SPANISH INVESTMENT HIGHLIGHTS 2013 - 2014

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October 2014

INTRODUCTION

The goal of this report is to inform and update on the current investment situation for IT startups in Spain. The current report tracks deals between the first and third quarters of 2013 and 2014. For the most current numbers, please refer to our site.

These numbers are based on our own tracking of published deals and should be treated as such. Non published deals aren’t reflected. We focus on tracking the IT sector so deals related to Biotechnology or Pharma have been discarded.

METHODOLOGY

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CONTENT

1. Investments Q1 - Q3 2014

2. Investment comparison 2013 - 2014

3. European comparison

4. Investment trends 2014

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1. INVESTMENTS Q1 - Q3 2014

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INVESTMENTS Q1 - Q3 2014

TOTAL INVESTED IN IT STARTUPS (Q1- Q3 2014)

Mill

ion

eu

ros

0 €

17,5 €

35 €

52,5 €

70 €

January February March April May June July August September

24,84

9,61

4,71

15,1613,15

10,63

67,3965,52

19,63

2014

Source: http://venture.watch

V

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IT DEALS VS INVESTED (Q1-Q3 2014)

Nu

mb

er o

f IT

op

era

tion

s

0

17,5

35

52,5

70

January February March April May June July August September

11

6 6

10

16

13

23

5

17

DealsInvested

Source: http://venture.watch

V

INVESTMENTS Q1 - Q3 2014

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MEDIAN IT DEAL VALUE (Q1 - Q3 2014)

Mill

ion

eu

ros

0 €

0,225 €

0,45 €

0,675 €

0,9 €

January February March April May June July August September

0,42

0,2

0,48

0,86

0,27

0,36

0,55

0,23

0,69

Median round

Source: http://venture.watch

V

INVESTMENTS Q1 - Q3 2014

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Source: http://venture.watch

# Company Round value Sector

1. Scytl 80 million euros Voting

2. Social Point 22 million euros Gaming

3. Fon 14 million euros Telecommunications

4. Job & Talent 10,2 million euros Human resources

5. Cabify 9 million euros Taxi

6. Packlink 6,6 million euros Operations

7. Kantox 6,4 million euros FinTech

8. CartoDB 6,2 million euros Mapping (GIS)

9. La Nevera Roja 6 million euros Food

10. Peer Transfer 4,8 million euros FinTech

TOP 10 IT DEALS (Q1 - Q3 2014)

INVESTMENTS Q1 - Q3 2014

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2. INVESTMENTS COMPARISON 2013 - 2014

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INVESTMENTS COMPARISON 2013 - 2014

TOTAL INVESTED IN IT STARTUPS (Q1- Q3 2013 / Q1 - Q3 2014)

Mill

ion

eu

ros

0 €

22,5 €

45 €

67,5 €

90 €

January February March April May June July August September

4,59

88,13

5,27

15,89

34,16

20,96

16,93

0,86

37,53

20142013

Source: http://venture.watch

V

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IT DEALS (Q1-Q3 2013 / Q1 - Q3 2014)

Nu

mb

er o

f IT

op

era

tion

s

0

7,5

15

22,5

30

January February March April May June July August September

9

6

10 10 10 10

16

2

1111

6 6

10

16

13

23

5

17

20142013

Source: http://venture.watch

V

INVESTMENTS COMPARISON 2013 - 2014

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MEDIAN IT DEAL VALUE (Q1 - Q3 2013 / Q1 - Q3 2014)

Mill

ion

eu

ros

0 €

0,225 €

0,45 €

0,675 €

0,9 €

January February March April May June July August September

0,3

0,38

0,3

0,38

0,45 0,45

0,3

0,12

0,55

0,42

0,2

0,48

0,86

0,27

0,36

0,55

0,23

0,69

20142013

Source: http://venture.watch

V

INVESTMENTS COMPARISON 2013 - 2014

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Source: http://venture.watch

# Company Round value Sector # Company Round value Sector

1. Softonic 82,5 million euros Software 1. Scytl 80 million euros Voting

2. Privalia 25 million euros E-commerce 2. Social Point 22 million euros Gaming

3. Alienvault 20 million euros Hardware 3. Fon 14 million euros Telecommunications

4. El Armario de la Tele

9 million euros E-commerce 4. Job & Talent 10,2 million euros Human resources

5. Restalo 7,4 million euros Food 5. Cabify 9 million euros Taxi

6. Peer Transfer 5 million euros FinTech 6. Packlink 6,6 million euros Operations

7. Plenummedia 5 million euros Online marketing 7. Kantox 6,4 million euros FinTech

8. Teambox / Redbooth

5 million euros Collaboration 8. CartoDB 6,2 million euros Mapping (GIS)

9. 3Scale 4,2 million euros API 9. La Nevera Roja 6 million euros Food

10. Abiquo 3,8 million euros Cloud computing 10. Peer Transfer 4,8 million euros FinTech

TOP 10 IT DEALS (Q1 - Q3 2014)TOP 10 IT DEALS (Q1 - Q3 2013)

INVESTMENTS COMPARISON 2013 - 2014

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INVESTMENTS COMPARISON 2013 - 2014

PERCENTAGE REPRESENTED BY TOP DEALS (Q1 - Q3 2013)

26%

74%

Top 10 dealsRest

PERCENTAGE REPRESENTED BY TOP DEALS (Q1 - Q3 2014)

28%

72%

Top 10 dealsRest

Source: http://venture.watch

V V

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Source: http://venture.watch

Metric Q1-Q3 2013 Q1-Q3 2014 Variation

Total investment (million euros) 224,31 230,64 2,82%

Mean monthly investment (million euros) 24,92 25,63 2,82%

Median monthly investment (million euros) 16,93 15,16 -10,43%

Standard deviation (million euros) 26,88 23,87 -11,20%

ACCUMULATED STATISTICS

INVESTMENTS COMPARISON 2013 - 2014

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3. EUROPEAN COMPARISON

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EUROPEAN COMPARISON

Source: http://venture.watch

# Company Round value Sector

1. Scytl 80 million euros Voting

2. Social Point 22 million euros Gaming

3. Fon 14 million euros Telecommunications

4. Job & Talent 14 million euros Human resources

5. Packlink 9 million euros Operations

TOP 5 IT DEALS (Q1 - Q3 2014)

Source: European Innovation Financing H1 2014 (Clipperton Finance)

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EUROPEAN COMPARISON

Source: European Innovation Financing H1 2014 (Clipperton Finance)

# Region IT Investment (H1 2014)

1. United Kingdom 658 million euros

2. DACH 576 million euros

3. Nordics 409 million euros

4. France 353 million euros

5. Benelux 172 million euros

6. Eastern Europe 171 million euros

- Spain 81 million euros

United Kingdom 8x France 4x

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4. INVESTMENT TRENDS 2014

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INVESTMENT TRENDS 2014

1. Slightly bigger rounds in 2014

2. Consolidation of investment

3. Internationalisation push

There is a slight increase on the average deal value in 2014, showing a slight increase on tickets per round. As VC funds get more money, there is a need for bigger tickets, something that will benefit most startups.

The standard deviation shows how the investment trends are finally converging. Instead of seeing big variations on the rounds, we observe a consolidation of deal size and frequency.

Bigger rounds are enabling many of the Spanish startups to pursue ambitious internationalisation strategies like the case of Cabify, CartoDB or Packlink.

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INVESTMENT TRENDS 2014

4. Closer follow up rounds (< 12 months)

Company 2013 Round 2014 Round Elapse time

Peer Transfer 5 million euros 4,8 million euros 5 months

ByHours 1 million euros 2,6 million euros 9 months

La Nevera Roja 2 million euros 6 million euros 10 months

Job & Talent 2,5 million euros 10,2 million euros 12 months

Akamon 2,8 million euros 3 million euros 12 months

PromoFarma 1,5 million euros 3 million euros 12 months

TypeForm 0,5 million euros 1,2 million euros 12 months

Traity 1 million euros 3,5 million euros 13 months

Packlink 1,5 million euros 6,6 million euros 14 months

Social Point 2,9 million euros 22 million euros 17 months

Source: http://venture.watch

The average time between rounds is 11,5 months, marking a big difference with past years.

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INVESTMENT TRENDS 2014

5. Increased international presence

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THANK YOU

Image credit: Felipe Gabaldón, Miguel Diaz ©

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