2016 European Venture Capital Report
January 2017
About this report About Dealroom.co ■
Founded in 2013 in Amsterdam, Dealroom has become Europe’s leading venture capital database, tracking over 500,000 high-growth companies and 10,000 investors in Europe and beyond
■
Dealroom provides a 360° view by combining research with big data and machine learning, plus contributions from over 10,000 local market experts
■
Customers (funds, corporates, banks, consultants) use its online tools and bespoke research to stay ahead of developments and for decision-support
10,000+ contributors (founders, VCs, …)
Automatic data feeds and web crawlers
Market insights from industry insiders and journalists
Analytics and growth signals on 500,000+ companies
Scope of this report ■
This report covers venture capital funding in Europe and Israel (including Russia and Turkey). Includes: angel & seed rounds, VC series, growth equity, converts
■
Excluded are: private equity buyouts, M&A, private placements, lending capital
■
Throughout this presentation, footnotes reference to relevant online resources found on https://app.dealroom.co
“verified open-data” model
Authors Yoram Wijngaarde (Founder & CEO) Formerly tech & media M&A at Lehman Brothers and NOAH Advisors Julien Puls (Data analyst & researcher) Formerly at CMB Capital Université Jean Moulin, Lyon
Special thanks to
for massive contributions to the data
Curation & research by Dealroom’s team Manually verify data and enrich content
Machine learning and natural language processing Predict company activity, identify growth trends
2
Contents 1.
Headline stats in Europe
2.
Identified trends and drivers
3.
Top verticals and business models
4.
Investment sources trends
5.
Overviews of top countries
6.
Outtakes: additional data
Record € 16.2B venture capital raised by European companies in 2016. Funding up 12%, rounds up 32% Amount raised (€ M)
2016 was a record year, despite peaking during first quarter
By comparison, venture capital funding in the U.S. declined about 10% (CB Insights/PitchBook) The chart shows top-8 rounds separately in grey and table below shows top-8 round in each year
Number of rounds 3,376 (+32%)
Funding grew 12% (or 11% when excluding top-8 megarounds)
Number of deals grew an impressive 32% over 2015 (an acceleration of pace versus previous year)
Top 8 rounds (€ M)
2,566
€ 16.2M (+12%)
€ 14.4M
2,120
Top-8 rounds
1,853 € 10.1M 1,290 € 4.2M
2012 Deezer (€ 118M) Conduit (€ 91M)
€ 4.9M
2013
2014
2015
2016
Spotify (€ 227M) Supercell (€ 118M)
Rocket Internet SE (€ 405M) Delivery Hero (€ 318M)
Delivery Hero (€ 496M) Spotify (€ 478M)
Spotify (€ 909M) Global Fashion Group (€ 330M)
Spotify (€ 91M)
Truphone (€ 107M)
Adyen (€ 227M)
Landbay (€ 300M)
Jumia (€ 300M)
CureVac (€ 80M) AVITO.ru (€ 68M) Agendia (€ 59M) Mimecast (€ 56M) Luxoft (€ 55M)
Powa Technologies (€ 69M) Mobli (€ 55M) Auris Medical (€ 46M) Ulmart (€ 46M) AVITO.ru (€ 46M)
Ozon (€ 136M) Gett (€ 136M) The Hut Group (€ 120M) borro (€ 102M) Adaptimmune (€ 95M)
FanDuel (€ 250M) Zencap (€ 230M) BlaBlaCar (€ 182M) Kreditech (€ 182M) Global Fashion Group (€ 150M)
Gett (€ 273M) Deliveroo (€ 250M) OVH (€ 250M) Payoneer (€ 164M) Skyscanner (€ 154M)
Source: Dealroom.co. Includes Israel. Excludes private equity, M&A and buyouts. More data on: https://app.dealroom.co/markets/countries/funding
Top-8 rounds
4
Q4: €3.8 billion raised by European companies. Number of rounds in Q4 were second highest ever Amount raised (€ M)
Top 8 rounds (€ M)
Number of rounds during Q4 were close to an all-time high.
Number of rounds
883
636 499
467
498
544
561
530
€ 3,618M
485
€ 3,552M
648 561
786
721 € 4,627M
€ 4,310M
€ 3,848M
871
836
€ 4,238M € 3,535M
€ 3,513M
€ 3,799M
389 € 2,478M € 2,116M
€ 2,015M
Funding peaked during Q1, in € terms.
€ 1,569M
€ 1,331M
€ 1,118M
€ 888M
Q4 ranks as #5 highest quarter ever.
Top-8 rounds
Q1
Q2
Q3
Q4
Q1
2013
Top-8 rounds
Truphone € 107M AVITO.ru € 46M Hybris € 27M 3V € 23M Game Insight € 23M Ostrovok € 23M Farfetch € 18M NewVoiceMedia € 18M
Supercell € 118M Auris Medical € 46M Ulmart € 46M Symphogen € 41M NumberFour € 35M Opsona € 33M GenSight € 32M ResearchGate € 32M
Powa € 69M Shazam € 36M Evotec € 36M Crocus € 34M NewVoiceMedia € 32M Delivery Hero € 27M WiThings € 27M ObsEva € 26M
Q2
Q3
Q4
Q1
2014 Spotify € 227M Mobli € 55M Arria NLG € 37M ADC € 36M Funding Circle € 34M Wilocity € 32M Merus € 31M Biocartis € 30M
Klarna € 90M Delivery Hero € 80M NovImmune € 60M SoundCloud € 55M Hoccer € 50M Avantium € 46M Hailo € 46M Kaltura € 43M
Ozon € 136M Takeaway € 94M Delivery Hero € 77M Sarenza € 74M Westwing € 72M Farfetch € 60M iZettle € 50M HelloFresh € 46M
Rocket € 405M Delivery Hero € 318M Gett € 136M The Hut Group € 120M Adaptimmune € 95M BlaBlaCar € 91M ironSource € 77M Biocartis € 65M
Q2
Q3
Q4
Q1
Q2
2015 Adyen € 227M Powa € 73M Blue Yonder € 68M Cell Medica € 60M Truecaller € 55M Ascendis € 55M Huddle € 46M StoreDot € 46M
Delivery Hero € 496M HelloFresh € 110M SIGFOX € 105M Foodpanda € 104M WorldRemit € 91M Verne Global € 89M Farfetch € 78M TransferWise € 53M
Spotify € 478M INFINIDAT € 136M Funding Circle € 136M Home24 € 120M Auto1 Group € 107M Delivery Hero € 100M Foodpanda € 91M Wallapop € 91M
FanDuel € 250M BlaBlaCar € 182M GFG € 150M Reward Gtwy € 144M Letgo € 91M Prodigy € 91M CeQur € 91M Kreditech € 83M
Q3
Q4
OVH € 250M Deliveroo € 250M OurCrowd € 66M Sabio € 60M Darktrace € 58M LINKBYNET € 50M Jumia € 50M Silent Circle € 46M
Payoneer € 164M SIGFOX € 150M Devialet € 100M Gett € 91M Voyager Labs € 91M Carrick € 86M HelloFresh € 85M Sonnenbatterie € 77M
2016 CureVac € 100M Atom Bank € 98M Deliveroo € 91M Ebury € 76M Symphogen € 68M ObsEva € 55M Cybereason € 54M TransferWise € 53M
Spotify € 909M Jumia € 300M Skyscanner € 154M Cool Blue € 140M Deezer € 100M MindMaze € 91M Starling Bank € 58M WISeKey € 55M
Source: Dealroom.co. Note: blue font indicates biotech. Excludes private equity, M&A and buyouts. More data on: https://app.dealroom.co/markets/countries/funding
GFG € 330M Gett € 273M Cabify € 109M Farfetch € 100M Letgo € 91M SoundCloud € 87M Jumia € 75M SIRIN Labs € 66M
5
Slowdown in UK and Germany, but strong growth across most parts of Europe Decline in UK and Germany (Europe’s most mature VC markets)
Amount raised (€ billion)
UK funding is down €0.6B, or 16%
Rocket Internet (a key driver for Germany) did fewer big rounds in 2016 (Jumia in France).
€ 3.2B € 2.9B
545
€ 1.5B
Spotify is a big driver in Sweden, but number of rounds also rose to level close to Germany’s.
€ 0.6B € 245 0.6B
288
353
€ 1.0B
380
165
€ 0.5B
118
2012 2013 2014 2015 2016 Germany
€ 0.6B
167
€ 0.8B
180
243
€ 0.5B € 0.5B
88
2012 2013 2014 2015 2016 France
€ 2.4B
725
€ 1.6B
590 € 1.2B
410
United Kingdom
1,021
€ 2.7B
€ 1.8B
520
2012 2013 2014 2015 2016
€ 3.4B
€ 2.7B
644 542
1,289
France has highest number of rounds this year: 590
€ 2.0B
€ 2.0B
€ 1.3B € 1.3B
Growth mostly driven by Switzerland, Norway, Finland, Spain, Italy, Ireland, Belgium and parts of Central & Eastern Europe (see next slide).
Number of rounds
€ 4.0B
€ 3.8B € 3.2B
Remainder of Europe is catching up rapidly across a very distributed group of countries. Israel continued strong growth
132
241 166
€ 1.6B
€452 1.1B
€ 0.5B
231 € 0.2B
57
2012 2013 2014 2015 2016
366
760
€ 0.3B
42
163 82
2012 2013 2014 2015 2016
Israel
Source: Dealroom.co. Includes Israel. Excludes private equity, M&A and buyouts. More data on: https://app.dealroom.co/markets/countries/funding
Sweden
2012 2013 2014 2015 2016 Other
6
Growth in most parts of the rest of Europe, as local funding options have generally expanded Rest of Europe
€ 812M
€ 623M
€ 611M
€ 590M
€ 4.0B
€ 528M € 403M€ 403M € 336M € 278M
€ 326M 201
€ 148M
98
87 24
43
132 104 € 144M € 114M
185
172
147
42
2012 2013 2014 2015 2016
Switzerland
2012 2013 2014 2015 2016
Spain
56
43
€ 228M € 176M
39
€ 217M € 147M € 114M
96 € 69M 36
2012 2013 2014 2015 2016
Netherlands
€ 3.4B
€ 242M
€ 167M 113
34
2012 2013 2014 2015 2016
€ 295M
€ 102M € 96M 83
45
€ 324M
154
129
1,289
€ 367M
€ 364M € 328M € 271M
61
68
73
€ 48M 37
2012 2013 2014 2015 2016
Russia
Finland
49
1,021
62 31
29
2012 2013 2014 2015 2016
€ 2.4B
Ireland
725 Amount raised (€ billion)
Number of rounds
€ 321M
€ 1.6B
452
€ 244M
€ 1.1B
€ 210M € 162M
65 35
2012 2013 2014 2015 2016 Denmark
€ 29M € 31M 17
17
€ 83M
€ 66M € 66M € 67M
€ 60M
112 32
€ 99M
€ 98M
€ 97M € 78M
28
€ 156M
€ 141M
€ 131M
760
56
75
72
29
2012 2013 2014 2015 2016 Belgium
Source: Dealroom.co.
81
76
€ 24M € 26M € 6M
39 2012 2013 2014 2015 2016 Italy
€ 81M
95 61
24 14 12 2 2012 2013 2014 2015 2016 Norway
€ 7M 18
€ 29M
€ 24M € 20M 12
13
20
26
2012 2013 2014 2015 2016 Austria
€ 3M € 6M € 10M 9 7 7
20
€ 44M 27
2012
2013
2014
2015
2016
2012 2013 2014 2015 2016 Portugal
Other
7
Contents 1.
Introduction: headline stats in Europe
2.
Insights: understanding the key trends and drivers
3.
Top verticals and business models
4.
Investment sources trends
5.
Overviews of top countries
6.
Outtakes: additional data
43% drop in B2C funding in Germany & UK. Many B2C markets adequately funded, focus on execution. B2B
B2C
(UK & Germany only)
(UK & Germany only)
UK Amount raised (€ billion)
Germany Amount raised (€ billion)
43% drop: many B2C opportunities (e.g. food, home services) have simply been adequately funded. Now focus is on execution. Still, many B2C markets very VC-active (e.g. banking, IOT, AR/VR, …).
Number of rounds
€ 4.6B 497 431
423
413
366 277
359 € 2.2B € 0.4B
€ 1.0B
€ 1.0B
€ 0.2B
€ 0.3B
€ 0.7B
€ 0.7B
2012
2013
€ 1.8B
2014
€ 2.4B € 0.8B
€ 1.6B
2015
Business
€ 2.6B € 2.2B
2016
406
255
€ 2.6B 336 € 1.3B
€ 1.6B
€ 0.6B
€ 1.6B
€ 2.4B
€ 0.8B
€ 0.8B
€ 0.3B
€ 0.3B
€ 0.5B
€ 0.5B
2012
2013
€ 2.2B € 1.3B
€ 1.1B
2014
2015
2016
Consumer
Source: Dealroom.co. More info: https://app.dealroom.co/funding-rounds/f/locations/anyof_Germany_United%20Kingdom
9
2016 saw largest ever European cohort of early stage startups funded. Later stage rounds slowed down Early stage: strong pipeline
Later stage € 6.3B
Growth is mainly driven by early stage & mid stage rounds
1,748
€ 5.4B
1,301
€ 4.0B
€ 3.8B
967
621
€ 1.7B € 0.9B 245
€ 0.5B € 0.6B
2013
2014
2015
Angel & Seed
2016
879
2012
317
2013
€ 1.1B
378
2014
€ 2.7B
567
€ 1.3B
€ 1.2B € 0.9B
2012
€ 3.8B
€ 3.7B
996 € 2.7B
€ 0.3B
Slowing down of mega rounds, but number of rounds still growing .
2015
Series A / Early VC
2016
€ 1.5B
€ 1.4B
104
129
2012
2013
390 € 1.1B
173 2014
215
2015
60
50
89
2012
2013
2014
Series B, C
Amount raised (€ billion)
260
266
2016
484 € 1.7B € 1.6B € 1.4B
178
198
€ 0.4B
2015
2016
2012
Series D+
€ 0.6B
2013
2014
305
285
2015
2016
Other
Number of rounds
Source: Dealroom.co. More info: https://app.dealroom.co/funding-rounds/f/rounds/anyof_SEED_SERIES%20A_SERIES%20B_SERIES%20C
10
However, fewer startups (%) are reaching the next funding round stage (which should be expected) % of startups reaching next funding round
2009 cohort
2010 cohort
2011 cohort
2012 cohort
2013 cohort
100% 90%
COHORT 2009 2010 2011 2012 2013
80% 70% 60% 50% 40% 30% 20%
About 20-30% of seeded companies also do series-A round. Thereafter, follow-on rate is about half for each stage
SEED 100% 100% 100% 100% 100%
SERIES A SERIES B SERIES C SERIES D 33% 16% 7% 4% 31% 16% 9% 5% 22% 12% 3% 22% 9% 21% 8%
Recent years saw more European than ever startups, but a smaller proportion reaching the next funding round stage This is likely due to a combination of increased competition and higher risk appetite by VCs Not reaching series-A does not necessarily equal failure. Reasons may be that company became profitable Especially beyond series-A/B companies often do not need additional funding
31%
16%
21%
9%
10%
5%
8%
– Seed
Series A
Series B
Series C
Series D
Note: the average time between rounds is roughly 18 months. Therefore, it takes an average of nearly three years to move from Seed to Series B. For this reason, the data only includes cohorts from 2013 and earlier.
Source: Dealroom.co.
11
Round sizes have come back down in 2016, which indicates that valuations have probably as well Seed rounds
Series A rounds Average
Average
€ 0.7M
Median
€ 0.7M
€ 5.0M
€ 5.4M
€ 4.5M
€ 0.6M € 0.5M
€ 5.7M
Median
€ 0.5M
€ 3.7M € 3.6M
€ 3.6M
€ 3.6M
2014
2015
2016
€ 0.4M € 0.3M
€ 2.5M
€ 2.5M
2012
2013
€ 0.3M € 0.2M € 0.1M
2012
2013
2014
2015
2016
Series B rounds
Series C rounds Average
Average € 13.5M
Median
€ 13.4M € 11.8M
€ 9.2M € 10.0M € 8.2M € 5.9M
2012
2013
€ 23.1M € 21.1M
€ 15.9M
€ 7.8M
€ 5.6M
€ 26.3M
Median
2014
Source: Dealroom.co.
2015
€ 13.5M
€ 9.1M
2016
€ 19.1M
€ 18.2M
2015
2016
€ 17.0M € 10.9M
€ 10.0M
2012
2013
2014
12
Contents 1.
Introduction: headline stats in Europe
2.
Insights: understanding the key trends and drivers
3.
Top verticals and business models
4.
Investment sources trends
5.
Overviews of top countries
6.
Outtakes: additional data
VCs are allocating more capital to B2B models, after being more B2C focused during 2014-2015 B2B overweight
€ 2.7B
B2C Models
B2C overweight
B2B Models
€ 2.3B € 2.2B € 2.0B€ 2.0B
€ 1.9B € 1.8B
€ 1.4B
€ 0.6B
€ 0.5B € 0.4B € 0.3B
Q1
€ 0.4B
Q2
Q3
€ 1.4B
€ 1.2B € 1.1B
€ 0.9B
€ 0.8B€ 0.8B € 0.6B€ 0.6B
€ 1.4B
€ 1.3B
€ 0.9B € 0.9B € 0.7B € 0.6B
€ 1.7B
€ 1.7B
€ 1.2B
€ 0.7B
€ 1.8B
€ 1.8B
€ 1.8B
Historically, a remarkably equal allocation between B2B and B2C. Capital invested from 2012 to 2016: € 23.2B into B2C €23.9B into B2B
€ 2.0B
€ 0.7B
€ 0.6B € 0.5B
€ 0.4B € 0.4B
Q4
Q1
2012
Q2
Q3
2013
Source: Dealroom.co.
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
2015
Q4
Q1
Q2
Q3
Q4
2016
14
Getting to Europe’s online consumers has become even more competitive. Differentiation remains key Consumer verticals (€M funding) Wellness
€ 7,137M
Consumer angles (€M funding) € 7,276M
€ 7,137M
Deal comparison
Gaming 1,424
Healthcare Financial
263 377
Travel Music Fashion Food
€ 2,285M € 1,971M
€ 4,552M
605
530
458
503
2012
2013
1,401
€ 4,552M
2,609
691
1,044
683
355 225
612
225
918
1,205
1,371
2015
1,449
1,327
803
2,163
€ 2,285M
581 763
2014
Subscription eCommerce
€ 1,971M
140
323 242
Manufacturing
636
601 36 322 136 209 127 196 304 216 139
398 255
903
82 185 343
568
772
Marketplace 178 235 319
€ 7,276M 578
850
Home
442 7 114 135 98 62 225 322
Other
1,193
297 198 367 153 433
757
483
110 312 273
429
408
1,275
522
425
2012
2013
991
2016
Source: Dealroom.co. More info: https://app.dealroom.co/markets/industries/funding
2014
1,200
1,497
2015
1,833
2016
15
Small businesses & enterprises, and deep tech talent are the two other European battles heating further B2B verticals (€M funding)
Deep tech(1) (€M funding)
Other € 7,871M
Security
Internet of things Artificial Intelligence
Semiconductors Jobs
€ 6,652M
1,320
Marketing
327
Financial
640
Healthcare
188
247
934
932
€ 4,782M
Software
VR / AR € 2,032M
Drones / Aerospace 792
Other € 1,682M
238
685 357 90
443
915
705 1,086
192
815 1,352
€ 2,494M € 2,052M 269 120 113 460
346 95 188 439 438
478
625
2012
2013
€ 762M
52 125
429
512
609
1,038
€ 527M 504
341
256 352
1,209
2,215
2,149
1,285
2014
2015
2016
€ 225M
294
123 41 5 29 27
59 1 106 66
2012
2013
41 3 212
550 288
77
2014
2015
2016
1. more information: https://app.dealroom.co/companies/f/tags/deep%20tech Source: Dealroom.co.
16
Europe’s high-growth industries: funding heatmap Capital invested (€ millions) Market vertical
Number of rounds
2012
2013
2014
2015
2016
TOTAL
2016 Q1 2016 Q2 2016 Q3 2016 Q4
2012
2013
2014
2015
2016
Enterprise software
522
650
1,335
2,261
2,207
6,974
654
587
432
534
Enterprise software
213
326
429
515
653
Financial
341
490
1,396
1,741
1,995
5,963
566
504
373
Healthcare
483
655
1,013
1,869
1,842
5,862
223
639
Food
242
144
1,222
1,391
1,048
4,048
396
Music
323
306
143
608
1,340
2,719
Fashion
323
219
925
783
1,224
Transportation
199
187
530
843
Travel
240
206
627
Security
127
127
Energy
23
Home
TOTAL 2,136
2016 Q1 2016 Q2 2016 Q3 2016 Q4 219
155
144
135
552
Financial
124
179
256
293
426
1,278
125
100
95
106
355
625
Healthcare
72
115
123
207
330
847
65
95
70
100
130
351
171
Food
41
66
104
109
163
483
49
40
36
38
1,053
147
28
112
Music
33
48
29
44
44
198
13
11
9
11
3,474
356
578
187
103
Fashion
64
104
109
120
147
544
30
37
41
39
1,373
3,132
166
568
224
414
Transportation
41
66
121
164
248
640
65
55
65
63
673
1,132
2,878
291
498
104
239
Travel
84
103
127
139
173
626
54
45
34
40
411
674
918
2,257
237
320
281
80
Security
41
53
69
100
132
395
35
42
33
22
31
381
275
513
1,222
97
113
123
180
Energy
11
26
20
32
106
195
29
21
23
33
152
152
364
642
553
1,862
195
98
103
156
Home
32
45
55
79
116
327
26
30
23
37
Hosting
51
54
92
28
322
547
–
–
300
22
Hosting
9
9
9
6
12
45
1
–
6
5
Jobs / recruitment
12
41
48
153
285
539
80
81
61
62
Jobs / recruitment
26
33
39
67
115
280
24
34
29
28
Gaming
119
343
214
411
266
1,353
104
46
69
48
68
44
67
92
318
19
23
29
21
Gaming
47
Education
38
58
193
179
253
721
137
49
30
37
Education
39
69
57
76
98
339
27
27
18
26
Real estate
152
58
111
117
229
667
121
55
41
12
Real estate
17
16
40
51
73
197
22
26
17
8
Wellness
7
57
111
419
195
788
50
49
56
40
Wellness
15
37
50
74
55
231
14
17
17
7
Sports
54
51
152
489
190
936
96
39
32
24
Sports
17
26
32
51
93
219
33
26
25
9
Events
22
42
99
119
65
348
7
5
24
29
Events
21
32
32
30
49
164
10
14
10
15
48
27
Dating
0
0
9
31
8
Horizontals & other (overlap)
755
1,036
696
677
220
TOTAL
4,184
4,906
10,072
14,382
16,177
Angle / problem solve
3 (205) 4,627
5 (273) 4,238
–
–
Dating
1
7
6
9
4
3
1
–
–
339
359
Horizontals & other (overlap)
342
425
369
333
247
20
37
62
128
3,513
3,799
TOTAL
1,290
1,853
2,120
2,566
3,376
883
836
786
871
2012
2013
2014
2015
2016
TOTAL
2012
2013
2014
2015
2016
Enterprise software
522
650
1,335
2,261
2,207
6,974
654
587
432
534
Enterprise software
213
326
429
515
653
2,136
219
155
144
135
Deep tech
225
527
762
1,682
2,032
5,228
757
439
322
513
Deep tech
76
169
238
362
398
1,243
113
107
87
91
Marketplace
397
380
1,646
2,973
1,842
7,238
267
749
579
247
Marketplace
116
172
245
279
389
1,201
91
115
107
76
Marketing
466
460
833
962
1,051
3,772
303
205
317
227
Marketing
139
183
220
258
345
1,145
91
75
91
88
Internet of things
57
91
111
498
862
1,619
139
246
43
434
Internet of things
14
37
82
127
186
446
42
54
29
61
Content
287
432
349
695
668
2,430
127
124
188
230
Content
124
177
174
199
235
909
61
67
49
58
Deal comparison
204
126
254
360
505
1,448
293
100
77
36
Deal comparison
50
75
72
80
93
370
25
24
25
19
Directories
201
113
856
1,307
451
2,928
17
56
293
85
Directories
39
47
73
63
84
306
16
22
18
28
Semiconductors
113
188
90
188
258
837
44
42
90
82
Semiconductors
12
20
13
24
34
103
6
9
9
10
Consumer productivity
13
66
145
67
225
516
75
69
66
15
Consumer productivity
14
29
53
65
86
247
19
34
25
8
Other (overlap)
1,699
1,874
3,692
3,389
6,077
1,952
1,622
1,106
1,397
Other (overlap)
493
618
521
594
873
200
174
202
297
TOTAL
4,184
4,906
10,072
14,382
16,177
4,627
4,238
3,513
3,799
TOTAL
1,290
1,853
2,120
2,566
3,376
883
836
786
871
Revenue source
2016 Q1 2016 Q2 2016 Q3 2016 Q4
2016 Q1 2016 Q2 2016 Q3 2016 Q4
2012
2013
2014
2015
2016
TOTAL
2012
2013
2014
2015
2016
TOTAL
Subscription
1,302
1,681
3,228
4,871
5,761
16,843
2,516
1,192
1,146
907
Subscription
461
667
813
986
1,050
3,977
322
280
210
238
Commission
1,116
869
3,366
4,492
3,632
13,476
904
1,254
840
635
Commission
295
400
558
571
733
2,557
209
226
142
156
Manufacturing
709
1,058
1,728
2,709
3,049
9,254
521
913
497
1,118
Manufacturing
113
199
226
348
518
1,404
120
128
112
158
eCommerce
538
447
1,307
1,569
2,170
6,030
697
855
353
264
eCommerce
136
210
208
250
344
1,148
110
99
72
63
Freemium
606
827
594
1,280
1,795
5,102
1,318
196
185
96
Freemium
138
184
212
254
175
963
63
42
39
31
Classified listing
176
157
349
766
379
1,827
75
214
58
32
Classified listing
36
59
84
101
74
354
23
26
14
Advertising
178
224
290
339
174
1,206
31
73
40
30
Advertising
79
109
96
95
84
463
31
24
17
12
(443)
(358)
(789)
(458)
393
718
Other (overlap)
32
25
(77)
(39)
398
5
11
180
202
3,513
3,799
TOTAL
1,290
1,853
2,120
2,566
3,376
883
836
786
871
Other (overlap) TOTAL
End-user focus
(1,645)
(783)
4,184
4,906
10,072
14,382
16,177
2016 Q1 2016 Q2 2016 Q3 2016 Q4
TOTAL
(1,435) 4,627
4,238
2016 Q1 2016 Q2 2016 Q3 2016 Q4
2016 Q1 2016 Q2 2016 Q3 2016 Q4
11
2012
2013
2014
2015
2016
TOTAL
2012
2013
2014
2015
2016
TOTAL
Consumer
1,971
2,285
4,552
7,137
7,276
23,221
2,686
2,159
1,130
1,301
Consumer
573
840
906
1,070
1,295
4,684
346
361
277
311
Business
2,052
2,494
4,782
6,652
7,871
23,851
1,704
1,847
1,974
2,347
Business
622
877
1,010
1,272
1,762
5,543
469
405
415
473
Other
161
127
738
593
1,030
237
232
409
152
Other
95
136
204
224
319
68
70
94
87
TOTAL
4,184
4,906
10,072
14,382
16,177
4,627
4,238
3,513
3,799
TOTAL
1,290
1,853
2,120
2,566
3,376
883
836
786
871
Source: Dealroom.co. More info https://app.dealroom.co/markets/cities/funding
2016 Q1 2016 Q2 2016 Q3 2016 Q4
17
Europe by city: a diversified group of tech hubs Capital invested 2012-2016 (€ millions) Market vertical
London
Paris
Tel Aviv-YafoBerlin
Stockholm AmsterdamBarcelona Madrid
Dublin
Number of rounds 2012-2016
Helsinki
Moscow
Zurich
Geneva
London
Paris
Tel Aviv-YafoBerlin
Stockholm AmsterdamBarcelona Madrid
Helsinki
Moscow
Enterprise software
1,544
399
690
396
130
193
137
16
239
40
15
19
86
Enterprise software
462
141
130
130
64
111
54
38
Dublin 62
36
16
Zurich 15
Geneva
Financial
2,331
358
239
366
643
275
51
71
54
11
12
122
–
Financial
349
108
49
87
83
40
34
21
22
20
12
8
–
Healthcare
458
433
93
36
206
114
69
14
215
81
6
99
73
Healthcare
72
58
14
22
29
21
22
5
21
19
5
11
3
14
Food
856
516
19
2,384
33
109
19
20
4
13
19
1
–
Food
104
64
10
80
12
6
12
20
4
6
9
4
–
Music
281
413
14
245
1,917
1
7
2
14
3
23
4
8
Music
56
28
6
29
29
3
2
3
7
4
3
2
5 –
Fashion
720
673
16
656
68
6
59
15
–
32
74
–
–
Fashion
142
67
11
50
30
14
15
25
1
8
7
–
Transportation
229
583
633
432
32
22
20
169
95
28
263
–
–
Transportation
75
63
25
63
18
14
18
24
6
6
20
–
–
Travel
651
513
566
436
1
53
50
145
11
7
151
2
–
Travel
126
81
11
74
2
24
38
24
10
6
30
3
1
Security
163
94
764
66
30
188
105
13
85
6
3
9
121
Security
54
23
90
14
12
5
7
5
15
3
5
4
5
Energy
292
64
–
77
21
121
5
1
33
16
–
–
–
Energy
18
12
–
8
8
10
2
3
8
4
–
–
–
Home
191
210
7
449
25
16
7
–
13
2
249
–
–
Home
49
38
5
65
14
8
13
1
2
6
6
–
–
Hosting
107
5
–
26
–
3
–
–
–
27
–
–
–
Hosting
12
1
–
3
–
2
–
–
–
3
–
–
–
Jobs / recruitment
169
64
4
25
5
2
40
86
8
4
–
23
–
Jobs / recruitment
66
22
2
25
12
10
18
14
3
13
–
3
–
Gaming
297
62
44
97
119
23
48
19
4
233
6
–
–
Gaming
74
22
13
35
35
5
11
17
5
42
2
1
–
Education
155
48
10
76
13
9
14
1
1
7
264
4
–
Education
96
36
4
45
15
19
4
8
2
4
12
3
–
Real estate
313
35
–
74
1
–
7
7
2
–
166
2
–
Real estate
73
22
–
13
3
2
14
2
3
–
6
5
–
Wellness
456
38
1
47
23
4
12
25
17
30
2
11
–
Wellness
56
9
1
27
12
8
11
6
3
8
3
4
–
Sports
104
37
49
30
2
1
1
1
8
3
1
2
–
Sports
33
9
9
4
5
3
6
1
6
5
1
1
–
Events
197
15
14
90
2
5
0
55
2
1
8
0
–
Events
55
19
9
19
1
6
1
16
5
3
7
1
–
Dating
10
22
–
0
–
–
–
0
–
–
–
–
–
Dating
12
6
–
4
–
–
–
1
–
–
–
–
–
Horizontals & other (overlap)
1,799
408
16
445
89
387
54
229
169
(222)
90
12
Horizontals & other (overlap)
505
316
117
177
117
61
36
87
49
49
46
30
4
TOTAL
11,324
4,990
3,179
3,717
1,234
1,038
714
1,034
713
1,040
388
301
TOTAL
2,489
1,145
506
974
501
372
318
321
234
245
190
95
32
Angle / problem solve
London
5,720
Helsinki
Moscow
Helsinki
Moscow
Enterprise software
1,544
399
690
396
130
193
137
16
239
40
15
19
86
Enterprise software
462
141
130
130
64
111
54
38
62
36
16
15
14
Deep tech
743
253
589
200
97
103
11
11
102
26
8
25
–
Deep tech
226
69
101
73
33
39
16
20
26
14
6
13
–
Marketplace
2,140
616
647
2,302
50
139
416
143
15
32
56
27
–
Marketplace
286
128
42
157
29
37
75
55
8
16
21
11
–
Marketing
1,390
720
433
274
122
73
21
10
80
103
11
3
11
Marketing
299
150
79
113
47
44
27
20
21
18
14
8
2
Internet of things
55
103
131
58
50
3
1
2
33
–
–
22
–
Internet of things
31
21
22
26
30
9
4
7
6
–
–
10
1
Content
658
437
410
160
156
27
18
20
42
15
58
67
–
Content
260
123
78
83
63
48
17
17
24
20
9
13
–
Deal comparison
449
101
51
121
39
50
79
37
26
13
51
3
–
Deal comparison
85
34
7
42
14
21
19
23
8
11
15
4
–
Directories
805
67
1
1,697
9
128
18
54
1
42
24
4
–
Directories
69
28
1
53
10
21
14
28
1
11
9
5
–
Semiconductors
4
25
20
7
6
2
2
–
108
39
–
–
–
Semiconductors
2
6
4
2
2
1
2
–
18
5
–
5
–
Consumer productivity
129
65
44
78
48
15
–
12
5
18
0
4
–
Consumer productivity
41
20
21
20
14
8
1
8
7
11
4
2
–
Other (overlap)
3,407
2,203
162
427
3,010
501
336
408
384
385
816
215
203
Other (overlap)
728
425
21
275
195
33
89
105
53
103
96
9
15
TOTAL
11,324
4,990
3,179
5,720
3,717
1,234
1,038
714
1,034
713
1,040
388
301
TOTAL
2,489
1,145
506
974
501
372
318
321
234
245
190
95
32
Revenue source
London
Paris
(286)
Tel Aviv-YafoBerlin
Helsinki
Moscow
Helsinki
Moscow
121
135
161
215
Subscription
922
365
286
304
166
215
95
77
108
83
46
32
11
Commission
4,234
1,267
965
2,640
645
473
472
294
68
137
384
131
–
Commission
703
306
80
291
104
93
112
92
33
42
42
11
4
Manufacturing
852
809
238
304
295
144
65
29
225
154
12
126
73
Manufacturing
90
100
31
58
47
31
19
8
33
28
10
22
4
eCommerce
1,006
866
42
1,196
129
29
303
20
18
6
335
10
–
eCommerce
222
115
21
153
46
24
42
48
7
15
20
3
–
Freemium
790
327
391
461
2,144
51
90
64
10
209
182
11
8
Freemium
287
66
76
101
60
56
27
36
13
38
14
11
5
Classified listing
496
133
3
394
10
4
383
91
3
1
237
1
–
Classified listing
99
39
3
55
11
8
37
15
2
2
12
2
–
Advertising
544
287
89
104
81
50
19
13
26
39
52
9
–
Advertising
168
74
22
55
34
18
18
7
15
12
7
8
–
(605)
(691)
(137)
(675)
(3)
(573)
103
195
46
(297)
(61)
4
Other (overlap)
80
(13)
(43)
33
(73)
(32)
38
23
25
39
6
8
714
1,034
713
1,040
301
TOTAL
506
974
501
372
318
321
234
245
190
95
32
End-user focus
London
Paris
Tel Aviv-YafoBerlin
1,038
Stockholm AmsterdamBarcelona Madrid
Dublin
388 Zurich
London
1,145 Paris
Tel Aviv-YafoBerlin
Stockholm AmsterdamBarcelona Madrid
Dublin
Zurich
Geneva
Helsinki
Moscow
Helsinki
Moscow
Consumer
4,816
2,382
1,042
4,624
2,573
324
562
313
138
316
775
106
82
Consumer
1,094
490
153
537
235
139
141
156
68
89
108
34
10
Business
5,487
2,295
2,072
1,024
995
861
404
311
869
342
151
277
216
Business
1,159
575
333
385
213
200
142
143
155
103
52
56
20
Other
1,021
313
65
72
149
50
72
90
27
55
114
5
2
Other
236
80
20
52
53
33
35
22
11
53
30
5
2
TOTAL
11,324
4,990
3,179
5,720
3,717
1,234
1,038
714
1,034
713
1,040
388
301
TOTAL
2,489
1,145
506
974
501
372
318
321
234
245
190
95
32
Source: Dealroom.co. More info: https://app.dealroom.co/markets/cities/overview
Geneva
2,489
Dublin
Geneva
489
1,234
Stockholm AmsterdamBarcelona Madrid
Zurich
99
(2)
Tel Aviv-YafoBerlin
Dublin
278
3,717
Paris
Stockholm AmsterdamBarcelona Madrid
486
5,720
London
Tel Aviv-YafoBerlin
2,320
3,179
Geneva
Paris
1,296
4,990
Zurich
London
1,587
(1,907)
Dublin
Geneva
1,993
11,324
Stockholm AmsterdamBarcelona Madrid
Zurich
4,007
TOTAL
Tel Aviv-YafoBerlin
Dublin
Subscription
Other (overlap)
Paris
Stockholm AmsterdamBarcelona Madrid
Zurich
Geneva
18
Contents 1.
Introduction: headline stats in Europe
2.
Insights: understanding the key trends and drivers
3.
Top verticals and business models
4.
Investment sources trends
5.
Overviews of top countries
6.
Outtakes: additional data
€8.4 billion (1) in new capital raised by European VCs in 2016 (+33%) which may fuel 2017 and beyond 33% growth in new capital raised by European VCs
U.S. funds contribute roughly 20-25% of total capital to European companies. This % share has been stable in recent years.
Growth funds increasingly participate in large venture rounds
Corporate investing is rapidly on the increase (see next slide)
Combined with existing funds, more than enough to support investment levels similar to or higher than 2016 of €16.2 billion
Y
€ 16B+
Corporate investing
Company funding
X
~ € 4B
€ 8.4B € 6.3B
2015
2016
Capital raised by European funds
1. Source: Yannick Roux, Atomico, InvestEurope.
U.S. Funds
Growth funds
Other sources
(= uses of funds)
20
Corporate investment activity continued its rise, both via corporate venturing and balance sheet investing Corporate investing by € amount funded (1)
Corporate investing by number of rounds
Corporate venture fund
Corporate venture fund Corporate direct
€ 4.9B 12.2%
545 30% of corporate investors are U.S. based (while only 13% of fund investors are U.S. based). The share of European corporate deals is rapidly increasing though.
7.5% 314 5.6%
€ 3.7B 15.1%
16.0% 13.4%
€ 1.3B
160 104
€ 0.6B
69
2012
2013
25.4%
% of total European rounds
% of total European rounds
5.3%
30.0%
Corporate direct
16.1%
2014
2015
2016
2012
€ 0.8B
2013
2014
2015
2016
1. Total gross amount raised in rounds with corporate involvement.
Source: Dealroom.co. Rocket Internet is not counted here as corporate investor. More info: https://app.dealroom.co/investors/f/investor_type/anyof_corporate%20venture%20fund_corporate
21
About 25% of venture capital is sourced from U.S. based funds, mainly in later rounds U.S. investment into Europe by number of rounds
U.S. investment into Europe by amount
Number of rounds
Estimated amount raised from U.S. (€M)
% of total European rounds
12.7%
12.9%
% of total European funding
€ 3.6B
436 24.4% 10.9% 9.4%
326
8.8%
Roughly 13% of rounds now have U.S. fund involvement.
22.3%
19.3% 17.4%
€ 2.5B U.S. investors contribute around 25% of funds (1).
For corporate rounds, this % is now about 30%.
231
€ 3.2B 22.6%
163 121
2012
2013
2014
2015
2016
€ 0.8B
€ 0.9B
2012
2013
Online resources: https://app.dealroom.co/investors/f/country_experience/Europe/locations/United%20States Source: Dealroom.co. 1) Assumes rounds with multiple investors are qually allocated. Based on investor HQ location.
2014
2015
2016
22
2016 European investor heatmap Verticals Number of rounds
Enterprise
Financial
Healthcare
Food
Music
Fashion
Transport
Angle
Travel
Security
Energy
Home
Jobs
Gaming
Education Real estate
Wellness
Sports
Mktplace
Marketing eCommerce Deep Tech
Total IoT
Content
Comparison Directories
Rounds
(€ millions)
Bpifrance
13
4
10
9
2
3
7
9
–
2
7
1
1
4
4
–
4
13
14
9
6
5
6
2
2
94
€ 647M
IDInvest Partners
4
3
1
1
–
–
3
1
–
–
–
–
–
–
–
–
–
1
2
1
–
1
1
1
–
17
€ 358M
Index Ventures
3
5
2
2
2
1
3
1
–
–
–
–
2
–
1
1
–
5
1
4
–
–
2
–
–
23
€ 350M
Salesforce Ventures
5
2
–
–
–
–
1
–
–
–
–
–
–
–
–
–
–
–
6
–
4
2
–
–
–
13
€ 269M
e.ventures
1
7
1
1
–
1
–
–
2
–
–
1
–
1
3
–
–
2
–
2
2
2
1
–
–
16
€ 260M
Intel Capital
5
–
–
–
–
–
2
–
–
–
1
–
–
–
–
–
1
–
–
–
5
3
2
–
–
13
€ 260M
Accel Partners
6
3
–
–
–
–
1
–
1
–
1
2
–
–
–
–
–
4
1
1
2
–
–
1
–
13
€ 258M
Bessemer Venture Partners
5
1
1
–
–
–
2
–
3
–
–
1
–
–
–
–
–
1
3
–
3
2
1
–
–
16
€ 227M
HV Holtzbrinck Ventures
–
6
–
1
–
2
1
2
1
1
3
–
–
–
2
–
–
4
–
4
–
–
–
–
–
17
€ 205M
Sunstone Capital
7
3
5
–
–
–
–
1
–
–
–
1
3
–
1
–
1
–
2
1
6
1
1
–
–
23
€ 201M
Balderton Capital
3
5
–
1
1
2
1
–
1
–
1
–
–
–
–
–
–
2
1
2
3
–
2
2
1
19
€ 195M
Wellington Partners
2
–
4
–
1
–
1
1
–
1
2
–
–
–
–
–
1
2
–
1
2
–
1
1
–
13
€ 192M
Sequoia Capital
7
–
1
–
–
–
2
–
2
–
1
–
–
–
–
–
–
1
2
1
5
–
2
–
–
14
€ 187M
Northzone
1
4
–
1
1
1
1
1
–
–
–
2
1
1
–
–
–
3
1
3
–
–
1
1
–
14
€ 185M
Partech Ventures
4
2
3
–
–
1
2
3
2
–
1
–
–
–
–
–
1
6
1
2
–
–
–
–
1
17
€ 155M
BNP Paribas
3
2
–
1
–
–
1
–
–
1
–
–
–
–
–
–
1
–
5
–
2
–
2
1
–
15
€ 153M
BNP Paribas
3
2
–
1
–
–
1
–
–
1
–
–
–
–
–
–
1
–
5
–
2
–
2
1
–
15
€ 153M
Global Founders Capital
6
6
1
1
–
1
3
1
–
1
–
2
1
–
2
1
–
6
4
2
1
–
1
–
–
25
€ 130M
Octopus Investments
1
4
1
–
–
2
1
1
1
–
1
–
–
–
1
2
–
2
1
2
3
–
1
–
–
12
€ 113M
Target Global
2
4
1
2
–
–
1
1
2
–
–
1
–
–
–
–
–
5
1
–
2
2
–
–
1
13
€ 109M
High-Tech Gruenderfonds
6
4
10
1
–
1
–
–
3
3
1
1
–
2
–
1
2
1
3
1
5
2
–
–
–
42
€ 94M
Inventure
4
–
1
1
–
1
2
1
–
–
–
–
–
–
–
–
–
2
1
–
5
2
–
–
1
13
€ 82M
Point Nine Capital
4
7
–
1
–
–
5
1
1
–
–
–
–
–
–
–
1
6
–
–
3
2
1
2
1
18
€ 79M
Xavier Niel
3
2
1
1
–
–
3
–
–
–
–
1
–
1
–
–
–
2
1
1
2
1
1
–
2
14
€ 76M
Kima Ventures
7
4
1
7
1
–
5
1
1
–
2
1
–
1
–
–
1
7
4
2
5
1
3
1
3
34
€ 71M
Seed Capital
3
3
2
3
–
–
–
1
2
–
–
2
–
1
–
–
2
–
3
3
1
1
1
2
–
22
€ 70M
Speedinvest
3
11
–
–
–
–
2
1
–
–
–
–
–
–
–
1
1
1
–
–
4
2
2
–
–
20
€ 68M
Localglobe
3
4
1
1
–
1
3
2
1
–
–
2
–
2
3
–
–
3
1
–
4
1
2
–
–
21
€ 62M
360 Capital Partners
2
3
–
4
–
1
2
1
–
–
2
–
–
–
–
1
–
–
1
6
1
1
–
–
–
15
€ 60M
Seedcamp
3
5
–
1
–
–
2
1
–
–
–
1
–
–
1
1
1
1
–
–
–
–
1
–
1
17
€ 60M
TA Ventures
3
2
–
3
–
–
2
–
1
–
–
2
–
–
–
–
1
5
1
2
–
–
–
–
1
14
€ 59M
Caixa Capital Risc
1
1
3
–
–
–
1
3
–
–
1
2
1
1
–
–
–
4
2
2
–
–
1
–
–
15
€ 57M
MAIF Avenir
–
2
–
–
–
–
4
4
–
–
3
–
–
–
1
–
–
7
–
–
–
–
1
–
1
13
€ 57M
Passion Capital
1
6
–
1
–
–
–
–
2
–
–
–
–
1
2
1
–
3
1
1
3
–
–
–
–
13
€ 54M
500 Startups
6
4
–
2
–
1
–
–
–
–
1
–
1
2
1
1
1
3
4
3
3
–
3
1
1
22
€ 54M
INE Ventures
5
3
–
1
–
–
–
1
–
–
–
–
–
–
–
1
–
1
2
–
3
–
1
–
1
13
€ 51M
Bayern Kapital
3
–
6
–
–
–
2
1
1
–
–
–
–
–
–
–
–
–
–
–
4
1
1
–
–
16
€ 37M
Crowdcube
–
4
–
1
–
3
–
–
–
1
1
–
–
2
1
2
2
3
1
1
–
–
1
–
1
17
€ 27M
Scottish Investment Bank
6
–
3
1
–
–
1
–
–
2
–
–
–
1
–
–
–
–
2
–
4
–
–
–
–
16
€ 21M
Enterprise Ireland
8
3
2
–
–
–
–
1
–
–
–
–
–
2
2
1
–
1
3
1
–
–
1
1
1
16
€ 19M
Almi Invest
6
2
3
–
–
2
–
–
1
2
–
–
–
–
–
1
2
–
3
1
2
1
–
1
–
24
€ 18M
Project A Ventures
1
–
2
2
–
2
1
1
1
–
–
–
1
1
1
1
–
3
2
5
–
–
1
–
1
14
€ 13M
Credit Agricole
3
2
–
1
–
–
1
–
–
–
1
–
1
–
1
1
–
2
3
1
1
3
–
1
–
13
€ 12M
TOTAL
162
135
66
53
8
26
70
42
29
15
30
23
12
23
27
17
24
112
88
65
98
36
47
19
20
Source: Dealroom. Online resources: https://app.dealroom.co/investors.
23
Contents 1.
Introduction: headline stats in Europe
2.
Insights: understanding the key trends and drivers
3.
Top verticals and business models
4.
Investment sources trends
5.
Overviews of top countries
6.
Outtakes: additional data
UK: € 3.2B raised in 2016, a 16% drop. While Brexit is a major cause for concern, it’s likely not the driver Annually
644
410
The Hut Adaptimmune Virtus
Fanduel Reward Gateway Funding Circle
185
Deliveroo Skyscanner Farfetch
€ 1,395M
€ 1,346M Farfetch F2G Nexeon
161 148
520 € 3,780M
142
130 € 3,174M
111
Truphone Powa Arrria
€ 1,281M
144 142 € 1,067M
€ 961M
124
123
126 126 126
Deliveroo Sabio Darktrace
€ 874M
108 106
€ 790M
€ 748M Mimecast Justeat Oxford Nano
140
137
122 € 3,190M
Fanduel Reward Gateway Prodigy
175
545
542 The Hut Adaptimmune Powa
Quarterly
€ 705M
€ 684M
85 € 531M
€ 528M
€ 517M
€ 367M € 343M € 337M € 332M € 325M € 317M € 280M € 260M
€ 1,282M
Given timing of Brexit (June 2016), an unlikely driver of VC slow-down. More likely drivers: saturation in some B2C markets
2012
2013
2014
2015
2016
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012
Amount raised (€M)
Top 3 rounds (€M)
Total number of rounds
Source: Dealroom.co. More info: https://app.dealroom.co/markets/countries/overview
2013 Amount raised (€M)
2014 Top 3 rounds (€M)
2015
2016
Total number of rounds
25
London remains the epicenter in European tech. High density of scale-ups, and strong follow-on rate London
Rest of UK
Amount raised (€ billion)
€ 2.7B
Number of rounds
€ 470 2.3B
€ 2.2B 394
380
•
Funding data doesn’t capture all the companies with major London presence but official HQ abroad (U.S., Israel, …)
•
London is indisputably the place to be for many high-growth companies, given depth of talent pool, early adopter market, and venture capital pockets
•
Highest density of scale-ups anywhere in Europe. World-class epicenter for deep tech (AI, VR, robotics, …)
331
€ 279 1.0B
2012
2013
2014
2015
€ 0.3B 131
€ 162 0.4B
174
151
2012
2013
2014
2015
2016
Annual by round Amount raised (€M) Seed rounds Series A, B, C, early rounds Late rounds 542 Total number of rounds
644 € 3,190M
€ 3,780M 545
Strong follow-on trend of early VC rounds (A, B, C), which is arguable the best sign of a strong ecosystem with high quality scale-ups
185
520 € 3,174M
130 111
108 106
223
€ 1,282M
212
177 97 2013
2014
2015
175
148 142 122
189
2016
€ 1,067M € 961M
161 123
€ 748M
85 271
2012
€ 1.0B
Quarterly by round
410
€ 1,281M
€ 1.1B
€ 0.9B
€ 0.9B
€ 531M
140 144 142
137
€ 790M 124 € 684M
€ 874M
126 126 126 € 705M € 528M
€ 517M
€ 337M€ 367M € 332M€ 343M€ 325M€ 317M € 280M € 260M
57 48 21
85 2016
Q1
Q2
Q3
2012 Source: Dealroom.co. More info: https://app.dealroom.co/markets/countries/overview
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
2015
Q4
Q1
Q2
Q3
Q4
2016
26
Germany: € 2.0B raised in 2016, a 32% drop due to lack of Rocket mega-rounds, and limited replacement Annual Delivery Hero Global Fashion Home24
Top 3 rounds (€M) Amount raised (€M) Total number of rounds 245
165
Rocket Internet Delivery Hero Westwing
288
Quarterly 380 353 € 2,909M
Global Fashion SoundCloud HelloFresh
In recent years, Germany has been characterized by mega rounds, thus heavily skewing the results. Rocket backed Jumia is based in Paris.
€ 1,985M
€ 1,981M
Rocket Internet Delivery Hero FoodPanda
45
44
44
67
€ 583M
2012
2013
2015
165 € 593M
74 € 788M
€ 653M € 564M € 460M € 413M
€ 433M € 324M
€ 259M
2013
2014
2015
2016
Round types - quarterly
€ 2,909M € 1,259M € 1,001M
€ 1,985M 380
€ 1,981M 353 288
44
188
154
€ 583M
2014
2015
32
45
44
50
65
67
74
63
72
74
€ 397M € 324M
68
102 104 89 € 653M € 564M 58 € 433M
114
€ 788M 98 94
74 € 460M€ 413M
€ 324M
€ 259M
€ 210M € 188M€ 169M € 142M€ 143M € 100M € 97M€ 126M
35 29 10
122 70 Q1
2013
94
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016
110 89 2012
Global Fashion SoundCloud
68 58
€ 397M € 324M
Round types - annual
245
74
50
2012
Amount raised (€M) Seed rounds Series A, B, C, early rounds Late rounds Total number of rounds
98
€ 1,001M
72
€ 210M € 188M € 169M € 143M € 142M € 126M € 100M € 97M
2014
€ 1,259M
63
32 € 593M
102 104
89 74
65
114
Delivery Hero HelloFresh FoodPanda
2016
Source: Dealroom.co. More info: https://app.dealroom.co/markets/countries/overview
Q2
Q3
2012
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
2015
Q4
Q1
Q2
Q3
Q4
2016
27
Germany: a shift from B2C to B2B market opportunities Berlin
Rest of Germany
Amount raised (€ billion) Number of rounds
€ 2.1B 179
190 157
94 € 0.3B 2012
173
€ 1.5B € 0.9B
€ 0.4B
2013
71 € 0.3B
2014
2015
2016
207
Outside of Berlin, funding in the rest of Germany funding has continued growing
2012
88
174 98 € 0.5B
2013
2014
159
151
149
€ 1.6B
125
€ 1.3B
105
90
120
66
2013
2016
198
Number of B2B rounds increased 33%
177
2012
2015
B2B € 2.2B
€ 0.3B
€ 0.8B
€ 0.2B
B2C
€ 0.3B
€ 1.1B
2014
2015
2016
Consumer
Source: Dealroom.co. More info: https://app.dealroom.co/markets/countries/overview
€ 0.2B
€ 0.3B
2012
2013
€ 0.6B
€ 0.6B
2015
2016
€ 0.4B
2014 Business
28
France: an incredible run in 2016, also after adjusting for mega rounds like Jumia, Deezer and Sigfox Annually
Quarterly 185
Seed rounds tripled from 104 to 320 rounds in 2016
France finished the year very strong in final quarter
590
Jumia Deezer
Jumia OVH Linkbynet
€ 2,739M
Sigfox Devialet Genfit
140
131 134
Jumia Blablacar Sigfox Scality Blablacar Sarenza Neoen
Deezer
118 € 500M
€ 720M
243 € 1,481M Serenza
180 € 771M
32
€ 599M
29
2013 Subtop
2014 Top 3
2015
2016
Total number of rounds
29
28 € 203M
33
Blablacar
48
47
€ 111M € 96M€ 90M
2012
€ 581M
Blablacar Deezer
167
€ 836M
Blablacar
OVH (1) Sigfox
51
42
54
61
71
57
€ 429M
46
41 € 320M € 279M € 236M € 225M € 191M € 171M € 162M € 162M € 148M 39
€ 753M
€ 302M
€ 75M
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012
2013 Subtop
2014 Top 3
2015
2016
Total number of rounds
Online resources: https://app.dealroom.co/markets/countries/funding Source: Dealroom.co. Note 1: likely large part secondary.
29
France is firing on all cylinders: seed rounds tripled, early stage doubled, in a country-wide phenomenon Paris Amount raised (€ billion)
Rest of France € 1.7B
Number of rounds
€ 0.9B € 0.4B
84 2012
Number of rounds outside France tripled in 2016. Growth was very distributed among over 150 cities. Many cities with 1 or 2 rounds for the first time in 2016.
297
293 € 0.6B
€ 0.5B € 0.3B 109 2013
146
118 2014
2015
€ 0.1B 34
2016
2012
Annual by round Amount raised (€M) Seed rounds Series A, B, C, early rounds Late rounds Total number of rounds
2012
€ 599M 167
€ 2,739M Number of seed rounds grew 3x The number of early VC rounds grew 2x
€ 0.3B
58
62
2013
2014
97 2015
2016
185
The year 2016 finished strong, with a jump in seeded companies, resulting in by far the largest cohort of French startups, ever.
590
140
131 134 € 836M € 753M
€ 720M
€ 771M 180
320
243
2014
€ 581M
32
104
2015
60
2016
29
€ 111M€ 96M € 90M
Q1
Q2
42
Q3
71
61
94
€ 429M
54 € 320M 57 € 302M 41 46 € 279M € 236M € 225M 51
39 29 33 28 € 203M € 162M€ 171M€ 191M€ 148M
2012 Source: Dealroom.co. More info: https://app.dealroom.co/markets/countries/overview
48
47
210
88 51
2013
€ 0.3B
Quarterly by round
€ 1,481M
€ 500M 118
€ 1.1B
76
€ 162M
€ 75M
Q4
Q1
15 Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
2015
Q4
Q1
Q2
Q3
Q4
2016
30
Israel: consistent growth across the board. Growth across round types. Strong in deep tech and security Annual
Quarterly 72
Top 3 rounds (€M) Amount raised (€M) Total number of rounds
241
231
61
55
€ 2,704M 166
88 € 509M
2012
€ 1,189M € 528M
2013
43 € 1,837M
132
Gett ironSource Kaminario
2014
Infinidat Checkmarx Cybereason
Gett Payoneer Voyager Labs
30
21
25
24
€ 158M € 98M
43
€ 406M
39 € 654M€ 657M
€ 548M
€ 505M € 423M
€ 879M
Gett
Infinidat Checkmarx
38
Gett Payoneer Voyager Labs
€ 514M
€ 378M
€ 303M
€ 273M € 190M
€ 85M € 96M € 106M
2013
2014
2015
2016
Round types - quarterly € 879M
€ 1,837M € 1,189M
241
€ 654M€ 657M
231
166 115 77 49
2013
Gett ironSource
53
€ 2,704M
Amount raised (€M) Seed rounds Series A, B, C, early rounds Late rounds Total number of rounds
2012
39
60
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2016
Round types - annual
132 € 528M
27
€ 241M € 167M
2012
€ 509M 88
32
46
18
€ 88M
2015
69 63
2014
2015
158
€ 548M€ 514M € 505M 72 € 423M 63 69 € 406M 61 55 € 378M 53 46 € 303M 43 38 43 € 241M€ 273M 39 € 190M 25 30 27 32 24 18 € 158M 21 € 167M € 98M € 88M € 85M € 96M€ 106M
60 39 28
42 31 2016
5 Q1
Q2
Q3
2012 Source: Dealroom.co. More info: https://app.dealroom.co/markets/countries/overview
Q4
Q1
Q2
Q3
2013
Q4
Q1
Q2
Q3
2014
Q4
Q1
Q2
Q3
2015
Q4
Q1
Q2
Q3
Q4
2016
31
Nordics: strong growth in early rounds across Nordic countries in 2016. Sweden leads (not just Spotify) Sweden
Denmark, Finland, Norway, Iceland 366
“The community is increasingly joined up and there are lots of local funding options. Hence a big rise in companies being seeded.” - Neil Murray (TheNordicWeb)
Fewer big rounds in other Nordic countries, strong growth in number of rounds.
€ 1,599M
285
= same scale = Spotify
€ 988M 174 Spotify
163 € 561M Spotify
€ 226M
€ 333M
Klarna Truecaller iZettle
Klarna
82
M-files Rovio Vivino
€ 763M Bonesupport Klarna
iZettle Saltside
57
113
Ascendis Pharma Rovio 117 Trustpilot
69
€ 392M
€ 172M
Supercell Symphogen Plain Vanilla Games
2012
2013
Verne Global Symphogen Trustpilot
€ 654M
2015
2016
€ 333M
42 2012
2013 Subtop
2014 Top 3
2015
2016
Total number of rounds
Source: Dealroom.co. More info: https://app.dealroom.co/markets/countries/overview
Subtop
2014 Top 3
Total number of rounds
32
Nordics: the year ended strongly with lot of seed and series-A rounds in final quarter Sweden
Denmark, Finland, Norway, Iceland
Remarkable surge in number of rounds mainly driven by seed rounds in
112
€ 1,053M
Spotify 90 82
99
Mainly driven by surge in both seed and series-A rounds in 2016
82
= same scale = 71
€ 602M
Trustpilot
58
54
Spotify
Verne Global
Supercell
iZettle
Klarna
Truecaller
40
42
39 34 30
Spotify 22 14 € 80M € 34M
Q1
19 11 10 € 98M
Q3
2012
9 3
€ 15M
Q2
€ 241M
€ 57M
€ 4M
Q4
Q1
Q2
23 19
22
18 € 182M € 152M 11 € 118M€ 109M
€ 197M
€ 194M
2013 Subtop
19
Q1
Q2
Q3
2014 Top 3
Q4
Q1
18
28
Q3
Q4
2015
Q1
Q2
Q3
28
Q4
2016
Total number of rounds
Source: Dealroom.co. More info: https://app.dealroom.co/markets/countries/overview
Q1
€ 33M
Q2
Symphogen
28
€ 289M € 220M
19 € 213M
Q3
2012
€ 69M € 66M € 62M
€ 52M € 45M
Q4
Q1
Q2
Q3
2013 Subtop
Q4
Q1
€ 93M
Q2
€ 114M
€ 127M€ 126M
€ 100M
€ 63M
Q3
2014 Top 3
€ 208M
€ 192M
€ 154M € 73M
Q2
19
40 34
33
13
€ 119M
€ 109M
€ 82M
€ 230M
€ 14M
Q4
30
26
€ 31M
Q3
61
58
Q4
Q1
Q2
Q3
2015
Q4
Q1
Q2
Q3
Q4
2016
Total number of rounds
33
Contents 1.
Introduction: headline stats in Europe
2.
Insights: understanding the key trends and drivers
3.
Top verticals and business models
4.
Investment sources trends
5.
Overviews of top countries
6.
Outtakes: additional data
About 25% of venture capital is sourced from U.S. based funds. About 35% is sourced domestically Countries attracting most U.S. funding
Countries relying most on domestic funding
Sourced from USA funds (%) by amount raised Israel
Sourced from domestic funds (%) by amount raised Italy
43%
Austria
Russia
39%
Sweden
36%
56%
France
Israeli startups have been able to source 43% of their funding from USA
Ireland
31%
United Kingdom
United Kingdom
31%
Belgium
Turkey
66%
51% 47% 46%
Denmark
28%
38%
Finland
22%
Netherlands
36%
Spain
22%
Germany
36%
Netherlands
21%
Portugal
36%
Germany
20%
Portugal
20%
Italy
18%
France
16%
Russia
16%
Belgium
14%
Denmark Norway
10% 6%
Turkey
33%
Israel
33%
Finland
31%
Norway
31%
Spain
25%
Ireland
25%
Online resources: https://app.dealroom.co/investors/f/country_experience/Europe/locations/United%20States Source: Dealroom.co. 1) Assumes rounds with multiple investors are qually allocated. Based on investor HQ location.
Higher % of domestic funds can be a sign of a strong local VC funding options (France, Germany, UK) or weak interest from abroad (Italy, Russia).
29%
Sweden
Austria
66% of funding in Italy is sourced domestically.
Lower % of domestic funds can be a sign of weak local VC funding options (Ireland, Austria) or high interest from abroad (Sweden, Spain).
21%
35
How much headroom is there still in European VC? Funding per capita indicates there is still room ÷ 2016 VC funding
Population USA
325M
Russia
147M
USA
€ 70-75B (1)
United Kingdom
= VC funding per capita //
€ 3.2B
Israel USA
Germany
82M
France
€ 2.7B
Sweden
Turkey
79M
Israel
€ 2.7B
Ireland
France
67M
Germany
United Kingdom
65M
Sweden
Italy
61M
Spain
Spain Netherlands
47M 17M
€ 2.0B € 1.6B € 0.6B
€ 313 € 231
€ 160 € 77
Finland
€ 59
United Kingdom
€ 49
France
€ 41
Netherlands
€ 0.4B
Norway
€ 30
Ireland
€ 0.4B
Denmark
€ 25
Belgium
11M
Finland
€ 0.3B
Germany
€ 24
Portugal
10M
Russia
€ 0.3B
Netherlands
€ 24
Sweden
10M
Belgium
€ 0.2B
Belgium
€ 22
Austria
9M
Italy
€ 0.2B
Spain
€ 13
Israel
9M
Norway
€ 0.2B
Austria
€ 9.2
Denmark
6M
Denmark
€ 0.1B
Portugal
€ 4.3
Finland
6M
Austria
€ 0.1B
Italy
€ 2.7
Norway
5M
Portugal
€ 0.0B
Russia
€ 2.0
Ireland
5M
Turkey
€ 0.0B
Turkey
€ 0.4
1) USA data is a Dealroom estimate based on CB Insights and PitchBook data. Source: Dealroom.co.
36
The importance of tech hubs within countries United Kingdom (London Edinburgh)
2.2
France (Paris )
1.7
Israel (Tel Aviv-Yafo )
1.6
0.9
0.1
Sweden (Stockholm )
Spain (Madrid Barcelona)
1.1
1.1
Germany (Berlin Munich)
Switzerland (Zurich Geneva)
0.2
1.4 0.1 0.1
0.2
Netherlands (Amsterdam Rotterdam)
0.10.2 0.1
Ireland (Dublin )
0.3 0.1
€ 2.7B
Ireland
€ 2.7B
Spain
85.3%
40.4%
18.6%
68.3%
5.8% 38.7%
56.3%
Norway
43.7%
50.6%
49.4%
€ 0.4B
Germany
€ 0.4B
Finland
41.4%
58.6%
44.2%
4.3%
51.5%
Finland (Helsinki )
0.1 0.2
€ 0.3B
Israel
40.9%
59.1%
Russia (Moscow )
0.1 0.2
€ 0.3B
Austria
40.0%
60.0%
Belgium (Brussels Gent)
0.0 0.10.2
Belgium
€ 0.2B
Italy (Milan )
0.0 0.1
€ 0.2B
Turkey
Norway (Oslo )
0.1 0.1
€ 0.2B
Russia
Denmark (Copenhagen )
0.1 0.1
€ 0.1B
Netherlands
Austria (Vienna )
0.0 0.0
€ 0.1B
Switzerland
Poland (Warsaw )
0.0 0.1
€ 0.1B
Portugal
Portugal (Lisbon )
0.0 0.0
€ 0.0B
Italy
Turkey (Istanbul )
0.0 0.0
€ 0.0B
Poland
0.0
1.0
Source: Dealroom.co.
2.0
3.0
4.0
25.9%
61.3%
Denmark
€ 0.6B
17.7%
41.0%
France
€ 1.6B
14.7%
82.3%
United Kingdom
€ 2.0B
€ 0.8B
0.7
0.3 0.2 0.1
1.0
Sweden
€ 3.2B
0.8
6.0%
30.5%
63.5%
34.1%
65.9%
32.7%
67.3%
25.1% 7.1%
38.4%
36.5%
11.1%
81.8%
18.1%
81.9%
8.5%
91.5%
6.9%
–
93.1%
25.0%
50.0%
75.0%
100.0%
37
2016 saw largest ever European cohort of early stage startups funded. Later stage rounds slowed down Early stage: strong pipeline
Later stage: slow-down Amount raised (€ billion)
Number of rounds
Seed & angel rounds more lumpy on quarterly scale € 1.8B € 1.7B
On quarterly scale, uptrend in Series B and series C disappears
497 451
Largest ever European cohort of new early stage startups funded in 2016.
433
€ 1.7B € 1.6B
€ 1.3B
€ 1.3B
€ 1.3B
€ 1.2B
370
€ 1.2B
367
340 € 0.9B € 0.9B
€ 0.8B
€ 0.9B
265 231
€ 0.6B
€ 0.3B
Q3
€ 0.4B
€ 0.4B € 0.4B € 0.2B
€ 0.2B € 0.2B € 0.2B
Q2
€ 1.1B
€ 1.1B
€ 1.0B
299 292
Q1
€ 1.2B
€ 1.1B
Q4
Q1
Q2
2015
Q3
€ 0.3B
Q4
106
Q1
2016 Angel & Seed
Source: Dealroom.co.
131
Q2
€ 0.9B
€ 0.9B
€ 0.8B
Includes €0.9B Spotify convertible.
€ 0.8B
€ 0.7B
182 189 194
€ 0.5B
150
148
Q3
2015
Q4
Q1
Q2
Q3
2016 Series A / Early VC
Q4
52
61
60
70
42 Q1
Q2
Q3
Q4
Q1
74
Q2
2015
62
60
Q3
Q4
2016 Series B, C
39
44
45
50
61
52
43
42
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2015
2016 Series D+
Q1
€ 0.4B
€ 0.3B € 0.3B
€ 0.3B
42
54
59
66
€ 65 0.1B
Q2
Q3
Q4
Q1
Q2
2015
€ 83 0.2B
Q3
71
Q4
2016 Other
38
Quarterly trends: Slowdown in UK and Germany, but strong growth in across most parts of Europe… Slowdown in UK and Germany (Europe’s most mature VC markets)
Remainder of Europe is catching up rapidly across a very distributed group of countries. Israel continued strong growth
Amount raised (€ billion)
Number of rounds
Includes Delivery Hero, HelloFresh, FoodPanda
€ 1.3B € 1.3B
Includes €0.9B Spotify convertible.
€ 1.2B € 1.1B
€ 1.1B
€ 1.1B
€ 1.0B€ 1.0B 334 330 € 0.9B
€ 1.0B € 0.9B € 0.8B
€ 0.7B
€ 0.7B
€ 0.7B
124
140 144 142
€ 0.7B€ 0.7B € 0.6B
€ 0.6B
126 126 126
€ 0.3B
102
104 114
98 94
58
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 United Kingdom
185
€ 0.5B € 0.4B
€ 0.4B
89
2015
269
€ 0.8B
€ 0.7B € 0.5B
137
€ 0.9B
€ 0.8B
€ 0.8B
€ 0.3B € 0.3B
74
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015
2016 Germany
€ 0.4B
€ 0.3B
140 131 134
71 54 61 57
2016 France
€ 0.4B
272
0.7B € 0.7B€223
€ 0.6B
290 € 0.7B
€ 0.5B € 0.5B
€ 0.4B
61 55 53
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015
€ 0.5B
257
335
72 63 69 60
39
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015
2016 Israel
112 € 0.2B 90 € 0.2B 82 82
€ 0.2B € 0.1B
26
40 39
58 € 0.1B
€ 0.1B
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015
2016 Sweden
Source: Dealroom.co. Includes Israel. Excludes private equity, M&A and buyouts. More data on: https://app.dealroom.co/markets/countries/funding
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2015
2016 Other
39
