London Tech WeekUPDATE

June 2019

Prepared for Tech Nation and the Government’s Digital Economy Council by Dealroom.co

2

#3

3rd for Unicorns after US & China

Total number of unicorns by country

Current Unicorns

Realized Unicorns

London is 2nd for FinTech Unicorns after Bay Area

3

Fintech Unicorns by city/area

#2

Facts a year on, show that UK Tech continues to dominate

Europe & Israel

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Investment

Capital Invested

Strongest FundsUnicorn Outcomes

Past - Exits

Present - Unicorns

Future - Unicorns

In 2018, UK venture investment nearly matched Germany,

France & Sweden combined (and was more than 2x Israel)

5Source:Dealroom.co. Rounds excluding top 10 mega-rounds.

6

$800M $575M

$440M $240M

$230M $175M

$100M $90M

$75M $54M

Notable investment rounds in 2019

All-time record VC investment in first half of 2019 in UK

VC rounds at a valuation of $1B+ topped at 13 in 2018 in the

UK; as many as Germany, Israel and Sweden combined

7Source:Dealroom.co. Note: 2019 rounds exclude Glovo, no valuation confirmation

* Excludes The Access Group round, undisclosed amount

UK

Combined $2.3B raised

(360% YoY growth

2018 Jan-May: $500M* )

$900M

raised

(-35%

YoY)

$230M

raised

(+15%

YoY)

$100M

raised

(+10%

YoY)

$90M

(n/a)

$1.5B

(+380%

YoY)

Unicorn rounds in 2019 so far

Germany

Number of VC rounds at $1 billion+ valuation

France Israel Sweden Rest

Source: Dealroom.co

* Dilution factor is adjusting for the stage at which each investor typically invests, and is based on the idea that a Seed round is typically valued at around $10M, a

series A round at $30M, and a late stage round at $100M. 8

The UK is home to 4 of Europe’s 5 leading unicorn hunter funds

Plenty of capital available and steadily increasing, as new

VC funds raised were at an all-time high in 2018

9

VC funds raised by investor country

10

Note: Based on $1B or above Acquisition/Buyout or IPO at $1b or above in market

cap. Does not include company branches Acquisitions e.g. TomTomTelematics

2012 2013 2014 2015 2016 2017 2018 2019 May

United Kingdom Wood Mackenzie $1.3B BuyoutEsure Group $1.8B

Worldpay $2.6B Acq.

King.com $7.0B IPO, Markit $4.5B

IPO, AO.com $2.0B IPO, Just Eat

$2.0B IPO, Travelport $1.9B IPO,

CSR $2.4B, ACS $1.0B, Zoopla

$1.3B IPO, Pokerstars $5B

Skrill $1.3B, Sophos $1.6B IPO,

Auto Trader UK $3.5B IPO,

Worldpay $7.4 IPO, King.com

$6.0B Acq, Adaptimmune $1.2B

IPO, Wood Mackenzie $2.8B Acq.

Skyscanner $1.9B

Global Switch $7.5B

ARM $31B

Host Europe Group $1.9B

Alfa $1.3B IPO

MATCHESFASHION.COM $1.0B

Worldpay $10.4B, Callcredit $1.4B,

Farfetch $4.4B IPO, Sky Betting &

Gaming $4.7B, Zoopla $3.0B, Orchard

Therapeutics $1.2B IPO, FNZ $2.1B

Acq, Funding Circle $1.8B IPO, Esure

Group $1.4B, Endava $1.1B IPO,

GlobalSwitch $2.6B, CRF Health $1.0

B Acq., Autolus $1.0B Acq, Yoox Net-

a-porter $5.0B

Worldpay $35B Acq

Acuris $1.7B Acq

Germany Trivago $1.0B Acq.Hybris $1.0B

Scout24 Holding $1.6B Buyout

Rocket $7.4B IPO

Zalando $6.1B IPO

TeamViewer $1.0B

Scout24 $3.6B IPO Trivago $2.9B IPODelivery Hero $4.9B IPO

HelloFresh $1.9B IPO

SUSE $2.5B Acq

Dermapharm $1.7B IPO

France CRITEO $1.7B IPO Exclusive Group $1.5B eFront $1.3B Acq.

Israel Waze $1.1B Mobileye $5.3B IPO Playtika $4.4BMobileye $15.3B

NeuroDerm $1.1BMazor Robotics $1.3B Acq.

Sweden Mojang $2.0B Acq. Bambora $1.7B Acq.Spotify $26.5B IPO

iZettle $2.2B

Rest of Europe AVG $1.0B IPOVKontakte $3.2B

Supercell $3.0B

GlobalCollect $1.0B Acq.

eDreams $1.5B IPO

Avast Software $1.0B

Jazztel $5.0B Acq.

TeamSystem $1.4B

AVITO $2.8B

Flow Traders $2.0B IPO

Heptagon $1.0B, Sitecore

$1.0B, Acerta Pharma $7.0B,

Mail.ru Group $1.2B, AVG

$1.3B, FleetMatics $2.4B,

Allegro $3.3B , Takeaway

$1.0B IPO, Hotelbeds Group

$1.3B, Actelion $30.0B Acq.

Supercell $10.2B

Allfunds Bank $2.0B

Outfit7 $1.0B Acq.

Rovio $1.0B IPO

Ablynx $4.3B

Prexton therapeutics $1.0B

Adyen $7.7B IPO

Elastic $5.0B IPO

Opera $1.4B IPO

Netcompany $1.5B IPO

Avast $2.9B IPO

Avito $1.2B Acq.

Doc Generici $1.2B

Luxoft $2.0B Acq.

Number of

$1B+ Exits

UK consistently delivers many more $1B+ exits than Europe & Israel

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Source:Dealroom.co. Includes companies founded since 1990 and reached $1B valuation up to May 2019

1.Rumored valuation of $1B, not confirmed through a transaction

2.Exited at Unicorn valuation through IPO, Buyout or Acquisition

Cumulative number of Unicorns per country

Israel: 2

Rest of Europe: 11

2

1

Germany: 6

France: 5

1

2

Sweden: 1

1

2

2

2

UK: 13

New unicorns since last London Tech Week

The UK has created 72 unicorns (34% of total in Europe and

Israel) - lead has been increasing in last 5 years

12

Note: Based on $1B or above Acquisition/Buyout or IPO at $1b or above market cap. Does not include company branches acquisitions e.g.

TomTomTelematics. Rumored Unicorns are Unicorns whose valuation has not been confirmed through a transaction

Since 2012, the UK has delivered as many unicorns as

Israel, Germany, Netherlands and Sweden combined

13Note: Private companies (not acquired or IPO’d), between $250M - $800M in estimated valuation. Full list available in Datacommons

Looking ahead, the UK has 30% of Europe and Israel’s

future unicorns - more than 2x France, Israel & Germany

The UK is global leader in responsible technology

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Start Up Policy Enablers

● Industrial Strategy

e.g. AI Sector deal & Space Catapult

● Open Data

e.g. TfL & Citymapper

● Open Banking

● FCA Sandbox

Practical Thought Leadership

● ODI

● Centre for Data Ethics

● Data Commons

● Online Harms white paper

● Alan Turing Institute

Public Sector Stimuli

● UKRI

● BBB

● BGF

Deep pool of experienced unicorn talent Unicorns

across Regions

Ecosystems across the UK

Unicorns across Sectors

Jobs across the

sector

Skills across the

regions

UK Tech is inclusive and offers opportunities for everyone

15

UK now has over 50,000 experienced unicorn talent

Realised unicorns: 54 Unrealised unicorns: 18 Future unicorns: 75

16

Experienced unicorn talent is spread across the UK

London: 45 unicorns

Manchester: 5

Cambridge: 5

Berlin: 10

Paris: 9

Stockholm: 9

Amsterdam: 6

Oxford: 5

Munich: 6

Dublin: 2

Hamburg: 2

Edinburgh: 3Leeds: 2

Madrid: 3

Barcelona: 2

Copenhagen: 5

Bristol: 2

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Aside from London, the UK counts five additional hubs with at

least two unicorns, on par with major European tech cities

London Oxbridge Berlin Paris Amsterdam Manchester Edinburgh Dublin Leeds Bristol

Unicorns

created45 10 10 9 6 5 3 2 2 2

Population 8.2M 290K 3.6M 2.2M 820K 510K 480K 550K 780K 530K

Investment

per capita$570 $1,160 $660 $1,160 $490 $123 $170 $860 $176 $620

Highest

ranked

university

8 1 & 2 62 72 59 54 27 117 139 76

Number of

accelerators146 22 42 51 18 10 6 14 10 2

Unicorns: number of companies founded since 1990 that reached $1 billion valuation.

Investment per capita based on investment in 2018 and city population.

University rank as per Times Higher Education. 18

Unicorns by sector

Source:Dealroom.co.

Deep Tech/Industrial

UK Europe

9 12

Finance

UK Europe

21 21

Health

UK Europe

9 14

Retail

UK Europe

10 8

Rest: 4

Rest: 7

Rest: 4

Germany: 3

Rest: 7

Sweden: 4

France: 3

Israel: 4

Germany: 2

Sweden: 1

France: 2

Israel: 6

Germany: 3

France: 1

Israel: 3

Germany: 3

France: 1

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VC-funding from 2013-2018. Source:Dealroom.co.

Finance Health

Retail Deep Tech/Industrial

Steady leadership across different industries

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Markets● Consumers: English + 300 languages

● Enterprise

● Supportive Government policy

● International

Track Record● Experienced Talent

● Multi-Stage Capital

● Service Providers

Massive Talent Pipeline● Multi-Sector Experience

● Tech Talent

● World Class Universities

● Strong Regional Tech

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UK has all the ingredients of a global tech power

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UK is home to a huge pool of tech talent, creating benefits for all

Source: Tech Nation 2019; Adzuna, ONS

1 2 3 4 5 6 7 8 9 10 11

UK Cluster

Total Digital Economy Jobs

(2017) Unicorns

Total Digital Economy

Job openings

(2018)

% City Jobs in Digital

Tech

Median Salary - all

Tech roles in Digital

Economy (2018)

Digital Tech Salary vs

City Average

Tech Jobs in all

companies (2017)

Jobs in Digital Tech

(2017)

Total Non-Tech Jobs in Digital Tech companies

(2017)

Non-Tech Digital as %

of Digital

London 574,562 45 915,471 6% £53,296 26.90% 256,082 318,480 62,398 10.86%

Manchester 100,520 5 164,043 4% £35,000 2.94% 38,414 9,704 39,154 38.95%

Reading 100,507 48,742 33% £40,000 8.11% 25,416 10,258 15,711 15.63%

Belfast 60,041 16,853 20% £40,000 17.65% 26,999 24,754 42,101 70.12%

Birmingham 59,131 75,401 2% £37,500 7.14% 41,550 17,581 23,969 40.54%

Cambridge 52,196 5 85,679 50% £39,000 2.63% 69,837 30,683 21,190 40.60%

Bristol 51,753 2 86,247 5% £35,520 4.47% 51,071 8,970 2,245 4.34%

Edinburgh 48,118 3 44,879 4% £42,500 14.86% 34,742 12,103 28,710 59.67%

Leeds 46,845 2 88,042 6% £35,000 9.38% 36,693 15,503 22,639 48.33%

Oxford 37,458 5 72,844 25% £36,000 5.88% 25,637 11,821 13,816 36.88%

Newcastle 35,674 29,760 11% £35,000 6.06% 42,398 58,109 15,158 42.49%

Sheffield 28,243 26,059 2% £32,500 8.33% 21,508 4,640 15,825 56.03%

Cardiff 26,148 24,923 2% £35,000 6.06% 22,034 6,209 16,868 64.51%

Notes: 2: Total digital economy jobs include both tech and non tech roles in tech companies, and tech roles outside tech companies, like a software developer at Jaguar Land Rover. 3: $1bn valued tech companies in the given cluster. 4: total number of

advertised jobs through Adzuna’s platform, upweighted to be representative of the volume of jobs recorded for tech by the Office for National Statistics 5: % of jobs in city in Digital Tech 6: the middle value for salaries for tech roles both in tech companies, and

other companies. 7: the difference between salaries for digital tech jobs and other roles in the cluster, where digital tech is on average 10% better paid. 8: tech roles in all companies, such as a software developer at Monzo, or a data scientist at Jaguar Land

Rover. 9: all jobs in digital tech companies, including full stack developers as well as HR professionals, and legal for example. 10: just the non tech roles, such as HR, finance or customer services. 11:The proportion of non digital tech roles within tech companies

by cluster

Tech is open, inclusive and growing across the UK

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Role

Digital

job openings

(2018) Median Salary

Cost of living

adjusted –

best place to work

Median salary

(London)

Software Developer 130,158 £39,430 Belfast £55,000

Front End Developer 32,431 £35,286 London £50,000

Project Manager 31,721 £47,500 Glasgow £56,000

Consultant 23,879 £55,000 Sheffield £60,000

Devops Engineer 23,690 £50,500 London £67,500

IT System Architect 17,340 £63,857 Cardiff £77,500

Full Stack Developer 16,753 £40,964 Belfast £55,000

Analyst 10,452 £33,929 Edinburgh £45,000

Python Developer 10,100 £43,893 Glasgow £60,000

Data Engineer 6,950 £35,553 London £60,000

Data Scientist 6,287 £45,714 Leeds £60,000

Source: Tech Nation 2019; Adzuna, Numbeo

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▪ Investment numbers refer to venture capital investment rounds such as seed, series A, B, C, …. late stage, and growth equity rounds. It excludes

debt or other non-equity funding, lending capital, grants and ICOs

▪ Buyouts, M&A, secondary rounds, and IPOs are treated as exits: excluded from funding data, but included in exit data

▪ A unicorn is defined as an independent private company (i.e. not publicly listed) that has reached a $1 billion valuation, on the basis of a funding

round or, retrospectively, on the basis of an acquisition or IPO

▪ There are some notable edge-cases:

- Companies that IPO-ed at or above $1 billion but subsequently dipped below that valuation, are still included (examples: Alfa, Rovio, eDreams)

- Some companies have at some stage reached a $1 billion but subsequently raised, IPO-ed or were acquired below that value. In this case the

company is not counted as a unicorn (examples: Blippar, Home24, Fanduel, Ulmart, Conduit, Wonga, VE Interactive, Powa)

- If a unicorn moved HQ, the company is counted in the country where it reached unicorn status. Occasionally companies received dual HQ status (1)

▪ This report focuses on companies that crossed the $1 billion mark in the post-internet age, i.e. after 2000. Most but not all unicorns are VC backed

▪ Companies included in the analysis are tech-driven. Industries include software, ecommerce, online marketplaces, hardware, ICT infrastructure. The

full industry & business model taxonomy can be found online via https://datacommons.technation.io

▪ Increasingly, innovative models are scaling offline or via hybrid online-retail models. Examples are beer brand Brewdog which innovated distribution

and marketing, by leveraging viral marketing and crowdfunding to build a brand and Metro Bank, a retail-first challenger bank

▪ Dealroom’s proprietary database and software aggregate data from multiple sources including processing of public news-flow, data feeds, web

scraping, crowd-sourced contributions (verified by Dealroom) and manual research

▪ Data is verified and curated with an extensive manual process, augmented by data processing

▪ Most underlying data from the report is available online. For more info please visit dealroom.co or contact support@dealroom.co

1. Examples include: Elastic (US/NL), King.com (UK/Sweden), Intercom (USA/Ireland), Sitecore (Denmark/USA), Cybereason (Israel/USA). 26

Methodology & definitions

27

Access the underlying data on datacommons.technation.io

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77% more European data than the #2 The most trusted source in Europe

Dealroom is Europe’s most comprehensive source for data on innovative companies and venture capital investment