Scaling European Startups

Overview

1. Objectives

2. Methodology

3. SEP Scouting & Mapping Database

4. Preliminary findings

5. Open Items

6. Dissemination

From Startups to Scaleups

CROSSING THE CHASM

EARLY-STAGE BARRIERS

STARTUP

SCALEUP

SCALER SUSTAINABLE CORPORATE

Objectives

1) Mapping the top European Startups (Scaleups)

2) Matching them to Large Corporates

3) Sharing Best Practices

Mapping activities are

realized by (SEP) in

collaboration with PEDAL

Consulting and Ud’Anet.

Methodology

1) Categories

Startup: <$0.5M/1M funding

raised in the last three-year period

or bootstrapped companies with

revenue in this range (TBD).

Scaleup: $0.5M/1M - $100M

funding raised in the last three-year

period or bootstrapped companies

with revenue in this range (TBD).

Scaler: >$100M funding raised in

the last three-year period or

bootstrapped companies with

revenue in this range (TBD).

2) Exits M&A

IPO

3) Sources SEP database | portfol ios of

VC companies | corporate

venture units | business

angels | accelerators and

act ive seed and early stage

funds | crowdfunding platforms

| tech competit ions | other

relevant channels.

SEP Scouting and Mapping Database

Scaleups 2011-2014

Label (startup, scaleup, scaler)

Country

Year of Funding

Category (Vertical)

Subcategory

Funding (capital raised, $M)

Stage (Angel, Seed, Series A,B,C, etc.)

Last funding (year, month)

Source

Notable investors

Press release

First name

Last name

Function (mostly CEO)

Email

Telephone

SEP Scouting and Mapping Database

Exits

HQ Company

Company

Acquirer

Funding raised

Year of acquisition & merger

Exit / IPO price

Valuation

Source

Press release

Category

Subcategory

Only 3 European companies are in the

«Billion-Dollar Startup Club» (Zalando,

Spotify, Mobileye)

BUT

A growing number of startups are

entering the Unicorn «MiniClub» (e.g.

Delivery Hero, iZettle, …)

1,000+ European startups have raised

$1M+ funding investment in the last 3

yrs.

57% of actively fundraising startups

have been founded after 2010

Preliminary findings: General

Source: SEP Monitor – May 2014

European Scaleups by Country

(>$1M in funding, 2011-14)

Source: Startup Europe Partnership (SEP) Monitor – May 2014

*Preliminary Data

European Scaleups by Year of Foundation

(>$1M in funding, 2011-14)

Year of Foundation < 2005 2005-9 2010-14

% of Scaleups 6% 37% 57%

Preliminary findings: Exits & IPOs

200 + European exits identified in 2011-2014.

In 2013 the number of exits in Europe increased by some 80%

Most exits come from UK (25%), Germany 22%) and France (11%)

47% of acquirers come from USA. On the European side, UK, Germany and France ‘defend’ their positions with respective shares of 11%, 9% and 5% of all acquirers.

Most notable exits: Autonomy (UK/$10B), Supercell (FI/$1.5B for 51%), Viber (CY/$900M), Neolane (FR/$600M), DeepMind (UK/$400M), Natural Motion (UK/$380M), LaFourchette (FR/$140M), Milanuncios (SP/$100M).

Most notable IPOs: Just Eat (UK/$2.44B), Criteo (FR/$2.14B), Zendesk (DK/$159M).

Source: SEP Monitor – July 2014

Preliminary findings: Categories

Source: First interim report 2014

Preliminary findings: Funding

Over 60% of the analysed companies have received the last funding in Seed (33%) or Series A (30%) stage. Around 24% of the identified companies underwent numerous rounds of funding and are of Stage B or higher.

Most startups fall into the Software solutions category (17%), which is closely followed by E-commerce (14%) and Mobile applications (10%).

The size of funding received per sector is rather proportionate to the size of the sector.

The financial support to Hospitality, Business Analytics and Network/Hosting sectors is respectively about 15%, 17% and 40% greater than the average of all sectors combined together.

Source: First interim report 2014

Preliminary findings Country focus: Spain

Over 100 startups in Spain

broke the early stage level in the

last 3 years. 20+ companies

raised more than $5M

E-Commerce drives the scale-

up of the Spanish startup

ecosystem

Nearly 30 exits (including one

substantial IPO) reported since

2011. Mostly domestic and

European buyers, only 30%

were acquired by US

companies.

Spanish Scaleups by Category

Source: Startup Europe Partnership (SEP) Monitor – June 2014

*Preliminary Data

Source: SEP Monitor – June 2014

Dissemination

SEP Monitor

o May 2014

o June 2014

o July 2014

MAP of EU scaleups Press coverage I l So le24ore | I r i sh Times |

Techcrunch | I l Cor r i e re de l

Mezzog io rno | Europa P ress

| La Repubb l i ca | I l Cor r i e re

de l l e Comun icaz ion i amongs t

o thers

Open Items Definitions

Startup vs Scaleup (capital raised vs revenue, $ amounts,

period, …)

Born globals / companies relocating outside EU (Zendesk,

Funambol,..)

Companies having an exit

Work in progress

SEP DB is still only a sample: risks related to extrapolation of

data

Rapidly changing environment: new data becoming old soon

Data sources

Limitation of trustworthy sources

Financial information often undisclosed

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@sep_eu @aonetti