berlin ecosystem launch report - thomas j. ackermann · berlin ecosystem launch report | july 2019...

Berlin Ecosystem Launch Report

JULY 2019

The most complete and detailed picture of Berlin’s tech ecosystem, in partnership with City of Berlin.

Berlin Ecosystem launch report | July 2019 | https://startup-map.berlinPage / 2

3,600+ startups & scaleups

200+ Accelerators, workspaces

800+ funds & corporate investors

3,000+ Funding rounds & exits

https://startup-map.berlin/dashboard

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Supported byFor founders

Know your ecosystemGet inspired

For VCs & corporatesDiscover hot startups & scaleups

Get new insights & trends

For researchersApply for data access, to

support your research projects.

For governmentsBetter understanding of startup

ecosystem dynamics

Visit https://startup-map.berlin

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https://startup-map.berlin/

Starting the series with:

1. Overview of Berlin’s startup landscape

2. Update on Berlin’s unicorns and future unicorns

3. Update on investment: is Berlin keeping up with Europe?

Initiating a series of reports about Berlin.


Berlin’s startup landscape

What type of startups are emerging? How big is Berlin’s startups scene?

1.


Exited

Current unicorns

Potential future unicorns

Rising stars

Berlin Ecosystem launch report | July 2019 | https://startup-map.berlin

Source: Dealroom.co

Berlin’s past successes are the breeding ground for talent, entrepreneurial skills, investment skills, and capital needed for the next generation of startups.

1. Berlin’s startup landscape

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Source: Dealroom.co. Includes startups that were exited/acquired.

In reality, the startup journey is non-linear, unpredictable, and dependent on level of early traction, funding strategy and operational complexity.

Team size


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500

200

50

05 years 10 years 15 years 20 years

Company age


Source: Dealroom.co

Database so far contains 3,292 Berlin tech companies founded since 1999, of which 84% founded in the last ten years.

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50%

34%

11%5%

0-5 years 6-10 years 11-15 years 16-20 years

48%

36%

14%

2% 1%

2-10 people 11-50 people 51-200 people 201-500

people

500+ people

31%

39%

21%

8%

0-5 years 6-10 years 11-15 years 16-20 years

7%

26%

39%

16%12%

2-10 people 11-50 people 51-200 people 201-500 people 500+ people

Number of startups

Number of jobs


Source: Dealroom.co

48% of startup teams are smaller than 10 people. But 39% of employees are with companies with teams size 51-200.

Number of startups


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500+ People 0% 0.2% 0.1% 0.1%

201-500 0.3% 1.2% 0.4% 0.2%

51-200 5% 5% 3% 1%

11-50 18% 12% 4% 2%

2-10 27% 15% 5% 1%

0-5 years2019-2015

6-10 years2014-2010

11-15 years2009-2005

16-20 years2004-2000

0% 5% 7% 0%

2% 10% 3% 2%

12% 14% 9% 4%

12% 9% 3% 2%

4% 2% 1% 0%

0-5 years2019-2015

6-10 years2014-2010

11-15 years2009-2005

16-20 years2004-2000

People working at startups


Source: Dealroom.co

After big successes in online consumer marketplaces, Berlin today has rising stars, across nearly any industry vertical.


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$1B+

$500-1B

$250-500M

$0-250M

Artificial Intelligence Fintech IoT & Robotics Enterprise SaaS Mobility Blockchain Marketplaces

Source: Dealroom.co

Investment in Berlin startups is happening across all sectors, in line with Europe. Notable exceptions are health, biotech and energy which have far fewer rounds.

Allocation of capital invested (2017 to 2019 YTD)


Allocation by number of rounds (2017 to 2019 YTD)


15%

14%

13%

8%

6%

5%

4%

4%

3%

3%

2%

2%

2%

2%

2%

1%

19%

12%

3%

1%

17%

8%

5%

2%

10%

2%

2%

0.4%

1%

1%

0.2%

0.0%

20% 15% 10% 5% 0% 5% 10% 15% 20% 25%

Fintech

Enterprise software

Health

Biotech

Transportation

Food

Marketing

Energy

Travel

Fashion

Home

Security

Robotics

Gaming

Telecom

Semiconductors

14%

11%

10%

6%

5%

5%

5%

4%

4%

4%

3%

3%

3%

2%

2%

2%

16%

13%

7%

6%

8%

4%

4%

3%

4%

1%

4%

2%

4%

1%

4%

3%

20% 15% 10% 5% - 5% 10% 15% 20%

Enterprise Software

Fintech

Health

Marketing

Transportation

Food

Media

Energy

Internet of Things

Biotech

Travel

Education

Home

Security

Real Estate

Jobs&Recruitment

Europe Berlin Europe Berlin

Incl. GetYourGuide

Incl. Auto1 Group

Incl. N26

Update on Berlin’s unicorns and future unicorns

How is Berlin performing on global stage?

2.


Berlin Munich Hamburg Stuttgart Dusseldorf


Source: Dealroom.co

Germany counts four cities with two or more unicorns. It’s tech ecosystem is probably more distributed among multiple cities than any other country in Europe.

2. Berlin’s unicorns and future unicorns

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London: 46

Berlin: 11Amsterdam: 7

Munich: 9Paris: 10

Stockholm: 10

Manchester: 5

Oxford: 5

Madrid: 3

Edinburgh: 3

Zurich: 3

Stuttgart: 2

Basel: 2

Hamburg: 3

Bucharest: 2

Helsinki: 2

Vienna: 2

Barcelona: 2

Dublin: 2

Moscow: 2

Cities with two or more unicorns

Cambridge: 5

Unicorns in German cities


Source: Dealroom.co

30 unicorns were created in Germany, of which 11 are from Berlin.


Page / 14

Cumulative number of unicorns created by year $1 billion valuation mark is crossed

610

1618 19

29 30

2013 2014 2015 2016 2017 2018 2019 YTD

3 3 4 4 57

11

17 18 19

29 30

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 YTD

Source: Dealroom.co. Israel included for comparison.

In Europe, Germany ranks #2 by number of unicorns.

Cumulative number of unicorns created by year $1 billion valuation is reached


73 | United Kingdom

Germany

19 | Israel

07 | Spain

15 | Netherlands


13 | France12 | Sweden


Source: Dealroom.co

Berlin ranks #10 globally by number of UnicornsNumber of realised and current unicorns by city


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211

94

62

46

41

20

17

16

12

11

11

10

10

10

9

Bay Area

Beijing

New York

London

Shanghai

Hangzhou

Seattle

Boston

San Diego

Berlin

Shenzhen

Paris

Houston

Austin

Amsterdam

703

206

73

30

26

19

15

13

12

11

United States

China

United Kingdom

Germany

India

Israel

Netherlands

France

Sweden

Switzerland

Number of realised and current unicorns by country

€ 129B

€ 47B

€ 36B

€ 29B

€ 18B

€ 10B

€ 3B

London

Stockholm

Amsterdam

Berlin

Paris

Helsinki

Barcelona


Source: Dealroom.co.

By total value created, Berlin ranks “only” as #4 city in Europe behind Stockholm and Amsterdam, due to Spotify and Adyen, two $10 billion+ startups.

Value created since 2013 by country


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Value created since 2013 by city

Incl Spotify

Incl Adyen

CurrentRealised Future

Supercell

€ 210B

€ 63B

€ 48B

€ 44B

€ 24B

€ 11B

€ 11B

United

Kingdom

Germany

Sweden

Netherlands

France

Spain

Finland

Realised FutureCurrent


Source: Dealroom.co. 1. Excludes ResearchGate, Enfore, SoundCloud.

By number of potential future unicorns, Germany is falling behind France. Paris now has 50% more potential future unicorns than Berlin.


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75

34

31

11

11

9

8

7

7

United Kingdom

France

Germany

Sweden

Switzerland

Spain

Ireland

Netherlands

Denmark

Number of “potential future unicorns”: companies valued over $250 million but less than $1 billion

47

25

16

8

8

6

6

4

4

London

Paris

Berlin

Stockholm

Zurich

Dublin

Copenhagen

Barcelona

Amsterdam

Online data for potential future unicorns (1):

https://startup-map.berlin/companies.startups/f/all_locations/Berlin/company_status/not_acquired/locations/Berlin/ownerships/not_public/valuation_max/800000000/valuation_min/200000000?search_id=6440

Update on capital & investment

Is Berlin keeping up with Europe?

3.


1.5

2.7

3.7 3.9

6.06.4

0.6

1.9 1.6 1.51.9

2.6

0.7 0.71.4

2.0 2.22.8

0.1 0.3 0.3 0.61.0 0.7

€ 1.9B

€ 3.4B

€ 5.0B€ 5.3B

€ 8.6B

€ 7.9B

€ 1.1B

€ 2.8B€ 3.0B

€ 3.2B

€ 4.5B

€ 1.0B € 1.1B

€ 1.9B

€ 2.8B € 2.7B

€ 3.7B

€ 0.4B€ 0.6B

€ 1.1B€ 1.3B € 1.3B € 1.2B

2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018


Source: Dealroom.co

Germany ranks #2 by investment in Europe, but mega rounds have had a relatively large impact.

Venture capital investment

3. Capital & investment

Page / 20

Top 10 rounds

United Kingdom Germany France Sweden

€4.3BDelivery

Hero IPO

0

100

200

300

400

500

600

2014 2015 2016 2017 2018


Source: Dealroom.co

By number of VC rounds, France has overtaken German for a few years. Paris has nearly twice as many (reported) venture capital rounds as Berlin.

Number of VC rounds over € 2 million by country


Page / 21

Germany

UK

France

Sweden

0

50

100

150

200

250

300

350

2014 2015 2016 2017 2018

Berlin

London

Paris

Stockholm

Number of VC rounds over € 2 million by city


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

And if mega-rounds are excluded, Paris has overtaken Berlin by capital invested too (excl. mega-rounds is an indicator for the generation of potential future unicorns).


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€ 0.0B

€ 1.0B

€ 2.0B

€ 3.0B

€ 4.0B

€ 5.0B

€ 6.0B

€ 7.0B

2014 2015 2016 2017 2018 2019E

Amount of VC invested (excl. mega-rounds of €100M+)

Germany

UK

France

Sweden

€ 0.0B

€ 0.5B

€ 1.0B

€ 1.5B

€ 2.0B

€ 2.5B

€ 3.0B

€ 3.5B

2014 2015 2016 2017 2018 2019E

Berlin

London

Paris

Stockholm


Source: Dealroom.co

Investment per capita shows there’s plenty of room for Berlin to grow.Investment per capita per city (2018)


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€ 0.2

€ 2

€ 8

€ 14

€ 17

€ 29

€ 35

€ 36

€ 37

€ 40

€ 44

€ 53

€ 56

€ 79

€ 85

€ 118

€ 129

€ 133

€ 284

€ 380

Turkey

Russia

Italy

Austria

Asia

Spain

Europe (excl. Israel)

Portugal

Netherlands

Belgium

Norway

Germany

France

Denmark

Finland

United Kingdom

Ireland

Sweden

USA

Israel

€ 3

€ 7

€ 18

€ 39

€ 48

€ 93

€ 105

€ 213

€ 267

€ 464

€ 516

€ 531

€ 536

€ 622

€ 700

€ 957

€ 1,113

€ 3,120

Prague

Rome

Moscow

Budapest

Vienna

Brussels

Madrid

Bucharest

Munich

Amsterdam

Copenhagen

London

Barcelona

Berlin

Lisbon

Stockholm

Paris

Tel Aviv

Investment per capita per country (2018)

€1.2B

€2.0B

€2.9B €2.9B

€3.5B

€1.7B

€0.2B

€1.0B€0.9B

€2.6B

€1.5B

€0.1B€0.2B

€0.8B €0.9B

€1.7B

€1.4B

€0.4B

2014 2015 2016 2017 2018 2019

YTD

2014 2015 2016 2017 2018 2019

YTD

2014 2015 2016 2017 2018 2019

YTD

United Kingdom France Germany


Source: Dealroom.co

French VC funds have raised €6.4 billion since 2014, which is a bit more than German VC funds, which have raised €5.4 billion.

Capital raised by European VC funds


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UK€14 billion raised

France€6.4 billion raised

Germany€5.4 billion raised

€175MJun 2019

$106MMar 2019

€120MJan 2019

€175MJul 2018

€317mJul 2018

$100MJun 2018

€317mMay 2018

€306mJan 2018

Selected recent German funds raises

You can explore all this data, and more, online now

https://startup-map.berlin/dashboard

https://app.dealroom.co/transactions.rounds/f/investors_locations/anyof_United%20States_Asia/locations/Europe?showStats=yearly


A rapidly expanding network of European ecosystems, powered by Dealroom’s API.

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The most comprehensive source for data on innovative companies and venture capital investment

77% more startup data

than the #2

Number of European rounds tracked in 2018

More data per company to

discover promising companies


blog.dealroom.co

If you like this report, please share it!

Gligor Micajkov

Research Analyst

[email protected]

Ivan Draganov

Research Analyst

[email protected]

Lotf Belych

Research Analyst

[email protected]

For questions or feedback about this report, or to see how Dealroom can help you, please feel free to contact us.


https://twitter.com/dealroomco

https://www.facebook.com/dealroom.co/

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https://blog.dealroom.co/

berlin ecosystem launch report - thomas j. ackermann · berlin ecosystem launch report | july 2019...

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