Monthly European Venture Capital report

6 August 2018

July 2018

–

100

200

300

400

500

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

2017 2018

>€2M € 0-2M

€ 1.2B

€ 1.4B

€ 2.3B

€ 2.0B

€ 1.4B

€ 1.1B

€ 1.9B

€ 1.4B

€ 1.7B

€ 1.3B

€ 2.1B € 2.0B

€ 1.5B

€ 1.8B

€ 2.7B € 2.8B

€ 2.4B

€ 1.8B € 1.8B

€ 2.3B

€ 1.7B

€ 2.1B

€ 1.9B

€ 2.4B

€ 2.7B

€ 1.9B

–

€ 0.5B

€ 1.0B

€ 1.5B

€ 2.0B

€ 2.5B

€ 3.0B

€ 3.5B

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul

2017 2018

Europe excl. Israel Biotech Israel

July investment of €1.9 billion (including Israel and biotech) was just above of July 2017 level

Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.1. Rounds below $2M are often reported with a delay of several months. Therefore, only rounds above $2M are shown here for better like-for-like comparison.

Investment in European & Israeli rounds VC rounds

2

Investment in European & Israeli rounds VC rounds

July investment of €1.5 billion excl. Israel and biotechwas also just above of 2017

Decline in number of rounds is mostly temporary, as

rounds below €2 million are announced with delays.

Number of rounds above €2 million is stable

970

1,662

988

–

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2018

€ 13B

€ 24B

€ 15B

–

€ 5B

€ 10B

€ 15B

€ 20B

€ 25B

€ 30B

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2018

By amount invested, 2018 is well ahead of 2017 so far (which was a record year itself)

Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.1. Rounds below $2M are often reported with a delay of several months. Therefore, only rounds above $2M are shown here for better like-for-like comparison. 3

Cumulative amount invested – 2018 vs. 2017 (€B) Cumulative number of rounds – 2018 vs. 2017 (>€2M)

The 10 largest rounds in July accounted for €0.8B or 47% of total investment

Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.

Show online data »

4

NAME INVESTORS INDUSTRY LOCATION ROUND

GreensillFinancial services firm specializing in Supply Chain Finance

General Atlantic Fintech UK$ 250 m

Growth Equity

GlovoOn-demand mobile application connects customers with independent local couriers

Seaya Ventures, Idinvest Partners, Rakuten, Cathay Innovation,

AmRest, GR Capital

Food / Transportation

Spain€ 115 m SERIES C

ImprobableA cloud-based platform for game developers to create AI-powered simulated worlds

NetEaseEnterprise Software

UK$ 100 mLATE VC

Next InsuranceOnline insurance for entrepreneurs and SMEs

Redpoint Ventures, Ribbit Capital, American Express Ventures,

Nationwide Insurance,…

Fintech Israel$ 83 mSeries B

Secret Escapes Exclusive, members-only discounted offers for hotels and luxury holidays

Old Mutual Global Investors Travel UK£ 52 m

Growth Equity

UrbanVoltEnergy-saving LED lighting firm

Low Carbon Innovation Fund Energy Ireland$ 65 m

Growth Equity

Mantis Vision3D capturing technologies

Samsung Catalyst Fund Media Israel$ 55 m Late VC

DynacureA biotechnology company developing new treatments for patients affected by serious orphan disorders

Bpifrance, Idinvest Partners, Pontifax Funds, Kurma Partners,

Andera PartnersHealth France

€ 47 m Series A

PPROCross-border payments specialist for merchants

HPE Growth Capital, PayPal, Citi Ventures Fintech UK

$ 50 m Growth Equity

MeeroAI for image processing

Alven, Idinvest Partners Media France$ 45 m Series B

Top rounds

Greensill (Fintech)▪ Founded in 2011, Greensill provides businesses with

alternative sources of funding, allowing them to provide suppliers with the opportunity for faster payment, while at the same time preserving their own capital position

▪ It has facilitated payments to 1.5 million suppliers and provided over $40 billion of financing

▪ General Atlantic’s $250 million investment values Greensill at $1.64 billion

Glovo (Food / Transportation)▪ Glovo is one of the most popular delivery apps in the

Spanish-speaking world. It allows its customers to order anything they want and receive it in less than one hour

▪ IdInvest Partners and AmRest lead this round

Improbable (Enterprise Software)▪ Improbable's cloud-based platform SpatialOS helps

developers to offload computations in order to bypass some of the limitations of PC, console and mobile platforms

▪ With this round, Improbable confirmed its unicorn status and is now valued at about $2 billion

Secret Escapes (Travel)▪ Secret Escapes will use the cash to boost the ongoing

integration of the Slevomat Group – a travel deals and experiences company it acquired late last year

▪ Secret Escapes has expanded into 21 territories across Europe, Asia and the US since launching seven years ago

July saw over €5.2 billion in acquisitions of which €3.2 billion venture backed exits

Source: Dealroom.co

NAME ACQUIROR SELLER VC BACKED INDUSTRY LOCATION ROUND

SuseEnterprise Linux, Openstack cloud, software-defined storage

EQT Private Equity Micro Focus Enterprise Software Germany $ 2.5b ACQUISITION

Leumi CardIsraeli credit card issuer

Warburg PincusAzrieli GroupBank Leumi ✓ Fintech Israel

$ 684 mBUYOUT

TiGenixLocal treatments for damaged and osteoarthritic joints

Takeda Healthcare Belgium€ 520 m

ACQUISITION

BasefarmSpecialises in operational and IT-related services on the net

Orange Enterprise Software Norway€ 350 m

ACQUISITION

Finanzcheck.deConsumer loans marketplace

Scout24 HoldingHighland Europe, Acton Capital Partners, HarbourVest Partners ✓ Fintech Germany

€ 285 mACQUISITION

PeopleDocProvides HR service delivery solutions

Ultimate SoftwareAccel Partners, Alven, Kernel

Capital, Eurazo ✓ Jobs Recruitment France$ 300 m

ACQUISITION

Banking CircleEnabling global payments and settlements

EQT Private Equity Saxo Bank Fintech Denmark$ 300 m

ACQUISITION

MetaPackDelivery management solutions that enable online retailers to increase user engagement and sales conversions

Stamps.comIndex Ventures, Brainspark,

WPP Ventures ✓ Transportation UK€ 197 m

ACQUISITION

TenBis#1 online platform in the Israeli restaurant and food ordering market

Takeaway.com TA Associates Food Israel€ 135 m

ACQUISITION

TxCellDevelops cell-based immuno-therapies for the treatment of severe chronic inflammatory diseases

Sangamo TherapeuticsSeventure Partners, Ardian,

Auriga Partners, BioamGestion, Innovation Capital

✓ Healthcare France€ 72 m

ACQUISITION

5

By VC backed exits, 2018 is far ahead of 2017 driven by a handful of mega-exits

Source: Dealroom.co 6

€ 16B

€ 24B

€ 54B

–

€ 10B

€ 20B

€ 30B

€ 40B

€ 50B

€ 60B

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2018

221

382

170

–

50

100

150

200

250

300

350

400

450

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2018

Cumulative value of VC-backed exits – 2018 vs. 2017 Cumulative number of VC backed exits – 2018 vs. 2017

The UK, Germany, France and Israel (the big four) continue to receive 70% of total investment

Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 7

11% YoY growth

87%

17%

10%

(35%)

(10%)

(11%)

(17%)

10%

43%

Number of rounds (>$2M size) Jan-July ‘18Investment by country (€B) Jan-July ‘18

238

194

126

89

49

42

42

31

23

20

19

15

13

13

10

6

5

3

3

2

United Kingdom

France

Israel

Germany

Sweden

Netherlands

Switzerland

Spain

Belgium

Finland

Italy

Russia

Ireland

Denmark

Norway

Austria

Portugal

Estonia

Greece

Romania

€ 3.8B

€ 2.5B

€ 2.2B

€ 1.9B

€ 0.6B

€ 0.5B

€ 0.5B

€ 0.4B

€ 0.4B

€ 0.3B

€ 0.3B

€ 0.3B

€ 0.2B

€ 0.2B

€ 0.2B

€ 0.2B

€ 0.1B

€ 0.1B

€ 0.1B

€ 0.1B

United Kingdom

Germany

France

Israel

Spain

Switzerland

Sweden

Netherlands

Portugal

Finland

Belgium

Ireland

Italy

Estonia

Denmark

Russia

Romania

Cyprus

Austria

Norway

The big four (UK, Germany, France, and Israel) continue to be highly active in 2018 to date

Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 8

€ 0.7B

€ 0.4B

€ 0.3B

€ 0.2B

€ 0.2B

€ 0.2B

€ 0.2B

€ 0.1B

€ 0.1B

€ 0.1B

€ 0.1B

€ 0.1B

€ 0.0B

€ 0.0B

€ 0.0B

(€ 0.0B)

(€ 0.0B)

(€ 0.1B)

(€ 0.1B)

(€ 0.2B)

(€ 0.5B) – € 0.5B € 1.0B

France

Portugal

Germany

Israel

Switzerland

Finland

Estonia

Cyprus

Italy

Romania

Belgium

Denmark

Ireland

Norway

Russia

United Kingdom

Spain

Austria

Netherlands

Sweden

% change vs. last year (number of rounds) Absolute change vs. last year (in €B)

150%

138%

100%

50%

50%

45%

25%

24%

20%

11%

9%

1%

–

(4%)

(17%)

(24%)

(24%)

(28%)

(39%)

(42%)

(100%) (50%) – 50% 100% 150% 200%

Portugal

Italy

Austria

Estonia

Greece

Switzerland

Finland

Netherlands

France

Norway

Israel

United Kingdom

Romania

Belgium

Germany

Ireland

Denmark

Spain

Sweden

Russia

Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.1. Rounds below $2M are included here. 9

The big four: the United Kingdom continues its lead after a very active July

2018 cumulative number of rounds (1)2018 cumulative amount invested by country

436

163

331

143

–

50

100

150

200

250

300

350

400

450

500

Jan Feb Mar Apr May Jun Jul

United Kingdom Germany France Israel

€ 1.9B

€ 2.2B

€ 2.5B

€ 3.8B

–

€ 0.5B

€ 1.0B

€ 1.5B

€ 2.0B

€ 2.5B

€ 3.0B

€ 3.5B

€ 4.0B

Jan Feb Mar Apr May Jun Jul

United Kingdom Germany France Israel

Health, fintech and enterprise software continue to be the most invested industries

Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 10

By

industry

vertical

By

business

model

By

keyword

Number of roundsAmount invested (€B)

€ 3.2B

€ 3.0B

€ 2.6B

€ 1.8B

€ 1.3B

€ 0.9B

€ 0.9B

€ 0.7B

€ 0.6B

€ 0.5B

€ 0.5B

€ 0.4B

€ 0.3B

€ 0.3B

€ 0.3B

€ 0.3B

€ 5.6B

€ 3.1B

€ 2.2B

€ 1.5B

€ 1.2B

€ 3.5B

€ 2.0B

€ 0.5B

€ 0.4B

€ 0.1B

– € 1.0B € 2.0B € 3.0B € 4.0B € 5.0B € 6.0B

Fintech

Health

Enterprise software

Transportation

Biotech

Security

Travel

Energy

Food

Home

Robotics

Gaming

Insurance

Semiconductors

Fashion

Telecom

SaaS

Manufacturing

Marketplace

Mobile app

eCommerce

Deep Tech

Artificial intelligence

InternetOfThings

Blockchain

Virtual reality

384

292

290

145

130

106

106

97

71

71

57

51

45

39

37

25

711

407

234

136

101

432

257

92

53

26

– 100 200 300 400 500 600 700 800

Enterprise software

Fintech

Health

Transportation

Energy

Security

Food

Biotech

Travel

Home

Fashion

Robotics

Semiconductors

Insurance

Gaming

Telecom

SaaS

Manufacturing

Marketplace

eCommerce

Mobile app

Deep Tech

Artificial intelligence

InternetOfThings

Blockchain

Virtual reality

Increased focus on deep tech related areas (robotics, AI, semiconductors) is noticeable in investment data

Source: Dealroom.co. Only includes rounds above €2M. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 11

By

industry

vertical

By

business

model

By

keyword

€ 1.1B

€ 1.0B

€ 0.7B

€ 0.5B

€ 0.4B

€ 0.4B

€ 0.2B

€ 0.1B

€ 0.1B

€ 0.1B

(€ 0.1B)

(€ 0.2B)

(€ 0.3B)

(€ 0.3B)

(€ 0.6B)

(€ 0.7B)

€ 1.3B

€ 0.7B

€ 0.3B

(€ 0.9B)

(€ 1.0B)

€ 0.7B

€ 0.2B

€ 0.2B

(€ 0.1B)

(€ 0.4B)

(€ 1.5B) (€ 1.0B) (€ 0.5B) – € 0.5B € 1.0B € 1.5B

Transportation

Health

Fintech

Travel

Biotech

Robotics

Energy

Security

Telecom

Semiconductors

Insurance

Home

Gaming

Fashion

Food

Enterprise software

Manufacturing

Mobile app

SaaS

eCommerce

Marketplace

Deep Tech

Artificial intelligence

Blockchain

InternetOfThings

Virtual reality

100%

56%

33%

30%

17%

16%

6%

5%

–

(5%)

(7%)

(10%)

(14%)

(20%)

(24%)

(25%)

38%

34%

(0%)

(24%)

(29%)

51%

27%

17%

(4%)

(33%)

(50%) – 50% 100% 150%

Robotics

Semiconductors

Security

Food

Biotech

Transportation

Health

Energy

Insurance

Fashion

Enterprise software

Travel

Fintech

Telecom

Gaming

Home

Mobile app

Manufacturing

SaaS

eCommerce

Marketplace

Artificial intelligence

Blockchain

Deep Tech

InternetOfThings

Virtual reality

% change vs. last year (number of rounds) Absolute change vs. last year (in €B)

Heatmap of 2018 venture capital investment by country and industry

12Source: Dealroom.co.

Number of rounds in 2018 to date by country Europe total Number of rounds in 2018 by monthUnited

Kingdom Germany France Israel Sweden Netherlands Spain Russia Switzerland Ireland

Number of

rounds

% YoY

growth

Investment

(€B)

% YoY

growth

Industry vertical

Fintech 101 20 32 20 25 9 16 6 12 7 155 8% € 2.6B 27%

Health 69 16 49 23 32 30 10 2 23 5 188 29% € 2.7B 57%

Enterprise software 95 38 70 31 15 25 24 7 9 7 212 15% € 2.4B (15%)

Energy 28 9 29 6 17 24 3 – 8 4 66 25% € 0.6B 27%

Transportation 25 20 28 10 11 15 9 10 9 – 70 32% € 1.7B 169%

Security 24 4 9 43 8 3 5 1 5 1 76 65% € 0.8B 32%

Food 17 6 24 6 8 3 5 3 5 2 50 61% € 0.4B (63%)

Biotech 24 4 19 9 12 9 3 – 12 – 82 28% € 1.3B 44%

Travel 21 9 10 1 3 8 12 2 – – 37 6% € 0.8B 111%

Home 15 6 13 6 8 8 5 2 3 – 41 (16%) € 0.4B (39%)

Insurance 19 7 5 3 3 3 – – – – 22 22% € 0.2B (51%)

Telecom 7 1 6 5 4 1 1 1 – – 17 – € 0.3B 54%

Fashion 6 7 6 1 11 4 7 4 2 1 23 21% € 0.2B (55%)

Semiconductors 8 6 8 6 3 3 2 – 5 2 28 75% € 0.3B 31%

Robotics 9 2 12 7 1 6 1 4 7 – 36 177% € 0.5B 447%

Gaming 7 4 3 2 11 1 1 2 – – 20 (5%) € 0.3B (49%)

Business model

SaaS 163 74 130 69 51 46 37 19 18 10 406 24% € 4.9B 6%

Manufacturing 84 21 73 41 28 66 11 4 35 7 232 60% € 2.8B 69%

Marketplace 58 32 43 5 18 11 22 9 6 – 110 (13%) € 2.0B (36%)

eCommerce 22 19 23 7 17 8 8 6 4 2 73 (4%) € 0.9B (51%)

Mobile app 23 2 15 7 7 5 8 7 7 1 54 54% € 1.3B 96%

Keywords

Deep Tech 114 29 61 59 25 37 17 11 24 4 256 46% € 3.2B 34%

Artificial intelligence 78 15 31 39 18 19 11 7 6 1 165 101% € 1.8B 27%

InternetOfThings 13 13 20 20 5 3 2 1 6 – 50 19% € 0.5B (3%)

Blockchain 15 3 1 4 4 5 – 5 8 2 19 36% € 0.4B 184%

Virtual reality 9 2 2 – 4 5 – – 4 – 8 (20%) € 0.0B (92%)

Total 440 163 334 145 200 152 96 54 83 28 988 22% € 13.1B 18%

Investment activity by selected leading investors

Source: Dealroom.co. 13

Number of rounds in 2018 YTD by country Number of rounds in 2018 YTD by industry verticalUnited

Kingdom Germany France Israel Sweden Netherlands SaaS Deep Tech Manufacturing Marketplace

Enterprise software Transportation Fintech

Artificial intelligence Energy Health Travel

Index Ventures 3 1 3 – – – 2 – – 1 2 1 4 – 1 1 –

HV Holtzbrinck Ventures 1 6 – 1 – – 4 2 – 5 2 1 1 3 – – 2

Balderton Capital 3 2 3 – 1 – 4 1 1 4 4 1 2 – – – –

Northzone – – – – 3 – 4 4 – – 4 – 2 3 – – –

Lakestar 1 3 – – 1 – 1 – – 1 – – 2 – – – –

Sequoia Capital 2 – 1 4 1 – 5 3 1 – – 1 1 3 – 2 –

Accel Partners 1 1 1 – 1 1 5 3 – – 4 – 2 3 – – –

Insight Venture Partners 1 – – 1 1 1 5 2 – – 3 – 2 2 1 – –

Bpifrance – – 35 – – – 13 8 10 4 7 4 – 6 3 6 2

Rocket Internet SE – 1 – – – – – – – – – – – – – 1 –

Intel Capital 1 2 2 1 – – 2 4 5 – 2 1 – 2 – – –

83North – – – – – – – – – – – – – – – – –

Atomico 3 – – – 1 – 2 1 – 2 1 2 1 2 – – –

LocalGlobe 12 1 – – – – 6 4 2 5 3 1 – 4 2 – 2

IDInvest Partners – – 10 – – – 7 – – 3 4 4 2 – – 1 –

Point Nine Capital 1 – – – – – 1 1 – 1 1 1 – 1 – – –

EQT Ventures – 1 1 – 1 – 3 2 – – 3 – – 2 – – –

Global Founders Capital – 5 2 – 1 – 2 2 1 3 1 1 1 2 – 1 1

Partech 3 – 9 – 1 – 4 1 3 1 5 3 2 1 – 1 –

Greylock Partners 1 – – – – – – 1 – – – – 1 1 – – –

Creandum 1 1 – – 1 – 1 – – 3 – – 2 – – 1 –

Benchmark – – – – – – – – – – – – – – – – –

360 Capital Partners 1 – 3 – – – 1 2 1 – 1 – 1 2 1 – –

DN Capital 1 2 – – – – 1 – – 2 – – – – 1 – 1

Mangrove Capital Partners – – – 1 – – 3 2 – – 3 – – 2 – – –

Acton Capital Partners – 3 – – – – 1 – – 2 – 1 – – – – –

Octopus Investments 1 – – – – – 1 – – 1 1 – – – – – –

Intel Capital 1 2 2 1 – – 2 4 5 – 2 1 – 2 – – –

Softbank – 1 – 1 1 – 3 1 – 1 2 1 – – – – –

Naspers – – – – – – – – – – – – – – – – –

Tengelmann Ventures 1 2 – – – – – – – 3 – 1 1 – – 1 –

Nokia Growth Partners – – – – – – – – – – – – – – – – –

Tencent – 1 – – – – – 1 – – – – 1 1 – – –

Qualcomm Ventures 1 – – – – – – 1 1 – – – – 1 – – –

Axel Springer – 2 – – – – 1 – – 2 – – – – – 2 –

Salesforce Ventures – – – 1 – – 1 1 – – 1 – 1 1 – – –

Microsoft – – – – – – – – – – – – – – – – –

ProSiebenSat1 Media SE – – – – – – – – – – – – – – – – –

GV 3 – 1 – – – 3 2 1 – 2 – – 2 – 3 –

Iris Capital – 1 3 – – – 2 1 – – 2 – – 1 – – –

Barclays – – – – – – – – – – – – – – – – –

BNP Paribas – – 6 – – – 4 1 1 – 1 – – 2 – 1 –

Orange – – – 1 – – – – – – – – – – – – –

Rakuten 2 1 – – – – 2 1 – – 2 1 3 – – – 1

Intelligent global database to identify & track growth opportunities and innovative companies