funding since 2015. Top 20 hubs by number of unique funded companies, 2015-2019 SOURCE:Dealroom NOTE: Number of unique funded companies between 2015 to 9M 2019. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. DATASET: TOP 10 CITIES # of unique funded companies 2,747 1,183 930 776 457 437 371 359 314 302 London Paris Berlin Stockholm Amsterdam Barcelona Dublin Helsinki Madrid Moscow 0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000 I am even more optimistic than I was 12 months ago, if that’s possible. I am even more optimistic than I was 12 months ago, if that’s possible. In the last 12 months we have seen record funding and the birth of new French unicorns. We’ve also seen some very promising initiatives from the government like the new French Tech Visa for talent and Macron’s recent announcement of a new massive fund for deep tech. We are seeing more and more tier-1 international investors and entrepreneurs scouting around and saying they are excited about what they are seeing. It’s all very promising. Roxanne Varza Station F Director Investment by Geography 03.3 London is Europe’s tech capital, as measured by the total number of unique companies that have raised funding since 2015, with ore than twice th number of the sec nd city by size, Paris. In total, Euro e is home to mo e than 13,000 unique companies that have raised funding since 2015. of unique European tech companies that have raised funding since 2015. EUROPEAN TECH COMPANIES 13,000 CITIES 11-20 TOP 10 CITIES London is Europe's tech capital, as measured by the total number of unique companies that have raised funding since 2015, with more than twice the number of the second city by size, Paris. In total, Europe is home to almost 13,000 unique companies that have raised funding since 2015. EUROPEAN TECH COMPANIES 13,000 of unique European tech companies that have raised funding since 2015. Top 20 hubs by number of unique funded companies, 2015-2019 SOURCE:Dealroom NOTE: Number of unique funded companies between 2015 to 9M 2019. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. DATASET: CITIES 1 1-20 # of unique funded companies 252 219 197 142 138 132 126 126 116 115 Munich Milan Copenhagen Zurich Hamburg Oslo Vienna Warsaw Tallinn Istanbul 0 25 50 75 100 125 150 175 200 225 250 275 London is Europe's tech capital, as measured by the total number of unique companies that have raised funding since 2015, with more than twice the number of the second city by size, Paris. In total, Europe is home to more than 13,000 unique companies that have raised funding since 2015. EUROPEAN TECH COMPANIES 13,000 of unique European tech companies that have raised funding since 2015. Top 20 hubs by number of unique funded companies, 2015-2019 SOURCE:Dealroom NOTE: Number of unique funded companies between 2015 to 9M 2019. All Dealroom.co data excludes the following: biotech, secondary transactions, ebt, lending capital, grants. Please also note the data excludes Israel. DATASET: TOP 10 CITIES # of unique funded companies 2,747 1,183 930 776 457 437 371 359 314 302 London Paris Berlin Stockholm Amsterdam Barcelona Dublin Helsinki Madrid Moscow 0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000 London is Europe's tech capital, as measured by the total number of unique companies that hav raised funding since 2015, with more than twice the number of the second city by size, Paris. In total, Europe is home to more than 13,000 unique companies that have raised funding since 2015. EUROPEAN TECH COMPANIES 13,000 of unique European tech companies that have raised funding since 2015. Top 20 hubs by number of unique fndd companies, 2015-2019 SOURCE:Dealroom NOTE: Number of unique funded companies between 2015 to 9M 2019. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. DATASET: TOP 10 CITIES # of unique funded companies 2,747 1,183 930 776 457 437 371 359 314 302 London Paris Berlin Stockholm Amsterdam Barcelona Dublin Helsinki Madrid Moscow 0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000 undefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefined45 In Partnership with & www.stateofeuropeantech.com $1B+ Companies 03.4 At the time of publication, there are 99 $1 billion+ VC-backed European tech companies. If Europe’s not already surpassed 100, it’s only a matter of time before this milestone is surpassed. The UK is the single largest source of $1 billion+ VC-backed tech companies from Europe with 29, followed by Germany (17) and France (11). There are now VC-backed $1 billion+ European tech companies from 20 unique countries across Europe, including Austria, Poland and the Czech Republic. In France, the pipeline of potential $1B+ companies has never been so promising, and has even started to deliver with Doctolib. The first exits will follow soon, and with them the ‘mafias’ of operators with firsthand rocketship experience that we lack. We perceive this as the last significant step before ecosystem maturity. Pierre Entremont Frst Co-Founder & Partner At the time of publication, there are 99 $1 billion+ VC-backed European tech companies. If Europe's not already surpassed 100, it's only a matter of time before this milestone is surpassed. Number of new and total $1B+ European tech companies per year SOURCE:Dealroom LEGEND Exisiting New in year NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. # of VC-backed tech companies2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 25 50 75 100 The UK is the single largest source of $1 billion+ VC-backed tech companies from Europe with 29, followed by Germany (17) and France (11). There are now VC-backed $1 billion+ European tech companies from 20 unique countries across Europe, including Austria, Poland and the Czech Republic. Number of $1B+ VC-backed European tech companies by country of origin SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. United Kingdom Germany France Sweden Netherlands Denmark Switzerland Ireland Russia Ireland Spain Czech RepublicLuxemburg Poland Ukraine Romania Portugal Austria Estonia Belgium At the time of publication, there are 99 $1 billion+ VC-backed European tech companies. If Europe's not already surpassed 100, it's only a matter of time before this milestone is surpassed. Number of new and total $1B+ European tech companies per year SOURCE:Dealroom LEGEND Exisiting New in year NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. # of VC-backed tech companies2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 25 50 75 100 The UK is the single largest source of $1 billion+ VC-backed tech companies from Europe with 29, followed by Gerany (17) and France (11). There are now VC-backed $1 billion+ European tech companies from 20 unique countries across Europe, including Austria, Poland and the Czech Republic. Number of $1B+ VC-backed European tech companies by country of origin SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. United Kingdom Germany France Sweden Netherlands Denmark Switzerland Ireland Russia Ireland Spain Czech RepublicLuxemburg Poland Ukraine Romania Portugal Austria Estonia Belgium At the time of publication, there are 99 $1 billion+ VC-backed European tech companies. If Europe's not already surpassed 100, it's only a matter of time before this milestone is surpassed. Number of new and total $1B+ European tech companies per year SOURCE:Dealroom LEGEND Exisiting New in year NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. # of VC-backed tech companies2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0 25 50 75 100 The UK is the single largest source of $1 billion+ VC-backed tech companies from Europe with 29, followed by Germany (17) and France (11). There are now VC-backed $1 billion+ European tech companies from 20 unique countrie across Europe, including Austria, Poland and the Czech Reublic. Number of $1B+ VC-backed European tech companies by country of origin SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. United Kingdom Germany France Sweden Netherlands Denmark Switzerland Ireland Russia Ireland Spain Czech RepublicLuxemburg Poland Ukraine Romania Portugal Austria Estonia Belgium 46 In Partnership with & www.stateofeuropeantech.com 2006 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $1B+ Companies 03.4 Acquired Public Private undefined48 In Partnership with & www.stateofeuropeantech.com $1B+ Companies 03.4 The latest cohort of $1billion+ VC-backed European tech companies founded during the 2010s remains overwhelmingly in private hands. I’m very optimistic. We’ve seen so many exciting ideas being developed by firms and embraced by consumers, including here at Monzo. People are appreciating how technology can provide them with a much better level of transparency and control, and I expect that trend to continue. We’re seeing multiple world-class, growth-stage companies coming out of Europe across multiple sectors, really for the first time ever. In digital banking alone, we’ve got three or four companies with multi-billion valuations. Because fewer unicorn companies have started in Europe than in America, we have a less fixed mindset as to what a successful business or a successful founder should be. We’re more open to quirky business ideas and teams that don’t quite fit the ‘socially awkward white guy with a hoodie’ mould. Tom Blomfield Valentina Milanova Monzo CEO Daye Founder & CEO The latest cohort of $1billion+ VC-backed European tech companies founded during the 2010s remains overwhelmingly in private hands. Share of $1B+ VC-backed European tech companies (%) by ownership status and founding year decade SOURCE:Dealroom LEGEND Private Public Acquired NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. % of tech companies by ownership status1990s 2000s 2010s 0 25 50 75 100 The latest cohort of $1billion+ VC-backed European tech companies founded during the 2010s remains overwhelmingly in private hands. Share of $1B+ VC-backed European tech companies (%) by ownership status and founding year decade SOURCE:Dealroom LEGEND Private Public Acquired NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. % of tech companies by ownership status1990s 2000s 2010s 0 25 50 75 100 The latest cohort of $1billion+ VC-backed European tech companies founded durng the 2010s r mains overwhelmingly in private hands. Share of $1B+ VC-backed European tech companies (%) by ownership status and founding year decade SOURCE:Dealroom LEGEND Private ublic Acquired NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. % of tech companies by ownership status1990s 2000s 2010s 0 25 50 75 100 49 In Partnership with & www.stateofeuropeantech.com $1B+ Companies 03.4 Europe’s now produced 13 $1B+ VC-backed tech companies that have scaled to more than $5B, including four that have grown beyond the $10B milestone. Great operating talent came out of the first generation of consumer tech companies in Europe - people who are great marketers, great at product, great at finance. That talent has been key in supporting a new generation of deep tech companies as they commercialise. We now have the ingredients to build big companies. Nigel Toon Graphcore Co-founder & CEO Europe's now produced 13 $1B+ VC-backed tech companies that have scaled to more than $5B, including four that have grown beyond the $10B milestone. Number of $1B+ VC-backed European tech companies by valuation group SOURCE:Dealroom NOTE: All time $1B+ VC-backed European tech companies. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. # of tech companies 13 28 58 $5B+ $2-5B+ <$2B 0 5 10 15 20 25 30 35 40 45 50 55 60 65 Share of VC-backed European $1B+ tech companies (%) by business model SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. % of VC-backed tech companies 52% 41% 7% Consumer Enterprise Deep tech 0 5 10 15 20 25 30 35 40 45 50 55 Europe's now produced 13 $1B+ VC-backed tech companies that have scaled to more than $5B, including four that have grown beyond the $10B milstone. Number of $1B+ VC-backed European tech companies by valuation group SOURCE:Dealroom NOTE: All time $1B+ VC-backed European tech companies. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. # of tech companies 13 28 58 $5B+ $2-5B+ <$2B 0 5 10 15 20 25 30 35 40 45 50 55 60 65 Share of VC-backed European $1B+ tech companies (%) by business model SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. % of VC-backed tech companies 52% 41% 7% Consumer Enterprise Deep tech 0 5 10 15 20 25 30 35 40 45 50 55 Europe's now produced 13 $1B+ VC-backed tech companies that have scaled to more than $5B, including four that have grown beyond the $10B milestone. Number of $1B+ VC-backed European tech companies by valuation group SOURCE:Dealroom NOTE: All time $1B+ VC-backed European tech companies. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. # of tech companies 13 28 58 $5B+ $2-5B+ <$2B 0 5 10 15 20 25 30 35 40 45 50 55 60 65 Share of VC-backed European $1B+ tech companies (%) by business model SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, gr nts. Please also note the data excludes Israel. % of VC-backed tech companies 52% 41% 7% Consumer Enterprise Deep tech 0 5 10 15 20 25 30 35 40 45 50 55 undefined51 In Partnership with & www.stateofeuropeantech.com European Exit Landscape 03.5 But you have to dig beneath the headline numbers to get the full story. First of all, looking at the magnitude of the tech IPOs, as measured by market cap ($B) at IPO, it is clear that the US had a dominant year in 2019. The combined value of the Top 10 tech IPOs in the US in the first nine months of the year equated to a total market cap of $153B versus $22B for the ten largest European tech IPOs. Uber’s market cap at IPO alone eclipsed the combined market cap of Europe’s top 10 tech IPOs in 2019. # ) 8205/1. 815.3/ *% ' % 8-+503. 815-,3  %#$% (# 8,+5+03 805221 !! #   845-.+ 8-5,.2 ( & %# 845214 8120 %!    8253-1 8/03 #!(%# !!!! 815132 8.4+ #(   815+++ 8,,. * %# $$ $*$ 8/5/+4 84- !&# !!% 8/5/++ 812 ,+5+++ -+5+++ .+5+++ /+5+++ 0+5+++ #%
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687 15+++ 25+++ 35+++ 45+++ + Largest tech IPOs by market cap at IPO ($M) in Europe and United States, 2019 Top 10 largest tech IPOs by proceeds raised ($M) at IPO in Europe and US, 2019 undefinedundefined54 In Partnership with & www.stateofeuropeantech.com European Exit Landscape 03.5 Though Europe has yet to produce a company that comes close to rival the value creation of trillion-dollar market cap companies to rival Microsoft or Apple, it’s often forgotten that Europe has produced more than one $100B tech company. SAP, Europe’s largest public tech company by market cap, has now grown to be valued at more than $150B. If SAP has done it, why can’t others? Though Europe has yet to produce a company that comes close to rival the value creation of trillion-dollar market cap companies to rival Microsoft or Apple, it's often forgotten that Europe has produced more than one $100B tech company. SAP, Europe's largest public tech company by market cap, has now grown to be valued at more than $150B. If SAP has done it, why can't others? Top 10 largest tech companies by market cap ($B) in Europe, US and China in 2019 SOURCE: NOTE: Based up data up to 21 October 2019. DATASET: EUROPE Market cap ($B) $158B $108B $40B $31B $31B $30B $23B $21B $21B $20B SAP ASML Dassault Amadeus Ericsson Nokia Infineon Spotify Ayden Capgemini 0 20 40 60 80 100 120 140 160 180 Though Europe has yet to produce a company that comes close to rival the value creation of trillion-dollar market cap companies to rival Microsoft or Apple, it's often forgotten that Europe has produced more than one $100B tech company. SAP, Europe's largest public tech company by market cap, has now grown to be valued at more than $150B. If SAP has done it, why can't others? Top 10 largest tech companies by market cap ($B) in Europe, US and China in 2019 SOURCE: NOTE: Based up data up to 21 October 2019. DATASET: UNITED STATES Market cap ($B) $1,068B $1,057B $874B $863B $530B $228B $198B $179B $129B $126B Apple Microsoft Amazon Alphabet Facebook Intel Cisco Oracle Adobe Salesforce 0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 Though Europe has yet to produce a company that comes close to rival the value creation of trillion-dollar market cap companies to rival Microsoft or Apple, it's often forgotten that Europe has produced more than one $100B tech company. SAP, Europe's largest public tech company by market cap, has now grown to be valued at more than $150B. If SAP has done it, why can't others? Top 10 largest tech companies by market cap ($B) in Europe, US and China in 2019 SOURCE: NOTE: Based up data up to 21 October 2019. DATASET: CHINA Market cap ($B) $463B $43B $40B $37B $36B $22B $22B $22B $18B $14B Alibaba Foxconn Hikvision NetEase Baidu Qihoo 360 Tencent Luxshare Precision BOE Technology Avary 0 50 100 150 200 250 300 350 400 450 500 Though Europe has yet to produce a company that comes close to rival the value creation of trillion-dollar market cap companies to rival Microsoft or Apple, it's often forgotten that Europe has produced more than one $100B tech company. SAP, Europe's largest public tech company by market cap, has now grown to be valued at more than $150B. If SAP has done it, why can't others? Top 10 largest tech companies by market cap ($B) in Europe, US and China in 2019 SOURCE: NOTE: Based up data up to 21 October 2019. DATASET: EUROPE Market cap ($B) $158B $108B $40B $31B $31B $30B $23B $21B $21B $20B SAP ASML Dassault Amadeus Ericsson N kia Infineon Spotify Ayden Capgemini 0 20 40 60 80 100 120 140 160 180 Though Europe has yet to produce a company that comes close to rival the value creation of trillion-dollar market cap companies to rival Microsoft or Apple, it's often forgotten that Europe has produced more than one $100B tech company. SAP, Europe's largest public tech company by market cap, has now grown to be valued at more than $150B. If SAP has done it, why can't others? Top 1 largest tech compais by market cap ($B) in Europe, US and China in 2019 SOURCE: NOTE: Based up data up to 21 October 2019. DATASET: EUROPE Market cap ($B) $158B $108B $40B $31B $31B $30B $23B $21B $21B $20B SAP ASML D ssault Amadeus Ericsson Nokia Infineon Spotify Ayden Capgemini 0 20 40 60 80 100 120 140 160 180 EUROPE UNITED STATES CHINA 55 In Partnership with & www.stateofeuropeantech.com European Exit Landscape 03.5 Whilst the US had a bumper year in terms of the scale of its tech IPOs in 2019, those companies have not gained value as a cohort since listing, as the public markets have been impacted by increased volatility. The weighted aftermarket performance of the 2019 class of tech IPOs from the US was down 6% at the end of October 2019; Europe’s 2019 vintage was up 18% at the end of the same period. Of course, it’s still much too early to judge the performance of these companies. Whilst the US had a bumper year in terms of the scale of its tech IPOs in 2019, those companies have not gained value as a cohort since listing, as the public markets have been impacted by increased volatility. The weighted aftermarket performance of the 2019 class of tech IPOs from the US was down 6% at the end of October 2019; Europe's 2019 vintage was up 18% at the end of the same period. Of course, it's still much too early to judge the performance of these companies. Weighted aftermarket performance of tech IPOs by vintage year (%) SOURCE: LEGEND Europe United States NOTE: Aftermarket performance is weighted by market cap at IPO. 2019 based on data to 21 October 2019. Weighted aftermarket performance (%)106% 30% 22% 42% 18% 154% 205% 80% 40% -6% 2015 2016 2017 2018 2019 -50 0 50 100 150 200 Whilst th US had bumper year in terms of the scale of its tech IPOs in 2019, those companies hav not gained value as a cohort sinc listing, as th public markets have been impacted by increased volatility. The weighted aftermarket performance of the 2019 class of tech IPOs from the US was down 6% at the end of October 2019; Europe's 2019 vintage was up 18% at the end of the same period. Of course, it's still much too early to judge the performance of these companies. Weighted aftermarket performance of tech IPOs by vintage year (%) SOURCE: LEGEND Europe United States NOTE: Aftermarket performance is weighted by market cap at IPO. 2019 based on data to 21 October 2019. Weighted aftermarket performance (%)106% 30% 22% 42% 18% 154% 205% 80% 40% -6% 2015 2016 2017 2018 2019 -50 0 50 100 150 200 Whilst the US had a bumper year in terms of the scale of its tech IPOs in 2019, those companies have not gained value as a cohort since listing, as the public markets have been impacted by increased volatility. The weighted aftermarket performance of the 2019 clas of tech IPOs from the US was down 6% at the end of October 2019; Eur pe's 2019 vintage was up 18% at the end of the same period. Of course, it's stil much too early to judge the performance of these companie. Weighted aftermarket performance of tech IPOs by vintage year (%) SOURCE: LEGEND Europe United States NOTE: Aftermarket performance is weighted by market cap at IPO. 2019 based on data to 21 October 2019. Weighted aftermarket performance (%)106 30% 22% 42% 18% 154% 205% 80% 40% -6% 2015 2016 2017 2018 2019 -50 0 50 100 150 200 There are a lot of things happening right now in tech that are raising a lot of questions. Looking at what happened to WeWork most recently, we’re seeing investors shy away from companies that might not be clearly profitable from the get-go. I think there will be some kind of movement when it comes to funding for startups. Startups will need to prove themselves, and their business models even more. It’s going to be trickier; if you rely on funding, a far more uncertain future is ahead. Combined with the delay of Brexit in the UK, we’re entering an extended state of uncertainty for businesses. Maria Raga Depop CEO Photo by: Jussi Railainen 56 In Partnership with & www.stateofeuropeantech.com European Exit Landscape 03.5 Besides simply looking at the scale of public tech companies, there are a number of other cultural differences between European and US public markets. One is a greater level of openness to existing investors selling down their position at IPO for liquidity. As a result, there is a materially higher share of secondary share sales on European than on US markets. Besides simply looking at the scale of public tech companies, there are a number of other cultural differences between European and US public markets. One is a greater level of openness to existing investors selling down their position at IPO for liquidity. As a result, there is a materially higher share of secondary shae sales on European than on US markets. Average share of primary versus secondary shares sold at IPO by region SOURCE: LEGEND Europe United States NOTE: 2019 based on data up to September 2019. DATASET: PRIMARY SH ARE SALES Average share of secondary/primary shares sold96% 81% 67% 74% 66% 76% 80% 76% 87% 89% 94% 98% 99% 91% 94% 88% 2012 2013 2014 2015 2016 2017 2018 2019 60 70 80 90 100 Besides simply looking at the scale of public tech companies, there are a number of other cultural differences between European and US public markets. One is a greater level of openness to existing investors selling down their position at IPO for liquidity. As a result, there is a materially higher share of secondary share sales on European than on US markets. Average share of primary versus secondary shares sold at IPO by region SOURCE: LEGEND Europe United States NOTE: 2019 based on data up to September 2019. DATASET: SECONDARY SH ARE SALES Average share of secondary/primary shares sold4% 19% 33% 26% 34% 24% 20% 24% 13% 11% 6% 2% 1% 9% 6% 12% 2012 2013 2014 2015 2016 2017 2018 2019 0 10 20 30 Besides simply looking at the scale of public tech companies, there are a number of other cultural differences between European and US public markets. One is a greater level of openness to existing investors selling down their osition at IPO for liquidity. As a result, there is a materially higher share of secondary share sales on European than on US markets. Average share of primary versus secondary shares sold at IPO by region SOURCE: LEGEND Europe United States NOTE: 2019 based on data up to September 2019. DATASET: PRIMARY SH ARE SALES Average share of secondary/primary shares sold96% 81% 67% 74% 66% 76% 8 87% 89% 94% 98% 99% 91% 9 2012 2013 2014 2015 2016 2017 60 70 80 90 100 Besides simply looking at the scale of public tech companies, there are a number of other cultural differences between European and US public markets. One is a greater level of openness to existing investors selling down their position at IPO for liquidity. As a result, there is a materially higher share of secondary share sales on European than on US markets. Average share of primary versus secondary shares sold at IPO by region SOURCE: LEGEND Europe United States NOTE: 2019 based on data up to September 2019. DATASET: PRIMARY SH ARE SALES Average share of secondary/primary shares sold96% 81% 67% 74% 66% 76% 8 87% 89% 94% 98% 99% 91% 9 2012 2013 2014 2015 2016 2017 60 70 80 90 100 PRIMARY SHARE SALES SECONDARY SHARE SALES There is a strong pool of sophisticated European public market investors that have built large portfolios of holdings in public European tech companies. Norway’s giant sovereign wealth fund, Norges Bank Investment Management, is the single largest European investor in European public tech companies, as measured by the size of its portfolio at the end of September 2019. There is a strong pool of sophisticated European public market investors that have built large portfolios of holdings in public Europea tec companies. Norway's giant svereign wealth fund, Norges Bank Investment Management, is the single largest European investor in European public tech companies, as measured by the size of its portfolio at the end of September 2019. Top 10 European investors in European tech companies # of Investments in European Tech Companies Norges Bank Investment Management 332 Legal & General Investment Management 203 DWS Investment 255 Baillie Gifford 143 BNP Paribas Asset Management 162 Allianz Global Investors 208 Amundi Asset Management 152 UBS Asset Management 257 Henderson Global Investors 224 ABN AMRO 157 SOURCE: There is a strong pool of sophisticated European public market investors that have built large portfolios of holdings in public European tech companies. Norway's giant sovereign wealth fund, Norges Bank Investment Management, is the single largest European investor in European public tech companies, as measured by the size of its portfolio at the end of September 2019. Top 10 Eur pea investors in European tech companies # of Investments in ean Tech Companies Norges Bank Investment Management 332 Legal & General Investment Management 203 DWS Investment 255 Baillie Gifford 143 BNP Paribas Asset Management 162 Allianz Global Investors 208 Amundi Asset Management 152 UBS Asset Management 257 Henderson Global Investors 224 ABN AMRO 157 SOURCE: undefinedundefined59 In Partnership with & www.stateofeuropeantech.com Investors What is the definition of a European tech investor? As investment into European startups continues to set records, capital providers have proliferated at all stages from angel to growth. Investors at more than 100 funds are on track to raise over $100B, and we saw a record number of first-time funds. undefinedundefinedundefinedundefinedundefinedundefined66 In Partnership with & www.stateofeuropeantech.com On a population-adjusted basis, VCs based in Luxembourg and Switzerland have raised the highest amount of funds, a re�ection of their attractiveness as global �nancial centres. The Netherlands and the UK also rank high on a per capita basis, while large European markets such as Italy, Spain and even Germany still have relatively underdeveloped VC ecosystems compared with the most advanced European countries. Estonia is an example of a country that has seen a rapid development in the local VC ecosystem with the emergence of a new generation of VC funds, such as Karma Ventures and Tera Ventures. VC funds raised per capita by country of GP by year SOURCE: LEGEND $ raised per capita (2013-2015) $ raised per capita (2016-2018) NOTE: Taken from the European Data Cooperative, developed by Invest Europe. EDC data converted at EUR:USD of 1.1367, the rate on 30 June 2019. DATASET: R ANK 1 1-20 Funds raised per capita ($) $30 $33 $23 $12 $20 $18 $5 $0 $2 $3 $57 $57 $54 $54 $30 $16 $16 $11 $10 $8 Germany Ireland Belgium Denmark Spain Austria Italy Greece Lithuania Bulgaria 0 5 10 15 20 25 30 35 40 45 50 55 60 65 VCs and LPs 04.1 On a population-adjusted basis, VCs based in Luxembourg and Switzerland have raised the highest amount of funds, a reflection of their attractiveness as global financial centres. The Netherlands and the UK also rank high on a per capita basis, while large European markets such as Italy, Spain and even Germany still have relatively underdeveloped VC ecosystems compared with the most advanced European countries. Estonia is an example of a country that has seen a rapid development in the local VC ecosystem with the emergence of a new generation of VC funds, such as Karma Ventures and Tera Ventures. On a population-adjusted basis, VCs based in Luxembourg and Switzerland have raised the highest amount of funds, a re�ection of their attractiveness as global �nancial centres. The Netherlands and the UK also rank high on a per capita basis, while large European markets such as Italy, Spain and even Germany still have relatively underdeveloped VC ecosystems compared with the most advanced European countries. Estonia is an example of a country that has seen a rapid development in the local VC ecosystem with the emergence of a new generation of VC funds, such as Karma Ventures and Tera Ventures. VC funds raised per capita by country of GP by year SOURCE: LEGEND $ raised per capita (2013-2015) $ raised per capita (2016-2018) NOTE: Taken from the European Data Cooperative, developed by Invest Europe. EDC data converted at EUR:USD of 1.1367, the rate on 30 June 2019. DATASET: TOP 10 Funds raised per capita ($) $280 $189 $86 $94 $99 $5 $55 $56 $7 $10 $771 $191 $183 $153 $124 $120 $114 $85 $80 $72 Luxembourg Switzerland Netherlands United Kingdom Norway Estonia France Finland Sweden Hungary 0 100 200 300 400 500 600 700 800 On a population-adjusted basis, VCs based in Luxembourg and Switzerland have raised the highest amount of funds, a re�ection of their attractiveness as global �nancial centres. The Netherlands and the UK also rank high on a per capita basis, while large European markets such as Italy, Spain and even Germany still have relatively underdeveloped VC ecosystems compared with the most advanced European countries. Estonia is an example of a country that has seen a rapid development in the local VC ecosystem with the emergence of a new generation of VC funds, such as Karma Ventures and Tera Ventures. VC funds raised per capita by country of GP by year SOURCE: LEGEND $ raised per capita (2013-2015) $ raised per capita (2016-2018) NOTE: Taken from the European Data Cooperative, developed by Invest Europe. EDC data converted at EUR:USD of 1.1367, the rate on 30 June 2019. DATASET: REST OF EUROPE Funds raised per capita ($) $5 $5 $2 $0 $0 $4 $7 $7 $7 $7 $4 $3 Czech Republic Latvia Poland Serbia Romania Portugal 0 1 2 3 4 5 6 7 8 On a populatio-adjusted basis, VCs based in Luxembourg and Switzerland have r ised the highest amount of funs, a re�ctio of their attactiveness as global �nancial centres. The Netherlands and the UK also rank high on a per cait basis, while large European mark ts suh as Italy, Spain and even Germany still have relatively underdeveloped VC ecosystems compared with the most advanced European countries. Estonia is an example of a country that has seen a rapid development in the local VC ecosystem with the emergence of a new generation of VC funds, such as Karma Ventures and Tera Ventures. VC funds raised per capita by country of GP by year SOURCE: LEGEND $ raised per capita (2013-2015) $ raised per capita (2016-2018) NOTE: Taken from the European Data Cooperative, developed by Invest Europe. EDC data converted at EUR:USD of 1.1367, the rate on 30 June 2019. DATASET: TOP 10 Funds raised per capita ($) $280 $189 $86 $94 $99 $5 $55 $56 $7 $10 $771 $191 $183 $153 $124 $120 $114 $85 $80 $72 Luxembourg Switzerland Netherlands United Kingdom Norway Estonia France Finland Sweden Hungary 0 100 200 300 400 500 600 700 800 On a population-adjusted basis, VCs based in Luxembourg and Switzerland have raised the highest amount of funds, a re�ection of their attractiveness as global �nancial centres. The Netherlands and the UK also rank high a per capita basis, while large European markets such as Italy, Spain and even G rmny still have latively underdeveloped VC cosystems compared with the most advance European countries. Estonia is an example of a country that has seen a rapid development in the local VC ecosystem with the emergence of a new geeration of VC funds, such as Karma Ventures and Tera Ventures. VC funds raised per capita by country of GP by year SOURCE: LEGEND $ raised per capita (2013-2015) $ raised per capita (2016-2018) NOTE: Taken from the European Data Cooperative, developed by Invest Europe. EDC data converted at EUR:USD of 1.1367, the rate on 30 June 2019. DATASET: R ANK 1 1-20 Funds raised per capita ($) $30 $33 $23 $12 $20 $18 $5 $0 $2 $3 $57 $57 $54 $54 $30 $16 $16 $11 $10 $8 Germany Ireland Belgium Denmark Spain Austria Italy Greece Lithuania Bulgaria 0 5 10 15 20 25 30 35 40 45 50 55 60 65 TOP 10 RANKS 11-20 REST OF EUROPE undefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefined77 In Partnership with & www.stateofeuropeantech.com Investors 04.2 The volume of investment activity by corporate investors has also expanded considerably in recent years. In 2019, almost 700 unique corporate investors participated in at least one investment round involving a European tech company. The rise of corporate investor participation has been even more marked than the rise of US and Asian investors. 22% of rounds closed in Europe in 2019 involved at least one corporate investor, up from just 9% in 2015. The volume of investment activity by corporate investors has also expanded considerably in recent years. In 2019, almost 700 unique corporate investors participated in at least one investment round involving a European tech company. Number of unique corporate investors per year and number of deals involving at least one corporate investor, 2015-2019 SOURCE:Dealroom LEGEND # of unique corporate investors # of corporate rounds 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. 2019 annualised based on data to September 2019. # of corporate deals# of unique corporate investors2015 2016 2017 2018 2019 0 250 500 750 300 400 500 600 The rise of corporate investor participation has been even more marked than the rise of US and Asian investors. 22% of rounds closed in Europe in 2019 involved at least one corporate investor, up from just 9% in 2015. Share of European deals (%) per year with at least one corporate investor SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data up to September 2019. Includes corporate VC funds as well as corporate investors. % of European deals9% 11% 13% 15% 22% 2015 2016 2017 2018 2019 8 10 13 15 18 20 23 The volume of investment activity by corporate investors has also expanded considerably in recent years. In 2019, almost 700 unique corporate investors participated in at least one investment round involving a European tech copany. Number of unique corporate investors per year and number of deals involving t least one corporate investor, 2015-2019 SOURCE:Dealroom L ND # of unique corporate investors # of corporate rounds 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. 2019 annualised based on data to September 2019. # of corporate deals2015 2016 2017 2018 0 250 500 750 The rise of corporate investor participation has been even more marked than the rise of US and Asian investors. 22% of rounds closed in Europe in 2019 involved at least one corporate investor, up from just 9% in 2015. Share of European deals (%) per year with at least one corporate investor SOURCE:Dealroom NOTE: All Dealroom.co dat xclude the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data up to September 2019. Includes corporate VC funds as well as corporate investors. % of European deals9% 11% 13% 15% 2015 2016 2017 2018 8 10 13 15 18 20 23 The volume of investment activity by corporate investors has also expanded considerably in recent years. In 2019, almost 700 unique corporate investors participated in at least one investment round involving a European tech company. Number of unique corporate investors per year and number of deals involving at least one corporate investor, 2015-2019 SOURCE:Dealroom LEGEND # of unique corporate investors # of cororat rou s 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. 2019 annualised based on data to September 2019. # of corporate deals2015 2016 2017 2018 0 250 500 750 The rise of corporate investor participation has been even more marked than the rise of US and Asian inves ors. 22% of rounds closed in Europe in 2019 involved at least one corporate investor, up from just 9% in 2015. Share of European deals (%) per y ar with at least one corporate investor SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data up to September 2019. Includes corporate VC funds as well as corpor te investors. % of European deals9% 11% 13% 15% 2015 2016 2017 2018 8 10 13 15 18 20 23 I’d say the European funding gap has moved a lot more to later stages than in the past. Today, there are a lot of high-quality investors available from the seed stages until maybe Series B (referring to up to €30-50m rounds). However, from Series C onwards (now talking about €100m+ rounds), there are a lot fewer options available in Europe than elsewhere. For instance, in our case over 2/3 of the investors we spoke with for our Series C came from outside Europe, while we’d mostly focused on speaking with European investors up until our Series B. Miki Kuusi Wolt Co-Founder & CEO 78 In Partnership with & www.stateofeuropeantech.com Investors 04.2 On the other hand, the most active Corporate VCs span a wide range of industries. With 4 of the top 10, Germany is home to some of the most active Corporate VCs, each one having at least one unicorn in portfolio - Graphcore, Fair, Bolt and N26. The depth of the corporate investor base is also apparent from a vertical perspective. Young companies can tap into a specialised pool of investors to navigate their scaling journey. It’s also remarkable to see some of our homegrown European scale-ups such as Just Eat and Delivery Hero become active investors in the ecosystem. e other hand, the most active Corporate VCs span a wide range of industries. With 4 of the top 10, any is home to some of the most active Corporate VCs, each one having at least one unicorn in portfolio - core, Fair, Bolt and N26. 0 most active corporate ure capital investors in pean tech by number of s in the last 12 months Country # of Deals Last 12 Months % of Portfolio Size 1 Next47 (Siemens) Germany 16 12 2 Unilever Ventures United Kingdom 15 38 3 Santander Innoventures United Kingdom 11 41 4 M Ventures (Merck KGaA) Germany 10 14 5 Sabadell Venture Capital Spain 9 31 6 Swisscom Ventures Switzerland 9 13 7 Robert Bosch Venture Capital Germany 9 18 8 InMotion ventures (Jaguard Land Rover) United Kingdom 8 44 9 AXA Venture Partners France 7 14 10 Allianz X Germany 6 33 SOURCE:Dealroom lroom.co data excludes the following: h, secondary transactions, debt, g capital, grants. Please also note the cludes Israel. 2019 based on data as ember 2019. The depth of the corporate investor base is also apparent from a vertical perspective. Young companies can tap into a specialised pool of investors to navigate their scaling journey. It's also remarkable to see some of our homegrown European scale-ups such as Just Eat and Delivery Hero become active investors in the ecosystem. Top 10 most active corporate investors for select vertical ranked by number of deals, 2015- 2019 Fintech Health Transportation Enterprise Software Food 1 ING Ventures ZKB InMotion ventures Salesforce Ventures Crédit Agricole 2 Collector Ventures Crédit Agricole Rakuten Serena R/GA Ventures 3 Orange Digital Ventures Axel Springer Plug and Play Accelerator Daimler Technology & Venture Swisscom Ventures Caixa Capital 4 Credit Mutuel Arkea Parkwalk Advisors Deutsche Bahn Caixa Capital ProSiebenSat.1 Accelerator 5 Goldman Sachs M Vent ures Crédit Agricole Sapphire Ventures Mail.ru Group 6 Schibsted Growth Hax BOOST Programs R/GA Ventures Just Eat 7 Allianz X Boehringer Ingelheim Venture Fund Macif Parkwalk Advisors ZKB 8 Santander Innoventures Oxford Technology Management Shell Pi Labs Metro Group 9 BNP Paribas BNP Paribas Delivery Hero GV Collector Ventures 10 Uniqa Sabadell Venture Capital RATP M12 Unilever Ventures SOURCE:Dealroom NOTE: 2019 based on data up to September 2019. On the other hand, the most active Corporate VCs span a wide range of industries. With 4 of the top 10, Germany is home t some of the most active Corporate VCs, each one having at least one unicorn in portfolio - Graphcore, Fair, Bolt and N26. Top 10 most active corporate venture capital investors in European tech by number of deals in the last 12 months Country # of Deals Last 12 Months % of Portfolio Size 1 Next47 (Siemens) Germany 16 12 2 Unilever Ventures United Kingdom 15 38 3 Santander Innoventures United Kingdom 11 41 4 M Ventures (Merck KGaA) Germany 10 14 5 Sabadell Venture Capital Spain 9 31 6 Swisscom Ventures Switzerland 9 13 7 Robert Bosch Venture Capital Germany 9 18 8 InMotion ventures (Jaguard Land Rover) United Kingdom 8 44 9 AXA Venture Partners France 7 14 10 Allianz X Germany 6 33 SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data as of September 2019. Te depth f the corporate investor base is also apparent from a vertical perspective. Y ung companies can tap into a specialised pool of investors to navigate their scaling journey. It's also remarkable to see some of our homegrown European scale-ups such as Just Eat and Delivery Hero become active investors in the ecosystem. Top 10 most active corporate investors for select vertical ranked by number of deals, 2015- 2019 Fintech Health Transportation Enterprise Software Food 1 ING Ventures ZKB InMotion ventures Salesforce Ventures Crédit Agricole 2 Collector Ventures Crédit Agricole Rakuten Serena R/GA Ventures 3 Orange Digital Ventures Axel Springer Plug and Play Accelerator Daimler Technology & Venture Swisscom Ventures Caixa Capital 4 Credit Mutuel Arkea Parkwalk Advisors Deutsche Bahn Caixa Capital ProSiebenSat.1 Accelerator 5 Goldman Sachs M Vent ures Crédit Agricole Sapphire Ventures Mail.ru Group 6 Schibsted Growth Hax BOOST Programs R/GA Ventures Just Eat 7 Allianz X Boehringer Ingelheim Venture Fund Macif Parkwalk Advisors ZKB 8 Santander Innoventures Oxford Technology Management Shell Pi Labs Metro Group 9 BNP Paribas BNP Paribas Delivery Hero GV Collector Ventures 10 Uniqa Sabadell Venture Capital RATP M12 Unilever Ventures SOURCE:Dealroom NOTE: 2019 based on data up to September 2019. The depth of the corporate investor base is also apparent from a vertical perspective. Young companies can tap into a specialised pool of investors to navigate their scaling journey. It's also remarkable to see some of our homegrown Europa scale-up such as Just Eat and Deli y Hero become active investors in the ecosystem. Top 10 most active corporate investors for select vertical ranked by number of deals, 2015- 2019 Fintech Health Transportation Enterprise Software Food 1 ING Ventures ZKB InMotion ventures Salesforce Ventures Crédit Agricole 2 Collector Ventures Crédit Agricole Rakuten er na R/GA Ventures 3 Orange Digital Ventures Axel Springer Plug and Play Accelerator Daimler Technology & Venture Swisscom V ntures Caixa Capital 4 Credit Mutuel Arkea Parkwalk Advisors Deutsche Bahn Caixa Capital ProSiebenSat.1 Accelerator 5 Goldman Sachs M Ventures Crédit Agricole Sapphire Venture s Mail.ru Group 6 Schibsted Growth Hax BOOST Programs R/GA Ventures Just Eat 7 Allianz X Boehringer Ingelheim Venture Fund Macif Parkwalk Advisors ZKB 8 Santander Innoventures Oxford Technology Management Shell Pi Labs Metro Group 9 BNP Paribas BNP Paribas Delivery Hero GV Collector Ventures 10 Uniqa Sabadell Venture Capital RATP M12 Unilever Ventures SOURCE:Dealroom NOTE: 2019 based on data up to September 2019. On the other hand, the most active Corporate VCs span a wide range of industries. With 4 of the top 10, Germany is home to some of the most active Corporate VCs, each one having at least one unicorn in portfolio - Graphcore, Fair, Bolt and N26. Top 10 most active corporate venture capital investors in European tech by number of deals in the last 12 months Country # of Deals Last 12 Months % of Portfolio Size 1 Next47 (Siemens) Germany 16 12 2 Unilever Ventures United Kingdom 15 38 3 Santander Innoventures United Kingdom 11 41 4 M Ventures (Merck KGaA) Germany 10 14 5 Sabadell V nture Capital Spain 9 31 6 Swisscom Ventures Switzerland 9 13 7 Robert Bosch Venture Capital Germany 9 18 8 InMotion ventures (Jaguard Land Rover) United Kingdom 8 44 9 AXA Venture Partners France 7 14 10 Allianz X Germany 6 33 SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data as of September 2019. 79 In Partnership with & www.stateofeuropeantech.com Angels European angel investing landscape EBAN estimates that $8.6B (€7.5B) was invested across all European countries in 2018 by angel investors, based on the extrapolation of the ‘visible’ market. Angel investors with the deepest pockets reside in the UK, Germany and Spain. Pre-seed stage investments are particularly difficult to monitor given most angel investments are not tracked until much later in the life of the startup. The European Business Angels Network organisation (‘EBAN’) estimates that the ‘visible’ market only represents 10% of the overall angel investments. As such there is an inherent bias in our datasets towards ‘super-angels’ and/ or startups that have already managed to progress through multiple stages of investments. The reporting lag is also much more likely to impact the performance for 2018 and 2019. invested by angel investors in Europe in 2019. CAPITAL INVESTED ($B) $8.6B invested acoss all estors, based on Angel investors UK, Germany and CAPITAL INVESTED ($B) $8.6B invested by angel investors in Europe in 2019. SOURCE: EBAN estimat s that $8.6B (€7.5B) was invested across all European countries in 2019 by angel investors, based on the extrapolation of the 'visible' market. Angel investors with the deepest pockets reside in the UK, Germany and Spain. CAPITAL INVESTED ($B) $8.6B invested by angel investors in Europe in 2019. 'Visible' capital invested ($M) by angels by country SOURCE: LEGEND up to 120 80 to 100 60 to 80 40 to 60 20 to 40 10 to 20 up to 10 NOTE: EUR to USD conversion taken at 1 EUR to 1.145 USD from December 31, 2018. Displaying 'visible market' capital invested ($M) in the EU-28 countries. EBAN estimates that $8.6B (€7.5B) was invested across all European countries in 2019 by angel investors, based on the extrapolation of the 'visible' market. Angel investors with the deepest pockets reside in the UK, Germany and Spain. CAPITAL INVESTED ($B) $8.6B invested by angel investors in Europe in 2019. 'Visible' capital invested ($M) by angels by country SOURCE: LEGEND up to 120 80 to 100 60 to 80 40 to 60 20 to 40 10 to 20 up to 10 NOTE: EUR to USD conversion taken at 1 EUR to 1.145 USD from December 31, 2018. Displaying 'visible market' capital invested ($M) in the EU-28 countries. undefined81 In Partnership with & www.stateofeuropeantech.com Angels 04.3 Founders are becoming more likely to make investments back in the ecosystem in comparison with the period 2015-2018, leading to the increased sophistication of the investor pool. The top 15 most active angel investors are all founders (or in the case of Sophia Bendz, operator) except for 3. Founders are becoming more likely to make investments back in the ecosystem in comparison with the period 2015-2018, leading to the increased sophistication of the investor pool. Share of angel investments (%) by founders, 2015-2018 vs 2019 SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 as of September 2019. Average % of deals17% 21% 2015-2018 2019 0 5 10 15 20 The top 15 most active angel investors are all founders (or in the case of Sophia Bendz, operator) except for 3. Top 15 angel investors in Europe by deal count, 2015-2019 Investor Deal Count Former Founder? Company 1 Xavier Niel 54 Yes Iliad 2 Charlie Songhurst 35 No n/a 3 Theo Osborne 24 No n/a 4 Pierre Kosciusko-Morizet 23 Yes PriceMinister 5 Taavet Hinrikus 22 Yes TransferWise 6 Chris Adelsbach 21 No n/a 7 Carlos Blanco 19 Yes Akamon Entertainment 8 Sophia Bendz 19 No (operator) Spotify 9 Alex Chesterman 18 Yes Zoopla 10 Thibaud Elziere 18 Yes Fotolia 11 Andreas Mihalovits 16 Yes dreamfab 12 Eduardo Ronzano 16 Yes KelDoc 13 H ampus Jakobsson 15 Yes brisk.io 14 Michael Benabou 15 Yes Vente privée 15 David Helgason 15 Yes unity SOURCE:Dealroom Foundes ar becoing more likely o make investments back in the ecosystem in comparison with the period 2015-2018, leading to th increased sophistication of the investor pool. Share of angel investments (%) by founders, 2015-2018 vs 2019 SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 as of September 2019. Average % of deals17% 21% 2015-2018 2019 0 5 10 15 20 The top 15 most active angel investors are all founders (or in the case of Sophia Bendz, opat r) except for 3. Top 15 angel investors in Europe by deal count, 2015-2019 Investor Deal Count Former Founder? Company 1 Xavier Niel 54 Yes Iliad 2 Charlie Songhurst 35 No n/a 3 Theo Osborne 24 No n/a 4 Pierre Kosciusko-Morizet 23 Yes PriceMinister 5 Taavet Hinrikus 22 Yes TransferWise 6 Chris Adelsbach 21 No n/a 7 Carlos Blanco 19 Yes Akamon Entertainment 8 Sophia Bendz 19 No (operator) Spotify 9 Alex Chesterman 18 Yes Zoopla 10 Thibaud Elziere 18 Yes Fotolia 11 Andreas Mihalovits 16 Yes dreamfab 12 Eduardo Ronzano 16 Yes KelDoc 13 H ampus Jakobsson 15 Yes brisk.io 14 Mich el Benabou 15 Yes Vente privée 15 David Helgason 15 Yes unity SOURCE:Dealroom Share of angel investments (%) by founders, 2015-2018 vs 2019 SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 as of September 2019. Average % of deals17% 21% 2015-2018 2019 0 5 10 15 20 Angel investors form a critical part of any successful ecosystem. Angel investors form a critical part of any successful ecosystem. Looking back a dozen or so years ago, there were very few angel investors in Europe, and even fewer founders turned angels. For TransferWise, it was a huge coup to get the likes of Max Levchin (founder of PayPal) and David Yu (then the CEO of Betfair) to invest in our seed round. Besides the credibility, it gives startup teams lots of experience to tap into for problem solving as you grow. Seed funds like Seedcamp, who often act together with the angels, also have a vital role to play in fulfilling this need. Taavet Hinrikus TransferWise Co-Founder & Chairman FORMER FOUNDERS of angel investors surveyed by EBAN have also been a founder in the past. 40% undefined83 In Partnership with & www.stateofeuropeantech.com Angels 04.3 The first Atomico angels cohort has invested into 42 companies to date, mostly in climate tech, and 45% of investments have been into female founded companies. Roxanne Varza Station F, France Tuva Palm NordNet, Sweden Josefin Landgard Kry, Sweden Gregory Gazagne Criteo, France Emily Brooke Beryl, UK Stefano Bernardi Token Economy, Italy Rohan Silva Second Home, UK Doreen Huber Lemoncat, Germany Clare Johnston The Up Group, UK Suvi Haimi Sulapac, Finland Johan Brand We Are Human, Norway Ritu Jain LifeX, Denmark Atomico Angel Investor Programme We started Atomico’s inaugural angel programme last year with 12 angels from across the European ecosystem. They received no guidance about sectors. Currently, 34% of the deals have been in startups with an environmental impact,and 34% of the deals are with female founders. This just goes to show that a diverse set of people becoming angels – whether that is through capital earned at a successful tech company or through angel programmes – is key to increasing the diversity gap in funding and supporting solutions to big societal problems. Sophia Bendz Atomico Partner undefinedundefined86 www.stateofeuropeantech.com Angels 04.3 Angels tell us the lack of favourable tax systems is a barrier to investing. Over 30% of respondents picked this element as the most important consideration out of 17 options available. The EIS/SEIS scheme introduced in the United Kingdom has been an incredibly effective tool to attract angel investments into the country. Angels tell us the lack of favourable tax systems is a barrier to investing. Over 30% of respondents picked this element as the most important consideration out of 17 options available. The EIS/SEIS scheme introduced in the United Kingdom has been an incredibly effective tool to attract angel investments into the country. Top 10 most underdeveloped elements for angel investing SOURCE: LEGEND Most important Second most important Third most important NOTE: Based on the EIF BA Survey, a survey of 60 angel investors or 65% of the ‘European Angels Fund’ programme population at the time the survey was conducted. % of respondents who ranked these different considerations in top 3 Favourable tax systems VC funds for follow-on rounds Vibrant start-up hubs Capital market integration across borders Regulatory framework General economic conditions Involvement of corporate investors Highly experienced VC funds Cultural attitude towards entrepreneurship R&D environment 0 5 10 15 20 25 30 35 40 45 50 55 Angels tell us the lack of favourable tax systems is a barrier to investing. Over 30% of respondents picked this element as the most important consideration out of 17 options available. The EIS/SEIS scheme introduced in the United Kingdom has been an incredibly effective tool to attract angel investments into the country. Top 10 most underdeveloped elements for angel investing SOURCE: LEG Most important Second most important Third most important NOTE: Based on the EIF BA Survey, a survey of 60 angel investors or 65% of the ‘European Angels Fund’ programme population at the time the survey was conducted. % of respondents who ranked these different considerations in t Favourable tax systems VC funds for follow-on rounds Vibrant start-up hubs Capital market integration across borders Regulatory framework General economic conditions Involvement of corporate investors Highly experienced VC funds Cultural attitude towards entrepreneurship R&D environment 0 5 10 15 20 25 30 35 40 4 Angels tell us the lack of favourable tax systems is a barrier to investing. Over 30% of respondents picked this element as the most important consideration out of 17 options available. The EIS/SEIS scheme introduced in the United Kingdom has been an incredibly effective tool to attract angel investments into the country. Top 10 most underdeveloped elements for angel investing SOURCE: LEGEND Most important Second most important Third most important NOTE: Based on the EIF BA Survey, a survey of 60 angel investors or 65% of the ‘European Angels Fund’ programme population at the time the survey was conducted. % of respondents who ranked these different considerations in t Favourable tax systems VC funds for follow-on rounds Vibrant start-up hubs Capital market integration across borders Regulatory framework General economic conditions Involvement of corporate investors Highly experienced VC funds Cultural attitude towards entrepreneurship R&D environment 0 5 10 15 20 25 30 35 40 4 In Partnership with & Photo by: Jussi Hellsten 87 In Partnership with & www.stateofeuropeantech.com Diversity & Inclusion Does European tech still lack diversity and inclusion? Despite increased awareness a lack of diversity, the problem remains entrenched. There is only one woman CTO among a sample of VC- backed tech companies. Nearly a quarter of people in the ecosystem say they’ve experienced discrimination on factors from ethnicity to age. Some initiatives - such as more organisations serving talent from underrepresented backgrounds - give hope, but change will require a concerted effort from everyone in the ecosystem. undefinedundefined90 In Partnership with & www.stateofeuropeantech.com CAPITAL RAISED Funding for all women teams is actually going down. There is no material improvement in the share of capital invested in European tech companies going to diverse founding teams. In fact, the share of capital invested in companies founded by women decreased in 2019 versus 2018. This means that in 2019, $92 in every $100 invested in Europe went to founding teams that were all men. CAPITAL R AISED BY FOUNDING TEAM GENDER $92 in every $100 invested in Europe went to founding teams that were all men Share of capital raised and deals (%) by founding team gender composition SOURCE:Dealroom LEGEND Men Mixed Women NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: DEALS % of capital raised / deals85.4% 86.7% 86.2% 85.5% 86.9% 10.8% 9.9% 9.9% 10.6% 11.0% 3.9% 3.3% 4.0% 3.9% 2.1% 2015 2016 2017 2018 2019 0.0 25.0 50.0 75.0 D&I and investment data: the limitations If you have access to, or suggestions for, data sets which would help us tell this story, please email research@atomico.com. State of D&I in European Tech 05.1 Funding for all women teams is actually going down. There is no material improvement in the share of capital invested in European tech companies going to diverse founding teams. In fact, the share of capital invested in companies founded by women decreased in 2019 versus 2018. This means that in 2019, $92 in every $100 invested in Europe went to founding teams that were all men. invested in Europe went to founding teams that were all men CAPITAL RAISED BY FOUNDING TEAM GENDER $92 in every $100 Funding for all women tems is actually going down. There is no material improvemnt in the share of capital invested in European tech companies going to di r e founding teams. In fact, the share of capital invested in companies founded by women decreased in 2019 versus 2018. This means that in 2019, $92 in every $100 invested in Europe went to founding teams that were all men. CAPITAL R AISED BY FOUNDING TEAM GENDER $92 in every $100 invested in Europe went to founding teams that were all men Share of capital raised and deals (%) by founding team gender composition SOURCE:Dealroom LEGEND Men Mixed Women NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: CAPITAL R AISED % of capital raised / deals89.0% 89.1% 90.4% 91.7% 91.6% 9.5% 8.4% 7.0% 6.8% 8.0% 1.5% 2.5% 2.6% 1.4% 0.4% 2015 2016 2017 2018 2019 0.0 25.0 50.0 75.0 100.0 Funding for all women teams is actually going down. There is no material imrovement in the share f capital invested in European tech companies going to diverse founding teams. In fact, the share of capital invested in companies founded by women decreased in 2019 versus 2018. This means that in 2019, $92 in every $100 invested in Europe went to founding teams that were all men. CAPITAL R AISED BY FOUNDING TEAM GENDER $92 in every $100 invested in Europe went to founding teams that were all men Share of capital raised and deals (%) by founding team gender composition SOURCE:Dealroom LEGEND Men Mixed Women NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: CAPITAL R AISED % of capital raised / deals89.0% 89.1% 90.4% 91.7% 91.6% 9.5% 8.4% 7.0% 6.8% 8.0% 1.5% 2.5% 2.6% 1.4% 0.4% 2015 2016 2017 2018 2019 0.0 25.0 50.0 75.0 100.0 DEALS Funding for all women teams is actually going down. There is no material improvement in the share of capital invested in European tech companies going to diverse founding teams. In fact, the share of capital invested in companies founded by women decreased in 2019 versus 2018. This means that in 2019, $92 in every $100 invested in Europe went to founding teams that were all men. CAPITAL R AISED BY FOUNDING TEAM GENDER $92 in every $100 invested in Europe went to founding teams that were all men Share of capital raised and deals (%) by founding team gender composition SOURCE:Dealroom LEGEND Men Mixed Women NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 anualised based on data to September 2019. DATASET: CAPITAL R AISED % of capital raised / deals89.0% 89.1% 90.4% 91.7% 91.6% 9.5% 8.4% 7.0% 6.8% 8.0% 1.5% 2.5% 2.6% 1.4% 0.4% 2015 2016 2017 2018 2019 0. 25.0 50.0 75.0 100.0 91 In Partnership with & www.stateofeuropeantech.com The gender diversity of founding teams varies according to the size of the round. There is a greater level of diversity at round sizes of less than $10M, though it is notable that there has not been any material change in the trends over recent years. It's also notable that larger rounds are typically raised by founding teams that are all men, and so the more these large rounds are raised, the greater the dilutive impact on the overall share of capital raised by more gender diverse teams. Share of deals (%) by round size, year and founding team gender composition SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: <$10M % of deals86% 86% 85% 84% 85% 4% 4% 4% 5% 3% 10% 10% 10% 12% 13% 2015 2016 2017 2018 2019 0 25 50 75 The gender diversity of founding teams varies according to the size of the round. There is a greater level of diversity at round sizes of less than $10M, though it is notable that there has not been any material change in the trends over recent years. It's also notable that larger rounds are typically raised by founding teams that are all men, and so the more these large rounds are raised, the greater the dilutive impact on the overall share of capital raised by more gender diverse teams. Share of deals (%) by round size, year and founding team gender composition SOURCE:Dealroom LEGEND Mn Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: $10M-$20M % of deals82% 84% 92% 90% 94% 4% 4% 2% 2% 0% 15% 13% 7% 8% 6% 2015 2016 2017 2018 2019 0 25 50 75 100 $10M-$20M The gender diversity of founding teams varies according to the size of the round. There is a greater level of diversity at round sizes of less than $10M, though it is notable that there has not been any material change in the trends over recent years. It's also notable that larger rounds are typically raised by founding teams that are all men, and so the more these large rounds are raised, the greater the dilutive impact on the overall share of capital raised by more gender diverse teams. Share of deals (%) by round size, year and founding team gender composition SOURCE:Dealroom LEGEND Mn Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: $20M-$50M % of deals89% 92% 82% 91% 91% 0% 5% 3% 0% 0% 11% 4% 15% 9% 9% 2015 2016 2017 2018 2019 0 25 50 75 100 $20M-$50M <$10M State of D&I in European Tech 05.1 The gender diversity of founding teams varies according to the size of the round. There is a greater level of diversity at round sizes of less than $10M, though it is notable that there has not been any material change in the trends over recent years. It’s also notable that larger rounds are typically raised by founding teams that re all men, and so the more these large rounds are raised, the greater the dilutive impact on the overall share of capital raised by more gender diverse teams. The gender diversity of founding teams varies according to the size of the round. There is a greater level of diversity at round sizes of les thn $10M, though it is notable that there has not been any material change in the trends over recent years. It' l l t lrger rounds are typically raised by founding teams that are all men, and so the more these large rounds are aised, the greater the dilutiv impact on the overall share of capital raised by more gender div rse teams. Share of deals (%) by round size, year and founding team gender composition SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, ebt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: <$10M % of deals86% 86% 85% 84% 4% 4% 4% 5% 10% 10% 10% 12% 2015 2016 2017 2018 0 25 50 75 The gender diversity of founding teams varies according to the size of the round. There is a greater level of diversity at round sizes of less than $10M, though it is notable that there has not been any material change in the trends over recent years. It's also notable that larger rounds are typically raised by founding teams that are all men, and so the more these large rounds are raised, the greater the dilutive impact on the overall share of capital raised by more gender diverse teams. Share f dels (%) by roud size, year and founding team gender composition SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: <$10M % of deals86% 86% 85% 84% 4% 4% 4% 5% 10% 10% 10% 12% 2015 2016 2017 2018 0 25 50 75 The gender diversity of founding teams varies according to the size of the round. There is a greater level of diversity at round sizes of less than $10M, though it is notable that there has not been any material change in the trends over recent years. It's also notable that larger rounds are typically raised by founding teams that are all men, and so the more these large rounds are raised, the greater the dilutive impact on the overall share of capital raised by more gender diverse teams. Share of deals (%) by round size, year and founding team gender composition SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: $100M+ % of deals92% 100% 95% 100% 93% 0% 0% 5% 0% 0% 8% 0% 0% 0% 7% 2015 2016 2017 2018 2019 0 25 50 75 100 $100M+ The gender diversity of founding teams varies according to the size of the round. There is a greater level of diversity at round sizes of less than $10M, though it is notable that there has not been any material change in the trends over recent years. It's also notable that larger rounds are typically raised by founding teams that are all m , and so the more these large rounds are raised, the greater the diltive impact on the over ll share of capital raised by more gender diverse teams. Share of deals (%) by round size, year and founding team gender composition SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: $50M-$100M % of deals89% 75% 90% 94% 90% 0% 0% 0% 0% 0% 11% 25% 10% 6% 10% 2015 2016 2017 2018 2019 0 25 50 75 100 $50M-$100M The share of rounds raised by more gender diverse founding teams varies by country across Europe. Looking at the total distribution of deals raised by founding teams since 2015, it is noteworthy that countries from Southern Europe, such as Portugal or Italy, have seen greater diversity in the number of rounds raised by teams composed of women or mixed-gender founders compared with Nordic countries, such as Finland or Denmark. Share of deals (%) by founding team gender composition and country, 2015-2019 SOURCE:Dealroom LEGEND Men Mixed Women NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. % of deals Czech Republic Italy Portugal Spain United Kingdom Germany Sweden Russia Switzerland Ireland Finland France Belgium Denmark Netherlands Poland 0 10 20 30 40 50 60 70 80 90 100 110 92 In Partnership with & www.stateofeuropeantech.com State of D&I in European Tech 05.1 The share of rounds raised by more gender diverse founding teams varies by country across Europe. Looking at the total distribution of deals raised by founding teams since 2015, it is noteworthy that countries from Southern Europe, such as Portugal or Italy, have seen greater diversity in the number of rounds raised by teams composed of women or mixed-gender founders compared with Nordic countries, such as Finland or Denmark. The share of rounds raised by more gender diverse founding teams varies by country across Europe. Looking at the total distribution of deals raised by founding teams since 2015, it is not worthy that countries from Southern Europe, such as Portugal or Italy, have seen greater diversity in the number of rounds raised by teams composed of women or mixed-gender founders compared with Nordic countries, such as Finland or Denmark. Share of deals (%) by founding team gender composition and country, 2015-2019 SOURCE:Dealroom LEGEND Men Mixed Women NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. % of deals Czech Republic Italy Portugal Spain United Kingdom Germany Sweden Russia Switzerland Ireland Finland France Belgium Denmark Netherlands Poland 0 10 20 30 40 50 60 70 80 90 100 110 The share of rounds raised by mre geder diverse founding teams varies by country across Europe. Looking at the total distribution of deals raised by foundig t ams sinc 2015, it is noteworthy that countries from Southern Europe, such as Portugal or Italy, have seen greater diversity in the number of rounds raised by teams composed of women or mixed-gender founders compared with Nordic countries, such as Finland or Denmark. Share of deals (%) by founding team gender composition and country, 2015-2019 SOURCE:Dealroom LEGEND Men Mixed Women NOTE: All Dealroom.co data excludes the following: biotech, seconday transactions, debt, lending capital, grants. Please also no e he data xcludes Israel. 2019 based on data to September 2019. % of deals Czech Republic Italy Portugal Spain United Kingdom Germany Sweden Russia Switzerland Ireland Finland France Belgium Denmark Netherlands Poland 0 10 20 30 40 50 60 70 80 90 100 110 What kind of progress do I think the European tech community has made towards increasing diversity and inclusion in the past 12 months? The slow kind. Steve O'Hear TechCrunch Journalist 93 In Partnership with & www.stateofeuropeantech.com State of D&I in European Tech 05.1 It's particularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different European countries, there's been minimal movement in recent years in almost all countries. BELGIUM DENMARK FRANCE FINLAND that, when looking at the evolution of the share of deals by the gender composition of me in different European countries, there's been minimal movement in recent years in ing and SOURCE:Dealroom lowing: bt, ote the ata to DATASET: BELGIUM % of deals86% 93% 88% 87% 85% 0% 2% 7% 3% 0% 14% 5% 5% 11% 15% 2015 2016 2017 2018 2019 0 25 50 75 100 that, when looking at the evolution of the share of deals by the gender composition of me in different European countries, there's been minimal movement in recent years in ing and SOURCE:Dealroom lowing: bt, ote the ata to DATASET: FINL AND % of deals87% 89% 87% 90% 86% 3% 4% 8% 5% 0% 10% 7% 5% 5% 14% 2015 2016 2017 2018 2019 0 25 50 75 100 It's particularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different European countries, there's been minimal movement in recent years in almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: FR ANCE % of deals88% 89% 87% 90% 86% 3% 2% 3% 2% 2% 9% 9% 10% 8% 13% 2015 2016 2017 2018 2019 0 25 50 75 100 It's particularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different European countries, there's been minimal movement in recent years in almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: DENMARK % of deals89% 93% 94% 89% 97% 2% 2% 0% 4% 0% 9% 4% 6% 7% 3% 2015 2016 2017 2018 2019 0 25 50 75 100 It's particularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different European countries, there's been minimal movement in recent years in almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes th following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: UNITED KINGDOM % of deals85% 86% 86% 85% 89% 5% 5% 5% 6% 2% 10% 9% 10% 10% 9% 2015 2016 2017 2018 2019 0 25 50 75 100 UNITED KINGDOM It's particularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different Europen counries, there's ben minimal movemnt in recent years i almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: UNITED KINGDOM % of deals85% 86% 86% 85% 89% 5% 5% 5% 6% 2% 10% 9% 10% 10% 9% 2015 2016 2017 2018 2019 0 25 50 75 100 team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. % of deals85% 86% 86% 85% 5% 5% 5% 6% 10% 9% 10% 2015 2016 2017 20 0 25 50 75 100 hat, when looking at the evolution of the share of deals by the gender composition of me in different European countries, there's been minimal movement in recent years in ing nd SOURCE:Dealroom owing: t, ote the ata to DATASET: GERMANY % of deals83% 85% 89% 87% 87% 3% 2% 1% 1% 0% 14% 14% 10% 13% 13% 2015 2016 2017 2018 2019 0 25 50 75 100 It' p ticularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams ov r tim in different European c untries, there's been minimal movement in recent years in almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: IREL AND % of deals88% 90% 83% 88% 75% 12% 6% 10% 9% 10% 0% 4% 8% 2% 15% 2015 2016 2017 2018 2019 0 25 50 75 100 IRELAND GERMANY 94 In Partnership with & www.stateofeuropeantech.com hat, when looking at the evolution of the share of deals by the gender composition of me in different European countries, there's been minimal movement in recent years in ing nd SOURCE:Dealroom owing: t, ote the ata to DATASET: POL AND % of deals100% 97% 86% 92% 100% 0% 0% 0% 0% 0% 0% 3% 14% 8% 0% 2015 2016 2017 2018 2019 0 25 50 75 100 It's particularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different European countries, there's been minimal movement in recent years in almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: PORTUGAL % of deals78% 74% 85% 83% 100% 11% 0% 8% 0% 0% 11% 26% 8% 17% 0% 2015 2016 2017 2018 2019 0 25 50 75 100 hat, when looking at the evolution of the share of deals by the gender composition of me in different European countries, there's been minimal movement in recent years in ing nd SOURCE:Dealroom owing: t, ote the ata to DATASET: ITALY % of deals87% 81% 81% 82% 72% 0% 4% 6% 3% 13% 13% 16% 13% 15% 16% 2015 2016 2017 2018 2019 0 25 50 75 It's particularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different European countries, there's been minimal movement in recent years in almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: NETHERL ANDS % of deals93% 94% 95% 93% 88% 0% 1% 0% 1% 3% 7% 5% 5% 6% 9% 2015 2016 2017 2018 2019 0 25 50 75 100 State of D&I in European Tech 05.1 PORTUGAL POLAND NETHERLANDS ITALY SPAIN RUSSIA hat, when looking at the evolution of the share of deals by the gender composiion of e in different European countries, there's been minimal movement in recent years in ng nd SOURCE:Dealroom owing: t, te the ata to DATASET: RUSSIA % of deals85% 97% 83% 77% 86% 4% 0% 7% 7% 0% 11% 3% 10% 16% 14% 2015 2016 2017 2018 2019 0 25 50 75 100 It' articularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different European countries, there's been minimal movement in recent years in almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: SPAIN % of deals83% 87% 86% 84% 90% 5% 3% 4% 5% 0% 12% 10% 10% 11% 11% 2015 2016 2017 2018 2019 0 25 50 75 100 SWITZERLAND SWEDEN that, when looking at the evolution of the share of deals by the gender composition of me in different European countries, there's been minimal movement in recent years in ding and SOURCE:Dealroom ollowing: bt, note the data to DATASET: SWEDEN % of deals86% 86% 87% 82% 87% 4% 3% 2% 4% 3% 10% 11% 10% 14% 11% 2015 2016 2017 2018 2019 0 25 50 75 100 It's particularly notable that, when looking at the evolution of the share of deals by the gender composition of founding teams over time in different European countries, there's been minimal movement in recent years in almost all countries. Share of deals (%) by founding team gender composition and country SOURCE:Dealroom LEGEND Men Women Mixed NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 based on data to September 2019. DATASET: SWITZERL AND % of deals85% 89% 88% 82% 90% 0% 1% 5% 1% 0% 15% 9% 7% 17% 10% 2015 2016 2017 2018 2019 0 25 50 75 100 SHARE OF DEALS (%) BY FOUNDING TEAM GENDER COMPOSITION undefinedundefinedundefinedundefinedundefined100 In Partnership with & www.stateofeuropeantech.com State of D&I in European Tech 05.1 Given these static numbers, it's important to examine the steps that investors have taken to try to improve the diversity of the founders they invest in. Venture capitalist respondents to the survey were divided over whether the European VC industry has taken meaningful steps to improve the diversity of the founders they back. In fact, for this particular question, there was a greater level of divergence of opinion between the VC respondents than for all other questions where VCs were asked to share their sentiment on major industry issues. We found important differences in the changes to sourcing activities reported by VC respondents who were men and women that suggests the focus on improving diversity is itself not equally shared. For example, 63% of VC respondents who are women said they had increased their focus on attending events with stronger participation from diverse founders, compared to just 36% of respondents who are men. I think we have made huge steps in understanding and admitting the problem. Now, action will be key. In the words of Alan Turing, 'we can only see a short distance ahead, but we can see plenty there that needs to be done'. Suranga Chandratillake Balderton Capital General Partner Given these static numbers, it's important to examine the steps that investors have taken to try to improve the diversity of the founders they invest in. Venture capitalist respondents to the survey were divided over whether the European VC industry has taken meaningful steps to improve the diversity of the founders they back. In fact, for this particular question, there was a greater level of divergence of opinion between the VC respondents than for all other questions where VCs were asked to share their sentiment on major industry issues. Thinking about the past 12 months, do you agree or disagree with the following: European VCs have taken meaningful steps to improve the diversity of the founders they back SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondents37% 24% Agree Disagree Neither 0 10 20 30 40 Given these static numbers, it's important to examine the steps that investors have taken to try to improve the diversity of the founders they invest in. Venture capitalist respondents to the survey were divided over whether the European VC industry has taken meaningful steps to improve the diversity of the founders they back. In fact, for this particular question, there was a greater level of divergence of opinion between the VC respondents than for all other questions where VCs were asked to share their sentiment on major industry issues. Thinking about the past 12 months, do you agree or disagree with the following: European VCs have taken meaningful steps to improve the diversity of the founders they back SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondents37% 24% Agree Disagree Neither 1 2 30 40 Given these static numbers, it's important to examine the steps that investors have taken to try to improve the diversity of the founders they invest in. Venture capitalist respondents to the survey were divided over whether the European VC industry has taken meaningful step to improv th diversity of the founders they back. In fact, for this particular question, there was a greater level of divergence of opinion between the VC respondents than for all other questions where VCs were asked to share their sentiment on major industry issues. Thinking about the past 12 months, do you agree or disagree with the following: European VCs ave taken meaningful steps to improve the diversity of the founders they back SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondents37% 24% 39% Agree Disagree Neither agree nor disagree 0 10 20 30 40 We found important differences in the changes to sourcing activities reported by VC respondents who were men and women that suggests the focus on improving diversity is itself not equally shared. For example, 63% of VC respondents who are women said they had increased their focus on attending events with stronger participation from diverse founders, compared to just 36% of respondents who are men. In the last 12 months, have you made any changes to how you source new investment opportunities? SOURCE:The State Of European Tech Survey LEGEND Increased focus Decreased focus Stayed the same NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondentsWomen Men 0 25 50 75 100 We found important differences in the changes to sourcing activities reported by VC respondents who were men and women that suggests the focus on improving diversity is itself not equally shared. For example, 63% of VC respondents who are women said they had increased their focus on attending events with stronger participation from diverse founders, compared to just 36% of respondents who are men. In the last 12 months, have you made any changes to how you source new investment opportunities? SOURCE:The State Of European Tech Survey LEGEND Increased focus Decreased focus Stayed the same NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondentsWomen Men 0 25 50 75 100 We found important differences in the changes to sourcing activities reported by VC respondents who were men and wome that suggests the focus on improving diversity is itslf not equally shared. For example, 63% of VC respondents who are women said they had increased their focus on attending events with stronger participation from diverse founders, compared to just 36% of respondents who are men. In t last 12 months, have you made any changes to how you sour e new investment opportunities? SOURCE:The State Of European Tech Survey LEGEND Increased focus Decreased focus Stayed the same NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondentsWomen Men 0 25 50 75 100 undefinedTech startups and scale ups are taking action to improve diversity and inclusion but there is still work to be done in terms of adopting D&I policies and implementing training programmes. In the last 12 months, has your company taken any of the following actions to improve diversity and inclusion? SOURCE: The State Of European Tech Survey LEGEND Already actioned Yes No NOTE: Venture capitalists, founders and startup/scaleup employees only. Numbers do not add to 100 as respondents could choose multiple responses. DATASET: FOUNDERS & TECH STARTUP/SCALEUP EMPLOYEES % of respondents Introduced more flexible working arrangements (e.g. remote working, flexible hours Introduced more generous maternity leave policies Introduced more generous paternity leave policies Introduced anti-harassment code of conduct Introduced specific diversity and inclusion hiring policies Offered relevant training for employees (e.g. unconscious bias training) Introduced specific diversity and inclusion talent development programmes Appointed a diversity & inclusion representative 0 10 20 30 40 50 60 70 Teh startups and scale ups are taking action to improve diversity and inclusion but there is still work to be done in terms of adopting D&I policies and implementing training programmes. In the last 12 months, has your compn taken any of the following actions to improve diversity and inclusion? SOURCE: The State Of European Tech Survey LEGEND Already actioned Yes No NOTE: Venture capitalists, founders and startup/scaleup employees only. Numbers do not add to 100 as respondents could choose multiple responses. DATASET: FOUNDERS & TECH STARTUP/SCALEUP EMPLOYEES % of respondents Introduced more flexible working arrangements (e.g. remote working, flexible hours Intro uc d more generous maternity leave policies Introduced more generous paternity leave policies Introduced anti-harassment code of conduct Introduced s ecific diversity and i l i hiring policies Offered relevant training for employees (e.g. unconscious bias training) Introduced specific diversity and inclusion talent development programmes Appointed a diversity & inclusion representative 0 10 20 30 40 50 60 70 Tech startups and scale ups are taking action to improve diversity and inclusion but there is still work to be done in terms of adopting D&I policies and implementing training programmes. In the last 12 months, has your company taken any of the following actions to improve diversity and inclusion? SOURCE: The State Of European Tech Survey LEGEND Already actioned Yes No NOTE: Venture capitalists, founders and startup/scaleup employees only. Numbers do not add to 100 as respondents could choose multiple responses. DATASET: FOUNDERS & TECH STARTUP/SCALEUP EMPLOYEES % of respondents Introduced more flexible working arrangements (e.g. remote working, flexible hours Introduced more generous maternity leave policies Introduced more generous paternity leave policies Introduced anti-harassment code of conduct Introduced specific diversity and inclusion hiring policies Offered relevant training for employees (e.g. unconscious bias training) Introduced specific diversity and inclusion talent development programmes Appointed a diversity & inclusion representative 0 10 20 30 40 50 60 70 80 90 100 Tech startups and scale ups are taking action to improve diversity and inclusion but there is still work to be done in terms of adopting D&I policies and implementing training rogrammes. In the last 12 months, has your company taken any of the following actions to improve diversity and inclusion? SOURCE: The State Of European Tech Survey LEGEND Alr ady actioned Yes No NOTE: Venture capitalists, founders and startup/scaleup employees only. Numbers do not add to 100 as respondents could choose multiple responses. DATASET: VENTURE CAPITALISTS % of respondents Introduced more flexible working arrangements (e.g. remote working, flexible hours Introduced more generous maternity leave policies Introduced more generous paternity leave policies Introduced anti-harassment code of conduct Introduced specific diversity and inclusion hiring policies Offered relevant training for employees (e.g. unconscious bias training) Introduced specific diversity and inclusion talent development programmes Appointed a diversity & inclusion representative 0 10 20 30 40 50 60 70 80 90 100 102 In Partnership with & www.stateofeuropeantech.com State of D&I in European Tech 05.1 Tech startups and scale ups are taking action to improve diversity and inclusion but there is still work to be done in terms of adopting D&I policies and implementing training programmes. VENTURE CAPITALISTS FOUNDERS & TECH/SCALEUP EMPLOYEES Ekaterina Gianelli Inventure Partner It's our responsibility to build an open and inclusive tech ecosystem in Europe. We have taken the first step and started a conversation around the topic. Now we need a firm commitment, actions and measures to move forward, as there is clearly value to be captured through diversity. I wish more LPs would start demanding venture capitalists to be the change they want to see in the industry. 103 In Partnership with & www.stateofeuropeantech.com Last year, our survey found that 46% of women working in the European tech industry had experienced some form of discrimination at some point in the past. This year, we found that 38% of respondents who are women had experienced some form of discrimination in just the past 12 months. In fact, almost half (49%) of all founders who are women and more than 40% of founders from minority ethnic groups report having experienced some form of discrimination during the last 12 months. In the last 12 months, have you experienced any form of discrimination while working in the European tech industry? SOURCE: The State Of European Tech Survey LEGEND Yes No NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER, FOUNDERS ONLY % of respondents49% 15% 40% 51% 85% 60% Women Men Prefer not to say 0 25 50 75 100 Last year, our survey found that 46% of women working in the European tech industry had experienced some form of discrimination at some point in the past. This year, we found that 38% of respondents who are women had experienced some form of discrimination in just the past 12 months. In fact, almost half (49%) of all founders who are women and more than 40% of founders from minority ethnic groups report having experienced some form of discrimination during the last 12 months. In the last 12 months, have you experienced any form of discrimination while working in the European tech industry? SOURCE: The State Of European Tech Survey LEGEND Yes No NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER, FOUNDERS ONLY % of respondents49% 15% 40% 51% 85% 60% Women Men Prefer not to say 0 25 50 75 100 Last year, our survey found that 46% of women working in the European tech industry had experienced some form of discrimination at some point in the past. This year, we found that 38% of respondents who are women had experienced some form of discrimination in just the past 12 months. In fact, almost half (49%) of all founders who are women and more than 40% of founders from minority ethnic groups report having experienced some form of discrimination during the last 12 months. In the last 12 months, have you experienced any form of discrimination while working in the European tech industry? SOURCE: The State Of European Tech Survey LEGEND Yes No NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER, FOUNDERS ONLY % of respondents49% 15% 40% 51% 85% 60% Women Men Prefer not to say 0 25 50 75 100 Last year, our survey found that 46% of women worki g in the European tech industry had experienced some form of discrimination at some point in the past. This year, we found that 38% of respondents who are women had experienced some form of discrimination in just the past 12 months. In fact, almost half (49%) of all founders who are women and more than 40% of founders from minority ethnic groups report having experienced some form of discrimination during the last 12 months. Last year, our survey found that 46% of women working in the European tech industry had experienced some form of discrimination at some point in the past. This year, we found that 38% of respondents who are women had experenced sme form of discrimination in just the past 12 months. In fact, almost half (49%) of all founders who are women and more than 40% of founders from minority ethnic groups report having experienced some form of discrimination during the last 12 months. In the last 12 months, have you experienced any form of discrimination while working in the European tech industry? SOURCE: The State Of European Tech Survey LEGEND Yes No NOTE: Numbers may not add to 100 due to rounding. DATASET: ETHNICITY, ALL RESPONDENTS % of respondents40% 33% 19% 33% 45% 37% 33% 33% 60% 67% 81% 67% 55% 63% 67% 67% Asian Black/African/CaribbeanCaucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other Prefer not to say 0 25 50 75 100 ETHNICITY ALL RESPONDERS Last year, our survey found that 46% of women working in the European tech industry had experienced some form of discrimination at some point in the past. This year, we found that 38% of respondents who are women had experienced some form of discrimination in just the past 12 months. In fact, almost half (49%) of all founders who are women and more than 40% of founders from minority ethnic groups report having experienced some form of discrimination during the last 12 months. In the last 12 months, have you experienced any form of discrimination while working in the European tech industry? SOURCE: The State Of European Tech Survey LEGEND Yes No NOTE: Numbers may not add to 100 due to rounding. DATASET: ETHNICITY, FOUNDERS ONLY % of respondents44% 43% 19% 36% 42% 46% 45% 56% 57% 81% 64% 58% 54% 55% Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other 0 25 50 75 100 ETHNICITY FOUNDERS ONLY Last year, our survey found that 46% of women working in the European tech industry had experienced some form of discrimination at some point in the past. This year, we found that 38% of respondents who are women had experienced some form of discrimination in just the past 12 months. In fact, almost half (49%) of all founders who are women and more than 40% of founders from minority ethnic groups report having experienced some form of discrimination during the last 12 months. In the last 12 months, have you experienced any form of discrimination while working in the European tech industry? SOURCE: The State Of European Tech Survey LEGEND Yes No NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER, ALL RESPONDENTS % of respondents38% 15% 36% 62% 85% 64% Women Men Prefer not to say 0 25 50 75 100 GENDER ALL RESPONDERS GENDER FOUNDERS ONLY State of D&I in Euro ean Tech 05.1 undefinedundefined106 In Partnership with & www.stateofeuropeantech.com State of D&I in European Tech 05.1 Industry Sentiment on D&I I FEEL BETTER INFORMED ON THE TOPIC OF DIVERSITY AND INCLUSION COMPARED TO 12 MONTHS AGO THE EUROPEAN TECH ECOSYSTEM HAS MADE MEANINGFUL PROGRESS IN IMPROVING ITS LEVEL OF DIVERSITY AND INCLUSION THE EUROPEAN TECH ECOSYSTEM PROVIDES EQUAL OPPORTUNITY FOR PEOPLE OF ALL DEMOGRAPHICS, BACKGROUNDS AND EXPERIENCES THE FOCUS ON CREATING A MORE DIVERSE AND INCLUSIVE EUROPEAN TECH ECOSYSTEM IS IMPORTANT I HAVE CHANGED MY BEHAVIOUR AS A RESULT OF INCREASED FOCUS ON DIVERSITY AND INCLUSION I FEEL MORE EMPOWERED TO TAKE POSITIVE STEPS TO IMPROVE DIVERSITY AND INCLUSION WITHIN MY COMPANY COMPARED TO 12 MONTHS AGO The survey included a large number of questions exploring industry sentiment on a range of different issues related to progress on building a more diverse and inclusive European tech industry in the past 12 months. There is strong agreement in the European tech and VC community about the importance of creating a more diverse and inclusive industry. While many feel better informed and more empowered to take actions towards this goal and have changed their behaviours accordingly, it's also clear that for many the industry is a long way from creating equal opportunity for people of all demographics, backgrounds and experiences. rge number of questions exploring industry sentiment on a range of different issues uilding a more diverse and inclusive European tech industry in the past 12 months. ent in the European tech and VC community about the importance of creating a more dustry. While many feel better informed and more empowered to take actions towards ged their behaviours accordingly, it's also clear that for many the industry is a long way ortunity for people of all demographics, backgrounds and experiences. th SOURCE: The State Of European Tech Survey mbers DATASET: THE FOCUS ON CREATING A MORE DIVERSE AND INCLUSIVE EUROPEAN TECH ECOSYSTEM IS IMPORTANT % of respondentsFounder or employee at a tech startup/scale-up Venture Capitalist 0 25 50 75 100 rge number of questions exploring industry sentiment on a range of different issues uilding a more diverse and inclusive European tech industry in the past 12 months. ent in the European tech and VC community about the importance of creating a more dustry. While many feel better informed and more empowered to take actions towards ged their behaviours accordingly, it's also clear that for many the industry is a long way ortunity for people of all demographics, backgrounds and experiences. th SOURCE: The State Of European Tech Survey mbers DATASET: THE EUROPEAN TECH ECOSYSTEM H AS MADE MEANINGFUL PROGRESS IN IMPROVING ITS LE VEL OF DIVERSITY AND INCLUSION % of respondentsFounder or employee at a tech startup/scale-up Venture Capitalist 0 25 50 75 100 rge number of questions exploring industry sentiment on a range of different issues uilding a more diverse and inclusive European tech industry in the past 12 months. ent in the European tech and VC community about the importance of creating a more dustry. While many feel better informed and more empowered to take actions towards ged their behaviours accordingly, it's also clear that for many the industry is a long way ortunity for people of all demographics, backgrounds and experiences. th SOURCE: The State Of European Tech Survey mbers DATASET: I FEEL MORE EMPOWERED TO TAKE POSITIVE STE S TO IMPROVE DIVERSITY AND INCLUSION WITHIN MY COMPANY COMPARED TO 12 MONTHS AGO % of respondentsFounder or employee at a tech startup/scale-up Venture Capitalist 0 25 50 75 100 The survey included a large number of questions exploring industry sentiment on a range of different issues rela ed to progress on building a more diverse and inclusive European tech industry in the past 12 months. There is strong agreement in the European tech and VC community about the importance of creating a more diverse and inclusive industry. While many feel better informed and more empowered to take actions towards this goal nd have changed their behaviours accordingly, it's also clear that for many the industry is a long way from creating equal opportunity for people of all demographics, backgrounds and experiences. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Venture capitalists, founders and startup/scale-up employees only. Numbers may not add to 100 due to rounding. DATASET: THE EUROPEAN TECH ECOSYSTEM PROVIDES EQUAL OPPORTUNITY FOR PEOPLE OF ALL DEMOGR APHICS, BACKGROUNDS AND EXPERIENCES % of respondentsFounder or employee at a tech startup/scale-up Venture Capitalist 0 25 50 75 100 The survey included a large number of questions exploring industry sentiment on a range of different issues rela ed to progress on building a more diverse and inclusive European tech industry in the past 12 months. There is strong agreement in the European tech and VC community about the importance of creating a more diverse and inclusive industry. While many feel better informed and more empowered to take actions towards this goal nd have changed their behaviours accordingly, it's also clear that for many the industry is a long way from creating equal opportunity for people of all demographics, backgrounds and experiences. Do y u agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Venture capitalists, founders and startup/scale-up employees only. Numbers may not add to 100 due to rounding. DATASET: I FEEL BETTER INFORMED ON THE TOPIC OF DIVERSITY AND INCLUSION COMPARED TO 12 MONTHS AGO % of respondentsFounder or employee at a tech startup/scale-up Venture Capitalist 0 25 50 75 100 The survey included a large number of questions exploring industry sentiment on a range of different issues rela ed to progress on building a more diverse and inclusive European tech industry in the past 12 months. There is strong agreement in the European tech and VC community about the importance of creating a more diverse and inclusive industry. While many feel better informed and more empowered to take actions towards this goal nd have changed their behaviours accordingly, it's also clear that for many the industry is a long way from creating equal opportunity for people of all demographics, backgrounds and experiences. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Venture capitalists, founders and startup/scale-up employees only. Numbers may not add to 100 due to rounding. DATASET: I H AVE CH ANGED MY BEH AVIOUR AS A RESULT OF INCREASED FOCUS ON DIVERSITY AND INCLUSION % of respondentsFounder or employee at a tech startup/scale-up Venture Capitalist 0 25 50 75 100 The survey included a large number of questions exploring industry sentiment on a range of different issues related to progress on building a more diverse and inclusive European tech industry in the past 12 months. There is strong agreement in the European tech and VC community about the importance of creating a more diverse and inclusive industry. While many feel better informed and more empowered to take actions towards this goal and have changed their behaviours accordingly, it's also clear that for many the industry is a long way from creating equal opportunity for people of all demographics, backgrounds and experiences. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: V nture capitalists, founders and startup/scale-up employees nly. Numbers may not add to 100 due to rounding. DATASET: THE FOCUS ON CREATING A MORE DIVERSE AND INCLUSIVE EUROPEAN TECH ECOSYSTEM IS IMPORTANT % of respondentsFounder or employee at a tech startup/scale-up Venture Capitalist 0 25 50 75 100 NOTE: Venture capitalists, founders and startup/scale-up employees only. Numbers may not add to 100 due to rounding. 107 In Partnership with & www.stateofeuropeantech.com Industry Sentiment on D&I 05.1 It's interesting to look at how sentiment varies for different groups of respondents. Exploring the data based on the gender of respondents shows that women are more likely than men to believe diversity and inclusion is important, more likely to feel better informed on the topic, more likely to feel empowered to make positive change, and more likely to have changed their behaviour as a result of the increased focus on D&I. I FEEL MORE EMPOWERED TO TAKE STEPS TO IMPROVE DIVERSITY AND INCLUSION IN MY COMPANY COMPARED TO 12 MONTHS AGO It's interesting to look at how sentiment varies for different groups of respondents. Exploring the data based on the gender of respondents shows that women are more likely than men to believe diversity and inclusion is important, more likely to feel better informed on the topic, more likely to feel empowered to make positive change, and more likely to have changed their behaviour as a result of the increased focus on D&I. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: I FEEL MORE EMPOWERED TO TAKE STEPS TO IMPROVE DIVERSITY AND INCLUSION IN MY COMPANY COMPARED TO 12 MONTHS AGO % of respondentsWomen Men 0 25 50 75 100 I HAVE CHANGED MY BEHAVIOUR AS A RESULT OF INCREASED FOCUS ON DIVERSITY AND INCLUSION It's interesting to look at how sentiment varies for different groups of respondents. Exploring the data based on the gender of respondents shows that women are more likely than men to believe diversity and inclusion is important, more likely to feel better informed on the topic, more likely to feel empowered to make positive change, and more likely to have changed their behaviour as a result of the increased focus on D&I. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: I H AVE CH ANGED MY BEH AVIOUR AS A RESULT OF INCREASED FOCUS ON DIVERSITY AND INCLUSION % of respondentsWomen Men 0 25 50 75 100 THE FOCUS ON CREATING A MORE DIVERSE AND INCLUSIVE EUROPEAN TECH ECOSYSTEM IS IMPORTANT It's interesting to look at how sentiment varies for different groups of respondents. Exploring the data based on the gender of respondents shows that women re more likely than men to believe diver ity and inclusion is important, more likely to feel better informed on the topic, more likely to feel empowered to make positive change, and more likely to have changed their behaviour as a result of the increased focus on D&I. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: THE FOCUS ON CREATING A MORE DIVERSE AND INCLUSIVE EUROPEAN TECH ECOSYSTEM IS IMPORTANT % of respondentsWomen Men 0 25 50 75 100 It's interesting to look at how sentiment varies for different groups of respondents. Exploring the data based on the gender of respondents shows that women are more likely than men to believe diversity and inclusion is important, more likely to feel better informed on the topic, more likely to feel empowered to make positive change, a ore likely to have changed their behaviour as a result of the increased focus on D&I. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: I FEEL MORE EMPOWERED TO TAKE STEPS TO IMPROVE DIVERSITY AND INCLUSION IN MY COMP MONTHS AGO % of respondentsWomen Men 0 25 50 75 100 It's interesting to look at how sentiment varies for different groups of respondents. Exploring the data based on the gender of respondents shows that women are more likely than men to believe diversity and inclusion is important, more likely to feel better informed on the topic, more likely to feel empowered to make positive change, and more likely to have changed their behaviour as a result of the increased focus on D&I. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: I FEEL MORE EMPOWERED TO TAKE STEPS TO IMPROVE DIVERSITY AND INCLUSION IN MY COMP MONTHS AGO % of respondentsWomen Men 0 25 50 75 100 It's interesting to look at how sentiment varies for different groups of respondents. Exploring the data based on the gender of respondents shows that women are more likely than men to believe diversity and inclusion is important, more likely to feel better informed on the topic, more likely to feel empowered to make positive change, and more likely to have changed their behaviour as a result f the increased focus on D&I. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: I FEEL BETTER INFORMED ON THE TOPIC OF DIVERSITY AND INCLUSION COMPARED TO 12 MONTHS AGO % of respondentsWomen Men 0 25 50 75 100 I FEEL BETTER INFORMED ON THE TOPIC OF DIVERSITY AND INCLUSION COMPARED TO 12 MONTHS AGO 108 In Partnership with & www.stateofeuropeantech.com xperience of working in the European tech industry varies greatly based on background. nts from minority ethnic groups are much less likely to believe that the industry has ess towards being more diverse and inclusive and much less likely to believe that it nity for all. ith SOURCE: The State Of European Tech Survey DATASET: I FEEL MORE EMPOWERED TO TAKE POSITIVE STEPS TO IMPROVE DIVERSITY AND INCLUSION WITHIN MY COMPANY COMPARED TO 12 MONTHS AGO % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other 0 10 20 30 40 50 60 70 80 90 100 It's also clear that the experience of working in the European tech industry varies greatly based on background. Fo exmple, respondents from minority ethnic groups are much less likely to believe that the industry has made meaningful progress towards being more diverse and inclusive and much less likely to believe that it provides equal opportunity for all. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: I H AVE CH ANGED MY BEH AVIOUR AS A RESULT OF INCREASED FOCUS ON DIVERSITY AND INCLUSION % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other 0 10 20 30 40 50 60 70 80 90 100 It's also clear that the experience of working in the European tech industry varies greatly based on background. For example, respondents from minority ethnic groups are much less likely to believe that the industry has made meaningful progress towards being more diverse and inclusive and much less likely to believe that it provides equal opportunity for all. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: I FEEL BETTER INFORMED ON THE TOPIC OF DIVERSITY AND INCLUSION COMPARED TO 12 MONTHS AGO % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other 0 10 20 30 40 50 60 70 80 90 100 xperience of working in the European tech industry varies greatly based on background. nts from minority ethnic groups are much less likely to believe that the industy hs ess towards being more diverse and inclusive and much less likely to believe that it nity for all. ith SOURCE: The State Of European Tech Survey DATASET: THE FOCUS ON CREATING A MORE DIVERSE AND INCLUSIVE EUROPEAN TECH ECOSYSTEM IS IMPORTANT % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other 0 10 20 30 40 50 60 70 80 90 100 xperience of working in the European tech industry varies greatly based on background. nts from minority ethnic groups are much less likely to believe that the industry has ess towards being more diverse and inclusive and much less likely to believe that it nity for all. ith SOURCE: The State Of European Teh Survey DATASET: THE EUROPEAN TECH ECOSYSTEM PROVIDES EQUAL OPPORTUNITY FOR PEOPLE OF ALL DEMOGR APHICS, BACKGROUNDS AND EXPERIENCES % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other 0 10 20 30 40 50 60 70 80 90 100 It's also clear that the experience of working in the European tech industry varies greatly based on background. Fo exmple, respondents from minority ethnic groups are much less likely to believe that the industry has made meaningful progress towards being more diverse and inclusive and much less likely to believe that it provides equal opportunity for all. Do you agree or disagree with the following statements? SOURCE: The State Of European Teh Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. DATASET: THE EUROPEAN TECH ECOSYSTEM H AS MADE MEANINGFUL PROGRESS IN IMPROVING ITS LE VEL OF DIVERSITY AND INCLUSION % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other 0 10 20 30 40 50 60 70 80 90 100 I FEEL BETTER INFORMED ON THE TOPIC OF DIVERSITY AND INCLUSION COMPARED TO 12 MONTHS AGO THE FOCUS ON CREATING A MORE DIVERSE AND INCLUSIVE EUROPEAN TECH ECOSYSTEM IS IMPORTANT THE EUROPEAN TECH ECOSYSTEM HAS MADE MEANINGFUL PROGRESS IN IMPROVING ITS LEVEL OF DIVERSITY AND INCLUSION THE EUROPEAN TECH ECOSYSTEM PROVIDES EQUAL OPPORTUNITY FOR PEOPLE OF ALL DEMOGRAPHICS, BACKGROUNDS AND EXPERIENCES I HAVE CHANGED MY BEHAVIOUR AS A RESULT OF INCREASED FOCUS ON DIVERSITY AND INCLUSION I FEEL MORE EMPOWERED TO TAKE POSITIVE STEPS TO IMPROVE DIVERSITY AND INCLUSION WITHIN MY COMPANY COMPARED TO 12 MONTHS AGO It's also clear that the experience of working in the European tech industry varies greatly based on background. For example, respondents from minority ethnic groups are much less likely to believe that the industry has made meaningful progress towards being more diverse and inclusive and much less likely to believe that it provides equal opportunity for all. Industry Sentiment on D&I 05.2 The survey included a large number of questions exploring industry sentiment on a range of different issues related to progress on building a more diverse and inclusive European tech industry in the past 12 months. There is strong agreement in the European tech and VC community about the importance of creating a more diverse and inclusive industry. While many feel better informed and more empowered to take actions towards this goal and have changed their behaviours accordingly, it's also clear that for many the industry is a long way from creating equal opportunity for people of all demographics, backgrounds and experiences. Do you agree or disagree with the following statements? SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Venture capitalists, founders and startup/scale-up employees only. Numbers may not add to 100 due to rounding. DATASET: THE FOCUS ON CREATING A MORE DIVERSE AND INCLUSIVE EUROPEAN TECH ECOSYSTEM IS IMPORTANT % of respondentsFounder or employee at a tech startup/scale-up Venture Capitalist 0 25 50 75 100 NOTE: Numbers may not add to 100 due to rounding. undefined110 In Partnership with & www.stateofeuropeantech.com Industry Sentiment on D&I 05.2 When asked to share their sentiment on any change in the inclusiveness of the culture within their own companies in the past 12 months, the responses were similar to those based on the industry- wide view. Half of all respondents said there had been no change in the past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. When asked to share their sentiment on any change in the inclusiveness of the culture within their own companies in the past 12 months, the responses were similar to those based on the industry-wide view. Half of all respondents said there had been no change in the past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. Thinking only about the last 12 months, have you experienced any change in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: OCCUPATION % of respondents Founder or startup/scale-up employee Venture Capitalist 0 10 20 30 40 50 60 70 80 90 100 When asked to share their sentiment on any change in the inclusiveness of the culture within their own companies in the past 12 months, the responses were similar to those based on the industry-wide view. Half of all respondents said there had been no change in the past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. Thinking only about the last 12 months, have you experienced any change in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: ETHNICITY % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other Prefer not to say 0 10 20 30 40 50 60 70 80 90 100 When asked to share their sentiment on ay change i the clusivenes of the culture within their own companies in the past 12 months, the responses were similar to those based on the industry-wide view. Half of all respondents said there had been no change in the past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. Thinking only about the last 12 months, have you experienced any change in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 80 90 100 ETHNICITY REGION When asked to share their sentiment on any change in the inclusiveness of the culture within their own companies in the past 12 months, the responses were similar to those based on the industry-wide view. Half of all respondents said there had been no change in the past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. Thinking only about the last 12 months, have you experienced any change in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: REGION % of respondents CEE DACH France & Benelux Nordics Rest of Europ Southern Europe UK & Ireland 0 10 20 30 40 50 60 70 80 90 100 C UPATION GENDER Whn ask d to shar their setiment on any change in the inclusivenss of the culture within their own companies in the past 12 months, the responses were si ilar to those based on the industry-wide view. Half of all respondents said there had been no change in the past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most lik ly to have reported an increase. Thinking only about the last 12 months, have you experienced any hange in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 When asked to share their sentiment on any change in the inclusiveness of the culture within their own companies in the past 12 months, the responses were similar to those based on the industry-wide view. Half of all respodents said there had been no change in the past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. Thinking only about the last 12 months, have you experienced any change in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 111 In Partnership with & www.stateofeuropeantech.com Industry Sentiment on D&I 05.2 We asked respondents to share whether they felt more comfortable in bringing their whole selves to work. A material share of respondents stated that they had increased comfort levels in this regard, but there are also meaningful numbers of respondents who said they had felt no change or even felt a decreased comfort level. For example. 10% of women and 16% of Black/African/Caribbean respondents said they felt less comfortable over the last 12 months. We asked respondents to share whether they felt more comfortable in bringing their whole selves to work. A material share of respondents stated that they had increased comfort levels in this regard, but there are also meaningful numbers of respondents who said they had felt no change or even felt a decreased comfort level. For example. 10% of women and 16% of Black/African/Caribbean respondents said they felt less comfortable over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding your comfort level in bringing your whole self to work in your tech company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: OCCUPATION % of respondents Founder or startup/scale-up employee Venture Capitalist 0 10 20 30 40 50 60 70 80 90 100 We asked respondents to share whether they felt more comfortable in bringing their whole selves to work. A material share of respondents stated that they had increased comfort levels in this regard, but there are also meaningful numbers of respondents who said they had felt no change or even felt a decreased comfort level. For example. 10% of women and 16% of Black/African/Caribbean respondents said they felt less comfortable over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding your comfort level in bringing your whole self to work in your tech company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: ETHNICITY % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Other Prefer not to say 0 10 20 30 40 50 60 70 80 90 100 We asked respondents to share whether they felt more comfortable in bringing their whole selves to work. A material share of respondents stated that they had increased comfort levels in this regard, but there are also meaningful numbers of respondents who said they had felt no change or even felt a decreased comfort level. For example. 10% of women and 16% of Black/African/Caribbean respondents said they felt less comfortable over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding your comfort level in bringing your whole self to work in your tech company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say Mixed 0 10 20 30 40 50 60 70 80 90 100 ETHNICITY REGION We asked respondents to share whether they felt more comfortable in bringing their whole selves to work. A material share of respondents stated that they had increased comfort levels in this regard, but there are also meaningful numbers of respondents who said they had felt no change or even felt a decreased comfort level. For example. 10% of women and 16% of Black/African/Caribbean respondents said they felt less comfortable over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding your comfort level in bringing your whole self to work in your tech company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: REGION % of respondents CEE DACH France & Benelux Nordics Rest of Europe Southern Europe UK & Ireland 0 10 20 30 40 50 60 70 80 90 100 OCCUPATION GENDER We asked respondents to share whether they felt more comfortable in bringing their whole selves to work. A material hare of respondents stated that they had increased comfort levels in this regard, but there are also meaningful numbers of respondents who said they had felt no change or even felt a decreased comfort level. For example. 10% of women and 16% of Black/African/Caribbean respondents said they felt less comfortable over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding your comfort level in bringing your whle slf to work in your tech company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: ETHNICITY % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Other Prefer not to say 0 10 20 30 40 50 60 70 When asked to share their sentiment on any change in the inclusiveness of the culture within their own companies in the past 12 months, the responses were similar to those based on the industry-wide view. Half of all respondents said there had been no change in the past 12 months, but 44% were more positive and stated they hd seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. Thinking only about the last 12 months, have you experienced any change in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 112 In Partnership with & www.stateofeuropeantech.com Industry Sentiment on D&I 05.2 I think we're rightly seeing more thought and attention being given to diversity and inclusion. At Monzo we've taken a really important step and hired our first head of diversity and inclusion, Sheree Atcheson. I feel we're making progress in this space but there’s still a long way to go. Tom Blomfield Monzo CEO The divided sentiment around progress on diversity and inclusion is also visible when asking respondents to share their sentiment on the priority level at their companies to recruit, retain and grow talent from diverse demographics, backgrounds or experiences. 45% of respondents who are founders or working at tech startups and scale-ups reported an increase in priority level and 55% of venture capitalist respondents. But, again, we found that more than four in ten respondents reported they felt there had been no change in priority level. The divided sentiment around progress on diversity and inclusion is also visible when asking respondents to share their sentiment on the priority level at their companies to recruit, retain and grow talent from diverse demographics, backgrounds or experiences. 45% of respondents who are founders or working at tech startups and scale-ups reported an increase in priority level and 55% of venture capitalist respondents. But, again, we found that more than four in ten respondents reported they felt there had been no change in priority level. Thinking only about the last 12 months, have you experienced any change regarding the priority level of your company to recruit, retain and grow talent from diverse demographics, backgrounds or experiences? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: OCCUPATION % of respondents Founder or startup/scale-up employee Venture Capitalist 0 10 20 30 40 50 60 70 80 90 100 The divided sentiment around progress on diversity and inclusion is also visible when asking respondents to share their sentiment on the priority level at their companies to recruit, retain and grow talent from diverse demographics, backgrounds or experiences. 45% of respondents who are founders or working at tech startups and scale-ups reported an increase in priority level and 55% of venture capitalist respondents. But, again, we found that more than four in ten respondents reported they felt there had been no change in priority level. Thinking only about the last 12 months, have you experienced any change regarding the priority level of your company to recruit, retain and grow talent from diverse demographics, backgrounds or experiences? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: ETHNICITY % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other Prefer not to say 0 10 20 30 40 50 60 70 80 90 100 The divided sentiment around progress on diversity and inclusion is also visible when asking respondents to share their sentiment on the priority level at their companies to recruit, retain and grow talent from diverse demographics, backgrounds or experiences. 45% of respondents who are founders or working at tech startups and scale-ups reported an increase in priority level and 55% of venture capitalist r spondents. But, again, we found that more than four in ten respondents reported they felt there had been no change in priority level. Thinking only about the last 12 months, have you experienced any change regarding the priority level of your company to recruit, retain and grow talent from diverse demographics, backgrounds or experiences? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 80 90 100 ETHNICITY REGION The divided sentiment around progress on diversity and inclusion is also visible when asking respondents to share their sentiment on the priority level at their ompanies to recruit, retain and grow talent from diverse demographics, backgrounds or experiences. 45% of respondents who are founders or working at tech startups and scale-ups reported an increase in priority level and 55% of venture capitalist respondents. But, again, we found that more than four in ten respondents reported they felt there had been no change in priority level. Thinking only about the last 12 months, have you experienced any change regarding the priority level of your company to recruit, retain and grow talent from diverse demographics, backgrounds or experiences? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: REGION % of respondents CEE DACH France & Benelux Nordics Rest of Europe Southern Europe UK & Ireland 0 10 20 30 40 50 60 70 80 90 100 OCCUPATION GENDER The divided sentiment around progress on diversity and inclusion is also visible when asking respondents to share their sentiment on the priority level at their companies to recruit, retain and grow talent from diverse deographics, backgrounds or experiences. 45% of respondents who are founders or working at tech startups and scale-ups reported an increase in priority level and 55% of venture capitalist respondents. But, again, we found that more than four in ten respondents reported they felt there had been no change in priority level. Thinking only about the last 12 months, have you experienced any change regarding the priority level of your company to recruit, retain and grow talent from diverse demographics, backgrounds or experiences? SOURCE: The State Of European Tech Survey LEGEND Icrease Decrease No chane NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer ot to say 0 10 20 30 40 50 60 70 When asked to share their sentiment on any change in the inclusiveness of the culture within their own companies in the past 12 months, the responses were similar to those based on the industry-wide view. Half of all respondens said there had ben no change in t past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. Thinkig only bout the last 12 months, have you experienced any change in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 113 In Partnership with & www.stateofeuropeantech.com Industry Sentiment on D&I 05.2 In our experience hiring in Europe, we assumed there might have been a challenge in terms of gender diversity, but this actually became an advantage for us. At Karma we're 60% female, which is unusual in a tech company. And those women are across all teams, including engineering and product. We feel extremely lucky to have attracted this talent. Another thing we had on our side was the level of English spoken in Sweden; it was a clear advantage for us expanding internationally. At Karma we spoke English internally from the very beginning, even when all employees were Swedish. Now that we have offices in 3 countries and 70 employees from over 20 countries, it's a no-brainer to communicate in English. Elsa Bernadotte Karma Co-Founder & COO Despite large numbers of respondents reporting increases in the quantity of diverse talent hired into their companies overall, far fewer respondents reported that the diversity of senior leadership in their company had increased over the last 12 months. Despite large numbers of respondents reporting increases in the quantity of diverse talent hired into their companies overall, far fewer respondents reported that the diversity of senior leadership in their company had increased over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding the level of diversity of senior leadership in your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: OCCUPATION % of respondents Founder or startup/scale-up employee Venture Capitalist 0 10 20 30 40 50 60 70 80 90 100 Despite large numbers of respondents reporting increases in the quantity of diverse talent hired into their companies overall, far fewer respondents reported that the diversity of senior leadership in their company had increased over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding the level of diversity of senior leadership in your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: ETHNICITY % of respondents Asian Black/African/Caribbean Caucasian/White Hispanic/Latinx Middle Eastern/North African Mixed Other Prefer not to say 0 10 20 30 40 50 60 70 80 90 100 Despite large numbers of respondents reporting increases in the quantity of diverse talent hired into their companies overall, far fewer respondents reported that the diversity of senior leadership in their company had increased over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding the evel of diversity of senior leadership in your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 80 90 100 ETHNICITY Despite large numbers of respondents reporting increases in the quantity of diverse talent hired into their companies overall, far fewer respondents reported that the diversity of senior leadership in their company had increased over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding the level of diversity of senior leadership in your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: REGION % of respondents CEE DACH France & Benelux Nordics Rest of Europe Southern Europe UK & Ireland 0 10 20 30 40 50 60 70 80 90 100 GENDER Despite large numbers of respondents reporting increases in the quantity of diverse talent hired into their copanies v rall, far fewer respondents reported that the diversity of senior leadership in their company had increased over the last 12 months. Thinking only about the last 12 months, have you experienced any change regarding the level of diversity of senior leadership in your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 When asked to share their sentiment on any change in the inclusiveness of the culture within their own companies in th past 12 moths, the responses w re similar to thos based on the industry-wide view. Half of all respondents said there had been no change in the past 12 months, but 44% were more positive and stated they had seen an increase in the inclusiveness of the culture at their companies. Respondents based in the UK were most likely to have reported an increase. Thinking only about te last 12 months, have you experienced any change in the inclusiveness of the culture at your company? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change NOTE: Numbers may not add to 100 due to rounding. DATASET: GENDER % of respondents Women Men Non-binary Other Prefer not to say 0 10 20 30 40 50 60 70 REGION OCCUPATION undefined115 In Partnership with & www.stateofeuropeantech.com Community-Led Change We asked respondents to share their views on initiatives they believe have had the biggest impact on promoting or enabling greater diversity in the European tech ecosystem. The most cited factors include better education on the topic, greater awareness via media coverage and the impact of events focussed on the topic of diversity and inclusion. Intuitively, it feels like diversity and inclusion have gained an increased level of prominence in the news narrative around the European tech industry. But our analysis of more than 450,000 tech-related articles published in the past year by over 1,000 European news sources shows that diversity and inclusion actually declined as a relative share of total news coverage, even though it increased in absolute terms versus 2018. By contrast, the relative share of news coverage focussed on topics such as fundraising or AI increased in 2019. We aked respondents to shar their views on initiatives they believe have had the biggest impact on promoting or enabling greater diversity in the European tech ecosystem. The most cited factors include better education on the topic, greater awareness via media coverage and the impact of events focussed on the topic of diversity and inclusion. In your opinion, which initiatives, if any, have had the biggest impact in promoting or enabling greater diversity and inclusion in the European tech ecosystem? SOURCE:The State Of European Tech Survey NOTE: Keyword analysis performed on open-ended answers, similar spellings and keywords aggregated. # of mentions 60 45 42 39 34 32 26 23 12 Education & training Media focus & coverage D&I-focused events Diversity reporting & measurement Women in technology #MeToo campaign Diversity VC initiatives Diversity policies Equal treatment & pay focus Inklusiiv 0 10 20 30 40 50 60 70 80 We asked respondents to share their views on initiatives they believe have had the biggest impact on promoting or enabling greater diversity in the European tech ecosystem. The most cited factors include better education on the topic, greater awareness via media coverage and the impact of events focussed on the topic of diversity and inclusion. In your opinion, which initiatives, if any, have had the biggest impact i romoting or enablig greater diversity and inclusion in the European tech ecosystem? SOURCE:The State Of European Tech Survey NOTE: Keyword analysis performed on open-ended answers, similar spellings and keywords aggregated. # of mentions 92 60 45 42 39 34 32 26 23 12 Education & training Media focus & coverage D&I-focused events Diversity reporting & measurement Women in technology #MeToo campaign Diversity VC initiatives Diversity policies Equal treatment & pay focus Inklusiiv 0 10 20 30 40 50 60 70 80 90 100 Intuitively, it feels like diversity and inclusion have gained an increased level of prominence in the news narrative around the European tech industry. But our analysis of more than 450,000 tech-related articles published in the past year by over 1,000 European news sources shows that diversity and inclusion actually declined as a relative share of total news coverage, even though it increased in absolute terms versus 2018. By contrast, the relative share of news coverage focussed on topics such as fundraising or AI increased in 2019. Share of total tech news narrative (%) by topic area and year SOURCE: LEGEND 2018 2019 NOTE: Based on ~5,460 stories across 1,094 European news sources from 1 October 2017 to 30 September 2018 (2018 data) and on 5,300 stories across 1,105 European news sources from 1 October 2018 to 30 September 2019 (2019 data). % of stories 22% 11% 10% 22% 12% 9% Fundraising Artificial Intelligence Blockchain/crypto Diversity & inclusion 0 5 10 15 20 25 30 35 40 45 50 Intuitively, it feels like diversity and inclusion have gained an increased level of prominence in the news narrative around the European tech industry. But our analysis of more than 450,000 tech-related articles published in the past year by over 1,000 European news sources shows that diversity and inclusion actually declined as a relative shre of total news coverage, even though it increased in absolute terms versus 2018. By contrast, the relative share of news coverage focussed on topics such as fundraising or AI increased in 2019. Share of total tech news narrative (%) by topic area and year SOURCE: LEGEND 2018 2019 NOTE: Based on ~5,460 stories across 1,094 European news sources from 1 October 2017 to 30 September 2018 (2018 data) and on 5,300 stories across 1,105 European news sources from 1 October 2018 to 30 September 2019 (2019 data). % of stories 22% 11% 10% 22% 12% 9% Fundraising Artificial Intelligence Blockchain/crypto Diversity & inclusion 0 5 10 15 20 25 30 35 40 45 50 Intuitively, it feels like diversity and inclusion have gained an increased level of prominence in the news arrative around the Europen tech industry. But our analysis of more than 450,000 tech-related articles published in the past year by over 1,000 European news sources shows that diversity and inclusion actually declined as a relative share of total news coverage, even though it increased in absolute terms versus 2018. By contrast, the relative share of news coverage focussed on topics such as fundraising or AI increased in 2019. Share of total tech news narrative (%) by topic area and year SOURCE: LEGEND 2018 2019 NOTE: Based on ~5,460 storieacross 1,094 European news sources from 1 October 2017 to 30 September 2018 (2018 data) and on 5,300 stories across 1,105 European news sources from 1 October 2018 to 30 September 2019 (2019 data). % of stories 54% 22% 11% 10% 56% 22% 12% 9% Fundraising Artificial Intelligence Blockchain/crypto Diversity & inclusion 0 5 10 15 20 25 30 35 40 45 50 55 60 We asked respondents to share their views on initiatives they believe have had the biggest impact on promoting or enabling greater diversity in the European tech ecosystem. The most cited factors include better education on the topic, greater awareness via media coverage and the impact of events focussed on the topic of diversity and inclusion. In your opinion, which initiativ s, if any, have had the biggest impact in promotig or enabling greater diversity and inclusion in the European tech ecosystem? SOURCE:The State Of European Tech Survey NOTE: Keyword analysis performed on open-ended answers, similar spellings and keywords aggregated. # of mentions 60 45 42 39 34 32 26 23 12 Educatio & training Media focus & coverage D&I-focused events Diversity reporting & measurement Women in technology #MeToo campaign Diversity VC initiatives Diversity policies Equal treatment & pay focus Inklusiiv 0 10 20 30 40 50 60 70 80 116 www.stateofeuropeantech.com Community-Led Change 05.3 It is notable, however, that the overall sentiment of news coverage focussed on the topic of diversity and inclusion shifted to be more positive in 2019 versus the prior year. It is important to share positive messages with underrepresented communities and not simply further reinforce deeply entrenched stereotypes that have made tech so unwelcoming to these groups. It is ntable, however, that the overall setiment of news coverage focussed on the topic of diversity and inclusion shifted to be more positive in 2019 versus the prior year. It is important to share positive messages with underrepresented communities and not simply further reinforce deeply entrenched stereotypes that have made tech so unwelcoming to these groups. Share of total stories (%) per topic by sentiment summary SOURCE: LEGEND Positive Neutral Negative NOTE: Based on ~5,460 stories across 1,094 European news sources from 1 October 2017 to 30 September 2018 (2018 data) and on 5,300 stories across 1,105 European news sources from 1 October 2018 to 30 September 2019 (2019 data). % of total stories2018 2019 0 25 50 75 100 It is notable, however, that the overall sentiment of news coverage focussed on the topic of diversity and inclsion shifted to be more psitive in 2019 versus the prior year. It is important t share positive messages with underrepresented comunities and not simply further reinforce deeply entrenched stereotypes that have made tech so unwelcoming to these groups. Share of total stories (%) per topic by sentiment summary SOURCE: LEGEND Positive Neutral Negative NOTE: Based on ~5,460 stories across 1,094 European news sources from 1 October 2017 to 30 September 2018 (2018 data) and on 5,300 stories across 1,105 European news sources from 1 October 2018 to 30 September 2019 (2019 data). % of total stories2018 2019 0 25 50 75 100 It is notable, however, that the overall sentiment of news coverage focussed on the topic of diversity and inclusion shifted to be more positive in 2019 versus the prior year. It is important to share positive messages with underrepresented communities and not simply further reinforce deeply entrenched stereotypes that have made tech so unwelcoming to these groups. Share of total stories (%) per topic by senimnt summary SOURCE: LEGEND Positive Neutral Negative NOTE: Based on ~5,460 stories across 1,094 European news sources from 1 October 2017 to 30 September 2018 (2018 data) and on 5,300 stories across 1,105 European news sources from 1 October 2018 to 30 September 2019 (2019 data). % of total stories2018 2019 0 25 50 75 100 In Partnership with & Photo by: Samuli Pentti undefinedundefinedundefinedundefinedundefinedundefinedIn some areas, European tech has certainly become more diverse in the last year. Initiatives like OneTech, funds like Backstage Capital and communities like Foundervine, Blooming Founders and Femstreet have grown in scale and influence in the main hubs, and there is a growing understanding of the importance of inclusion and not just diversity, which is very welcome. Check Warner Diversity VC Co-Founder 123 In Partnership with & www.stateofeuropeantech.com Community-Led Change 05.3 As the industry has focused more of its attention on the topic of diversity, there has been a large rise in the number of events focused on D&I acros the region in recent years. Still we have to be honest that both our industry and ourselves need to do more to really change the picture. We still see about 80% of the founder teams being predominantly male. But we strongly believe that one of Europe's biggest assets in global competition is its diversity. Europe sees a large number of initiatives to encourage and include specifically female founders and entrepreneurs, and it seems that these dynamics are accelerating in a very positive way, also triggered by an increasing number of top-level female investors. Speedinvest is actively supporting local initiatives to drive gender equality and age equality such as 'Female Founders' and 'WisR'. Still we have to be honest that both our industry and ourselves need to do more to really change the picture. Daniel Keiper-Knorr Speedinvest Founder & Partner As the industry has focused more of its attention on the topic of diversity, there has been a large rise in the number of events focused on D&I across the region in recent years. Share and number of tech- related Meetup events focused on D&I by year SOURCE: LEGEND # of events hosted % of all events hosted NOTE: 2019 annualised based on data to September 2019. # of tech-related Meetups1,815 2,903 4,002 4,843 5.0% 5.7% 6.1% 6.5% 2015 2016 2017 2018 0 2,000 4,000 6,000 As the industry has focused more of its attention on the topic of diversity, there has been a large rise in the number of events focused on D&I across the region in recent years. Share and number of tech- related Meetup events focused on D&I by year SOURCE: LEGEND # of events hosted % of all events hosted NOTE: 2019 annualised based on data to September 2019. # of tech-related Meetups% of tech-related Meetups hosted1,815 2,903 4,002 4,843 5,839 5.0% 5.7% 6.1% 6.5% 5.6% 2015 2016 2017 2018 2019 0 2,000 4,000 6,000 4.5 5.0 5.5 6.0 6.5 As the industry has focused more of its attention on the topic of diversity, there has been a large rise in the number of events focused D&I across the region n recent years. Share and number of tech- related Meetup events focused on D&I by year SOURCE: LEGEND # of events hosted % of ll evets hosted NOTE: 2019 annualised based on data to September 2019. # of tech-related Meetups1,815 2,903 4,002 4,843 5.0% 5.7% 6.1% 6.5% 2015 2016 2017 2018 0 2,000 4,000 6,000 124 In Partnership with & www.stateofeuropeantech.com Community-Led Change 05.3 According to Meetup, 'Women in Technology' is one of Top 10 fastest-growing topics for all tech-related Meetup events in Europe in 2019. Despite the rise of events focussed on bringing together and supporting underrepresented groups within European tech, at a macro level there has not been any material improvement in female attendees in tech-related Meetup events in Europe in recent years. Women accounted for only 23.4% of participants in 2019, a number that has only crept upwards from 23.0% in 2018. According to Meetup, 'Women in Technology' is one of Top 10 fastest-growing topics for all tech-related Meetup events in Europe in 2019. The 10 fastest growing topics for tech-related Meetup events in Europe in 2019 SOURCE: NOTE: 2019 annualised based on data to September 2019. Only events with at least 250 events in 2018 included. YoY growth (%) 44% 40% 39% 38% 35% 35% 28% 27% 26% Digital media Founders Agile transformation Product development 3D animation Agile coaching Scrum SEO Women in technology Technology professionals 0 5 10 15 20 25 30 35 40 45 According to Meetup, 'Women in Technology' is one of Top 10 fastest-growing topics for all tech-related Meetup events in Europe in 2019. The 10 fastest growing topics for tech-related Meetup events in Europe in 2019 SOURCE: NOTE: 2019 annualised based on data to September 2019. Only events with at least 250 events in 2018 included. YoY growth (%) 55% 44% 40% 39% 38% 35% 35% 28% 27% 26% Digital media Founders Agile transformation Product development 3D animation Agile coaching Scrum SEO Women in technology Technology professionals 0 5 10 15 20 25 30 35 40 45 50 55 60 According to Meetup, 'Women in Technology' is one of Top 10 fastest-growing topics for all tech-related Meetup events in Europe in 2019. The 10 fastest growing topics for tech-related Meetup events in Europe in 2019 SOURCE: NOTE: 2019 annualised based on data to September 2019. Only events with at least 250 events in 2018 included. YoY growth (%) 44% 40% 39% 38% 35% 35% 28% 27% 26% Digital media Founders Agile transformation Product development 3D animation Agile coaching Scrum SEO Women in technology Technology professionals 0 5 10 15 20 25 30 35 40 45 Despite the rise of events focussed on bringing together and supporting underrepresented groups within European tech, at a macro level there has not been any material improvement in female attendees in tech- related Meetup events in Europe in recent years. Women accounted for only 23.4% of participants in 2019, a number that has only crept upwards from 23.0% in 2018. Share of female attendees in tech-related Meetup events in Europe SOURCE: NOTE: % of the reported gender of attendees. % of female attendees21.5% 21.6% 23.0% 2016 2017 2018 0.0 5.0 10.0 15.0 20.0 25.0 Despite the rise of events focussed on bringing together and supporting underrepresented groups within European tech, at a macro level there has not been any material improvement in female attendees in tech- related Meetup events in Europe in recent years. Women accounted for only 23.4% of participants in 2019, a number that has only crept upwards from 23.0% in 2018. Share of female attendees in tech-related Meetup events in rope SOURCE: NOTE: % of the reported gender of attendees. % of female attendees21.5% 21.6% 23.0% 23.4% 2016 2017 2018 2019 0.0 5.0 10.0 15.0 20.0 25.0 Despite the rise of events focussed on bringing together and supporting underrepresented groups within European tech, at a macro level there has not been any material improvement in female attendees in tech- related Meetup events in Europe in recent years. Women accounted for only 23.4% of participants in 2019, a number that has only crept upwards from 23.0% in 2018. Share of female attendees in tech-related Meetup events in Europe SOURCE: NOTE: % of the reported gender of attendees. % of female attendees21.5% 21.6 23.0% 2016 2017 2018 . 1 . 1 . 20.0 25.0 125 In Partnership with & www.stateofeuropeantech.com Eastern European countries are the main constituents of the top 10 list of countries for female participation at tech-related Meetup events. Though there are differences across countries, the participation of women in tech community events throughout Europe remains low; Hungary, the number one country by share of participants in events that are women, tops the list with just 28%. Denmark, at the other end of the list, has one of the lowest female participation rates at just 18%. Share of woman attendees in tech-related Meetup events by country SOURCE: NOTE: % of the reported gender of attendees. Only countries with at least 100 female attendees included. DATASET: TOP 10 COUNTRIES % of women 27.6% 27.5% 26.4% 25.9% 25.7% 25.7% 25.5% 25.5% 25.5% 25.3% Romania Latvia Germany Spain Luxembourg Ireland Norway Switzerland Lithuania Sweden 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0 27.5 30.0 Eastern European countries are the main constituents of the top 10 list of countries for female participation at tech-related Meetup events. Though there are differences across countries, the participation of women in tech community events throughout Europe remains low; Hungary, the number one country by share of participants in events that are women, tops the list with just 28%. Denmark, at the other end of the list, has one of the lowest female participation rates at just 18%. Share of woman attendees in tech-related Meetup events by country SOURCE: NOTE: % of the reported gender of attendees. Only countries with at least 100 female attendees included. DATASET: COUNTRIES 1 1-20 % of women 24.9% 24.7% 24.2% 24.2% 24.0% 23.0% 22.9% 22.6% 22.4% 21.9% United Kingdom Netherlands France Bulgaria Portugal Serbia Estonia Ukraine Austria Finland 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0 27.5 Community-Led Change 05.3 COUNTRIES 11-20 THE REST TOP TEN COUNTRIES Eastern European countries are the main constituents of the top 10 list of countries for female participation at tech-related Meetup events. Though there are differences across countries, the participation of women in tech community events throughout Europe remains low; Hungary, the number one country by share of participants in events that are women, tops the list with just 28%. Denmark, at the other end of the list, has one of the lowest female participation rates at just 18%. East rn European countries are the main constituents of the top 10 list of countries for female participation at tech-related Metup events. Though there are differences acr ss countries, the participatin of women in tech community events throughout Europe remains low; Hungary, the number one country by share of participants in events that are women, tops the list with just 28%. Denmark, at the other end of the list, has one of the lowest female participation rates at just 18%. Share of woman attendees in tech-related Meetup events by country SOURCE: NOTE: % of the reported gender of attendees. Only countries with at least 100 female attendees included. DATASET: TOP 10 COUNTRIES % of women 27.6% 27.5% 26.4% 25.9% 25.7% 25.7% 25.5% 25.5% 25.5% 25.3% Romania Latvia Germany Spain Luxembourg Ireland Norway Switzerland Lithuania Sweden 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0 27.5 30.0 Eastern European countries are the main constituents of the top 10 list of countries for female participation at tech-related Meetup events. Though there are differences across countries, the participation of women in tech community events throughout Europe remains low; Hungary, the number one country by share of participants in events that are women, tops the list with just 28%. Denmark, at the other end of the list, has one of the lowest female participation rates at just 18%. Share of woman attendees in tech-related Meetup events by country SOURCE: NOTE: % of the reported gender of attendees. Only countries with at least 100 female attendees included. DATASET: TOP 10 COUNTRIES % of women 27.6% 27.5% 26.4% 25.9% 25.7% 25.7% 25.5% 25.5% 25.5% 25.3% Romania Latvia Germany Spain Luxembourg Ireland Norway Switzerland Lithuania Sweden 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0 27.5 30.0 Eastern European countries are the main constituents of the top 10 list of countries for female participation at tech-related Meetup events. Though there are differences across countries, the participation of women in tech community events throughout Europe remains low; Hungary, the number one country by share of participants in events that are women, tops the list with just 28%. Denmark, at the other end of the list, has one of the lowest female participation rates at just 18%. Share of woman attendees in tech-related Meetup events by country SOURCE: NOTE: % of the reported gender of attendees. Only countries with at least 100 female attendees included. DATASET: THE REST % of women 21.5% 21.2% 20.8% 20.8% 20.7% 19.8% 19.7% 18.0% 17.6% 17.1% 15.4% Belgium Croatia Hungary Turkey Poland Italy Greece Denmark Czech Republic Russia Slovenia 0.0 10.0 20.0 2.5 5.0 7.5 12.5 15.0 17.5 22.5 126 In Partnership with & www.stateofeuropeantech.com People What kinds of people work in European tech jobs? The archetype of a European founder is still overwhelmingly a man with financial stability. Founders are feeling the heat from increased competition for talent. The debate is now turning to how to keep that talent engaged through incentives and stock options, and healthy through discussions of mental health and wellness. undefinedundefined129 In Partnership with & www.stateofeuropeantech.com Looking only at those founders who have attained a university degree, there are interesting differences in the diversity of subjects studied by founders from different regions. Founders in the Nordics, UK & Ireland have more diverse backgrounds than in other regions. CEE, DACH and Southern Europe stand out with the largest share of founders with a technical degree. Looking only at those founders who have attained a university degree, there are interesting differences in the diversity of subjects studied by founders from different regions. Founders in the Nordics, UK & Ireland have more diverse backgrounds than in other regions. CEE, DACH and Southern Europe stand out with the largest share of founders with a technical degree. Share of capital invested (%) by education background and by region, 2015-2019 SOURCE:Dealroom LEGEND % of capital raised European average capital raised (%) NOTE: Numbers don't add up to 100 because deals can have more than one founder involved. 2019 based on data up to September 2019. DATASET: ARTS/SOCIAL SCIENCES % of capital15% 12% 10% 10% 8% 1% 11 11 11 11 11 11 Nordics United Kingdom & Ireland France & Benelux DACH Southern Europe CEE 0 5 10 15 Portrait of a European Tech Founder 06.1 Looking only at those founders who have attained a university degree, there are interesting differences in the diversity of subjects studied by founders from different regions. Founders in the Nordics, UK & Ireland have more diverse backgrounds than in other regions. CEE, DACH and Southern Europe stand out with the largest share of founders with a technical degree. Share of capital invested (%) by education background and by region, 2015-2019 SOURCE:Dealroom LEGEND % of capital raised European average capital raised (%) NOTE: Numbers don't add up to 100 because deals can have more than one founder involved. 2019 based on data up to September 2019. DATASET: TECHNICAL % of capital41% 40% 38% 37% 33% 22% 35 35 35 35 35 35 Southern Europe DACH CEE France & Benelux United Kingdom & Ireland Nordics 0 10 20 30 40 TECHNICAL Looking only at those founders who have attained a university degree, there are interesting differences in the diversity of subjects studied by founders from different regions. Founders in the Nordics, UK & Ireland have more diverse backgrounds than in other regions. CEE, DACH and Southern Europe stand out with the largest share of founders with a technical degree. Share of capital invested (%) by education background and by region, 2015-2019 SOURCE:Dealroom LEGEND % of capital raised European average capital raised (%) NOTE: Numbers don't add up to 100 because deals can have more than one founder involved. 2019 based on data up to September 2019. DATASET: BUSINESS & L AW % of capital61% 55% 37% 37% 32% 29% 40 40 40 40 40 40 Southern Europe DACH France & Benelux Nordics United Kingdom & Ireland CEE 0 20 40 60 BUSINESS & LAW Looking only at those founders who have attained a university degree, there are interesting differences in the diver ity of subjects studied by founders fro different regions. Founders in the Nordics, UK & Ireland have ore divers backgrounds than in other regions. CEE, DACH and Southern Europe stand out with the largest share of founders with a technical degree. Share of capital invested (%) by education background and by region, 2015-2019 SOURCE:Dealroom LEGEND % of capital raised European average capital raised (%) NOTE: Numbers don't add up to 100 because deals can have more than one founder involved. 2019 based on data up to September 2019. DATASET: BUSINESS & L AW % of capital61% 55% 37% 37% 32% 29% 40 40 40 40 40 40 Southern Europe DACH France & Benelux Nordics United Kingdom & Ireland CEE 0 20 40 60 ooking only at those founders who have attained a university degree, there are interesting differences in the iversity of subjects studied by founders from different regions. Founders i the Nordics, UK & Ireland have more dver backgrounds than in other regions. CEE, DACH and Southern Europe stand out with the largest share of founders with a technical degree. Share of capital invested (%) by education background and by region, 2015-2019 SOURCE:Dealroom LEGEND % of capital raised European average capital raised (%) NOTE: Numbers don't add up to 100 because deals can have more than one founder involved. 2019 based on data up to September 2019. DATASET: BUSINESS & L AW % of capital61% 55% 37% 37% 32% 29% 40 40 40 40 40 40 Southern Europe DACH France & Benelux Nordics United Kingdom & Ireland CEE 0 20 40 60 ART/SOCIAL SCIENCES The assumption that all founders have access to 'friends and family rounds' still bewilders me. The assumption that all founders have access to 'friends and family rounds' still bewilders me. We need to develop an empathetic understanding that this is not accessible to all, and thus develop inclusive pathways that level the playing field. These pathways look like community groups, diverse angels and early-stage pre-seed funds. Initiatives such as Natwest Back Her Business are making those first steps, the program match funds femal founder crowdfunding campaigns. Deborah Okenla YSYS Founder & CEO On YSYS pre-accelerator FoundersDoor, one of our alumni Emilia Servane Founder of The Good Hair Co, took part and was able to crowdfund £1,500 to which Natwest matched an additional £1,500 - this capital will now give her the ability to validate her ideas and move forward. We need more impactful interventions like this to truly have a diverse and inclusive European startup ecosystem. undefined131 In Partnership with & www.stateofeuropeantech.com Portrait of a European Tech Founder 06.1 Across Europe, 40% of seed stage startups have a founding team aged between 26-30 years old. Southern Europe, DACH and the CEE regions have the largest share of young founders. Only 7% of founding teams in the CEE are over 40 years old - while in France, this number is close to 20%. of seed stage European founding teams are on average less than 30 years old. EUROPEAN FOUNDING TEAMS 50% Across Europe, 40% of seed stage startups have a founding team aged between 26-30 years old. Southern Europe, DACH and the CEE regions have the largest share of young founders. Only 7% of founding teams in the CEE are over 40 years old - while in France, this number is close to 20%. EUROPEAN FOUNDING TEAMS 50% of seed stage European founding teams are on average less than 30 years old. Share of founding team (%) in age groups by region SOURCE:Dealroom NOTE: Seed stage startups founding team average age post 2015. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. DATASET: 26-30 % of founding team in age group39% 43% 41% 42% 37% 33% 40 40 40 40 40 40 Southern Europe DACH CEE United Kingdom & Ireland France & Benelux Nordics 0 10 20 30 40 26-30 Across Europe, 40% of seed stage startups have a founding team aged between 26-30 years old. Southern Europe, DACH and the CEE regions have the largest share of young founders. Only 7% of founding teams in the CEE are over 40 years old - while in France, this number is close to 20%. EUROPEAN FOUNDING TEAMS 50% of seed stage European founding teams are on average less than 30 years old. Share of founding team (%) in age groups by region SOURCE:Dealroom NOTE: Seed stage startups founding team average age post 2015. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. DATASET: 31-40 % of founding team in age group35% 37% 41% 35% 34% 39% 36 36 36 36 36 36 Southern Europe DACH CEE United Kingdom & Ireland France & Benelux Nordics 0 10 20 30 40 31-40 Across Europe, 40% of seed stage startups have a founding team aged between 26-30 years old. Southern Europe, DACH and the CEE regions have the largest share of young founders. Only 7% of founding teams in the CEE are over 40 years old - while in France, this number is close to 20%. EUROPEAN FOUNDING TEAMS 50% of seed stage European founding teams are on average less than 30 years old. Share of founding team (%) in age groups by region SOURCE:Dealroom NOTE: Seed stage startups founding team average age post 2015. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. DATASET: 41+ % of founding team in age group11% 7% 7% 15% 17% 14% 13 13 13 13 13 13 Southern Europe DACH CEE United Kingdom & Ireland France & Benelux Nordics 0 5 10 15 41+ Across Europe, 40% of seed stage startps have a founding team aged between 26-30 years old. Southern Europe, DACH and the CEE regions have the largest share of young founders. Only 7% of founding teams in the CEE are over 40 years old - while in France, this number is close to 20%. EUROPEAN FOUNDING TEAMS 50% of seed stage European founding teams are on average l old. Share of founding team (%) in age groups by region SOURCE:Dealroom NOTE: Seed stage startups founding team average age post 2015. All Dealroom.co data excludes the following: biotech, secondary transactions, dbt, lending capital, grants. DATASET: 20-25 % of founding team in age group15% 13% 12% 8% 12% 12 12 12 12 12 Southern Europe DACH CEE United Kingdom & Ireland France & Benelux 0 5 10 15 Across Europe, 40% of seed stage startups have a founding team aged between 26-30 years old. Southern Europe, DACH and the CEE regions have the largest share of young founders. Only 7% of founding teams in the CEE are over 40 years old - while in France, this number is close to 20%. EUROPEAN FOUNDING TEAMS 50% of seed stage European founding teams are on average old. Share of founding team (%) in age groups by region SOURCE:Dealroom NOTE: See stage startups founding t am average age post 2015. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. DATASET: 20-25 % of founding team in age group15% 13% 12% 8% 12% 12 12 12 12 12 Southern Europe DACH CEE United Kingdom & Ireland France & Benelu 0 5 10 15 20-25 Across Europe, 40% of seed stage startups have a founding team aged between 26-30 years old. Southern Erope, DACH and the CEE regions have the largest share of young founders. Only 7% of founding teams in the CEE are over 40 years old - while in France, this number is close to 20%. EUROPEAN FOUNDING TEAMS 50% of seed stage European founding teams are on average less than 30 years old. Share of founding team (%) in age groups by region SOURCE:Dealroom NOTE: Seed stage startups founding team average age post 2015. All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. DATASET: 20-25 % of founding team in age group15% 13% 12% 8% 12% 14% 12 12 12 12 12 12 Southern Europe DACH CEE United Kingdom & Ireland France & Benelux Nordics 0 5 10 15 undefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefined147 In Partnership with & www.stateofeuropeantech.com I think the great strength of Europe's ecosystem is the plurality of industrial background we have. While Europe may not have the depth of pure technology experience that, say, the Bay Area does, I would argue we understand finance, fashion, food, manufacturing, aerospace and more at least as well, if not better. I think the biggest challenge continues to be the lack of experienced talent, especially for later-stage companies and especially in the areas of sales, marketing and product. We just don't have the decades of large companies and start-up history that has churned out legions of people who've seen it and done it before. We will get there but some things are hard to accelerate. I think the great strength of Europe's ecosystem is the Suranga Chandratillake Balderton Capital General Partner Europe has more than 6 million professional developers and has experienced steady growth in the developer talent pool, in contrast to the US, where the professional developer base has been static for the past two years. Europe has more than 6 million professional developers and has experienced steady growth in the developer talent pool, in contrast to the US, where the professional developer base has been static for the past two years. Number of professional developers by region SOURCE: LEGEND Europe United States # of professional developers (million)5.5M 5.7M 6.1M 4.4M 4.4M 2017 2018 0.0 2.0 4.0 6.0 Europe has more than 6 million professional developers and has xperienced steady growt i the developer talent pool, in contrast to the US, where the professional developer base has been static for the past two years. Number of professional developers by region SOURCE: LEGEND Europe United States # of professional developers (million)5.5M 5.7M 6.1M 4.4M 4.4M 4.3M 2017 2018 2019 0.0 2.0 4.0 6.0 Strong Talent Base 06.4 plurality of industrial background we have. While Europe may not have the depth of pure technology experience that, say, the Bay Area does, I would argue we understand finance, fashion, food, manufacturing, aerospace and more at least as well, if not better. As software eats the world, these skills and this know-how will become crucial in building companies that are about technology but also the context in which that technology will be used. hubs for professional developer talent in absolute numbers, and on professional developers. Germany and the UK are the two largest hubs for professional developer talent in absolute numbers, and together are home to more than 1.7 million professional developers. Map of professional developer distribution across Europe by country SOURCE: LEGEND up to 1,000,000 8,000,000 to 900,000 700,000 to 8,000,000 6,000,000 to 700,000 500,000 to 6,000,000 400,000 to 500,000 300,000 to 400,000 200,000 to 300,000 100,000 to 200,000 up to 100,000 Germany and the UK are the two largest hubs for professional developer talent in absolute numbers, and together are home to more t an 1.7 milli n professional developers. 148 In Partnership with & www.stateofeuropeantech.com Strong Talent Base 06.4 The growth in the professional developer talent pool across Europe is a Europe-wide phenomenon, with all countries (except Luxembourg) experiencing growth in numbers in 2019. The growth in the professional developer talent pool across Europe is a Europe-wide phenomenon, with all countries (except Luxembourg) experiencing growth in numbers in 2019. Number of professional developers by country, 2018 vs 2019 SOURCE: LEGEND 2018 2019 DATASET: TOP 10 # of professional developers Germany United Kingdom France Russia Spain Netherlands Italy Poland Ukraine Sweden 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 The growth in the pr fessionl developer talent pool across Europe is a Europe-wide phenomenon, with all countries (except Luxembourg) experiencing growth in numbers in 2019. Number of professional developers by country, 2018 vs 2019 SOURCE: LEGEND 2018 2019 DATASET: TOP 10 # of professional developers Germany United Kingdom France Russia Spain Netherlands Italy Poland Ukraine Sweden 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 The growth in the professional developer talent pool across Europe is a Europe-wide phenomenon, with all countries (except Luxembourg) experiencing growth in numbers in 2019. Number of professional developers by country, 2018 vs 2019 SOURCE: LEGEND 2018 2019 DATASET: R ANK 1 1-20 # of professional developers Turkey Switzerland Belgium Romania Austria Czechia Denmark Portugal Finland Hungary 0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 RANK 11-20 The growth in the professional developer talent pool across Europe is a Europe-wide phenomenon, with all countries (except Luxembourg) experiencing growth in numbers in 2019. Number of professional developers by country, 2018 vs 2019 SOURCE: LEGEND 2018 2019 DATASET: R ANK 21-30 # of professional developers Ireland Norway Greece Bulgaria Belarus Serbia Slovakia Croatia Lithuania Slovenia 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 RANK 21-30 RANK 31+ TOP 10 undefined150 In Partnership with & www.stateofeuropeantech.com There is also a wide variance in the distribution of talent in different countries. In smaller countries or those with relatively less mature tech ecosystems, there tends to be a larger concentration of tech talent in a single hub. Other countries, such as Germany, Italy and Spain, have a more distributed tech talent base, thanks to the strength of multiple large cities in those countries. Share of professional developer talent (%) in the largest hub for selected European countries in 2019 SOURCE: NOTE: % of total professional developers in city as share of country total. % of professional developers in given city 86% 83% 82% 80% 75% 73% 64% 60% 57% 57% 55% 54% 52% 49% 41% 40% 37% 33% 27% 18% Copenhagen Dublin Brussels Vienna Budapest Amsterdam Helsinki Zurich Istanbul London Paris Prague Stockholm Bucharest Kiev Moscow Madrid Warsaw Milan Cologne 0 10 20 30 40 50 60 70 80 90 There is also a wide variance in the distribution of talent in different countries. In smaller countries or those with relatively less mature tech ecosystems, there tends to be a larger concentration of tech talent in a single hub. Other countries, such as Germany, Italy and Spain, have a more distributed tech talent base, thanks to the strength of multiple large cities in those countries. Share of professional developer talent (%) in the largest hub for selected European countries in 2019 SOURCE: NOTE: % of total professional developers in city as share of country total. % of professional developers in given city 86% 83% 82% 80% 75% 73% 64% 60% 57% 57% 55% 54% 52% 49% 41% 40% 37% 33% 27% 18% Copenhagen Dublin Brussels Vienna Budapest Amsterdam Helsinki Zurich Istanbul London Paris Prague Stockholm Bucharest Kiev Moscow Madrid Warsaw Milan Cologne 0 10 20 30 40 50 60 70 80 90 Ther i also a wid variance in the distribuio of alent in diff ent countries. In smaller coures or those with relatively less mature tech ecosystems, there tends t be a lager conc ntratio of tech alet in a single hub. Othr countries, such as Germay, Italy and Spain, have a more distributed tech talent base, thanks to the strength of multiple large cities in those countries. Share of professional developer talent (%) in the largest hub for selected European countries in 2019 SOURCE: NOTE: % of total professional developers in city as share of country total. % of professional developers in given city 86% 83% 82% 80% 75% 73% 64% 60% 57 57% 55% 54% 52% 49% 41% 40% 37% 33% 27% 18% Copenhagen Dublin Brussels Vienna Budapest Amsterdam Helsinki Zurich Istanbul London Paris Prague Stockholm Bucharest Kiev Moscow Madrid Warsaw Milan Cologne 0 10 20 30 40 50 60 70 80 90 There is also a wide variance in the distribution of talent in different countries. In smaller countries or those with relatively less mature tech ecosystems, there tends to be a larger concentration of tech talent in a single hub. Other countries, such as Germany, Italy and Spain, have a more distributed tech talent base, thanks to the strength of multiple large cities in those countries. Strong Talent Base 06.4 undefinedThe European talent pools searching for tech job postings are overwhelmingly looking for jobs where they live. Still, there are some differences in countries like Sweden and Portugal where talent is a bit more open to global mobility. Share of searches (%) for 'tech' job postings by country ip addresses SOURCE: LEGEND Domestic Europe North America Rest of world NOTE: 'Tech jobs' included in the search for example: software engineer, programmer, application developer, UI/UX/graphic designer, web developer, frontend developer, backend developer, data scientist, business intelligence, it support. % of searches for 'tech' job postingsUK Netherlands Italy France Germany Spain Belgium Ireland Sweden Portugal 0.0 25.0 50.0 75.0 100.0 152 In Partnership with & www.stateofeuropeantech.com The European talent pools searching for tech job postings are overwhelmingly looking for jobs where they live. Still, there are some differences in countries like Sweden and Portugal where talent is a bit more open to global mobility. The European talent pools searching for tech job postings are overwhelmingly looking for jobs where they live. Still, there are some differences in countries like Sweden and Portugal where talent is a bit more open to global mobility. Share of searches (%) for 'tech' job postings by country ip addresses SOURCE: LEGEND Domestic Europe North America Rest of world NOTE: 'Tech jobs' included in the search for example: software engineer, programmer, application developer, UI/UX/graphic designer, web developer, frontend developer, backend developer, data scientist, business intelligence, it support. % of searches for 'tech' job postingsUK Netherlands Italy France Germany Spain Belgium Ireland 0.0 25.0 50.0 75.0 100.0 The European talent pools searching for tech job postings are overwhelmingly looking for jobs where they live. Still, there are some differences in countries like Sweden and Portugal where talent is a bit more open to global mobility. Share of searches (%) for 'teh' job postings by country ip addresses SOURCE: LEGEND Domestic Europe North America Rest of world NOTE: 'Tech jobs' included in the search for example: software engineer, programmer, appliation dev loper, UI/UX/graphic designer, web dvelopr, frontend developer, backend developer, data scientist, business intelligence, it support. % of searches for 'tech' job postingsUK Netherlands Italy France Germany Spain Belgium Ireland 0.0 25.0 50.0 75.0 100.0 Founders don't need to move any more to build world-class teams, because they're finding that talent at home. There is now an abundance of talent across engineering, product, design and growth. Founders don't need to move any more to build world-class teams, because they're finding that talent at home - whether it be from home-grown successes like Adyen, Spotify, FarFetch or US tech companies who've expanded here, or from top engineering schools. It's advantageous and easier to hire from your network locally, and founders are playing to their strengths. Ophelia Brown Blossom Capital Founder & Partner Strong Talent Base 06.4 Photo by: Petri Anttila undefined154 In Partnership with & www.stateofeuropeantech.com As a result, employees are increasingly working remotely, which in turn lowers the need for mobility between hubs. It is a trend that appears to be materialising across tech companies of all sizes. Has your company experienced any change in the number of employees working remotely? SOURCE:The State Of European Tech Survey LEGEND Increase No change Decrease % of respondents65% 64% 72% 31% 33% 21% 4% 4% 7% ≤10 employees 11-100 employees >100 employees 0 20 40 60 80 Top 10 fastest-growing countries for professional developers, 2018 vs 2019 SOURCE: LEGEND YoY growth (%) European YoY growth (%) DATASET: <100K DE VELOPERS YoY growth (%)23% 22% 19% 17% 17% 17% 12% 11% 10% 8% 6 6 6 6 6 6 6 6 6 6 Cyprus Montenegro Croatia Ireland Slovenia Liechtenstein Azerbaijan Albania Finland Lithuania 0 5 10 15 20 25 Top 10 fastest-growing countries for professional developers, 2018 vs 2019 SOURCE: LEGEND YoY growth (%) European YoY growth (%) DATASET: 100K+ DE VELOPERS YoY growth (%)15% 11% 9% 8% 8% 7% 6% 6% 6% 6% 6 6 6 6 6 6 6 6 6 6 Belgium Turkey Czech Republic France Netherlands Sweden Austria Germany Switzerland Poland 0 5 10 15 Strong Talent Base 06.4 As a result, employees are increasingly working remotely, which in turn lowers the need for mobility between hubs. It is a trend that appears to be materialising across tech compani s of a l sizes. As a result, employees are increasingly working remotely, which in turn lowers the need for mobility between hubs. It is a trend that appears to be materialising across tech companies of all sizes. Has your company experienced any change in the number of employees working remotely? SOURCE:The State Of European Tech Survey LEGEND Increase No change Decrease % of respondents65% 64% 72% 31% 33% 21% 4% 4% 7% ≤10 employees 11-100 employees >100 employees 0 20 40 60 80 Top 10 fastest-growing countries for professional developers, 2018 vs 2019 SOURCE: LEGEND YoY growth (%) European YoY growth (%) DATASET: 100K+ DE VELOPERS YoY growth (%)15% 11% 9% 8% 8% 7% 6% 6% 6% 6% 6 6 6 6 6 6 6 6 6 6 Belgium Turkey Czech Republic France Netherlands Sweden Austria Germany Switzerland Poland 0 5 10 15 <100K DEVELOPERS 100K+ DEVELOPERS undefined156 In Partnership with & www.stateofeuropeantech.com Incentivising and Retaining Talent The difference in the level of compensation for founders is material between Europe and the United States at the early venture stages (Seed to Series B). Founders in the US have higher base salaries and higher incentive pay. At Series C, the gap in total compensation closes, driven by higher incentive pay for European founders, not higher base salary levels. The average level of founder equity by funding round is closely aligned between the United States and Europe at the early stages of funding. Post Series C, European founders maintain more ownership than their American counterparts. The overall trend in terms of founder equity dilution as companies progress through multiple funding rounds is important to observe. After their Seed round founders hold, on average, around 32% equity in their company, but this declines to less than 15% post-Series C. The difference in the level of compensation for founders is material between Europe and the United States at the early venture stages (Seed to Series B). Founders in the US have higher base salaries and higher incentive pay. At Series C, the gap in total compensation closes, driven by higher incentive pay for European founders, not higher base salary levels. Founder base salary ($) by funding round in the 50th percentile by region SOURCE:Shareworks LEGEND Base salary (Europe) Base salary (United States) Incentive pay (Europe) Incentive pay (United States) NOTE: Note that at Seed stage some Founders may not take a base salary and take incentive pay instead. Incentive pay is cash bonus or incentive, which is not related to equity or equity value. Converted EUR to USD with an FX rate of 1.1151 from 30 October 2019. Founder base salary and incentives ($)Europe Europe Europe United States United States United States Seed Series A Series B 0 100,000 200,000 300,000 The differenc in the level of compensation for founders i material between Europe and the United States at th early venture stages (Seed to Series B). Founders in the US have higher base salaries and higher incentive pay. At Series C, the gap in total compensation closes, driven by higher incentive pay for European founders, not higher base salary levels. Founder base salary ($) by funding round in the 50th percentile by region SOURCE:Shareworks LEGEND Base salary (Europe) Base salary (United States) Incentive pay (Europe) Incentive pay (United States) NOTE: Note that at Seed stage some Founders may not take a base salary and take incentive pay instead. Incentive pay is cash bonus or incentive, which is not related to equity or equity value. Converted EUR t USD with an FX rate of 1.1151 from 30 October 2019. Founder base salary and incentives ($)Europe Europe Europe Europe United States United States United States United States Seed Series A Series B Series C 0 100,000 200,000 300,000 The average level of founder equity by funding round is closely aligned between the United States and Europe at the early stages of funding. Post Series C, European founders maintain more ownership than their American counterparts. The overall trend in terms of founder equity dilution as companies progress through multiple funding rounds is important to observe. After their Seed round founders hold, on average, around 32% equity in their company, but this declines to less than 15% post-Series C. Founder equity by funding round in the 50th percentile by region SOURCE:Shareworks LEGEND Europe United States % of founder equityEurope Europe Europe United States United States United States 31.5% 18.6% 13.0% 32.6% 18.3% 12.8% Seed Funding Only Post Series A Post Series B 0.0 10.0 20.0 30.0 The average level of founder equity by funding round is closely aligned between the United States and Europe at th erly stages of funding. Post Seris C, Euroean founders maintain more ownership than their American counterparts. The overall trend in terms of founder equity dilution s companies progress through multiple funding rounds is important to observe. After their Seed round founders hold, on average, around 32% equity in their company, but this declines to less than 15% post-Series C. Founder equity by funding round in the 50th percentile by region SOURCE:Shareworks LEGEND Europe United States % of founder equityEurope Europe Europe Europe United States United States United States United States 31.5% 18.6% 13.0% 13.6% 32.6% 18.3% 12.8% 9.8% Seed Funding Only Post Series A Post Series B Post Series C 0.0 10.0 20.0 30.0 The difference in the level of compensation for founders is material between Europe and the United States at the early venture stages (Seed to Series B). Founders in the US have higher base salaries and higher incentive pay. At Series C, the gap in total compensation closes, driven by higher incentive pay for European founders, not higher base salary levels. Founder base salary ($) by funding round in the 50th percentile by region SOURCE:Shareworks LEGEND Base salary (Europe) Base salary (United States) Incentive pay (Europe) Incentive pay (United States) NOTE: Note that at Seed stage some Founders may not take a base salary and take incentive pay instead. Incentive pay is cash bonus or incentive, which is not related to equity or equity value. Converted EUR to USD with an FX rate of 1.1151 from 30 October 2019. Founder base salary and incentives ($)Europe Europe Europe United States United States United States Seed Series A Series B 0 100,000 200,000 300,000 157 In Partnership with & www.stateofeuropeantech.com European tech companies have historically lagged behind those from the US in their use of stock options as an effective tool to attract, incentivise and retain talent. However, looking at Shareworks’ latest employee ownership survey, there are signs that the latest generation of companies from Europe are now properly rewarding their most talented executives and employees. While there is likely sample bias because most founders who participate in the survey are likely to a) understand the issue more and b) be better at remunerating their employees, it is a positive sign. There is still work to do, but thanks to important efforts to build awareness around the issue, such as NotOptional, more founders are starting to take this issue seriously, and the rest will hopefully follow suit. European governments need to pay attention and ensure that the implementation of progressive policies around use of stock options do not lag behind this evolved attitude among European founders. European tech companies have historically lagged behind those from the US in their use of stock options as an effective tool to attract, incentivise and retain talent. However, looking at Shareworks’ latest employee ownership survey, there are signs that the latest generation of companies from Europe are now properly rewarding their most talented executives and employees. While there is likely sample bias because most founders who participate in the survey are likely to a) understand the issue more and b) be better at remunerating their employees, it is a poitive ign. There is still work to do, but thanks to important efforts to build awar ness around the is ue, such as NotOptional, more founders are starting to take this issue seriously, and the rest will hopfully follow sut. European governments need to pay attention and ensure that the implementation of progr ssive policies around use of stock options do not lag behind this evolved attitude among European founders. Employee ownership by funding round in the 50th percentile by region SOURCE:Shareworks LEGEND Executives (Europe) Executives (US) Staff + other (Europe) Staff + other (US) Unissued (Europe) Unissued (US) NOTE: This details equity held by employees and unissued options excluding founders shares. Equity not related to salary nor incentives. % of ownershipEurope Europe Europe United States United States United States Seed Series A Series B 0 5 10 15 20 European tech companies have historically lagged behind those from the US in their use of stock options as an effective tool to attract, incentivise and retan talent. Howe r, looking at Shareworks’ latest employee ownership survey, there are signs that the latest generation of companies from Europe are now properly rewarding their most talented executives and employees. While there is likely sample bias because most founders who participate in the survey are likely to a) understand the issue more and b) be better at remunrating their emloyees, it is a positive sign. There is still work to do, but thanks to impor ant eff rts to build awareness around the issue, such as NotOptional, more founders are starting to take this issue seriously, and the rest will hopefully follow suit. European governments need to pay attention and ensure that the implementation of progressive policies around use of stock options do not lag behind this evolved attitude among European founders. Employee ownership by funding round in the 50th percentile by region SOURCE:Shareworks LEGEND Executives (Europe) Executives (US) Staff + other (Europe) Staff + other (US) Unissued (Europe) Unissued (US) NOTE: This details equity held by employees and unissued options excluding founders shares. Equity not related to salary nor incentives. % of ownershipEurope Europe Europe Europe United States United States United States United States Seed Series A Series B Series C 0 5 10 15 20 European tech companies have historically lagged behind those from the US in their use of stock options as an effective tool to attract, inc ntivise and retain talent. However, looking at Shareworks’ latest employee ownership survey, thre are sigs that the atest genration of companies fr m Europe are now properly rewarding their most talented executives and employees. While there i likely sample bias because most founders who participate in the survey are likely to a) understand the issue more and b) be better at remunerating their employees, it is a positive sign. There is still work to do, but thanks to important efforts to build awareness around the issue, such as NotOptional, more founders are starting to take this issue seriously, and the ret will opefully follow suit. European governmnts need to pay attention and ensure that the implementation of progressive policis around us of stoc options do not lag behind this evolved attitude among European founders. Employee ownrship by funding round in the 50th percentile by region SOURCE:Shareworks LEGEND Executives (Europe) Executives (US) Staff + other (Europe) Staff + other (US) Unissued (Europe) Unissued (US) NOTE: This details equity held by employees and unissued options excluding founders shares. Equity not related to salary nor incentives. % of ownershipEurope Europe Europe United States United States United States Seed Series A Series B 0 5 10 15 20 Incentivising and Retaining Talent 06.5 To be clear, there are more and less favourable environments for the use of stock options in different European countries. It's interesting in that context to look at differences by geography in how founders and tech startup employees perceive the effective use of stock options in their companies. Founders from the UK, which has one of the most favourable environments for the use of stock options, are more likely to believe that stock options are used effectively in their company. This is mirrored by responses from employees at UK-based tech startups and scale-ups. Founders' and employees' views on stock options being used effectively to incentivise employees in my company SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder and tech start-up and scale-up employee respondents from companies with more than 11 employees only. Numbers may not add to 100 due to rounding. DATASET: EMPLOYEE AT A TECH STARTUP OR SCALE-UP % of respondents UK & Ireland France & Benelux Nordics CEE Rest of Europe Southern Europe DACH 0 10 20 30 40 50 60 70 80 90 100 To be clear, there are more and less favourable environments for the use of stock options in different European countries. It's interesting in that context to look at differences by geography in how founders and tech startup employees perceive the effective use of stock options in their companies. Founders from the UK, which has one of the most favourable environments for the use of stock options, are more likely to believe that stock options are used effectively in their company. This is mirrored by responses from employees at UK-based tech startups and scale-ups. Founders' and employees' views on stock options being used effectively to incentivise employees in my company SOURCE: The State Of European Tech Survey LEGEND Agre Disagree Neither agree nor disagree NOTE: Founder and tech start-up and scale-up employee respondents from companies with more than 11 employees only. Numbers may not add to 100 due to rounding. DATASET: FOUNDER % of respondents UK & Ireland CEE DACH Southern Europe Nordics France & Benelux Rest of Europe 0 10 20 30 40 50 60 70 To be clear, there are more and less favourable environments for the use of stock options in different European countries. It's interesting in that context to look at differences by geography in how founders and tech startup employes perceive the ffective use of stock options in thir companies. Founders from the UK, which has one of the most favourable environments for the use of stock options, are more likely to believe that stock options are used effectively in their company. This is mirrored by responses from employees at UK-based tech startups and scale-ups. Founders' and employees' views on stock options being used effectively to incentivise employees in my company SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder and tech start-up and scale-up employee respondents from companies with more than 11 employees only. Numbers may not add to 100 due to rounding. DATASET: FOUNDER % of respondents UK & Ireland CEE DACH Southern Europe Nordics France & Benelux Rest of Europe 0 10 20 30 40 50 60 70 80 90 100 EMPLOYEE AT A TECH STARTUP OR SCALE-UP FOUNDER To be clear, there are more and less favourable environments for the use of stock options in different European c untris. It's interesting in that context to look at differences by geography in how fouders and tech startup employ es perceiv th effective use of st ck options in thei companies. Founders from the UK, which has one of th most favourable nvironment f r the use of stock options, are more likely t belive that stock ptins are used effectively i their company. This is mirr red by responses from emplyees at UK-based tech startups and cal-ups. Founders' and eployees' views on stock options being used effectively to incentivise employees in my company SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder and tech start-up and scale-up employee respondents from companies with more than 11 employees only. Numbrs may not add to 100 due to rounding. DATASET: FOUNDER % of respondents UK & Ireland CEE DACH Southern Europe Nordics France & Benelux Rest of Europe 0 10 20 30 40 50 60 70 To be clear, there are more and less favourable environments for the use of stock options in different European countries. It's int resti g in that context to l at differ nces by geography in how founders and tech startup employees perceive the effective use of stock options in their companies. Founders from the UK, which has on of the most favourable envi onm nts for the use of stock options, are more likely to believe that stock options are used effectively in their company. This is mirrored by responses from employees at UK-based tech startups and scale-ups. 158 In Partnership with & www.stateofeuropeantech.com It's also interesting to observe how founders of companies that have raised external capital compare in their responses with founders of bootstrapped companies. We found that founders who have taken external funding are more likely than founders of bootstrapped companies to agree that they are using stock options effectively within their companies to incentivise employees. It's also interesting to observe how founders of companies that have raised external capital compare in their responses with founders of bootstrapped companies. We found that founders who have taken external funding are more likely than founder of bootstrappd companies to agree that they are using stock options effectively within their companies to incentivise employees. Founder's view on stock options being used effectively to incentivise employees in their company SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder respondents from companies with more than 11 employees only. Numbers may not add to 100 due to rounding. % of respondents59% 42% 24% 19% 17% Raised external capital Bootstrapped 0 20 40 60 It's als iteresting to observe how founders f companies that have raised external capital compar in their respnes with founders of bootstrapped companies. W found that founders who have taken external funding are more likely than founders of bootstrapped companies to agree that they are using stock options effectively within their companies to incentivise employees. Founder's view on stock options being used effectively to incentivise employees in their company SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder respondents from companies with more than 11 employees only. Numbers may not add to 100 due to rounding. % of respondents59% 42% 24% 19% 17% 40% Raised external capital Bootstrapped 0 20 40 60 It's also interesting to observe how founders of companies that have raised external capital compare in their responses with founders of bootstrapped companies. We found that founders who have taken external funding are more likely than founders of bootstrapped companies to agree that they are using stock options effectively wihin thei companies to inc ntivie employ es. Founder's view on stock options being used effectively to incentivise employees in their company SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder respondents from companies with more than 11 employees only. Numbers may not add to 100 due to rounding. % of respondents59% 42% 24% 19% 17% Raised external capital Bootstrapped 0 20 40 60 Incentivising and Retaining Talent 06.5 #Not Optional — Europe must attract more talent to startups. Policy wheels are turning slowly, but they are turning. Last year at Slush, 30 CEOs and founders of some of the most well-known European companies including BlaBlaCar, Klarna, Revolut, Supercell and TransferWise signed a letter calling on legislators 'to fix the patchy, inconsistent and often punitive rules that govern employee ownership — the practice of giving staff options to acquire a slice of the company they're working for.' They argued that stock options is one of the main levers startups have to recruit the talent they need. They wrote: 'If we don’t eliminate the talent bottleneck, we risk squandering the incredible momentum that European tech has built up in recent years. The next Google, Amazon or Netflix could well come from Europe, but for that to happen, reforming the rules of employee ownership is definitely not optional.' Within weeks, 500 more CEOs and founders added their signature to the letter, which kicked off #NotOptional, a campaign to bring about change in how stock options are governed across Europe. A year on, the European Commission has actively engaged with the campaign and is looking for ways to tackle the issue in the upcoming 5-year term. Martin Mignot Index Ventures Partner Startup associations across Europe, from Deutsche Startups to France Digitale and Scale Ireland have held meetings at the most senior levels and secured commitments to make rewarding startup talent a priority. At the World Economic Forum in Davos, ineffective employee ownership policies were singled out as a major bottleneck to the growth of Digital Europe. A change is afoot in Europe. Finland is currently in the process of drafting its new policy, France has made changes to its scheme for startups and we expect to see more, Ireland just broadened the scope of its employee ownership scheme and has a full-scale review planned for next year, and Germany, one of the countries with the worst policy in Europe, is finally responding to entrepreneurs who've been lobbying for change for years. Based on our experience working with entrepreneurs around the world, we strongly believe that fixing stock option policies will have material impact on the ability of startups to grow and create tech giants on par with those emerging from the US and China. Everyone who joined us in signing #NotOptional can be proud that they've helped to put the issue on the agenda in Europe. Now we need to turn positive conversations across the continent into policy. 159 In Partnership with & www.stateofeuropeantech.com Incentivising and Retaining Talent 06.5 But there is clearly still work to do to ensure that stock options are used effectively to incentivise employees at tech startups and scale-ups. The bigger the company, the more likely founders are to agree that they're using stock options effectively but, conversely, the less likely employees are to agree that this is the case. Founders' and employees' views on stock options being used effectively to incentivise employees in their companies SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder and employee at a tech start-up or scale-up respondents only. Numbers may not add to 100 due to rounding. DATASET: FOUNDER % of respondents ≤10 employees 11-100 employees >100 employees 0 10 20 30 40 50 60 70 80 90 100 But there is clearly still work to do to ensure that stock options are used effectively to incentivise employees at tech startups and scale-ups. The bigger the company, the more likely founders are to agree that they're using stock options effectively but, conversely, the less likely employees are to agree that this is the case. Founders' and employees' views on stock options being used effectively to incentivise employees in their companies SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder and employee at a tech start-up or scale-up respondents only. Numbers may not add to 100 due to rounding. DATASET: EMPLOYEE AT TECH STARTUP OR SCALE-UP % of respondents ≤10 employees 11-100 employees >100 employees 0 10 20 30 40 50 60 70 But there is clearly still work to do to ensure that stock options are used effectively to incentivise employees at tech startups and scale-ups. The bigger the company, the more likely founders are to agree that they're using stock options effectively but, conversely, the less likely employees are to agree that this is the case. Founders' and employees' views on stock options being used effectively to incentivise employees in their companies SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder and employee at a tech start-up or scale-up respondents only. Numbers may not ad to 100 du to rounding. DATASET: EMPLOYEE AT TECH STARTUP OR SCALE-UP % of respondents ≤10 employees 11-100 employees >100 employees 0 10 20 30 40 50 60 70 But there is clearly still work to do to ensure that stock options are used effectively to incentivise employees at tech startups and scale-ups. The bigger the company, the more likely founders are to agree that they're using stock options effectively but, conversely, the less likely employees are to agree that this is the case. Founders' and employees' views on stock options being used effectively to incentivise employees in their companies SOURCE: The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Founder and employee at a tech start-up or scale-up respondents only. Numbers may not add to 100 due to rounding. DATASET: EMPLOYEE AT TECH STARTUP OR SCALE-UP % of respondents ≤10 employees 11-100 employees >100 employees 0 10 20 30 40 50 60 70 80 90 100 FOUNDER EMPLOYEE AT A TECH STARTUP OR SCALE-UP But there is clearly still work to do to ensure that stock options are used effectively to incentivise employees at tech startups and scale-ups. The bigger e c mpany, the more likel funder are t agree that they're using stock options effectively but, conversely, the less likely employ es ar to agree that this is the case. 160 In Partnership with & www.stateofeuropeantech.com The role of stock options as a tool to incentivise talent is particularly relevant in the context of increased competition for talent within the European tech ecosystem. Larger companies, in particular, are experiencing increasing competition for talent from both local tech startups and global giants. If you're an employee at a company with 100+ employees, you're more likely to be aware of your stock options; founders can leverage this insight not only to attract but also to retain talent. Has your company experienced any changes in the following talent trends in the last 12 months? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change DATASET: <=10 EMPLOYEES Competition for talent from local startups Competition for talent from global tech companies Employee awareness of stock options The role of stock options as a tool to incentivise talent is particularly relevant in the context of increased competition for talent within the European tech ecosystem. Larger companies, in particular, are experiencing increasing competition for talent from both local tech startups and global giants. If you're an empl y e at a c mpany with 100+ empl yees, you're more likely to b aware f your stock options; fund rs can l verage this insight not only to attract but also to retain talent. The role of stock options as a tool to incentivise talent is particularly relevant in the context of increased competition for talent within the European tech ecosystem. Larger companies, in particular, are experiencing increasing competition for talent from both local tech startups and global giants. If you're an employee at a company with 100+ employees, you're more likely to be aware of your stock options; founders can leverage this insight not only to attract but also to retain talent. Has your company experienced any changes in the following talent trends in the last 12 months? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change DATASET: 1 1-100 EMPLOYEES Competition for talent from global tech companies Competition for talent from local startups Employee awareness of stock options 11-100 EMPLOYEES The role of stock options as a tool to incentivise talent is particularly relevant in the context of increased competition for talent within the European tech ecosystem. Larger companies, in particular, are experiencing increasing competition for talent from both local tech startups and global giants. If you're an employee at a company with 100+ employees, you're more likely to be aware of your stock options; founders can leverage this insight not only to attract but also to retain talent. Has your company experienced any changes in the following talent trends in the last 12 months? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change DATASET: 100+ EMPLOYEES Competition for talent from global tech companies Employee awareness of stock options Competition for talent from local startups 100+ EMPLOYEES The role of stock options as a tool to incentivise talent is particularly relevant in the context of increased competition for talent within the European tech ecosystem. Larger companies, in particular, are experiencing increasing competition for talent from both local tech startups and global giants. If you're an employee at a comp with 100+ employees, you're more likely to be aware of your stock options; founders can leverage this isight not only to attract but also to retain talent. Has your company experienced any changes in the following talent trends in the last 12 months? SOURCE: The State Of European Tech Survey LEGEND Increase Decrease No change DATASET: <=10 EMPLOYEES Competition for talent from local startups Competition for talent from global tech companies Employee awareness of stock options <=10 EMPLOYEES Incentivising and Retaining Talent 06.5 undefined162 In Partnership with & www.stateofeuropeantech.com Purpose What is the definition of a purpose-driven tech startup? The EU competition commissioner Margrethe Vestager has observed: ‘Some say China has all the data, and the US has all the money. But in Europe, we have purpose.’ In European tech, purpose has become a powerful differentiator. European founders aren’t just aiming for commercial success - they are trying to solve some of the world’s largest problems. It makes business sense too: consumers and tech talent alike are demanding companies think about more than the bottom line. 163 In Partnership with & www.stateofeuropeantech.com Finding Purpose Techlash narrative In the United States the Techlash narrative is driven mostly by the Tech giants - the Big Tech breakup plan and the Big Tech backlash account for 26% of the overall narrative. On the other side of the pond, Europe remains focused on data privacy, but conversations on antitrust, tech ethics and the gig economy signal that a bigger Techlash is just around the corner. 164 In Partnership with & www.stateofeuropeantech.com Finding Purpose 07.1 80% of VCs say they assess the potential long-term societal and/or environmental impact of an investment, in either a pre- or post-investment timeframe. The largest share of respondents (47%) stated that the impact assessment happens pre-investment as part of the due diligence process. Nearly two-thirds of VC respondents agree that in the last twelve months European investors have demonstrated greater concern about the potential societal or environmental impact of their portfolios. Nearly two-thirds of VC respondents agree that in the last twelve months European investors have demonstrated greater concern about the potential societal or environmental impact of their portfolios. Thinking about the past 12 months, do you agree or disagree with the following: European VCs are demonstrating greater concern about the potential societal and/or environmental impact of their portfolio companies. SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondents62% 13% Agree Disagree Neither 0 20 40 60 Nearly t -thirds of VC respondents agree tht in the last twelve months Europan investors have demonstrated greater concern about the potential societal or environmental impact of their portfolios. Thinking about the past 12 months, do you agree or disagree with the following: European VCs are demonstrating greater concern about the potential societal and/or environmental impact of their portfolio companies. SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondents62% 13% 25% Agree Disagree Neither agree nor disagree 0 20 40 60 Nearly two-thirds of VC respondents agree that in the last twelve months European investors have demonstrated greater concern about the potential societal or environmental impact of their portfolios. Thinking about the past 12 months, do you agree or disagree with he following: European VCs are demonstrating greater concern abou the potential societal and/or envromental impact of their portfolio companis. SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondents62% 13% Agree Disagree Neither 0 20 40 60 80% of VCs say they assess the potential long-term societal and/or environmental impact of an investment, in eithr a pre- or post-investment timeframe. The largest share of respondents (47%) stated that the impact assessment happens pre-investment as part of the due diligence process. When, if at all, do you assess the potential long-term societal and/or environmental impact of an investment? SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondents 18% 15% 13% 4% 3% 1% Pre-investment, as part of the due diligence process Post-investment, on an ad-hoc basis when the need arises (change of strategy, pivot, etc..) Post-investment, on an ongoing basis with defined KPIs Never, but this is something we are considering Never, not meaningful Prefer not to say Other 0 5 10 15 20 25 30 35 80% of VCs say they as ess the potential long-ter soital and/or environmental impact of an investment, in either a pre- or post-investment timeframe. The largest share of respondents (47%) stated that the impact assessment happens pre-investment as part of the due diligence process. When, if at all, do you assess the potential long-term societal and/or environmental impact of an investment? SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rounding. % of respondents 47% 18% 15% 13% 4% 3% 1% Pre-investment, as part of the due diligence process Post-investment, on an ad-hoc basis when the need arises (change of rat gy, pivot, etc..) Post-investment, on an ongoing basis with defined KPIs Never, but this is something we are considering Never, not meaningful Prefer not to say Other 0 5 10 15 20 25 30 35 40 45 50 80% of VCs say they assess the potential long-term societal and/or environmental impact of an investment, in either a pre- or post-investment timeframe. The largest share of respondents (47%) stated that the impact assessment happens pre-investment as part of the due diligence process. When, if at all, do y u assess the potential long-term societal and/or envir nmental impact of n investment? SOURCE:The State Of European Tech Survey NOTE: Venture capitalists only. Numbers may not add to 100 due to rouning. % of respondents 18% 15% 13% 4% 3% 1% Pre-invest ent, as part of the due diligence process Post-investment, on an ad-hoc basis when the need arises (change of strategy, pivot, etc..) Post-investment, on an ongoing basis with defined KPIs Never, but this is something we are considering Never, not meaningful Prefer not to say Other 0 5 10 15 20 25 30 35 We believe that Europe can take a leading position in development and investment in the ethical use of technology. I am more optimistic about the future of European technology today than I was 12 months ago although we are in uncertain times with big problems facing the planet - from climate change to delivering resources such as healthcare, food, and education to a global population approaching 8 billion. Europe is leading the way in building trustworthy technology by choosing to use its values to drive the use of technology to the right place. Being a member of the HLEG-AI group, we published ethical guidelines for the use of AI, and we believe that Europe can take a leading position in development and investment in the ethical use of technology. Loubna Bouarfa OKRA Technologies Founder & CEO undefined166 In Partnership with & www.stateofeuropeantech.com Finding Purpose 07.1 I see us moving towards a potentially unhealthy dual internet: a free- for-all 'poor man's' web versus a premium web, and I think businesses need to try harder to build products for broader socio-economic segments of society. One interpretation I have honed in on around 'tech for good' is the idea of 'humane technology', as I think there's a real need to think more clearly through the behavioural ramifications of consumer-tech especially - and its impact on debate/ politics/addiction/mental health/etc. I think we have some good thinkers along these lines in the UK, but there remains a contradiction in terms when it comes to business models and the need for rapid returns which still prioritise rapid growth, eye-balls and the attention economy. I see us moving towards a potentially unhealthy dual internet: a free-for- all 'poor man's' web versus a premium web, and I think businesses need to try harder to build products for broader socio-economic segments of society. Jessica Butcher Tick Co-Founder Investors are most likely to agree with the statement that European technology entrepreneurs will do more to address societal challenges in the next decade than European governments. Policymakers and the media are more sceptical… Do you agree or disagree with the following statement? European technology entrepreneurs will do more to address societal challenges (pollution, congestion, climate change, food sustainability, health, etc.) in the next decade than European governments. SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents Angel investor Venture capitalist Other LP investing in private equity & venture capital Other investor Employee at a tech startup or scale-up Consultant/M&A advisor/investment banker Founder Student Employee at a company not a tech startup or scale-up Academic/researcher Media/journalist Employee in the public sector Policymaker/regulator 0 10 20 30 40 50 60 70 80 90 100 Investors are most likely to agree with the statement that European technology entrepreneurs will do more to address societal challenges in the next decade than European governments. Policymakers and the media are more sceptical… Do you agree or disagree with the following statement? European technology entrepreneurs will do more to address societal challenges (pollution, congestion, climate change, food sustainability, health, etc.) in the next decade than European governments. SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents Angel investor Venture capitalist Other LP investing in private equity & venture capital Other investor Employee at a tech startup or scale-up Consultant/M&A advisor/investment banker Founder Student Employee at a company not a tech startup or scale-up Academic/researcher Media/journalist Employee in the public sector Policymaker/regulator 0 10 20 30 40 50 60 70 80 90 100 Investors are most likely to agree with the statement that European technology entrepreneurs will do more to address societal challenges in the next decade than European governments. Policymakers and the media are more sceptical… Do you agree or disagree with the following statement? European technology entrepreneurs will do more to address societal challenges (pollution, congestion, climate change, food sustainability, health, etc.) in the next decade than European governments. SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents Angel investor Venture capitalist Other LP investing in private equity & venture capital O her investor Employee at a tech startup or cale-up Consultant/M&A advisor/investment banker Founder Studen Employee at a company not a tech startup or scale-up Academic/researcher Media/journalist Employee in the public se tor Policymaker/regulator 0 10 20 30 40 50 60 70 80 90 100 Investors are most likely to agree with the statement that European technology entrepreneurs will do more to address societal chall nges in the n xt decade than European governments. Policymakers nd the media are more scep ical… 167 In Partnership with & www.stateofeuropeantech.com Finding Purpose 07.1 I'm excited to see a new generation of entrepreneurs in Europe who oppose the 'move fast and break things' dogma in favour of a more thoughtful, more resilient, truly long-term approach to business. 'Social innovation' or 'tech for good' is a different approach to entrepreneurship. One that's in contrast with the average MBA-grad, who crunched some numbers and, driven by a search for monetisation, decided to fill a given market niche. I'm excited to see a new generation of entrepreneurs in Europe who oppose the 'move fast and break things' dogma in favour of a more thoughtful, more resilient, truly long-term approach to business. I see more of my entrepreneur friends in Europe looking to build companies that last 100 years, and more of my friends in SV looking for a quick exit. Both approaches to founding companies are valid; I just find the first one to be much more enjoyable. Valentina Milanova Daye Founder & CEO European founders are trying to solve some of world’s most endemic challenges, achieving transformative impact on climate change, smart cities, economic inclusion and other imperatives of our generation. At the same time, there is an estimated $502B of assets under management focused on impact investment – and greater focus than ever before from investors and consumers alike on sustainability. It’s a very good moment for the purpose-driven entrepreneur. Perry Teicher Orrick Impact Finance Lawyer Photo by: Jussi Hellsten 168 In Partnership with & www.stateofeuropeantech.com Purpose-driven Investment Measuring purpose-driven investment in European tech 2019 saw a huge spike in investment into European tech companies that are seeking to solve some of humanity's most pressing problems. We partnered with Dealroom to try to quantify this trend and identify the growing universe of purpose-driven venture-backed European tech companies. To do so, Dealroom created a framework to assess venture- backed European tech companies based on their alignment with the United Nations Sustainable Development Goals. In this first iteration, the analysis focused on a subset of seven of the seventeen Sustainable Development Goals, selecting only those where Dealroom.co has observed greater levels of European venture-backed startup activity. For each of the selected SDGs, Dealroom manually assigned keywords used to tag companies in its platform to search for and identify a firs set of potential companies for review. The initial results set was then manually reviewed by Dealroom analysts to evaluate the companies for fit against one or more of the SDGs and assign them to those SDGs accordingly. Additionally, Dealroom's team also manually differentiated all companies in the dataset based on whether the purpose-driven impact of the company was ‘core’ to the business model, or a ‘peripheral’ or indirect component of the business model. Only companies where the purpose-driven impact was considered core to the business model were included in the final dataset and analysis. In total, the analysis identified 528 unique venture-backed, purpose-driven tech companies. The full list can be accessed on Dealroom's platform here. We understand the methodology has limitations and see this as a first attempt to seek to build a more robust analysis of European purpose-driven tech companies. We welcome feedback and will update this work both in terms of scope and methodology in future iterations. undefinedundefined171 In Partnership with & www.stateofeuropeantech.com Purpose-driven Investment 07.2 Purpose-driven European tech companies focused on climate action and clean energy have attracted the highest level of capital investment, followed by those focused on health and well-being. This also comes across in the Sustainability/Climate change and Cleantech narrative in Europe, where nearly 50% of all news are focused on tech startups and VC investments. Purpose-driven European tech companies focusd on climate action and clean energy have attracted the highest level of capital investment, followed by those focused on health and well-being. Capital invested ($M) in purpose- driven European tech companies per Sustainable Development Goal addressed SOURCE:Dealroom LEGEND SDG 2: Zero Hunger SDG 3: Health and Well-being SDG 6: Clean Water and Sanitation SDG 7: Affordable and Clean Energy SDG 11: Sustainable Cities and Communities SDG 12: Consumption and Production SDG 13: Climate Action NOTE: Companies addressing more than one Sustainable Development Goal are counted against each individual SDG they are targeting. As a result, the total capital invested sums to be greater than the total capital invested presented in previous chart. Capital invested ($M)2015 2016 2017 2018 0 500 1,000 1,500 2,000 2,500 3,000 Purpose-driven European tech companies focused on climate action and clean energy have attracted the highest level of capital investment, followed by those focused on health and well-being. Capital invested ($M) in purpose- driven European tech companies per Sustainable Development Goal addressed SOURCE:Dealroom LEGEND SDG 2: Zero Hunger SDG 3: Health and Well-being SDG 6: Clean Water and Sanitation SDG 7: Affordable and Clean Energy SDG 11: Sustainable Cities and Communities SDG 12: Consumption and Production SDG 13: Climate Action NOTE: Companies addressing more than one Sustainable Development Goal are counted against each individual SDG they are targeting. As a result, the total capital invested sums to be greater than the total capital invested presented in previous chart. Capital invested ($M)2015 2016 2017 2018 2019 0 500 1,000 1,500 2,000 2,500 3,000 This also comes across in the Sustainability/Climate change and Cleantech narrative in Europe, where nearly 50% of all news are focused on tech startups and VC investments. NOTE: Companies addressing more than one Sustainable Development Goal are counted against each individual SDG they are targeting. As a result, the total capital invested sums to be greater than the total capital invested presented in previous chart. Purpose-driven European tech companies have raised huge rounds in 2019, topped by a $1B investment into Sweden's Northvolt, founded in 2016 with the mission to build the world's greenest battery and enable the European transition to renewable energy. Top 10 largest deals raised by purpose-driven tech companies in 2019 Company Description City Country Round Size ($M) Deal Date 1 Northvolt Lithium-ion batteries Stockholm Sweden 1,000 Jun 2019 2 Babylon Health High quality healthcare via mobile phone London United Kingdom 550 Aug 2019 3 Doctolib An appointment online to a doctor or dentist Paris France 165 Mar 2019 4 Ynsect Transforms insects into nutrient resource for agriculture Évry France 138 Feb 2019 5 Energy Vault Energy storage technology Lugano Switzerland 110 Aug 2019 6 Infarm An urban farming services company Berlin Germany 100 Jun 2019 7 docplanner Booking platform for medical appointments Warsaw Poland 88 May 2019 8 Healx AI platform for rare diseases Cambridge United Kingdom 56 Oct 2019 9 BBOXX Designs, manufactures and distributes solar power systems London United Kingdom 50 Aug 2019 10 Dental Monitoring Application designed for self-monitoring dental treatment Paris Fr ance 50 Mar 2019 SOURCE:Dealroom NOTE: Based on deals announced between 1 January 2019 and 30 September 2019 only. Purpose-driven European tech companies have raised huge rounds in 2019, topped by a $1B investment into Sweden's Northvolt, founded in 2016 with the mission to build the world's greenest battery and enable the European transition to renewable energy. Top 10 largest deals raised by purpose-driven tech companies in 2019 Company Description City Country Round Size ($M) Deal Date 1 Northvolt Lithium-ion batteries Stockholm Sweden 1,000 Jun 2019 2 Babylon Health High quality healthcare via mobile phone London U ited Kingdom 550 Aug 2019 3 Doctolib An appointment online to a doctor or dentist Paris France 165 Mar 2019 4 Ynsect Transforms insects into nutrient resource for agriculture Évry France 138 Feb 2019 5 Energy Vault Energy storage technology Lugano Switzerland 110 Aug 2019 6 Infarm An urban farming services company Berlin Germany 100 Jun 2019 7 docplanner Booking platform for medical appointments Warsaw Poland 88 May 2019 8 Healx AI platform for rare diseases Cambridge United Kingdom 56 Oct 2019 9 BBOXX Designs, manufactures and distributes solar power systems London United Kingdom 50 Aug 2019 10 Dental Monitoring Application designed for self-monitoring dental treatment Paris Fr ance 50 Mar 2019 SOURCE:Dealroom NOTE: Based on deal announced between 1 January 2019 and 30 September 2019 only. 172 In Partnership with & www.stateofeuropeantech.com Purpose-driven Investment 07.2 This year the number of purpose-driven European founders who have pitched to us has been overwhelming. This year the number of purpose-driven European founders who have pitched to us has been overwhelming. European founders have the most powerful tech toolkit in history, and they are stepping up to help solve some of the world's most pressing challenges such as the climate crisis and healthcare. In doing so they will build huge commercial successes, the global category winners of tomorrow. I believe companies who are purpose driven will outperform the companies who are not. Being mission-driven makes business sense. Many consumers - specifically younger consumers - would rather pay more for something that's sustainable. Younger employees want to work for companies with a mission, and they will leave companies they think are doing things that are negatively impacting society or the environment. Niklas Zennström Atomico Founding Partner & CEO Purpose-driven European tech companies have raised huge rounds in 2019, topped by a $1B investment into Sweden's Northvolt, founded in 2016 with the mission to build the world's greenest battery and enable the European transition to ren wable energy. Purpose-driven European tech companies have raised huge rounds in 2019, topped by a $1B investment into Sweden's Northvolt, founded in 2016 with the mission to build the world's greenest battery and enable the European transition to renewable energy. Top 10 largest deals raised by purpse-driven tech companie in 2019 Company Description City Country Round Size ($M) Deal Date 1 Northvolt Lithium-ion batteries Stockholm Sweden 1,000 Jun 2019 2 Babylon Health High quality healthcare via mobile phone London United Kingdom 550 Aug 2019 3 Doctolib An appointment online to a doctor or dentist Paris France 165 Mar 2019 4 Ynsect Transforms insects into nutrient resource for agriculture Évry France 138 Feb 2019 5 Energy Vault Energy storage technology Lugano Switzerland 110 Aug 2019 6 Infarm An urban farming services company Berlin Germany 100 Jun 2019 7 docplanner Booking platform for medica l appointments Warsaw Poland 88 May 2019 8 Healx AI platform for rare diseases Cambridge United Kingdom 56 Oct 2019 9 BBOXX Designs, manufactures and distributes solar power systems ondon United Kingdom 50 1 10 Dental Monitoring Application designed for self-monitoring dental treatment Paris France 50 Mar 2019 SOURCE:Dealroom NOTE: Based on deals announced between 1 January 2019 and 30 September 2019 only. For the team here, there's no bigger motivator than knowing you’re applying your skills to improving the lives of patients, their carers and their families. At Healx we believe every rare disease patient deserves a treatment. It's this belief which drives us to achieve our mission of taking 100 new treatments towards the clinic by 2025. Having such a clear mission also helps with recruiting and retaining the best and brightest talent. For the team here, there's no bigger motivator than knowing you're applying your skills to improving the lives of patients, their carers and their families. This is especially the case for the many team members who count either themselves or a relative amongst the 400 million people worldwide living with a rare disease. Kate Hilyard Healx COO 173 In Partnership with & www.stateofeuropeantech.com Purpose-driven Investment 07.2 'Tech for good' generally addresses humankind's most important needs, which means the largest markets. Ÿnsect is a mission-driven company from Day 1. It is right in our DNA, as we came from an activist non- profit association. We see more and more projects and entrepreneurs looking to have an impact, to have a purpose, with great ideas showing that profits and impacts can be compatible. Amazing companies like Olio, NorthVolt, OpenClassRooms or Doctolib demonstrate that Impact Unicorns won’t be a myth! Europe could become the best place for 'tech for good' companies, which will have tremendous positive economical and social impacts in Europe and beyond, as 'tech for good' generally addresses humankind's most important needs, which means the largest markets. Antoine Hubert Ÿnsect CEO As a result of the large funding rounds raised by some of the leading players, capital invested into purpose-driven companies accounted for more than 12% of total capital invested into European tech in 2019, more than double any previous year. As a result of the large funding rounds raised by some of the leading players, capital invested into purpose- driven companies accounted for more than 12% of total capital invested into European tech in 2019, more than double any previous year. Capital invested in purpose- driven European tech companies per year as a share of total capital invested (%) SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. % of total capital invested3% 6% 5% 6% 2015 2016 2017 2018 3 5 8 10 13 As a result of the large funding rounds raised by some of the leading players, capital invested into purpose- driven companis accounted for more than 12% of total capital invested into European tech in 2019, more than double any previous year. Capital invested in purpose- driv European tech companies per year as a share of total capital invested (%) SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. % of total capital invested3% 6% 5% 6% 12% 2015 2016 2017 2018 2019 3 5 8 10 13 As a result of the large funding rounds raised by some of the leading players, capital invested into purpose- driven companies accounted for more than 12% of total capital invested into European tech in 2019, more than double any previous year. Capital invested in purpose- driven European tech companies per year as a share of total capital invested (%) SOURCE:Dealroom NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. % of total capital invested3% 6% 5% 6% 2015 2016 2017 2018 3 5 8 10 13 A significant part of our own portfolio is in life sciences and digital health and clean growth, mobility and transportation. Not only are there social positives from investing in these types of companies, there are also potentially very large commercial returns available both for VCs and LPs. Consumers are becoming increasingly values-driven in their lifestyles and this in turn affects how they spend their money. Consumers will look for businesses with values similar to their own, whether that's how a company improves its environmental impact and treats workers in their supply chain or the way it works within its local community. While much of VC is still focussed on areas like Enterprise Software and Fintech, there are significant market opportunities in areas that tackle global issues like efficient energy, sustainable consumption and health and social care. A significant part of our own portfolio is in life sciences and digital health and clean growth, mobility and transportation. Not only are there social positives from investing in these types of companies, there are also potentially very large commercial returns available both for VCs and LPs. Christine Hockley British Patient Capital Director of Investments undefined175 In Partnership with & www.stateofeuropeantech.com Purpose-driven Investment 07.2 The UK, France and Germany are home to the highest number of purpose-driven European tech companies. Top 20 countries by share of purpose-driven European tech companies SOURCE:Dealroom LEGEND % of purpose-driven companies % of all companies NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: R ANK 1 1-20 % of companies Belgium Denmark Norway Austria Poland Portugal Russia Estonia Hungary Lithuania 0.0 0.2 0.5 0.7 1.0 1.2 1.5 1.7 2.0 2.2 2.5 2.7 3.0 The UK, France and Germany are home to the highest number of purpose-driven European tech companies. Top 20 countries by share of purpose-driven European tech companies SOURCE:Dealroom LEGEND % of purpose-driven companies % of all companies NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: TOP 10 % of companies United Kingdom France Germany Netherlands Sweden Finland Spain Ireland Italy Switzerland 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0 The UK, France and Germany are home to the highest number of purpose-driven European tech companies. Top 20 countries by share of purpose-driven European tech companies SOURCE:Dealroom LEGEND % of purpose-driven companies % of all companies NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATASET: TOP 10 % of companies United Kingdom France Germany Netherlands Sweden Finland Spain Ireland Italy Switzerland 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0 RANK 11-20 TOP 10 The UK, France and Germany are home to the highest number of purpose-driven European tech comp ies. Top 20 countries by share of purpose-driven European tech companies SOURCE:Dealroom LEGEND % of purpose-driven companies % of all companies NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. DATA ET: TOP 10 % of companies United Kingdom France Germany Netherlands Sweden Finland Spain Ireland Italy Switzerland 0.0 2.5 5.0 7.5 10.0 12.5 15.0 17.5 20.0 22.5 25.0 The UK, France and Germany are home to the highest number of purpose-driven European te h companies. We’re beginning to see the industry pay attention to other intersections beyond gender, such as race, class, ability and more. This intersectional approach supports and celebrates individuals who have multiple identities, such as black women. Over the past couple of months, there have been a number of initiatives supporting these underrepresented groups, such as EITFood Change Makers Programme; a two-day hackathon for women and people of colour in the agricultural sector and Included VC; a 12-month venture capital fellowship group for marginalised communities, such as veterans and refugees. Osnat Michaeli Infarm Co-Founder 176 In Partnership with & www.stateofeuropeantech.com But looking on a relative basis, it's clear that some countries are much more overweight towards purpose- driven tech companies when benchmarked against their overall share of all European tech companies. Sweden, for example, is home to nearly 10% of purpose-driven tech companies, but accounts for only 4.3% of all European tech companies, a difference of 5.1% points. Rank of countries by %-point difference in relative share of purpose-driven European tech companies versus all European tech companies SOURCE:Dealroom LEGEND %-point difference NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. %-point difference 0.8 0.4 0.1 0.0 0.0 -0.1 -0.1 -0.3 -0.6 -0.9 -1.0 -1.1 -1.2 -1.2 -1.5 -1.7 -2.0 -4.2 -5.1 Sweden Finland Austria United Kingdom Netherlands Hungary France Belgium Norway Switzerland Portugal Italy Denmark Russia Estonia Ireland Lithuania Poland Germany Spain -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 But looking on a relative basis, it's clear that some countries are much more overweight towards purpose- driven tech companies when benchmarked against their overall share of all European tech companies. Sweden, for example, is home to nearly 10% of purpose-driven tech companies, but accounts for only 4.3% of all European tech companies, a difference of 5.1% points. Rank of countries by %-point difference in relative share of purpose-driven European tech companies versus all European tech companies SOURCE:Dealroom LEGEND %-point difference NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. %-point difference 0.8 0.4 0.1 0.0 0.0 -0.1 -0.1 -0.3 -0.6 -0.9 -1.0 -1.1 -1.2 -1.2 -1.5 -1.7 -2.0 -4.2 -5.1 Sweden Finland Austria United Kingdom Netherlands Hungary France Belgium Norway Switzerland Portugal Italy Denmark Russia Estonia Ireland Lithuania Poland Germany Spain -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 But looking on a relative basis, it's clear that some countries are much more overweight towards purpose- driven tech companies when benchmarked against their overall share of all European tech companies. Sweden, for example, is home to nearly 10% of purpose-drive ech c mpanies, but accounts for only 4.3% of all European tech companies, a difference of 5.1% points. Rank of countries by %-point difference in relative share of purpose-driven European tech companies versus all European tech companies SOURCE:Dealroom LEGEND %-point difference NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. %-point difference 4.5 0.8 0.4 0.1 0.0 0.0 -0.1 -0.1 -0.3 -0.6 -0.9 -1.0 -1.1 -1.2 -1.2 -1.5 -1.7 -2.0 -42 -5.1 Sweden Finland Austria United Kingdom Netherlands Hungary France Belgium Norway Switzerland Portugal Italy Denmark Russia Estonia Ireland Lithuania Poland Germany Spain -6.0 -5.0 -4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 But looking on a relative basis, it's clear that some countries are much more overweight towards purpose-driven tech companies when benchmarked against their overall share of all European tech companies. Sweden, for example, is home to nearly 10% of purpose-driven t ch companies, but ccounts for only 4.3% of all European tech companies, a difference of 5.1% points. In absolute terms, London is the capital of purpose-driven European tech companies; it is home to nearly on in 10 companies with a purpose-driven mission. But on a relative basis Stockholm is by far the number on city, with the heaviest weighting towards purpose-driven tech companies compared to its share of all European tech companies. In absolute terms, London is the capital of purpose-driven European tech companies; it is home to nearly one in 10 companies with a purpose-driven mission. But on a relative basis, Stockholm is by far the number one city, with the heaviest weighting towards purpose-driven tech companies compared to its share of all European tech companies. Top 10 European cities by share of purpose-driven European tech companies SOURCE:Dealroom LEGEND % of purpose-driven tech companies % of all European tech companies NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. % of companies London Stockholm Paris Amsterdam Berlin Helsinki Dublin Zurich Espoo Delft 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Iabsolute terms, London is the capital of purpose-driven European tech companies; it is home to nearly one in 10 companies with a purpose-driven mission. But on a relative basis, Stockholm is by far the number one city, with the heaviest weighting towards purpose-driven tech companies compared to its share of all European tech companies. Top 10 uropean cities by share of purpse-driven European t ch companies SOURCE:Dealroom LEGEND % of purpose-driven tech companies % of all European tech companies NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, grants. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. % of companies London Stockholm Paris Amsterdam Berlin Helsinki Dublin Zurich Espoo Delft 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 In absolute terms, London is the capital of purpose-driven European tech companies; it is home to nearly one in 10 companies with a purpose-driven mission. But on a relative basis, Stockholm is by far the number one city, with the heaviest weighting towards purpose-driven tech companies compared to its share of all European tech companies. Top 10 European cities by shae of purpos-driven European tech companies SOURCE:Dealroom LEGEND % of purpose-driven tech companies % of all European tech companies NOTE: All Dealroom.co data excludes the following: biotech, secondary transactions, debt, lending capital, gr nts. Please also note the data excludes Israel. 2019 annualised based on data to September 2019. % of companies London Stockholm Paris Amsterdam Berlin Helsinki Dublin Zurich Espoo Delft 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 11.0 12.0 Purpose-driven Investment 07.2 177 In Partnership with & www.stateofeuropeantech.com Places What are the best hubs for European tech? Cluj-Napoca, Romania, Delft, the Netherlands, Minsk, Belarus. European tech is no longer driven by a handful of cities and a handful of countries. More European countries can say they have created a billion-dollar tech company. Universities across the region are creating more spinoffs. And founders are choosing even more to found where they are, further fueling local tech communities and setting the stage for the global category winners of tomorrow. undefinedundefinedundefinedundefinedundefined183 In Partnership with & www.stateofeuropeantech.com Picking Places 08.1 As consumers are more and more aware that tech is changing their lives, this conversation between governments and tech is only going to become more crucial. For a European tech company, the challenge is always around paths to expansion. As a continent, we are made up of many different markets, with separate cultures and languages. For a startup in China or the US, their initial markets are much, much larger. European startups, on the other hand, have to think global from day one. This can be their strength, of course, but to succeed they have to be absolutely ruthless about product market fit. The flip side is that we are much more diverse as a continent, have some of the best universities in the world (especially for deep tech) and are more open to regulation. Simon Cook Draper Esprit CEO The material increase in the cost of prime rent in certain cities over the past �ve years is certainly a consideration for founders. In Stockholm, for example, o�ce space rental costs are up 76% since 2013, while in Berlin they are up 56%. Top 20 cities by change in prime rent per square metre, 2Q 2019 versus 2Q 2014 SOURCE: DATASET: R ANK 1 1-20 % change in prime rent per square metre per annum 35% 30% 28% 27% 26% 25% 25% 24% 24% 23% Malmo Budapest Amsterdam Bristol Gothenburg Hamburg Jersey Lisbon Valencia Riga 0 3 5 8 10 13 15 18 20 23 25 28 30 33 35 38 40 RANK 11-20 TOP TEN The material increase in the cost of prime rent in certain cities over the past five years is certainly a consideration for founders. In Stockholm, for example, office space rental costs are up 76% since 2013, while in Berlin they are up 56%. The latter is something I think will only become more important. Fintech is a good example of this already in action — London became the world leader because the regulators have been engaging with the technology, not because it has been left alone to do its own thing. As consumers are more and more aware that tech is changing their lives, this conversation between governments and tech is only going to become more crucial. undefinedundefined186 In Partnership with & www.stateofeuropeantech.com Picking Places 08.1 It is also interesting to assess the capacity of certain countries to mobilise their talent pool effectively and look at how much capital has been invested based on the size of the local professional developer talent base. Finland and the United Kingdom are in the lead, but it is also important to note that countries in Central & Eastern Europe such as Romania, Lithuania and Estonia are starting to emerge though being under the radar the year before. Capital invested ($) per professional developer by country SOURCE: Dealroom LEGEND up to 50,000 40,000 to 45,000 35,000 to 40,000 30,000 to 35,000 25,000 to 30,000 20,000 to 25,000 15,000 to 20,000 10,000 to 15,000 5,000 to 10,000 up to 5,000 NOTE: Investment amounts are based on capital invested in the country in aggregate between 2015 and 2019 9M divided by the total number of professional developers in the country. Only countries with at least 1 million inhabitants included. It is also interesting to assess the capacity of certain countries to mobilise their talent pool effectively and look at how much capital has been invested based on the size of the local professional developer talent base. Finland and the United Kingdom are in the lead, but it is also important to note that countries in Central & Eastern Europe such as Romania, Lithuania and Estonia are starting to emerge though being under the radar the year before. Capital invested ($) per professional developer by country SOURCE: Dealroom LEGEND up to 50,000 40,000 to 45,000 35,000 to 40,000 30,000 to 35,000 25,000 to 30,000 20,000 to 25,000 15,000 to 20,000 10,000 to 15,000 5,000 to 10,000 up to 5,000 NOTE: Investment amounts are based on capial invested in the country in aggregate between 2015 and 2019 9M divided by the total number of professional developers in the country. Only countries with at least 1 million inhabitants included. It is also interesting to assess the capacity of certain countries to mobilise their talent pool effectively and look at how much capital has been invested based on the size of the local professional developer talent base. Finland and the United Kingdom are in the lead, but it is also important to note that countries in Central & Eastern Europe such as Romania, Lithuania and Estonia are starting to emerge though being under the radar the year before. European tech can grow faster by tapping into hidden talent pools. The number of professional developers compared with the amount of capital invested in countries across the region suggests that countries such as the Netherlands, Spain and Poland still have the potential to exceed expectations in the European tech ecosystem. European tech can grow faster by tapping into hidden talent pools. The number of professional developers compared with the amount of capital invested in countries across the region suggests that countries such as the Netherlands, Spain and Poland still have the potential to exceed expectations in the European tech ecosystem. Professional developer talent pool vs capital invested ($M) by country, 2015-2019 SOURCE: Dealroom NOTE: Capital invested is based on amount invested in respective countries in aggregate between 2015 and 2019 9M. Only countries with at least 50,000 professional developers in 2019 are included. Capital invested ($M) # of professional developersGermany France Russia Spain Netherlands Italy Poland Ukraine Sweden Turkey Switzerland Belgium Romania Austria Czech Republic Denmark Portugal Finland Hungary Ireland Norway Greece Bulgaria earus Srbia 0 5,000 10,000 15,000 20,000 25,000 0 250,000 500,000 750,000 1,000,000 Euroean tech can grow faster by tapping into hiddn alent pols. The number of professional developers compared with the amount of capital invested in countries across the region suggests that countries such as the Netherlands, Spain and Poland still have the potential to exceed expectations in the European tech ecosystem. Professional developer talent pool vs capital invested ($M) by country, 2015-2019 SOURCE: Dealroom NOTE: Capital invested is based on amount invested in respective countries in aggregate between 2015 and 2019 9M. Only countries with at least 50,000 professional developers in 2019 are included. Capital invested ($M) # of professional developersGermany United Kingdom France Russia Spain Netherlands Italy Poland Ukraine Sweden Turkey Switzerland Belgium Romania Austria Czech Republic Denmark Portugal Finland Hungary Ireland Norway Greece Bulgaria earus Srbia 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 0 250,000 500,000 750,000 1,000,000 European tech can grow faster by tapping into hidden talent pools. The number of professional developers compared with the amount of capital invested in countries across the region suggests that countries such as the Netherlands, Spain and Poland still have the potential to exceed expectations in the European tech ecosyste. Pfessional developer talnt pool vs capital invested ($M) by country, 2015-2019 SOURCE: Dealroom NOTE: Capital invested is based on amount invested in respective countries in aggregate between 2015 and 2019 9M. Only countries with at least 50,000 professional developers in 2019 are included. Capital invested ($M) # of professional developersGermany France Russia Spain Netherlands Italy Poland Ukraine Sweden Turkey Switzerland Belgium Romania Austria Czech Republic Denmark Portugal Finland Hungary Ireland Norway Greece Bulgaria earus Srbia 0 5,000 10,000 15,000 20,000 25,000 0 250,000 500,000 750,000 1,000,000 ty of certain countries to mobilise their talent pool effectively and look ased on the size of the local professinal developer talent base. e lead, but it is also important to note that countries in Central & nia and Estonia are starting to emerge though being under the radar SOURCE: Dealroom 187 In Partnership with & www.stateofeuropeantech.com There are a number of challenges facing the tech ecosystem in Spain. However, the biggest issue by far is a lack of real support for the tech companies here, especially when compared with France or Portugal. There are a number of challenges facing the tech ecosystem in Spain. However, the biggest issue by far is a lack of real support for the tech companies here, especially when compared with France or Portugal. While it's fair to say that policymakers around the world are wrestling with how to effectively regulate disruptive technologies, the vast majority are trying to do so without reigning in or stifling innovation. In Spain, the impact of regulators so far suggests a determination to hold back new technologies and new ways of working in favour of maintaining the traditional industries' status quo. From our point of view, Spain is the only country (out of the 26 in which we operate globally) where we haven't been able to open a constructive dialogue with local regulators around the labour market rules for startup workers. When you couple this with rising taxes, and a tax system not adapted to providing share-based incentives to employees, it can be difficult for tech companies to gain a foothold in the Spanish market without quickly becoming embattled. In terms of its strengths, Spain has so much to offer the global tech community. It's easy to attract top talent, especially to Barcelona, and there are many good universities here. The high quality of life and low living cost also make it much more affordable than other big European tech hubs, such as London, to set up and launch a business. And the country's geographical position makes expansion in Europe easy and gives it a distinct advantage in Latin America, due to the cultural ties with that region. Oscar Pierre Glovo Co-Founder & CEO Picking Places 08.1 Photo by: Julius Konttinen 188 www.stateofeuropeantech.com Budgeting for your (Series) A Team 'Cheat sheet' How much does it cost to start and build a team in different European cities? It should be an easy question to answer. Of course, it really isn’t. We don’t have a perfect answer, but to help we’ve put together an illustrative org chart for a Series A stage software-as-a-service (SaaS) company. No two teams are the same, but we think it provides a reasonable benchmark on what a team might look like for this type of business at that stage. We then enriched our ‘dream team’ dataset with data from Aon's rewards data (covering base salary and actual incentives) and CBRE’s dataset on the prime rent cost of office space. We then built this out to give cost benchmarks for ten key European tech hubs, as well as providing a comparison with the equivalent cost to build the team from the Bay Area. No methodology is ever perfect, but this should help founders (and others) to understand what it costs to set up and build in different European tech hubs. In Partnership with & Photo by: Julius Konttinen 189 In Partnership with & www.stateofeuropeantech.com Engineering Product Sales & Marketing Assembling your Series A dream team role / number of headcounts Operations Finance 1-3 Product Managers 1 Finance Manager SOURCE: NOTES: ‘Series A team’ composition is for illustrative purpose. The headcounts are based on a proprietary dataset of Series A Software-as-a-Service Series A companies compiled by Atomico. ‘Salaries cost’ is based on Radford’s salary surveys for technology and sales functions. The data accounts only for base salary and actual incentives ( average 50th percentile) across a number of job titles best representative of those referred to in the Series A team. For the ‘office space cost’, the data is based on CBRE estimates ($/sqm) per city and an average of 8 sqm per headcount. For a team of 20-30 people we estimated that the space required needed to be based on a total headcount of 40-60 people (respectively) to accommodate for further growth. Radford data is as of July 2019 and CBRE data as of June 2019. Bay Area CITY # 1 2 3 4 5 6 7 8 9 10 London Paris Madrid Berlin Copenhagen Barcelona Amsterdam Dublin Munich Stockholm Budgeting for your team of 20-30 people $M per year SAL ARY COST ($M) AVG. 30PPL 20PPL AVG. 30PPL 20PPL OFFICE SPACE COST ($M) TOTAL COST BASE ($M) 3.48 2.21 2.62 2.43 2.08 1.96 2.10 2.07 1.85 1.71 1.61 2.81 1.79 2.11 1.97 1.68 1.60 1.71 1.67 1.49 1.42 1.32 4.15 2.62 3.12 2.90 2.47 2.33 2.50 2.47 2.22 2.00 1.89 0.37 0.59 0.12 0.21 0.32 0.39 0.20 0.19 0.34 0.14 0.19 0.29 0.47 0.09 0.17 0.25 0.31 0.16 0.15 0.27 0.12 0.15 0.44 0.71 0.14 0.25 0.38 0.46 0.24 0.23 0.41 0.17 0.23 AVG. 30PPL 20PPL 3.85 2.80 2.73 2.64 2.39 2.35 2.30 2.26 2.19 1.85 1.80 3.11 2.26 2.20 2.14 1.93 1.91 1.87 1.82 1.76 1.53 1.47 4.59 3.33 3.26 3.15 2.85 2.79 2.74 2.70 2.62 2.17 2.12 2-5 Software Engineers 1 UX Designer 1 Data Analyst Senior Software Engineers 2 1-2 Account Executive 2-4 SDRs 2-4 Customer Success 2-3 Marketing Managers 1 VP/Marketing Director 1 Sales Director/VP Sales 1 Office Manager 1 HR Manager/Recruiter Operation Manager/ Chief Operations Officer 1 Budgeting for your (Series) A Team 08.2 undefinedundefinedundefinedundefinedundefinedundefinedundefinedundefined198 In Partnership with & www.stateofeuropeantech.com When asked directly how to better support the research community to start companies and help them succeed, respondents who are academics/researchers pointed to changing the terms of research funding away from publication and towards commercialisation, as well as educating universities to change their mindset towards being able to encourage and better support spinoffs. Although there is likely a sample bias in the responses to the survey, it's noteworthy that three- quarters of respondents who work in academia or research shared that they have seen an increase in the level of interest of people in their networks in starting or joining tech startups. When asked directly how to better support the research community to start companies and help them succeed, respondents who are academics/researchers pointed to changing the terms of research funding away from publication and towards commercialisation, as well as educating universities to change their mindset towards being able to encourage and better support spinoffs. If you were to pick one action from the list below that would better support the academic/research community to start companies and help them succeed, what would it be? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers may not add to 100 due to rounding. % of respondents 26% 20% 18% 17% 13% 6% Increased research funding aimed at idea commercialisation vs. publications Universities encouraging and supporting spinoffs Improved collaboration with large corporations Increased pre-seed venture capital (<$250k) available Increased access to startup support organisation or program Better terms offered by universities for spinoffs 0 5 10 15 20 25 When asked directly how to better support the research community to start companies and help them succeed, respondents who are academics/researchers pointed to changing the terms of research funding away from publication and towards commercialisation, as well as educating universities to change their mindset towards being able to encourage and better support spinoffs. If you were to pick one action from the list below that would better support the academic/research community to start companies and help them succeed, what would it be? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers may not add to 100 due to rounding. % of respondents 26% 20% 18% 17% 13% 6% Increased research funding aimed at idea commercialisation vs. publications Universities encouraging and supporting spinoffs Improved collaboration with large corporations Increased pre-seed venture capital (<$250k) available Increased access to startup support organisation or program Better terms offered by universities for spinoffs 0 5 10 15 20 25 Although there is likely a sample bias in the responses to the survey, it's noteworthy that three-quarters of respondents who work in academia or research shared that they have seen an increase in the level of interest of people in their networks in starting or joining tech startups. Thinking about your academic or research network (i.e. other academics, researchers, students, etc.), have you observed any change in the level of interest in starting or joining tech startups in the last 12 months? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers may not add to 100 due to rounding. % change in level of interest over the last 12 months % of respondents 0 10 20 30 40 50 60 70 80 90 100 110 Although there is likely a sample bias in the responses to the survey, it's noteworthy that three-quarters of respondents who work in academia or research shared that they have seen an increase in the level of interest of people in their networks in starting or joining tech startups. Thinking about your academic or research network (i.e. other academics, researchers, students, etc.), have you observed any change in the level of interest in starting or joining tech startups in the last 12 months? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers may not add to 100 due to rounding. % change in level of interest over the last 12 months % of respondents 0 10 20 30 40 50 60 70 80 90 100 110 When asked directly how to better support the research community to start companies and help them succeed, respondents who are academics/researchers pointed to changing the terms of research funding away from publication and towards commercialisation, as well as educating universities to change their mindset towards being able to encourage and better support spinoffs. If you were to pick one action from the list below that would better support the academic/research community to start companies and help them succeed, what would it be? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers may not add to 100 due to rounding. % of respondents 26% 20% 18% 17% 13% 6% Increased research funding aimed at idea commercialisation vs. publications Universities encouraging and supporting spinoffs Improved collaboration with large corporations Increased pre-seed venture capital (<$250k) available Increased access to startup support organisation or program Better terms ffered by universities for spinoffs 0 5 10 15 20 25 Although there is likely a sample bias in the responses to the survey, it's noteworthy that three-quarters of respndents who work in cademi or resarch shared that they have een an increase in the level of interest of peopl in their networks in starting or joining tech startups. Thinking about your academic or research network (i.e. other academics, researchers, students, etc.), have you observed any change in the level of interest in starting or joining tech startups in the last 12 moths? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers may not add to 100 due to rounding. % change in level of interest over the last 12 months % of respondents 0 10 20 30 40 50 60 70 80 90 100 110 Research & Technology Hubs 08.3 199 In Partnership with & www.stateofeuropeantech.com I believe the academic and business sectors are currently fragmented and stuck in tunnel vision. We need to align both sectors to drive the development of our technology in the right direction and achieve global scale for our tech. I believe the academic and business sectors are currently fragmented and stuck in tunnel vision. We need to align both sectors to drive the development of our technology in the right direction and achieve global scale for our tech. Academia needs the freedom to do research; however, it needs to align training, researcher upskilling, and the ideas of innovation towards meeting future goals that are aligned with big competitive ambitions for Europe. Ideas that come out of academia need to be feasible for implementation in an industry setting, therefore we need to see each other as partners not as rivals. In many instances academia sees business as funders or as processors, not as partners to reshape the world. Simultaneously, businesses see academia as long-term vision R&D partners, and business goals are not aligned with academic collaboration. I believe the two should create a real partnership, through an agile work mindset with clear short- and long-term goals. Loubna Bouarfa OKRA Technologies Founder & CEO Research & Technology Hubs 08.3 Though the interest levels in starting or joining startups is increasing, there remain barriers to this happening. When asked about the main reservations they have, lack of funding was given as the most frequently cited reservation by academics and researchers when considering whether to start or join a startup. Risk appetite and fear of failure also appear to be a continuing factor given the strength of consideration regarding future career/reconversion prospects. What are the main reservations you would have when considering whether to start or join a startup? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers do not add to 100 as respondents could select multiples choices. % of respondents 29% 24% 24% 18% 15% 13% 12% 11% 9% 6% 6% Lack of funding Future career/reconversion prospects Lack of certain skills (e.g. coding, sales, product) Inability to find a co-founder Unattractive lifestyle Lack of knowledge on how to get started Lack of ideas Lack of mental support Lack of support from incubators/accelerators Lack of support from family/friends Lack of successful role models in Europe Lack of support from universities 0 5 10 15 20 25 30 35 Though the interest levels in starting or joining startups is increasing, there remain barriers to this happening. When asked about the main reservations they have, lack of funding was given as the most frequently cited reservation by academics and researchers when considering whether to start or join a startup. Risk appetite and fear of failure also appear to be a continuing factor given the strength of consideration regarding future career/reconversion prospects. What are the main reservations you would have when considering whether to start or join a startup? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers do not add to 100 as respondents could select multiples choices. % of respondents 29% 24% 24% 18% 15% 13% 12% 11% 9% 6% 6% Lack of funding Future career/reconversion prospects Lack of certain skills (e.g. coding, sales, product) Inability to find a co-founder Unattractive lifestyle Lack of knowledge on how to get started Lack of ideas Lack of mental support Lack of support from incubators/accelerators Lack of support from family/friends Lack of successful role models in Europe Lack of support from universities 0 5 10 15 20 25 30 35 Though the interest levels in starting or joining startups is increasing, there remain barriers to this happening. When asked about the main reservations they have, lack of funding was given as the most frequently cited reservation by academics and researchers when considering whthr to tart or join a startup. Risk appetite and fear of failure also appear to b a continuing factor given the strength of consideration regarding future career/reconversion prospects. What are the main reservations you would have when considering whether to start or join a strtup? SOURCE:The State Of European Tech Survey NOTE: Academics/researchers only. Numbers do not add to 100 as respondents could select multiples choices. % of respondents 44% 29% 24% 24% 18% 15% 13% 12% 11% 9% 6% 6% Lack of funding Future career/reconversion prosp cts Lack of certain skills (e.g. coding, sales, product) Inability to find a co-founder Unattractive lifestyle Lack of knowledge on how to get started Lack of ideas Lack of mental support Lack of support from incubators/accelerators Lack of support from family/friends Lack of successful role models in Europe Lack of support from universities 0 5 10 15 20 25 30 35 40 45 50 Though the interest levels in starting or joining startups is increasing, there remain barriers to this happening. When asked about the main reservations they have, lack of funding was given as the most frequently cited reservation by academics and researchers when considering whether to start or join a startup. Risk appetite and fear of failure also appear to be a continuing factor give the strength of consideration regardin future care r/reconversion prospects. undefinedundefined202 In Partnership with & www.stateofeuropeantech.com Looking across Europe at the volume of capital raised by spinoffs from top European universities over the past 12 months, it's clear that it is a very mixed bag. There are positive signs from the United Kingdom and Switzerland, but beyond those places the level of spinoff activity from universities from elsewhere in Europe is limited. Top European universities by total capital raised ($M) by spinoffs SOURCE:Global University Venturing NOTE: Based on data from September 2018 to September 2019. Total capital raised ($M) $337.2M $123.5M $87.2M $56.0M $37.8M $11.1M $8.9M $6.3M $1.7M $1.7M $1.5M $1.2M University of Cambridge University College London University of Oxford École Polytechnique Fédérale de Lausanne ETH Zurich University of Innsbruck Imperial College London University of Turin Trinity College Dublin Nottingham University Technical University of Munich KU Leuven 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 Looking across Europe at the volume of capital raised by spinoffs from top European universities over the past 12 months, it's clear that it is a very mixed bag. There are positive signs from the United Kingdom and Switzerland, but beyond those places the level of spinoff activity from universities from elsewhere in Europe is limited. Top European universities by total capital raised ($M) by spinoffs SOURCE:Global University Venturing NOTE: Based on data from September 2018 to September 2019. Total capital raised ($M) $337.2M $123.5M $87.2M $56.0M $37.8M $11.1M $8.9M $6.3M $1.7M $1.7M $1.5M $1.2M University of Cambridge University College London University of Oxford École Polytechnique Fédérale de Lausanne ETH Zurich University of Innsbruck Imperial College London University of Turin Trinity College Dublin Nottingham University Technical University of Munich KU Leuven 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 Looking across Europe at the volume of capital raised by spinoffs from top European universities over the past 12 months, it's clear tha it is a very mixed bag. There are positive signs from the United Kingdom and Switzerland, but beyond those places the level of spinoff activity from universities from elsewhere in Europe is limited. Top European universities by total capital raised ($M) by spinoffs SOURCE:Global University Venturing NOTE: Based on data from September 2018 to September 2019. Total capital raised ($M) $337.2M $123.5M $87.2M $56.0M $37.8M $11.1M $8.9M $6.3M $1.7M $1.7M $1.5M $1.2M University of Cambridge University College London University of Oxford École Polytechnique Fédérale de Lausanne ETH Zurich University of Innsbruck Imperial College London University of Turin Trinity College Dublin Nottingham University Technical University of Munich KU Leuven 0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 Looking across Europe at the volume of capital raised by spinouts from top European universities over the past 12 months, it's clear that it is a very mix d bag. There are positive signs from the United Kingdom and Switzerland, but beyond those places the level of spinoff activity fro universities from elsewhere in Europe is limited. Research & Technology Hubs 08.3 The days of the ivory tower are rapidly receding as European universities and the tech industry learn to dance together. European universities and the tech industry are cooperating more and more. 'Deep tech' is not just a cool label, it is a viable investment model with its own logic: identify game-changing technologies, assemble diverse teams, build viable business models, and have lots of patience! This kind of entrepreneurship happens not only at the technical universities, such as Aalto University or TU Munich, but also at the traditional research universities in Paris or London. At Oxford, we are spinning off more than two new tech ventures every month, and we also have countless student-led startups, supported by university programmes such as at the Oxford Foundry. The boundaries between universities and the commercial world are increasingly blurred. Oxford Science Innovation is a private venture firm, Thomas Hellmann Saïd Business School University of Oxford DP World Professor of Entrepreneurship and Innovation yet it is entirely focused on the university’s spinoffs. And at the Creative Destruction Lab (CDL-Oxford), we are bringing together business mentors, scientists and students, all with a common goal of accelerating exceptional AI ventures that come from anywhere in the UK and beyond. The appetite for joint academic-industry initiatives is enormous, especially among young students and tech executives. Academics and policy makers are waking up to the opportunities too. There is still a lot to do, including reforming IP and tech transfer policies, rethinking incentives in academia, and even reimagining the role of universities within their local ecosystems. Yet the days of the ivory tower are rapidly receding as European universities and the tech industry learn to dance together. undefinedundefined205 In Partnership with & www.stateofeuropeantech.com Trending Hubs & Communities 08.4 European tech communities are also expanding beyond the largest hubs. The share of tech- related Meetup events outside the top 20 hubs has consistently increased over the years. In fact, we are seeing a trend of 'decentralisation' as the share of attendees in tech-related Meetup events decreases year on year. European tech communities are also expanding beyond the largest hubs. The share of tech-related Meetup events outside the top 20 hubs has consistently increased over the years. Distribution of tech-related Meetup events in and outside top 20 hubs in Europe SOURCE: LEGEND % in top 20 hubs % outside top 20 hubs % of tech-related Meetups52% 51% 48% 46% 48% 49% 52% 54% 2015 2016 2017 2018 0 25 50 75 100 European tech communities are also expanding beyond the largest hubs. The share of tech-related Meetup events outside the top 20 hubs has consistently increased over the years. Distribution of tech-related Meetup events in and outside top 20 hubs in Europe SOURCE: LEGEND % in top 20 hubs % outside top 20 hubs % of tech-related Meetups52% 51% 48% 46% 45% 48% 49% 52% 54% 55% 2015 2016 2017 2018 2019 0 25 50 75 100 In fact, we are seeing a trend of 'decentralisation' as the share of attendees in tech-related Meetup events decreases year on year. Share of attendees in tech- related Meetup events in top hubs vs. nationwide SOURCE: LEGEND London Berlin Paris Stockholm Amsterdam NOTE: 2019 annualised based on data to September 2019. % of attendees in top hubs2015 2016 2017 2018 20 30 40 50 60 70 80 In fact, we are seeing a trend of 'decentralisation' as the share of tt ndes in tech-related Meetup events decreases year on year. Share of attendees in tech- related Meetup vents in top hubs vs. nationwide SOURCE: LEGEND London Berlin Paris Stockholm Amsterdam NOTE: 2019 annualised based on data to September 2019. % of attendees in top hubs2015 2016 2017 2018 2019 20 30 40 50 60 70 80 In fact, we are seeing a trend of 'decentralisation' as the share of attendees in tech-related Meetup events decreases year on year. Share of attendees in tech- related Metup events in top hubs v . nationwid SOURCE: LEGEND Lndon Berlin Paris Stockholm Amsterdam NOTE: 2019 annualised based on data to September 2019. % of attendees in top hubs2015 2016 2017 2018 2 3 4 5 6 70 80 This year alone, we've invested for the first time in Prague, Milan and Aarhus. Europe is unique in its model of multiple technology hubs across the continent, which has meant that no single place has the depth and breadth of a Silicon Valley. But we are now seeing unprecedented levels of entrepreneurial activity across the region, not just in the traditional hubs of London, Paris and Stockholm. This year alone, we've invested for the first time in Prague, Milan and Aarhus. When these markets are taken together, they show a true diversity in sector and approach - from fintech to healthtech and enterprise automation. The fragmentation also means that talent is dispersed and companies need to be mindful of location as they scale. Sonali de Rycker Accel Partner We need to build up stronger relationships between these local ecosystems so as to form a pan-European network and improve liquidity in the markets for both talent and capital. Local ecosystems are still too isolated from each other. Whenever you visit a European capital, you can always spot interesting things on the ground: entrepreneurs with higher ambitions; angel investors with an improving track record; venture capital firms with more capital to deploy; and more technical talent willing to join the startup world. However, every single city in Europe ignores all the others —with the one notable exception of London. And I think that's the biggest challenge we need to tackle. We need to build up stronger relationships between these local ecosystems so as to form a pan-European network and improve liquidity on the markets for both talent and capital. Also, we're still waiting for the European tech world to inspire its own culture, one that would make it possible for people from different countries and backgrounds to work together. Distributed teams are all the rage now, including in Silicon Valley. But you can't work as a distributed team if that team is not cemented by a common culture. We need that pan-European tech culture if we want people from various European countries to work together and build successful tech companies. Nicolas Colin The Family Co-Founder & Director 206 In Partnership with & www.stateofeuropeantech.com Trending Hubs & Communities 08.4 As the number of options keeps growing every year, top tech hubs such as London, Berlin, Barcelona, Paris, and Copenhagen are losing their popularity amongst founders. Top hubs where founders would start a company tomorrow, 2018 vs 2019 SOURCE: LEGEND % of votes 2018 % of votes 2019 NOTE: Founders were asked to allocate three votes in the survey. Percentages indicate the share of founders that cited each named city. % of votes 41% 40% 20% 20% 12% 12% 6% 6% 5% 6% 6% 4% 4% 6% 3% 6% 3% 1% 2% 1% 37% 34% 18% 15% 15% 10% 8% 7% 7% 6% 5% 5% 5% 5% 4% 4% 4% 3% 3% 3% London Berlin Barcelona Paris Amsterdam Lisbon Munich Milan Tallinn Stockholm Dublin Madrid Vienna Zurich Tel Aviv Copenhagen Warsaw Oslo Edinburgh Brussels 0 5 10 15 20 25 30 35 40 45 As the number of options keeps growing every year, top tech hubs such as London, Berlin, Barcelona, Paris, and Copenhagen are losing their popularity amongst founders. Top hubs where founders would start a company tomorrow, 2018 vs 2019 SOURCE: LEGEND % of votes 2018 % of votes 2019 NOTE: Founders were asked to allocate three votes in the survey. Percentages indicate the share of founders that cited each named city. % of votes 41% 40% 20% 20% 12% 12% 6% 6% 5% 6% 6% 4% 4% 6% 3% 6% 3% 1% 2% 1% 37% 34% 18% 15% 15% 10% 8% 7% 7% 6% 5% 5% 5% 5% 4% 4% 4% 3% 3% 3% London Berlin Barcelona Paris Amsterdam Lisbon Munich Milan Tallinn Stockholm Dublin Madrid Vienna Zurich Tel Aviv Copenhagen Warsaw Oslo Edinburgh Brussels 0 5 10 15 20 25 30 35 40 45 As the number of options keeps growing every year, top tech hubs such as London, Berlin, Barcelona, Paris, and Copenhagen are losing their popularity amongst founders. Top hubs where founders would start a company tomorrow, 2018 vs 2019 SOURCE: LEGEND % of votes 2018 % of votes 2019 NOTE: Founders were asked to allocate three votes in the survey. Percentages indicate the share of founders that cited each named city. % of votes 41% 40% 20% 20% 12% 12% 6% 6% 5% 6% 6% 4% 4% 6 3% 6 3% 1% 2% 1% 37% 34% 18% 15% 15% 10% 8% 7% 7 6% 5% 5% 5% 5% 4% 4% 4% 3% 3% 3% London Berlin Barcelona Paris Amsterdam Lisbon Munich Milan Tallinn Stockholm Dublin Madrid Vienna Zurich Tel Aviv Copenhagen Warsaw Oslo Edinburgh Brussels 0 5 10 15 20 25 30 35 40 45 As the number of options keeps growing every year, top tech hubs such as London, Berlin, Barcelona, Paris, and Copenhage ar lo ing their popularity amongst founders. undefined208 In Partnership with & www.stateofeuropeantech.com Trending Hubs & Communities 08.4 Central & Eastern Europe also dominates the list of top ten countries by Compound Annual Growth Rate (CAGR) of active members since 2015. Albania, the leading country in this category, has seen a CAGR of 267%. Central & Eastern Europe also dominates the list of top ten countries by Compound Annual Growth Rate (CAGR) of active members since 2015. Albania, the leading country in this category, has seen a CAGR of 267%. Top 10 countries by growth of active members in tech-related Meetup groups 2015 2016 2017 2018 2019 CAGR 2015-2019 Albania 58 226 746 1,037 1,064 267% Macedonia 136 503 543 1,036 1,584 133% Belarus 270 637 975 1,687 2,721 102% Turkey 8,020 17,689 36,903 51,145 75,228 88% Russia 6,477 13,662 24,067 37,474 52,455 62% Bulgaria 1,043 2,972 3,937 6,347 7,913 52% Czech Republic 3,267 7,423 11,663 15,313 21,703 33% Ukraine 5,101 11,052 18,385 24,437 30,493 20% Portugal 5,541 11,320 16,670 22,665 32,232 16% Bosnia and Herzegovina 337 858 1,451 1,615 1 ,932 15% SOURCE: NOTE: CAGR = Compound Annual Growth Rate. 2019 annualised based on active members to end of September 2019. Only countries with over 1,000 active members in 2018 are included. Central & Eastern Europe also dominates the list of top ten countries by Compound Annual Growth Rate (CAGR) of active members since 2015. Albania, the leading country in this category, has seen a CAGR of 267%. Top 10 countries by growth of active members in tech-r lated Meetup groups 2015 2016 2017 2018 2019 CAGR 2015-2019 Albania 58 226 746 1,037 1,064 67% Macedonia 136 503 543 1,036 1,584 133% Belarus 270 637 975 1,687 2,721 102% Turkey 8,020 17,689 36,903 51,145 75,228 88% Russia 6,477 13,662 24,067 37,474 52,455 62% Bulgaria 1,043 2,972 3,937 6,347 7,913 52% Czech Republic 3,267 7,423 11,663 15,313 21,703 33 Ukraine 5,101 1,052 18,385 24,437 30,493 20% Portugal 5,541 11,320 16,670 22,665 32,232 16% Bosnia and Herzegovina 337 858 1,451 1,615 1 ,932 15% SOURCE: NOTE: CAGR = Compound Annual Growth Rate. 2019 annualised based on active members to end of September 2019. Only countries with over 1,000 active members in 2018 are included. Central & Eastern Europe also dominates the list of top ten countries by Compound Annual Growth Rate (CAGR) of active members since 2015. Albania, the leading country in this category, has seen a CAGR of 267%. Top 10 countries by growth of acive members in tech-related Meetup groups 2015 2016 2017 2018 2019 CAGR 2015-2019 Albania 58 226 746 1,037 1,064 267% Macedonia 136 503 543 1,036 1,584 133% Belarus 270 637 975 1,687 2,721 102% Turkey 8,020 17,689 36,903 51,145 75,228 88% Russia 6,477 13,662 24,067 37,474 52,455 62% Bulgaria 1,043 2,972 3,937 6,347 7,913 52% Czech Republic 3,267 7,423 11,663 15,313 21,703 33% Ukraine 5,101 11,052 18,385 2 ,437 30,493 20 Portugal 5,541 11,320 16,670 22,665 32,232 16% Bosnia and Herzegovina 337 858 1,451 1,615 1,932 15% SOURCE: NOTE: CAGR = Compound Annual Growth Rate. 2019 annualised based on active members to end of September 2019. Only countries with over 1,000 active members in 2018 are included. A number of successful acquisitions of Belarusian startups started a boom in the Belarusian startup ecosystem. In Belarus, a drastic difference between the average compensation in IT and in general in the country drives a lot of people to acquire an education and a job in IT. A number of successful acquisitions of Belarusian startups (maps.me acquired by Mail.Ru, MSQRD by Facebook, AIMATTER by Google, etc.) started a boom in the Belarusian startup ecosystem. It was further accelerated when the The Decree on Development of Digital Economy passed in December 2017 and greatly improved the tax and legal regime of the High Tech Park. It is now relatively easy for a startup to apply for the HTP regulation and make use of tax benefits and simpler legal regulation. Yury Melnichek Bulba Ventures Co-Founder & Partner Photo by: Samuli Pentti undefined210 In Partnership with & www.stateofeuropeantech.com Policy What can policymakers do to best help European tech? European policymakers will play a critical role in determining the speed at which European tech can fulfil its potential, but too many founders are still in the dark about the policy vision for technology. Policymakers need to maintain focus on what’s going on inside Europe, and be less distracted by external factors. By paying attention to the priorities of founders, and delivering on initiatives like the Digital Single Market, policymakers can create optimal conditions for innovation and growth in Europe. 211 In Partnership with & www.stateofeuropeantech.com Europe Policy Focus Measuring policy focus in Europe The data challenge According to our survey respondents, Margrethe Vestager had the most impact in European tech this year. She came first by a long mile with 12% of respondents’ votes. In fact 40% who picked the EU competition commissioner were founders/ employee of tech startups and 10% were part of the VC community. As such, our aim in this article is to identify opportunities for improved collaboration between policymakers and the European tech community. To do this, we used Politico Pro Intelligence to analyse the activity of the European Parliament (the legislative branch of the European Union) during the last term of the European Parliament (2014 to 2019) to better understand the policy conversation around a number of key topics for the tech community. The European Parliament, as the body that debates and approves policy legislation, is where we can see the 'end result' of the European policy agenda that is set by the European Commission. In other words, it's a useful proxy for actual policy outcomes that may have a nearer-term impact on the European tech ecosystem. If it were possible, we would extend the analysis to cover the European Commission, which creates and proposes the forward-looking policy agenda for the European Union, to be able to complement this analysis with a longer-term view on future policy focus. Activities and press releases provide a sense of what is being talked about and the responses to those discussions. Legislative documents on the other end tell us what makes it into draft policies. Activities and press releases provide a sense of what is being talked about and the responses to those discussions. Legislative documents on the other end tell us what makes it into draft policies. Overview of European Parliament data Information Type Description Why Is It Useful? 1 Activities This data looks specifically at keywords occurrences in parliamentary questions, speeches and debates made by elected legislators. Activities are a good proxy for the prevalence of selected technology- related discussions taking place at the EP. 2 Press releases This data focuses on keywords occurences in commentaries and responses from the various agen cies and other moving parts of government. Press releases are a proxy for the response of the EP to these discussions and the communication back to the public. This should translate into greater awareness of the issues at hand (and proposed solutions) of the public. 3 Legislation This data looks at the number of keywords occurences related to legislative documentation, which relates to the ongoing process o f law making, actual bills, procedures, etc. Legislation is a proxy for the 'outcome' of 'activities', as it takes discussions a step further into the process of law making. SOURCE: NOTE: We look at the number of keyword occurrences relating to a set of selected technology-related topics in the European Parliament. Activities and press releases provide a sense of what is being talked about and the responses to those discussions. Legislative documents on the other end tell us what makes it into draft policies. Overview of European Parliament data Information Type Description Why Is It Useful? 1 Activities This data looks specifically at keywords occurrences in parliamentary questions, speeches and debates made by elected legislators. Activities are a good proxy for the prevalence of selected technology- related discussions taking place at the EP. 2 Press releases This data focuses on keywords occurences in commentaries and responses from the various agen cies and other moving parts of government. Press releases are a proxy for the response of the EP to these discussions and the communication back to the public. This should translate into greater awareness of the issues at hand (and proposed solutions) of the public. 3 Legislation This data looks at the number of keywords occurences related to legislative documentation, which relates to the ongoing process o f law making, actual bills, procedures, etc. Legislation is a proxy for the 'outcome' of 'activities', as it takes discussions a step further into the process of law making. SOURCE: NOTE: We look at the number of keyword occurrences relating to a st of selected technology-related t pics in he European Parliament. Activities and press releases provide a sense of what is being talked about and the responses to those discussions. Legislative documents on the other end tell us what makes it into draft policies. Overview of European Parliament data Information Type Description Why Is It Useful? 1 Activities This data looks specifically at keywords occurrences in parliamentary questions, speeches and debates made by elected legislators. Activities are a good proxy for the prevalence of selected technology- related discussions taking place at the EP. 2 Press releases This data focuses on keywords occurences in commentaries and responses from the various agencies and other moving parts of government. Pre s rele ses are a proxy for the response of the EP to these discussions and the communication back to the public. This should translate into greater awareness of the issu es at hand (and proposed solutions) of the public. 3 Legislation This dat looks at the number of keywords occurences related to legislative documentation, which relates to the ongoing process of law making, actual bills, procedures, etc. Legislation is a proxy for the 'outcome' of 'activities', as it takes discussions a step further into the process of law making. SOURCE: NOTE: We look at the number of keyword occurrences relating to a set of selected technology-related topics in the European Parliamnt. 212 In Partnership with & www.stateofeuropeantech.com Europe Policy Focus 09.1 We interrogated European Parliament documentation over the period 2014-2019 to get a sense of which topics surfaced most frequently in terms of mentions in activities and press releases. It might be surprising to see that Big Tech companies from the US were cited more frequently than any other topic, surpassing even Brexit. Data privacy-related terms, including GDPR, came in third. An analysis of European Parliament activities shows that Brexit has, of course, been a huge distraction in the European Parliament over the past 4 years. The level of focus on data privacy and GDPR during the previous European Parliament term is not a surprise. It was, arguably, the centrepiece of EU tech-related policy of the last parliamentary term. Following the implementation of GDPR in May 2018, it’s now taken up materially less airtime in the European Parliament. We interrogated European Parliament documentation over the period 2014-2019 to get a sense of which topics surfaced most frequently in terms of mentions in activities and press releases. It might be surprising to see that Big Tech companies from the US were cited more frequently than any other topic, surpassing even Brexit. Data privacy-related terms, including GDPR, came in third. Number of mentions of keyword occurrences related to key topics in European Parliament activities and press releases, 2014-2019 SOURCE: LEGEND # of mentions # of mentions (median of all topics) NOTE: This data looks at the number of keyword occurrences related to key tech topics in European Parliament activities and press releases. # of mentionsUS big t ec h c om pa nie s Br exit Da ta pr iva cy an d G DP RDigit al Sin gle M ar ke t Disin form at ion /de ep fa ke s Ar tif icial Int ell ige nc e Fin te ch St oc k opt ion s Di git al ta x Di git al he alt h Eu ro pe an Bi g T ec h c om pa n 0 2,500 5,000 We interrogated European Parliamen documentation over the period 2014-2019 to get a sense of which topics surfaced most frequently in terms of mentions in activities and press releases. It might be surprising to see that Big Tech companies from the US were cited more frequently than any other topic, surpassing even Brexit. Data privacy-related terms, including GDPR, came in third. Number of mentions of keyword occurrences related to key opics in European Parliament activities and press releases, 2014-2019 SOURCE: LEGEND # of mentions # of mentions (median of all topics) NOTE: This data looks at the number of keyword occurrences related to key tech topics in European Parliament activities and press releases. # of mentionsUS bi g t ec h c om pa nie sBr ex it Da ta pr iva cy and G DP RDi git al Single M ar ke t Di sinfo rm at ion/de epfa ke sAr tif ici al Int ell ige nc e Finte chSt oc k o pt ionsDi git al ta x Di git al he alt hEu ro pe an Bi g T ec h c om pa nie sGe no me ed iti ng Qu a tu m co mp ut ing 0 2,500 5,000 An analysis of European Parliament activities shows that Brexit has, of course, been a huge distraction in the European Parliament over the past 4 years. Number of mentions of Brexit in European Parliament activities and press releases per year SOURCE: NOTE: This data looks at the number of keyword occurrences related to Brexit in European Parliament activities and press releases. # of mentions0 43 794 1,011 1,056 2014 2015 2016 2017 2018 0 250 500 750 1,000 An analysis of European Parliament activities shows that Brexit has, of course, been a huge distraction in the ropean Parliament over the past 4 years. Number of mentions of Brexit in European Parliament activities and press releases per year SOURCE: NOTE: This data looks at the number of keyword occurrences related to Brexit in European Parliament activities and press releases. # of mentions0 43 794 1,011 1,056 853 2014 2015 2016 2017 2018 2019 0 250 500 750 1,000 The level of focus on data privacy and GDPR during the previous European Parliament term is not a surprise. It was, arguably, the centrepiece of EU tech-related policy of the last parliamentary term. Following the implementation of GDPR in May 2018, it's now taken up materially less airtime in the European Parliament. Number of mentions of data privacy or GDPR in European Parliament activities and press releases per year SOURCE: NOTE: This data looks at the number of keyword occurrences related to data privacy issues in European Parliament activities and press releases. # of mentions136 527 610 228 585 2014 2015 2016 2017 2018 0 200 400 600 The level of focus on data privacy and GDPR during te previous European Parliament term is not a surprise. It was, arguably, the centrepiece of EU tech-related policy of the last parliamentary term. Following the implementation of GDPR in May 2018, it's now taken up materially less airtime in the European Parliament. umber of mentios of data privacy or GDPR in European Parliament activities and press releases per year SOURCE: NOTE: This data looks at the number of keyword occurrences related to data privacy issues in European Parliament activities and press releases. # of mentions136 527 610 228 585 238 2014 2015 2016 2017 2018 2019 0 200 400 600 We interrogated European Parliament documentation over the period 2014-2019 to get a sense of which topics surfaced most frequently in terms of mentions in activities and press releases. It might be surprising to see that Big Tech companies from the US were cited more frequently than any other topic, surpassing even Brexit. Data privacy-related terms, including GDPR, came in third. Number of mentions of keyword occurrences related to key topics n Eur pa Parliaent activities and press eleases, 2014-2019 SOURCE: LEGEND # of mentions # of mentions (median of all topics) NOTE: This data looks at the number of keyword occurrences related to key tech topics in European P rliament activities and press releases. # of mentionsUS big t ec h c om pa nie s Br exit Da ta pr iva cy an d G DP RDigit al Sin gle M ar ke t Disin form at ion /de ep fa ke s Ar tif icial Int ell ige nc e Fin te ch St oc k opt ion s Di git al ta x Di git al he alt h Eu ro pe an Bi g T ec h c om pa n 0 2,500 5,000 An nalysis of European Parliament activities shows that Brexit has, of course, been a huge distraction in the European Parliament over the past 4 years. Number of m tions of Brexit in European Parliament activities and press releases per year SOURCE: NOTE: This data looks at the number of keyword occurrences related to Brexit in European Parliamnt activities and pess releases. # of mentions0 43 794 1,011 1,056 2014 2015 2016 2017 2018 0 250 500 750 1,000 The level of focus on data privacy and GDPR during the previous European Parliament term is not a surprise. It was, arguably, the centrepiece of EU tech-related policy of the last parliamentary term. Following the implementatio of GDPR in May 2018, it's now taken up materially less airtime in the European Parliament. Number of mentions of data privacy or GDPR in European Parliament activities and press releases per year SOURCE: NOTE: This data looks at the number of keyword occurrences related to data privacy issues in European Parliament activities and press releases. # of mentions136 527 610 228 585 2014 2015 2016 2017 2018 0 200 400 600 undefinedundefined215 In Partnership with & www.stateofeuropeantech.com Europe Policy Focus 09.1 European information governance rules are strong on privacy protection, but there are few contractual standards in place, which makes it expensive and time-consuming to form bespoke partnerships with every single institution. Owkin is playing an important role in increasing collaboration between academic, biopharma and healthcare institutions by championing a new class of technology called Federated Learning. FedAI allows researchers to collaborate and train predictive models on the decentralised data within disparate institutions, to reveal insights on mechanism of action, or drivers of disease progression, while entirely safeguarding patient privacy by sending the models to the data and never removing data from the hospital firewalls. Thomas Clozel Owkin Co-Founder & CEO Taxation is, of course, a national competence and what is said in the European Parliament has no legal standing, but it’s still relevant to explore discussion on the topic to understand where priorities lie. We can also see that while the idea of a digital tax has gained traction in European parliament activities, there has been less discussion around key startup-related taxation changes, such as to the tax treatment of stock options. Taxation is, of course, a national competence and what is said in the European Parliament has no legal standing, but it's still relevant to explore discussion on the topic to understand where priorities lie. We can also see that while the idea of a digital tax has gained traction in European parliament activities, there has been less discussion around key startup-related taxation changes, such as to the tax treatment of stock options. Number of mentions of digital tax and stock options in European Parliament activities and press releases per year SOURCE: LEGEND Digital tax Stock options NOTE: This data looks at the number of keyword occurrences related to digital tax and stock options in European Parliament activities and press releases. # of mentions0 0 0 10 39 8 22 20 20 14 2014 2015 2016 2017 2018 0 10 20 30 40 Taxation is, of course, a national competence and what is said in the European Parliament has no legal standing, but it's s ill relevant to explore discussion on the topic to understand where priorities lie. We can also see that while the idea of a digital tax has gained traction in European parliament activities, there has been less discussion around key startup-related taxation changes, such as to the tax treatment of stock options. ber of mentios of digital tax and stock options in European Parliament activities and press releases per year SOURCE: LEGEND Digital tax Stock options NOTE: This data looks at the number of keyword occurrences related to digital tax and stock options in European Parliament activities and press releases. # of mentions0 0 0 10 39 43 8 22 20 20 14 9 2014 2015 2016 2017 2018 2019 0 10 20 30 40 Taxation is, of course, a national competence and what is said in the European Parliament has no legal standing, but it's still relevant to explore discussion on the topic to understand where priorities lie. We can also see that while the idea of a digital tax has gained traction in European parliament activities, there has been less discussion around key startup-related taxation changes, such as to the tax treatment of stock options. Number of mntions digital tax and stock options in European Parliament activities and press releases per year SOURCE: LEGEND Digital tax Stock options NOTE: This data looks at the number of keyword occurrences related to digital tax and stock options in European Parliament activities and press releases. # of mentions0 0 0 10 39 8 22 20 20 14 2014 2015 2016 2017 2018 0 10 20 30 40 More could be done by governments to support collaboration. In America, for example, hospitals have a standard contract form called a business association agreement (BAA) which standardises how third parties access anonymised patient data. It is a rigorous but standard process. European information governance rules are strong on privacy protection, but there are few contractual standards in place, which makes it expensive and time-consuming to form bespoke partnerships with every single institution. However, I am confident that these issues are being worked on, and that Europe is moving in the right direction for both attracting and retaining great health tech talent. The greater level of discussion in the European Parliament on the idea of a digital tax compared with stock option tax reform is better understood when examining which types of tech companies have taken up greater mindshare of European policymakers. The greater level of discussion in the European Parliament on the idea of a digital tax compared with stock opti tax r form is be ter understood when examining which types of tech companies have taken up greater mindshare of European policymakers. Number of mentions of selected US big tech companies versus European tech companies in European Parliament activities and press releases per year SOURCE: LEGEND US big tech companies European tech companies NOTE: Data looks at the number of keyword occurrences related to select US big tech (i.e. Google, Facebook, Twitter, Apple, Microsoft, Amazon) and European tech companies (i.e. Spotify, Skype, Adyen) in European Parliament activities and press releases. # of mentions202 608 954 710 2,381 10 9 14 14 15 2014 2015 2016 2017 2018 0 500 1,000 1,500 2,000 2,500 The greater level of discussion in the European Parliament on the idea of a digital tax compared with stock option tax f rm is better uderstood when examining which types of tech companies have taken up greater mindshare of European policymakers. Number of mentions of selected big tech companies versus European tech companies in European Parliament activities and press releases per year SOURCE: LEGEND US big tech companies European tech companies NOTE: Data looks at the number of keyword occurrences related to select US big tech (i.e. Google, Facebook, Twitter, Apple, Microsoft, Amazon) and European tech companies (i.e. Spotify, Skype, Adyen) in European Parliament activities and press releases. # of mentions202 608 954 710 2,381 929 10 9 14 14 15 6 2014 2015 2016 2017 2018 2019 0 500 1,000 1,500 2,000 2,500 The greater level of discussion in the European Parliament on the idea of a digital tax compared with stock optin tax reform is better understood when examining which types of tech companies have taken up greater mindshare of European policymakers. Number of mentions of selected US big tech companies versus European tech companies in European Parliament activities and press releases per year SOURCE: LEGEND US big tech companies European tech companies NOTE: Data looks at the number of keyword occurrences relat d to select US big tech (i.e. Google, Facebook, Twitter, Apple, Microsoft, Amazon) and European tech copanies (i.e. Spotify, Skype, Adyen) in opean P rliament activities and press releases. # of mentions202 608 954 710 2,381 10 9 14 14 15 2014 2015 2016 2017 2018 0 500 1,000 1,500 2,000 2,500 undefined217 In Partnership with & www.stateofeuropeantech.com The rise of AI, big data, gig workers, facial recognition technology and 5G has given rise to a new set of human rights issues. And governments are turning their attention to the human rights impact of the adoption and use of technology. The healthcare platform that connects with patients around the world. The disruptive consumer electronics innovator that makes and sells a new kind of device. The delivery app that relies on gig workers. The AI pioneer who utilises facial recognition technology. What do they all have in common? They are exciting tech company models that also present growing exposure to human rights concerns. Human rights may not be the first topic you associate with the state of the European tech ecosystem. But the reputational, financial and legal hazards once associated primarily with the mistreatment of physical labourers have moved into the digital world. The rise of AI, big data, gig workers, facial recognition technology and 5G has given rise to a new set of human rights issues. And governments are turning their attention to the human rights impact of the adoption and use of technology. A valuable conversation is emerging about ‘responsible technology’ — preventing, addressing and remediating the negative impacts of technology on human rights, and ensuring its ethical design, deployment and use. And Europe is in the driver’s seat on ‘responsible AI’. In April 2019, the European Commission’s High-Level Expert Group on AI presented the ‘Ethics Guidelines for Trustworthy Artificial Intelligence’, which are underpinned by international human rights law and identify seven key requirements for AI systems to be deemed trustworthy. Betsy Popken Orrick Special Counsel, Business and Human Rights The Council of Europe Commissioner for Human Rights also published this year a 10-point recommendation on AI and human rights. The report recommends that member states establish procedures for conducting human rights impact assessments, among other things. OECD also published its own Principles on AI this year, calling for AI systems to be designed in a way that respects human rights. At the same time, more tech companies worldwide are opting in to the UN Guiding Principles on Business and Human Rights and joining multi-stakeholder initiatives aimed at promoting human rights and ethics in tech, like the Global Network Initiative, Partnership on AI and the World Economic Forum’s ethical tech projects. There’s a lot to unpack here – and different schemes need to be reconciled. But, if you’re at a company looking to get started on these issues – as both a moral imperative and a business and risk management matter – we suggest three key steps: (1) a human rights impact assessment, which will help you understand and prioritize areas of risk for your particular business model, (2) integration of human rights considerations into your existing compliance processes and policies, and (3) engagement with key stakeholders, including your board. This is a growing area of focus for companies, investors and consumers, as this year’s SOET report confirms. Be on the forefront. Europe Policy Focus 09.1 Photo by: Samuli Pentti undefinedundefined220 In Partnership with & www.stateofeuropeantech.com Tech’s Take on Policy 09.2 We also asked the European tech community to share their view on who is most impacted by the regulatory burden in Europe today. Whether they are empirically right or wrong, the perception of respondents from most occupation groups, including European tech founders and investors, is that the burden is being carried by the region's tech startups. Who do you think is most impacted by the regulatory burden amongst the following? SOURCE: The State Of European Tech Survey LEGEND Tech startups Established private tech companies Established public tech companies Non-tech SMEs No difference NOTE: Numbers may not add to 100 due to rounding. DATASET: OTHER OCCUPATIONS % of respondents Academic/researcher Consultant/ M&A advisor/investment banker Employee at a company that is not a tech startup or scale-up Employee in the public sector Media/journalist Other (please specify) Policymaker/regulator Student 0 10 20 30 40 50 60 70 80 90 100 We also asked the European tech community to share their view on who is most impacted by the regulatory burden in Europe today. Whether they are empirically right or wrong, the perception of respondents from most occupation groups, including European tech founders and investors, is that the burden is being carried by the region's tech startups. Who do you think is most impacted by the regulatory burden amongst the following? SOURCE: The State Of European Tech Survey LEGEND Tech startups Established private tech companies Established public tech companies Non-tech SMEs No difference NOTE: Numbers may not add to 100 due to rounding. DATASET: FOUNDERS, TECH EMPLOYEES, INVESTORS % of respondents Founder Employee at a tech startup or scale-up Venture capitalist LP investing in private equity & venture capital Angel investor Other investor 0 10 20 30 40 50 60 70 80 90 100 We also asked the European tech community to share their view on who is most impacted by the regulatory burden in Europe today. Whether they are empirically right or wrong, the perception of respondents from most occupation gr ups, including European tech founders and investos, is that te burden is being carried by the region's tech startps. Who do you think is most impacted by the regulatory burden amongst the following? SOURCE: The State Of European Tech Survey LEGEND Tech startups Established private tech companies Established public tech companies Non-tech SMEs No difference NOTE: Numbers may not add to 100 due to rounding. DATASET: FOUNDERS, TECH EMPLOYEES, INVESTORS % of respondents Founder Employee at a tech startup or scale-up Venture capitalist LP investing in private equity & venture capital Angel investor Other investor 0 10 20 30 40 50 60 70 80 90 100 OTHER OCCUPATIONS FOUNDERS, TECH EMPLOYEES, INVESTORS We also asked the European tech community to share their view on who is most impacted by the regulatory burden in Europe today. Whether they are empirically right or wrong, the perception of respondents from most occupation groups, including European tech founders and investors, is that the burden is being carried by the region's tech startups. Who do you think is most impacted by the regulatory burden amongst the following? SOURCE: The State Of European Tech Survey LEGEND Tech startups Estblished private tech companies Established public tech companies Non-tech SMEs No difference NOTE: Numbers may not add to 100 due to rounding. DATASET: FOUNDERS, TECH EMPLOYEES, INVESTORS % of respondents Founder Employee at a tech startup or scale-up Venture capitalist LP investing in private equity & venture capital Angel investor Other investor 0 10 20 30 40 50 60 70 80 90 100 We also asked the European tech community to share their view on who is most impacted by the regulatory burden in Europe today. Whether they are empirically right or wrong, the perception of respondents from most occupation groups, including European tech founders and investors, is that the burden is being carried by the regio ’s tech st rtups. undefinedundefinedundefined224 In Partnership with & www.stateofeuropeantech.com Tech’s Take on Policy 09.2 The impact of data privacy regulation is the top-ranked area of regulation perceived as most challenging by founders of companies of all sizes. VCs, LPs, tech workers and founders are more likely to agree that European founders can compete equally on the global tech stage, while policymakers and media are more sceptical. Who’s right and who has the better vantage point? And if policymakers are sceptical about the ability for European founders to compete on the global stage, what can they do to better support the founders in that objective? The impact of data privacy regulation is the top-ranked area of regulation perceived as most challenging by founders of companies of all sizes. Thinking about any potential negative impact on your business from regulation, which one area do you view as the most challenging for your company? SOURCE:The State Of European Tech Survey LEGEND ≤10 employees 11-100 employees >100 employees NOTE: Founders only. Numbers may not add to 100 due to rounding. % of respondents Data protection and privacy Tax Employment Competition Certification Data localisation None of these areas - not negatively impacted by regulation Copyright Licensing Patents 0 5 10 15 20 25 The impact of data privacy regulation is the top-ranked area of regulation perceived as most challenging by founders of companies of all sizes. Thinking about any potential negative impact on your busines fr regulation, which one area do you view as the most challenging for your company? SOURCE:The State Of European Tech Survey LEGEND ≤10 employees 11-100 employees >100 employees NOTE: Founders only. Numbers may not add to 100 due to rounding. % of respondents Data protection and privacy Tax Employment Competition Certification Data localisation None of these areas - not negatively impacted by regulation Copyright Licensing Patents 0 5 10 15 20 25 30 35 VCs, LPs, tech workers and founders are more likely to agree that European founders can compete equally on the global tech stage, while policymakers and media are more sceptical. Who's right and who has the better vantage point? And if policymakers are sceptical about the ability for European founders to compete on the global stage, what can they do to better support the founders in that objective? To what extent do you agree or disagree with the following statement: European founders can compete equally on the global technology stage SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents LP investing in private equity & venture capital Venture capitalist Other investor Employee at a tech startup or scale-up Employee in the public sector Academic/researcher Founder Employee at a company not a tech startup or scale-up Other Student Consultant/M&A advisor/investment banker Policymaker/regulator Angel investor Media/journalist 0 10 20 30 40 50 60 70 VCs, LPs, tech workers and founders are more likely to agree that European founders can compete equally on the global tech stage, while policymakers and media are more sceptical. Who's righ and who hs the bett r vantage point? And if policymakers are sceptical about the ability for European founders to compete on the global stage, what can they do to better support the founders in that objective? To what extent do you agree or disagree with the following statement: European founders can compete equally on the global technology stage SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents LP investing in private equity & venture capital Venture capitalist Other investor Employee at a tech startup or scale-up Employee in the public sector Academic/researcher Founder Employee at a company not a tech startup or scale-up Other Student Consultant/M&A advisor/investment banker Policymaker/regulator Angel investor Media/journalist 0 10 20 30 40 50 60 70 80 90 100 The impact of data privacy regulation is the top-ranked area of regulation perceived as most challenging by founders of companies of all sizes. Thinking about any potential negative impact on your busines from regultion, which one area do you view as the most challenging for your company? SOURCE:The State Of European Tech Survey LEGEND ≤10 employees 11-100 employees >100 employees NOTE: Founders only. Numbers may not add to 100 due to rounding. % of respondents Data protection and privacy Tax Employment Competition Certification Data localisation None of these areas - not negatively impacted by regulation Copyright Licensing Patents 0 5 10 15 20 25 VCs, LPs, tech workers and founders are more likely to agree that European founders can compete equally on the globa tech tage, while policymakers and media are more sceptical. Who's right and who has the better vantag point? And if policymakers are sceptical about the ability for European founders to compete on the global stage, what can they do to better support the founders in that objective? To what extent do you agree or disagree with the following statement: European founders can compete equally on the global technology stage SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents LP investing in private equity & venture capital Venture capitalist Other investor Employee at a tech startup or scale-up Employee in the public sector Academic/researcher Founder Employee at a company not a tech startup or scale-up Other Student Consultant/M&A advisor/investment bank Policymaker/reg lato Angel investor Media/journalist 0 10 20 30 40 50 60 70 225 In Partnership with & www.stateofeuropeantech.com Tech’s Take on Policy 09.2 It’s interesting that respondents from outside Europe show a materially higher level of agreement with the view that European founders can compete equally on the global stage. Opinion is split on Europe’s likelihood to gain ground relative to the US and China in the next decade. It's interesting that respondents from outside Europe show a materially higher level of agreement with the view that European founders can compete equally on the global stage. To what extent do you agree or disagree with the following statement: European founders can compete equally on the global technology stage SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents Outside Europe Inside Europe 0 10 20 30 40 50 60 70 It's interesting that respondents from outside Europe show a materially higher level of agreement with the view that European founders can compete equally on the global stage. To what extent do you agree or disagree with the following sta emnt: European founders can compete equally on the global technology stage SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents Outside Europe Inside Europe 0 10 20 30 40 50 60 70 80 90 100 Opinion is split on Europe's likelihood to gain ground relative to the US and China in the next decade. Do you agree or disagree with the following statement? European tech is likely to gain ground relative to the US and China in the next decade SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents LP investing in private equity & venture capital Venture capitalist Employee at a tech startup or scale-up Media/journalist Other Founder Grand total Academic/researcher Student Consultant/M&A advisor/investment banker Employee at a company not a tech startup or scale-up Other investor Employee in the public sector Policymaker/regulator Angel investor 0 10 20 30 40 50 60 70 Opinion is split on Europe's likelihood to gain ground relative to the US and China in the next decade. Do you agree or disagree with the following statement? E pean tech is likely to gain ground relative to the US and China in the next decade SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents LP investing in private equity & venture capital Venture capitalist Employee at a tech startup or scale-up Media/journalist Other Founder Grand total Academic/researcher Student Consultant/M&A advisor/investment banker Employee at a company not a tech startup or scale-up Other investor Employee in the public sector Policymaker/regulator Angel investor 0 10 20 30 40 50 60 70 80 90 100 It's interesting that respondents from outside Europe show a materially higher level of agreement with the view that European founders can compete equally on the global stage. To what extent do you agre or disagre with the following statement: European founders can compete equally on the global technology stage SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents Outside Europe Inside Europe 0 10 20 30 40 50 60 70 Opinion is split on Europe's likelihood to gain ground relative to the US and China in the next decade. Do you agree or disagree with the following statement? European tech is likely to gain ground relative to the US and China in the next decade SOURCE:The State Of European Tech Survey LEGEND Agree Disagree Neither agree nor disagree NOTE: Numbers may not add to 100 due to rounding. % of respondents LP investing in private equity & venture capital Venture capitalist Employee at a tech startup or scale-up Media/journalist Other Founder Grand total Academic/researcher Student Consultant/M&A advisor/investment banker Employee at a company not a tech startup or scale-up Other investor Employee in the public sector Policymaker/regulator Angel investor 0 10 20 30 40 50 60 70 226 In Partnership with & www.stateofeuropeantech.com Tech’s Take on Policy 09.2 Europe’s tech ecosystem remains characterised by a strong level of optimism about the future. 91% of respondents said they were more optimistic about the future of European tech or the same as they were 12 months ago. This is on par with the levels seen in the past two years. Interestingly, however, there is a large divergence depending on the occupation of respondents. Investors in European tech, including both VCs and LPs, are amongst the most optimistic occupations, while founders and tech employees also expressed strong sense of optimism about the future of European tech. Policymakers, by contrast, were the least optimistic. This divergence of opinion between the founders operators and investors on the one hand, and policymakers on the other, speaks volumes. Europe's tech ecosystem remains characterised by a strong level of optimism about the future. 91% of respondents said they were more optimistic about the future of European tech or the same as they were 12 months ago. This is on par with the levels seen in the past two years. Are you more or less optimistic about the future of European technology today than you were 12 months ago? SOURCE:The State Of European Tech Survey NOTE: % of all respondents that answered either 'More' or 'About the same' . % of respondents91% 90% 2017 2018 0 25 50 75 100 Europe's tech ecosystem remains characterised by a strong level of optimism about the future. 91% of respondents said they were more optimistic about the future of European tech or the same as they were 12 months ago. This is on par with the levels seen in the past two years. Are you more or less optimistic about the future of European technol y today than you were 12 months ago? SOURCE:The State Of European Tech Survey NOTE: % of all respondents that answered either 'More' or 'About the same' . % of respondents91% 90% 91% 2017 2018 2019 0 25 50 75 100 Interestingly, however, there is a large divergence depending on the occupation of respondents. Investors in European tech, including both VCs and LPs, are amongst the most optimistic occupations, while founders and tech employees also expressed strong sense of optimism about the future of European tech. Policymakers, by contrast, were the least optimistic. This divergence of opinion between the founders operators and investors on the one hand, and policymakers on the other, speaks volumes. Are you more or less optimistic about the future of European technology today than you were 12 months ago? SOURCE:The State Of European Tech Survey LEGEND About the same Less More NOTE: % of respondents LP investing in private equity & venture capital Venture capitalist Academic/researcher Student Consultant/M&A advisor/investment banker Employee at a tech startup or scale-up Employee in the public sector Founder Other Media/journalist Angel investor Other investor Employee at a company not a tech startup or scale-up Policymaker/regulator 0 10 20 30 40 50 60 70 Interestingly, however, there is a large divergence depending on the occupation of respondents. Investors in European tech, including both VCs and LPs, are amongst the most optimistic occupations, while founders and tech employees also expressed strong sense of optimism about the future of European tech. Policymakers, by contrast, were the least optimistic. This divergenc f opinion btween the founders operators and investors on the one hand, and policymakers on the other, speaks volumes. Are you more or less optimistic abou the ture of European technology today than you were 12 months ago? SOURCE:The State Of European Tech Survey LEGEND About the same Less More NOTE: Numbers may not add to 100 due to rounding. % of respondents LP investing in private equity & venture capital Venture capitalist Academic/researcher Student Consultant/M&A advisor/investment banker Employee at a tech startup or scale-up Employee in the public sector Founder Other Media/journalist Angel investor Other investor Employee at a company not a tech startup or scale-up Policymaker/regulator 0 10 20 30 40 50 60 70 80 90 100 Europe's tech ecosystem remains characterised by a strong level of optimism about the future. 91% of respondents said they were more optimistic about the future of European tech or the same as they were 12 months ago. This is on par with the levels seen in the past two years. Are you more or less optimistic about th future of European echnology today thn you were 12 months ago? SOURCE:The State Of European Tech Survey NOTE: % of all respondents that answered either 'More' or 'About the same' . % of respondents91% 90% 2017 2018 0 25 50 75 100 Interestingly, however, there is a large divergence depending on the occupation of respondents. Investors in European tech, including both VCs and LPs, are amongst the most optimistic occupations, while founders and tech employees also expressed strong sense of optimism about the future of European tech. Policymakers, by contrast, w re the least optimistic. This divergence of opinion between the founders operators and investors on the one hand, and policymakers on the other, speaks volumes. Are you more or les optimistic about the future of European technology today than you were 12 months ago? SOURCE:The State Of European Tech Survey LEGEND About the same Less More NOTE: Numbers may not add to 100 due to rounding. % of respondents LP investing in private equity & venture capital Venture capitalist Academic/researcher Student Consultant/M&A advisor/investment banker Employee at a tech startup or scale-up Employee in the public sector Founder Other Media/journalist Angel investor Other investor Employee at a company not a tech startup or scale-up Policymaker/regulator 0 10 20 30 40 50 60 70 227 In Partnership with & www.stateofeuropeantech.com Tech’s Take on Policy 09.2 There is still a wide gap between the world of policymaking and that of tech entrepreneurs... I think that venture capitalists have a key role to play in bridging that gap between the two worlds. The OECD has given the UK its highest overall score for the quality of our regulatory practices, but we're not resting on our laurels. We are bringing forward world-leading policies to boost innovation and build trust in digital markets, to promote ethical and responsible technology and give tech firms growing on our shores the competitive advantage they need. There is still a wide gap between the world of policymaking and that of tech entrepreneurs. Policymakers genuinely want to help, but they don’t know a thing about tech startups, and they usually don’t count tech entrepreneurs as friends or acquaintances, which makes it even more difficult for them to understand what’s going on. On the other hand, tech entrepreneurs have difficulties reaching out to policymakers because they don’t understand that world, where everything seems so slow and so bureaucratic; they rightfully prefer to focus on growing their businesses. This is the reason why, by the way, I think that venture capitalists have a key role to play in bridging that gap between the two worlds. Nicolas Colin Nicky Morgan The Family Co-Founder & Director UK Secretary of State for Digital, Culture, Media & Sport Unlike entrepreneurs, venture capitalists don’t have to focus on one single problem over the course of several years. They can embrace a long-term view of the market, identify the many regulatory obstacles that still stand in the way, and help policymakers understand technology and come up with sound regulations designed to boost local champions. It’s both about providing entrepreneurs with the resources and the security they need to take more risks and about raising the bar for European tech companies, forcing them to get better on various fronts, and ultimately consolidating their competitive advantage at a global scale - an industrial policy for the Entrepreneurial Age. Photo by: Samuli Pentti 228 In Partnership with & www.stateofeuropeantech.com About This report was produced in partnership with Slush and Orrick. Nearly 100 people and 20 organizations came together to provide insights and data. This is who they are. 229 In Partnership with & www.stateofeuropeantech.com Our Contributors Contributors Thanks to all of the following people for their assistance and insight in developing this year’s State of European Tech Report Giovanni Anelli CERN Alice Bentinck EF Sophia Bendz Atomico Elsa Bernadotte Karma Tom Blomfield Monzo Loubna Bouarfa OKRA Technologies Kat Borlongan La French Tech Christina Brinck Sixth Swedish National Pension Fund Anisah Osman Britton 23 Code Street Jessica Butcher Tick Ophelia Brown Blossom Capital Suranga Chandratillake Balderton Capital Stjin Christiaens Collibra Thomas Clozel Owkin James Clark London Stock Exchange Nicolas Colin The Family 230 In Partnership with & www.stateofeuropeantech.com Andy Davis Backstage Capital Our Contributors 10.1 Simon Cook Draper Esprit Pierre Entremont FRST Sonali de Rycker Accel Madeleline Evans Levell Ekaterina Gianelli Inventure Irina Haivas Atomico Linda Griffin King Thomas Hellmann University of Oxford Kate Hilyard Healx Sophia Hmich Future Positive Capital Taavet Hinrikus TransferWise Christine Hockley British Patient Capital Antoine Hubert Ynsect Daniel Keiper-Knorr Speedinvest Miki Kuusi Wolt Jacopo Losso EBAN Yury Melnichek Bulba Ventures Martin Mignot Index Osnat Michaeli Infarm 231 In Partnership with & www.stateofeuropeantech.com Our Contributors 10.1 Leila Rastegar Zegna Kindred Capital Niklas Zennström Atomico Nicky Morgan UK Secretary of State for Digital, Culture, Media & Sport. Steve O’Hear TechCrunch Akshay Naheta SoftBank Vision Fund Deborah Okenla YSYS Patrick Pichette Inovia Capital Maria Raga Depop Oscar Pierre Glovo Andreas Saari Slush Abby Scarborough Yena Perry Teicher Orrick Naren Shaam Omio Alex Terrien Future Positive Capital Nigel Toon Graphcore Check Warner Diversity VC Roxanne Varza Station F David York Top Tier Capital Partners Valentina Milanova Daye 232 In Partnership with & www.stateofeuropeantech.com Acknowledgements Acknowledgements We wouldn’t have been able to put together the State of European Tech without a lot of help - thanks to all of the following in particular: Anastasiya Dudareva Craft Yuliya Chernova Craft Matt Collins Studio Lovelock James Clark London Stock Exchange George Clayton Studio Lovelock Katelyn Dennis Shareworks Mike Allanson Studio Lovelock Giovanni Anelli European Organization for Nuclear Research (CERN) Kaloyan Andonov Global University Venturing Karl Bjelland Politico Jon Brewer Orrick Ivan Draganov Dealroom 233 In Partnership with & www.stateofeuropeantech.com Our Contributors 10.1 Sarah Guemouri Atomico Ben Jakob Studio Lovelock Thierry Heles Global University Venturing Ant Jumratsilpa Studio Lovelock Oscar Farres EIF Mark Dunbavan Studio Lovelock Rugiyya Gahramanli London Stock Exchange Sofian Giuroiu PEREP Analytics/EDC Bryce Keane Atomico Thomas Kösters European Startup Initiative Julie Kim Quid Julien Krantz Invest Europe Joe Lovelock Studio Lovelock Ilya Levtov Craft Gligor Micajkov Dealroom Elissa Maercklein Craft 234 In Partnership with & www.stateofeuropeantech.com Our Contributors 10.1 Tom Wehmeier Atomico Yoram Wijngaarde Dealroom The purpose-driven porpoise Self-employed Maxine Smith Atomico Eleanor Warnock Atomico Karthik Suresh Craft Julia Silge Stack Overflow Anais Rassat European Organization for Nuclear Research (CERN) Julien Puls Dealroom Elmo Pakkanen Slush Angelina Panagiotopoulou Studio Lovelock 235 In Partnership with & www.stateofeuropeantech.com About Atomico About Orrick We’re Atomico. You probably knew that already. But who is Orrick? But who are we really? Creators. Visionaries. Underdogs. The Daring. We’re not a traditional venture capital firm. We are built by founders for founders. Every single aspect of Atomico, every part of our culture, and every decision we take, is designed with the sole ambition of helping our partners succeed. We exist for more than returns. We believe entrepreneurs are the ultimate agents of positive, transformational change across every aspect of our society and economy. Our mission is to spur this progress forward. It’s why we partner with the world’s most ambitious founders. The rule-breakers who want to build the next leader in their category. The world-shapers creating companies that fundamentally shift the way we live today. The gamechangers using technology to rewire the world in favour of something better, for as many people as possible. When we find these people, we invest much more than money. We work hand-in-glove with them, drawing on hard-won experience scaling some of the most successful technology companies in the world. Orrick counsels more than 2,700 tech companies, as well as the most active funds, corporate venture investors and public tech companies worldwide. We help you disrupt. We help you build. We protect you. We help you win. We are the No. 1 most active law firm in European venture capital, No. 3 globally (PitchBook), top 15 for global M&A (Bloomberg) and advisors to seven of the top 15 global private equity funds. We offer destination practices in other areas that are important to tech companies’ success: privacy and cybersecurity, intellectual property, payments, and beyond. And we innovate not only in our legal advice but also in the way we deliver our services. That’s why Financial Times has named us the most innovative law firm in North America for the last three years in a row. 236 In Partnership with & www.stateofeuropeantech.com About Slush About Studio Lovelock Once again we’ve partnered with Slush to produce the State of European Tech report Branding to engage and inspire But why are so many people flocking to Helsinki in November? Studio Lovelock partners with ambitious scale-ups ready to embrace the power of brand to drive growth Slush is a student-driven, not-for-profit movement with the mission to create and help the next generation of groundbreaking entrepreneurs. The Slush year culminates in Helsinki in November, when 25,000 founders, investors, media and executives from 130+ countries gather in Helsinki. Held during the darkest time of the year, Slush has always been characterized by a unique energy and enthusiasm. Slush is run by a community of students who want to radically change how entrepreneurship is perceived in Northern Europe and beyond. Several successful entrepreneurs, from the founders of Supercell and Spotify among others, have already become a part of the not-for-profit initiative that has already become a movement of global magnitude. Studio Lovelock is a branding and communications design agency based in London. We are a collection of open-minded, smart and creatively restless folk, driven to help the businesses we believe in achieve great things. We are founded on the belief that creativity and clear design thinking are critical components in the long term success of any business. We pride ourselves on our willingness to push beyond our comfort zone and the quality of the relationships we’ve built with our clients. Being friendly, helpful and reliable doesn’t hurt either. View more of our work at studiolovelock.com 237 In Partnership with & www.stateofeuropeantech.com Appendix Last but not least 238 In Partnership with & www.stateofeuropeantech.com Survey Respondents Occupation of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 27% 19% 16% 10% 7% 5% 4% 3% 2% 2% 2% 1% 1% 1% Founder Employee at a tech startup or scale-up Employee at a company that is not a tech startup or scale-up Venture capitalist Consultant/M&A advisor/investment banker Student Other Employee in the public sector Academic/researcher Angel investor Other investor LP investing in private equity & venture capital Media/journalist Policymaker/regulator 0 5 10 15 20 25 30 Occupation of survey respondents SOURCE:The State Of Europan Tech Survey NOTE: Numbers may not add to 100 due t rounding. % of respondents 27% 19% 16% 10% 7% 5% 4% 3% 2% 2% 2% 1% 1% 1% Founder Employee at a tech star up or scale- Employee at a company that is not a ech tar up or scale-up Venture capitalist Consultant/M&A advisor/investment banker Student Other Employee in the public sector Academic/researcher Angel investor Other investor LP investing in private equity & venture capital Media/journalist Policymaker/regulator 0 5 10 15 20 25 30 Occupation of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 27% 19% 16% 10% 7% 5% 4% 3% 2% 2% 2% 1% 1% 1% Founder Employee at a tech startup or scale-up Employee at a company that is not a tech startup or scale-up Venture capitalist Consultant/M&A advisor/investment banker Student Other Employee in the public sector Academic/researcher Angel investor Other investor LP investing in private equity & venture capital Media/journalist Policymaker/regulator 0 5 10 15 20 25 30 Company size of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 35% 29% 30% 6% ≤10 employees 11-100 employees 100+ employees Not applicable 0 5 10 15 20 25 30 35 40 Company size of survey respondent SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 35% 29% 30% 6% ≤10 employees 11-100 employees 100+ employees Not applicable 0 5 10 15 20 25 30 35 40 Company size of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 35% 29% 30% 6% ≤10 employees 11-100 employees 100+ employees Not applicable 0 5 10 15 20 25 30 35 40 239 In Partnership with & www.stateofeuropeantech.com Survey Respondents 11.1 Gender of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 67% 31% 2% 0% 0% Male Female Prefer not to say Non-binary Other 0 10 20 30 40 50 60 70 Gender of survey respondnts SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 67% 31% 2% 0% 0% Male Female Prefer not to say Non-binary Other 0 10 20 30 40 50 60 70 Gender of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 67% 31% 2% 0% 0% Male Female Prefer not to say Non-binary Other 0 10 20 30 40 50 60 70 Experience level of founder respondents SOURCE:The State Of European Tech Survey NOTE: Founders only. Numbers may not add to 100 due to rounding. % of respondents 51% 31% 18% First-time founder Repeat founder with limited experience Repeat founder with significant experience 0 5 10 15 20 25 30 35 40 45 50 55 Experience level of founder respondnts SOURCE:The State Of European Tech Survey NOTE: Founders only. Numbers may not add to 100 due to rounding. % of respondents 51% 31% 18% First-time founder Repeat found r with limited exper ence Repeat found r wi h significan experience 0 5 10 15 20 25 30 35 40 45 50 55 respondents SOURCE:The State Of European Tech Survey NOTE: Fouers only. Numbers may not add to 100 due to rounding. % of respondents 51% 31% 18% First-time founder Repeat founder with limited experience Repeat founder with significant experience 0 5 10 15 20 25 30 35 40 45 50 55 Ethnicity of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 81% 6% 4% 3% 2% 2% 1% 1% Caucasian/White Asian Prefer not to say Mixed Hispanic/Latinx Middle Eastern/North African Other (please specify) Black/African/Caribbean 0 10 20 30 40 50 60 70 80 90 Ethnicity of survey respondnts SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 81% 6% 4% 3% 2% 2% 1% 1% Caucasian/White Asian Prefer not to say Mixed Hispanic/Latinx Middle Eastern/North African Other (please specify) Black/African/Caribbean 0 10 20 30 40 50 60 70 80 90 Ethnicity of survey respondents SOURCE:The Stt Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 81% 6% 4% 3% 2% 2% 1% 1% Caucasian/White Asian Prefer not to say Mixed Hispanic/Latinx Middle Eastern/North African Other (please specify) Black/African/Caribbean 0 10 20 30 40 50 60 70 80 90 Geographic origin of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 39% 16% 13% 9% 8% 8% 4% 2% 2% Nordics UK & Ireland DACH CEE France & Benelux Southern Europe Rest of world Rest of Europe United States 0 5 10 15 20 25 30 35 40 Geographic origin of survey respondnts SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 39% 16% 13% 9% 8% 8% 4% 2% 2% Nordics UK & Ireland DACH CEE France & Benelux Southern Eur pe Rest of world Rest of Europe United States 0 5 10 15 20 25 30 35 40 Geographic origin of survey respondents SOURCE:The State Of European Tech Survey NOTE: Numbers may not add to 100 due to rounding. % of respondents 39% 16% 13% 9% 8% 8% 4% 2% 2% Nordics UK & Ireland DACH CEE France & Benelux Southern Europe Rest of world Rest of Europe United States 0 5 10 15 20 25 30 35 40 240 In Partnership with & www.stateofeuropeantech.com More About Our Data Partners Aon Radford is the technology and life sciences unit of Aon’s Rewards Solutions practice. ABOUT REWARDS SOLUTIONS The Rewards Solutions practice at Aon empowers business leaders to reimagine their approach to rewards in the digital age through a powerful mix of data, analytics and advisory capabilities. Our colleagues support clients across a full spectrum of needs, including compensation benchmarking, pay and workforce modeling, and expert insights on rewards strategy and plan design. To learn more, visit: rewards.aon.com. ABOUT AON Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. For further information, please visit aon.com. Dealroom.co Dealroom is a global company information database & research firm. Its software, database and bespoke research enable its clients to stay at the forefront of innovation, discover promising companies and identify strategic opportunities. Among its clients are world-leading strategy consulting firms, investment banks, multinationals, technology firms, venture capital & buyout firms and governments. For more information, please visit: dealroom.co CBRE CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com. 241 In Partnership with & www.stateofeuropeantech.com More About Our Data Partners 11.2 The European Business Angels Network (EBAN) EBAN, The European Business Angels Network, is the pan-European representative for early stage investors gathering over 150 member organizations in more than 50 countries. Established in 1999 by a group of pioneer angel networks in Europe with the collaboration of the European Commission and EURADA, EBAN represents a sector estimated to invest over 7 billion Euros a year and playing a vital role in Europe’s future, notably in the funding of Start-Ups SMEs. EBAN has been conducting research on the business angel market since 2001 and is the leading source of knowledge in Europe for this industry. Flourish Flourish makes it easy to produce beautiful and engaging data visualizations and interactive presentations. Used by companies from Google and EY to Sky News and the BBC, it converts complex datasets into animated, mobile-friendly, on-brand data stories in minutes. No coding required. Get started for free at flourish.studio. The European Investment Fund (EIF) The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments, which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. The European Organization for Nuclear Research (CERN) The European Organization for Nuclear Research (CERN) - is a world-renowned centre for scientific research, celebrated for its recent discovery of the Higgs boson. CERN’s technology provides concrete business solutions in many fields: from medtech to aerospace, and industry 4.0, and are already present in start-ups hosted in CERN’s network of Business Incubation Centres. CERN is also part of the ATTRACT initiative, a European call for breakthrough ideas that will fund 170 innovative projects from 2019. Craft Craft is building the ‘Source of Truth’ on companies, mapping the global economy, and delivering unique intelligence on companies to corporate decision-makers globally. Craft collects, aggregates and curates financial, operating and human capital data to provide the deepest picture of private and public companies to assist decision-makers to manage their supply chain, maximize their investments, mitigate risks, grow their sales, leverage their talent and enhance their competitive position. 242 In Partnership with & www.stateofeuropeantech.com More About Our Data Partners 11.2 Graphext Indeed Graphext provides a data science software for business decision makers. Combining the latest machine learning techniques and a user friendly interface, Graphext automates and simplifies data driven decision making for all aspects of your business. More people find jobs on Indeed than anywhere else. Indeed is the #1 job site in the world and allows jobseekers to search millions of jobs on the web or mobile in over 60 countries and 28 languages. More than 250 million people each month search for jobs, post resumes, and research companies on Indeed. For more information, visit indeed.com. Invest Europe Invest Europe is the association representing Europe’s private equity, venture capital and infrastructure sectors, as well as their investors. Our 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 visit www.investeurope.eu Global University Venturing Global University Venturing is both a quarterly magazine and website written for and about universities taking stakes in spinouts. We help universities to share best practice and to connect with each other, with investors and with other useful parties in the innovation ecosystem. Our aim is to help improve the processes of bringing innovations from academia to the market and facilitate their integration into the business ecosystem. 243 In Partnership with & www.stateofeuropeantech.com More About Our Data Partners 11.2 London Stock Exchange Meetup POLITICO London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world’s financial community. The Group can trace its history back to 1801. The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe’s leading fixed income market; and the pan-European equities platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe’s capital markets. Post trade and risk management services are a significant and growing part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH. The Group offers its customers an extensive range of real-time and reference data products, including Sedol, UnaVista and RNS. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world. London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group’s own markets, over 40 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology. Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 4,700 people. Meetup is a global community platform that connects people in real life. It was founded with one simple idea: use technology to get people off technology. Our vision is to harness technology to remove the barriers to human connection and deliver real life community. Meetup supports over 40 million members+, 320,000+ Meetup groups and 12,000 Meetups per day around the world. Meetup was acquired by WeWork in 2017. The two companies share a vision of the power of bringing people together, and together using technology to create new and innovative ways of building community. Follow us @Meetup on Twitter, @Meetup on Instagram and Facebook, or visit meetup.com to learn more. POLITICO, a global nonpartisan politics and policy news organization, launched in Europe in April 2015. POLITICO Europe is a joint-venture between POLITICO LLC, based in the USA and Axel Springer, the leading publisher in Europe. With operations based in Brussels and additional offices in London, Berlin, Paris, Rome, and Warsaw, POLITICO connects the dots between global power centers. In June 2018, an annual ComRes/Burson- Marsteller survey ranked POLITICO as the #1 most influential publication on European affairs, for the second year running. POLITICO’s premium politics and policy news service, POLITICO Pro, empowers thousands of policy experts and decision-makers from over 900 organizations on key industries. Launched in 2015, Pro now covers 7 policy areas: Agriculture and Food, Energy and Climate, Financial Services, Healthcare, Technology, Trade, and Mobility. POLITICO Pro has 5 cross-industry products: Brexit Pro, Sustainability Pro, Cybersecurity and Data Protection Pro, EU Budget Pro and Competition Pro. Subscribers include EU and national government, corporations, trade associations, consultancies, law firms, and NGOs. POLITICO Pro’s newest offering, Pro Intelligence, is an innovative platform which fuses the power of technology with the power of journalism, providing professionals with an overview of bills, legislation, voting behavior and attendance, tweets, activities, press releases, transcripts and more, at the touch of a button. Users can track information on the EU Institutions and national legislatures in the UK, France and Germany. Pro Intelligence was used by Atomico to research data on EU Tech legislation for this report. 244 In Partnership with & www.stateofeuropeantech.com More About Our Data Partners 11.2 Quid Shareworks Sifted Stack Overflow Startup Heatmap Europe Quid is a big data research platform that inspires full picture thinking by drawing connections across massive amounts of unstructured data. The software applies advanced natural language processing technology, semantic analysis, and artificial intelligence algorithms to reveal patterns in large, unstructured datasets, and generate visualizations to allow users to gain actionable insights, enabling our Fortune 1000 clients to quickly complete analyses like tech scouting, competitive tracking, market landscapes, and brand narrative maps. Option Impact by Shareworks is the leading provider of pre-IPO compensation data. We partner with over 180 top-tier investors and over 3600 private companies to produce the world’s largest corporate-sourced compensation database specific to private, venture-backed companies. Option Impact is a rolling cash and equity survey providing relevant market data across all levels and job families for $0 in exchange for maintaining current information in the system. To learn more, please email us at compensation@shareworks.com. Sifted is the new Financial Times backed media platform for European entrepreneurs, innovators and investors. It is an essential, trusted and independent resource for the startup and tech world: a source of news, information and analysis and also a channel for discovery. Founded in 2008, Stack Overflow is the largest, most trusted online community for anyone that codes to learn, share their knowledge, and build their careers. More than 50 million unique visitors come to Stack Overflow each month to help solve coding problems, develop new skills, and find job opportunities. Stack Overflow partners with businesses to help them understand, hire, engage, and enable the world’s developers. Stack Overflow’s products and services are focused on developer marketing, advertising, technical recruiting, and enterprise knowledge sharing. The Startup Heatmap Europe is a data & knowledge platform enabling tech communities in Europe to grow. Find more information on the data and courses for ecosystem builders on www.startupheatmap.com The Startup Heatmap Europe is an annual survey among founders and the greater tech community on mobility and the attractiveness of startup hubs. The 2019 survey was collected between May and August 2019 and had 1,200 participants. After cleaning and sampling the data 806 complete datasets remained that were weighted to adjust for regional representativeness on country level. Founders were 53% of respondents. For long-term trends in founder mobility, we used a combined dataset of 4 years with >6,000 founder opinions. Analysis of key topics and trends was based on social media data and a dataset of >20,000 startup meetup.