annual european venture capital report - dealroom.cothe journey to series a in europe the future of...
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November 2018
2018 full year reportAnnual European Venture Capital Report
February 2019
Discover the world’s most promising companies
Europe’s most comprehensive source for data on innovative companies and venture capital investment
3
77% more European data than the #2
2,745
3,384
5,929
Number of rounds tracked in 2018
The most trusted source in Europe
4
Discover the companies that should be on your radar, from seed stage to unicorns
The most comprehensive database of promising companies
Track employee data, teams, product use, funding
Professional supportwith local market knowledge
5
Custom research to identify companies to watch, stay at forefront of innovation and understand what’s next
The Journey to Series A in Europe The State of European Food TechThe Future of Online Marketplaces
In partnership with FiveSeasons Ventures Open PDFIn partnership with Schibsted, Point Nine, Speedinvest Open PDFIn partnership with Atomico and LocalGlobe Open PDF
1. Venture capital investment
2. Key trends & drivers
3. Exits
Contents
6
7
In 2018, a record €28 billion invested in European and Israeli
startups (€21 billion excluding Israel & Biotech)
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, lending capital, grants.
Investment in € billions
European biotech
European venture capital (this number is what most VCs focus on)
Israel
€ 6.5B
€ 9.9B
€ 14.3B € 15.5B
€ 20.2B € 21.2B
€ 1.2B
€ 1.6B
€ 2.4B € 2.4B
€ 3.2B € 3.4B
€ 1.2B
€ 1.4B
€ 1.8B € 2.0B
€ 2.5B
€ 3.3B
€ 8.9B
€ 12.9B
€ 18.5B € 19.9B
€ 25.8B
€ 27.8B
2013 2014 2015 2016 2017 2018
€ 7.5B
€ 11.3B
€ 15.8B
€ 17.5B
€ 21.8B
€ 24.7B
€ 8.9B
€ 12.9B
€ 18.5B
€ 19.9B
€ 25.8B
€ 27.8B
2013 2014 2015 2016 2017 2018
TOP 10 INVESTMENTS ROUNDS 2018 LOCATION ROUND
Auto1 GroupFull-stack marketplace for used cars
Germany€ 460M
GROWTH EQUITY$3.0B valuation
LetgoPlatform for buying and selling second hand goods
Spain$ 500MSERIES E
$1.5B valuation
NuCom GroupPlatform for consumer services and lifestyle brands in Europe
Germany€ 450M
GROWTH EQUITY$1.8B valuation
OutSystemsLow-code platform: build enterprise apps quick and fast
Portugal$ 360M
GROWTH EQUITY$1.0B valuation
Landa Digital PrintingDigital technology for the packaging and publishing markets
Israel$ 300M
GROWTH EQUITY$1.8B valuation
About YouFast growing e-commerce retailer for fashion
Germany$ 300M
GROWTH EQUITY$1.0B valuation
RevolutDigital banking alternative
United Kingdom$ 250MSERIES C
$1.7B valuation
GreensillFinancial services firm specialising in Supply Chain Finance
United Kingdom$ 250M
GROWTH EQUITY$1.6B valuation
BioNTechPersonalized cancer immunotherapies
Germany€ 225MSERIES A
VoodooCasual games developer for mobile
France$ 200M
GROWTH EQUITY
Of that €28 billion, 11% came from the 10 largest rounds (compared with 15% last year)
Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
top 3 deals
top 10
8
Investment in € billions
Number of rounds below €3M Number of rounds €3M and over
Overall, the number of rounds is increasing. Due to reporting lag, smaller (pre) seed rounds are reported with delay
Source: Dealroom.co. Excludes Israel. As reported. 9
Reporting lag effect
1,184
597
338
–
500
1,000
1,500
2,000
2,500
2013 2014 2015 2016 2017 2018
€ 0-1M € 1-2M € 2-3M
401
360
375
280
–
100
200
300
400
500
2013 2014 2015 2016 2017 2018
€ 3-5M € 5-10M € 10-20M € 20M+
Selected rising stars that defined 2018, by country
$1B+
$500-1B
$250-500M
$0-250M
UK Germany France Nordics Netherlands Spain Israel CEE
Source: Dealroom.co. Companies valued €200M to €1B. 10
Framer
The UK, Germany, France and Israel continue to account for 68% of total investment
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
11% YoY growth
87%
17%
10%
(35%)
(10%)
(11%)
(17%)
10%
43%
2018 number of rounds2018 VC investment by country
1,034
615
552
298
294
265
230
208
154
128
126
97
93
77
65
43
43
34
32
United Kingdom
France
Germany
Spain
Sweden
Israel
Netherlands
Italy
Switzerland
Finland
Ireland
Russia
Norway
Denmark
Belgium
Austria
Poland
Estonia
Hungary
€ 7.7B
€ 4.4B
€ 3.7B
€ 3.3B
€ 1.4B
€ 1.2B
€ 1.2B
€ 0.6B
€ 0.6B
€ 0.5B
€ 0.5B
€ 0.5B
€ 0.5B
€ 0.4B
€ 0.3B
€ 0.2B
€ 0.2B
€ 0.1B
€ 0.1B
United Kingdom
Germany
France
Israel
Spain
Switzerland
Sweden
Ireland
Netherlands
Italy
Finland
Denmark
Belgium
Portugal
Russia
Norway
Estonia
Cyprus
Austria
11
Growth is driven by rounds larger than €10 million
Source: Dealroom.co
€ 3.4B € 4.5B € 5.2B € 6.8B € 7.2B € 6.5B
€ 1.2B
€ 1.5B
€ 3.8B
€ 2.9B
€ 6.4B
€ 6.3B
€ 8.9B
€ 12.9B
€ 18.5B € 19.9B
€ 25.8B
€ 27.8B
–
€ 5B
€ 10B
€ 15B
€ 20B
€ 25B
€ 30B
2013 2014 2015 2016 2017 2018
$ 0-10M $ 10-25M $ 25-50M $ 50-100M $ 100M+
Investment in € billions
€0-10M segment not growing in last three years and growing by 11%CAGR since 2013
€10M+ segment growing by 25% CAGR since 2013
12
Investment in € billions
Similar trend across big three. But Germany was especially impacted by a few mega rounds (Auto1, NuCom, About You)
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 13
€ 1
.9B
€ 1
.7B
€ 1
.6B
€ 7.7B
€ 4.4B
€ 3.7B
€ 3.3B
€ 1.2B
€ 7.6B
–
€ 2B
€ 4B
€ 6B
€ 8B
€ 10B
'13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18
United Kingdom Germany France Israel Sweden Rest of Europe
= 24%
= 39% = 29%= 16%
= 21%
Spain, Italy, Belgium and Denmark experienced biggest
increase in funding
14Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
€ 0.5B
€ 0.2B
€ 0.5B
€ 0.1B
€ 0.0B
€ 0.5B
–
10
20
30
40
50
60
–
€ B
€ B
€ B
€ B
€ 1B
€ 1B
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Belgium Norway Denmark Austria Poland Italy
Investment (in € billions) Number of rounds (> €2M)
€ 1.4B € 1.2B
€ 0.6B € 0.6B
€ 0.3B € 0.5B
–
25
50
75
100
–
€ 1B
€ 1B
€ 2B
€ 2B
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Spain Switzerland Netherlands Ireland Russia Finland
Investment (in € billions) Number of rounds (> €2M)
Investment in € billions
15
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Click on any amount to jump to the underlying rounds. Click on
each column to see the each year
Heatmaps
Switch to quarterly, number of rounds, city,
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1. Venture capital investment
2. Key trends & drivers
3. Exits
Contents
16
Increased investment focus on transportation (mobility), robotics and security
Absolute
change vs.
last year
(in €B)
% change
vs. last year
(number of
rounds)
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.Note: industries, business models and keywords can and do overlap.
By industry vertical Business model By keyword
48%
19% 13% 12% 10% 9% 9% 7%
3% 3% 1%
(4%) (6%) (9%)(12%)
(16%)(20%)
39%
25%
13%
(10%)(17%)
25% 20%
12%
2%
(10%)
(18%)
€ 1.1B
€ 0.5B € 0.4B € 0.4B € 0.3B € 0.2B € 0.2B
(€ 0.0B) (€ 0.0B) (€ 0.1B) (€ 0.2B) (€ 0.3B) (€ 0.3B) (€ 0.3B)
(€ 0.4B) (€ 0.5B)
(€ 0.8B)
€ 1.5B
€ 1.2B € 1.0B
(€ 0.2B) (€ 0.4B)
€ 0.4B € 0.4B € 0.1B
€ 0.0B
(€ 0.4B)
17
But Health, Fintech and Enterprise Software continue to be the most invested industries
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.Note: industries, business models and keywords can and do overlap.
By industry vertical Business model By keyword
Number of
rounds 2018
Amount (€B)
invested 2018
€ 5.9B € 5.4B € 5.3B
€ 3.7B € 3.3B
€ 1.6B € 1.5B € 1.4B € 1.4B € 1.4B € 1.1B € 0.9B € 0.9B € 0.8B € 0.6B € 0.6B € 0.5B
€ 10.1B
€ 7.3B
€ 5.0B
€ 3.3B € 2.7B
€ 8.1B
€ 3.3B
€ 2.2B € 1.3B
€ 0.8B € 0.3B
923
711 702
377 361 310 298 254 237 201 198 149 123 114 108 91 73
1,758
974
535
319 281
1,424
629
337 249
157 49
18
Selected rising stars that defined 2018, by industry
$1B+
$500-1B
$250-500M
$0-250M
Deep tech Fintech Health Enterprise SaaS Mobility Energy Marketplaces
Source: Dealroom.co 19
Round sizes went up in 2018
20Source: Dealroom.co. Based on self-labelled data.
Series C rounds
Seed rounds Series A rounds
Series B rounds
€ 0.4M€ 0.5M € 0.5M € 0.5M € 0.5M
€ 0.7M
€ 0.6M € 0.7M€ 0.8M
€ 0.8M € 0.8M
€ 1.2M
2013 2014 2015 2016 2017 2018
Median
Average
€ 2.7M
€ 3.6M€ 3.2M
€ 3.6M
€ 5.0M € 5.2M
€ 4.6M € 4.8M € 5.1M€ 5.5M
€ 6.7M€ 7.1M
2013 2014 2015 2016 2017 2018
Median
Average
€ 5.9M€ 6.6M
€ 9.6M
€ 8.1M
€ 9.6M
€ 13.0M
€ 7.6M
€ 9.4M
€ 12.2M
€ 10.5M
€ 13.2M
€ 16.4M
2013 2014 2015 2016 2017 2018
Median
Average
€ 8.5M
€ 15.0M € 14.5M € 15.6M
€ 10.9M
€ 18.2M€ 9.3M
€ 17.6M€ 18.9M € 18.8M € 18.0M
€ 22.8M
2013 2014 2015 2016 2017 2018
Median
Average
Increase partly due to reporting lag, which
means it will disappear as smaller rounds are reported. Read more on seed
funding data analysis on our blog.
Early stage round sizes are up, although some of that is
driven by reporting lag for smaller rounds
21Source: Dealroom.co
Seed
Series A
United Kingdom Germany France Spain Sweden Netherlands
–
€ 0.2B
€ 0.4B
€ 0.6B
€ 0.8B
€ 1.0B
€ 1.2B
€ 1.4B
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Average Median
–
€ 1.0B
€ 2.0B
€ 3.0B
€ 4.0B
€ 5.0B
€ 6.0B
€ 7.0B
€ 8.0B
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Average Median
Venture capital investment into Europe has been increasing from all sides
Europe USA Asia Rest of World
Source: Dealroom.co
€ 3.8B
€ 6.1B
€ 8.9B
€ 10.4B
€ 13.0B
€ 14.4B
€ 2.2B€ 3.0B
€ 4.0B € 3.7B
€ 5.4B
€ 6.6B
€ 0.1B € 0.4B € 0.7B € 1.0B
€ 2.5B € 2.2B
€ 0.6B € 1.0B€ 1.6B € 1.6B
€ 2.1B€ 2.9B
–
500
1,000
1,500
2,000
2,500
3,000
3,500
–
€ 2B
€ 4B
€ 6B
€ 8B
€ 10B
€ 12B
€ 14B
€ 16B
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Investment (in € billions) Number of rounds (> €2M)
22
Investment funds accounted for more than 60% of capital backing European ventures
1. U.S based funds = Funds only. Excludes investment by U.S. corporates (Microsoft, GE, …).
Investment funds Corporate venturing Angels, crowdfunding, other
€ 5.2B
€ 8.0B
€ 11.1B€ 12.2B
€ 15.4B
€ 17.7B
€ 1.3B€ 1.9B
€ 2.8B € 3.3B
€ 6.6B€ 7.5B
€ 0.4B € 0.6B € 1.1B € 1.4B € 1.8B € 1.6B
–
500
1,000
1,500
2,000
2,500
3,000
3,500
–
€ 4B
€ 8B
€ 12B
€ 16B
€ 20B
2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018
Investment (in € billions) Number of rounds (> €2M)
23
Sources of investment into European startupsAmount of capital invested in Europe by source
24Source: Dealroom.co.
45% 49% 49% 49%
40% 41%
6%
7% 7% 7%
11% 10%
27% 25%
22% 18%
17% 19%
6% 5% 5%
5%
5% 7%
3% 2%
3%
4% 3%
1% 3%
3% 7% 5%
14% 11% 13% 14% 15% 15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015 2016 2017 2018
Investment fund Corporate Investment fund Corporate Investment fund Corporate Other sources
€1.4B€0.9B
€1.8B
€1.8B
€10.3B
€5.1B
€4.1B
Europe USA and Canada Asia
1. Venture capital investment
2. Key trends & drivers
3. Exits
Contents
25
With €105 billion in exit value, 2018 was a record year for VC-backed exits in Europe and Israel
Source: Dealroom.co. Excludes biotechnology.
Value of exits in € billions
Realised amount (= fully realised amount, i.e. the shares sold)
Unrealised value (= total enterprise value at exit minus realised amount)
€ 17B
€ 40B
€ 48B
€ 70B
€ 42B
€ 105B
€ 0.0B
€ 20.0B
€ 40.0B
€ 60.0B
€ 80.0B
€ 100.0B
2013 2014 2015 2016 2017 2018
26
27
Driven by a number of IPOs
Source: Dealroom.co
NAME ACQUIROR SELLER INDUSTRY LOCATION TRANSACTION EXIT VALUE
SpotifyMusic streaming software
--
Accel Partners, Goldman Sachs, Lakestar, Fidelity, GP
Bullhound…
Music Stockholm$ 9.2 b
IPO$ 29.5 b
AdyenLeading global payments company
--
Index VenturesFelicis VenturesGeneral Atlantic
…
Fintech Amsterdam$ 1.0 b
IPO$ 7.8 b
FarfetchOnline luxury fashion retail platform
--
Advent Venture Partnerse.ventures
Index Ventures…
Fashion London$ 855 m
IPO$ 5.8 b
Yoox Net-a-PorterGlobal Internet retailing partner for leading fashion & design brands
Richemont
360 Capital PartnersBalderton Capital
Net-a-PorterAlabbar Enterprises
Fashion Milan$ 3.0 b
ACQUISITION$ 5.5 b
Sky Betting & GamingLeading operators in the UK’s online betting and gaming market
The Stars GroupSky
CVC Capital Partners
GamingSports
Leeds$ 4.7 b
ACQUISITION$ 4.7 b
Avast SoftwareCybersecurity products for businesses and consumers
--Summit Partners
CVC Capital Partners Security Prague$ 192 m
IPO$ 3.1 b
ZooplaProperty website for the British residential market
Silver Lake Partners
Atlas VentureLocalGlobe
Octopus Investments…
Real Estate London$ 2.9 b
ACQUISITION$ 2.9 b
ElasticSelf-managed and SaaS software for search, security and analytics
--
BenchmarkData Collective
New Enterprise Associates…
Developer tools Amsterdam$ 252 m
IPO$ 2.5 b
SUSEProvider of an Enterprise Linux distribution software
EQT Partners Novell Developer tools Nuremberg$ 2.5 b
ACQUISITION$ 2.5 b
iZettleSecure and easy mobile payment solutions
PayPalCreandum, Index Ventures,
Intel Capital, Northzone, 83North
Payments Stockholm$ 2.2 b
ACQUISITION$ 2.2 b
28
The UK and Sweden were the biggest contributors to
European venture backed exits
Source: Dealroom.co
United Kingdom Germany France Sweden Spain Netherlands
€ 32B
€ 8B
€ 5B
€ 32B
€ 17B
–
5
10
15
20
25
30
35
–
€ 5B
€ 10B
€ 15B
€ 20B
€ 25B
€ 30B
€ 35B
'13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18 '13 '14 '15 '16 '17 '18
Total Firm Value Number of exits (>€50M)
blog.dealroom.co
Yoram Wijngaarde
Founder & CEO
Ivan Draganov
Research Analyst
For questions or feedback about this report, or to see how Dealroom can help you, please feel free to contact us.
Lotf Belych
Research Analyst
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