technology investment banking
silverpeakib.com
© Silverpeak LLP 2019 Silverpeak LLP is authorised and regulated by the Financial Conduct Authority
London | Paris | Milan | San Francisco
The State of the Market
for Series B & C Rounds in
European Tech Companies
October 2019
Souradeep Roy
t: +44 (0) 20 7529 5406
Matthew Lacour
t: +44 (0) 20 7529 5409
Pietro Strada
t: +44 (0) 20 7529 5402
© Silverpeak LLP 2019 London | Paris | Milan | San Francisco
Contents01 // SILVERPEAK OVERVIEW
02 // EUROPEAN TECH VENTURE ENVIRONMENT: RECENT TRENDS
03 // EUROPEAN TECH B-ROUNDS: A POSITIVE FUNDING ENVIRONMENT
04 // EUROPEAN TECH C-ROUNDS: ALL SEEMS WELL
London | Paris | Milan | San Francisco
SILVERPEAK OVERVIEW
1.
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
01 // A COMPANY SNAPSHOT
Silverpeak advises outstanding growth technology
companies on M&A and financing transactions
4
strong
senior team
deals and assignments completed
countries with
feet on the ground
office locations
Regulated by the Financial Conduct Authority
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
01 // THE SILVERPEAK SENIOR TEAM
7
NATIONALITIES
PIETRO
STRADA
Managing
Partner
PADDY
MCCGWIRE
Managing
Partner
JEAN-MICHEL
DELIGNY
Senior
Advisor
JANE
MARTIN
Operating
Partner
DAVID
BELL
Director
DAVID
FORD
Director
MATTEO
POZZI
Director
SIMON
WALKER
Chairman
ALEX
DE GANDT
Director
We have a truly international DNA with our senior team having over 150
years of deal-making experience
PREVIOUS COMPANIESDEGREES
5
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
01 // WE ARE FOCUSED EXCLUSIVELY ON THE TECHNOLOGY SECTOR
INTERNET &
DIGITAL MEDIA
ENTERPRISE
SOFTWARE & SAAS
HEALTHTECH FINTECH MOBILITYENABLING
TECHNOLOGIES
BUSINESS
SERVICES
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
Local support and truly global reach
LARGER
FINANCINGS
EXITS ACQUISITIONS STRATEGIC
ISSUES
We advise on a wide range of transactions
01 // WHAT WE ADVISE ON
7
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
01 // RECENT TRANSACTIONS
Denotes Silverpeak transaction
GB | GB
December 2018
Investment by
Digital bank
IT | NL
December 2018
Sale
Fingerprint scanners & software
November 2018
Investment led by
High performance integrated
optoelectronic communication
devices & modules
NL | NL
Developer of Sensor fusion, AI, robotics & control
technologies
July 2018
Investment by
IT | IT
Family offices &
individual investors
DE | DE
October 2017
Sale
(majority stake)
POS payment specialist
GB | IE
December 2018
Sale
Clinical speech recognition services & software
GB | GB
October 2018
MBO
Public bus smart ticketing &
cloud management platform
FR | FR
November 2018
Investment by
M2M cybersecurity forthe industrial internet
GB | US
October 2017
Sale
Mobile payment & analytics platform
DE | DE
September 2017
Sale
(majority stake)
Data management software
US | LU
January 2018
Investment in
Social media analytics& monitoring software
DE | DE
October 2017
Sale
(majority stake)
SaaS business e-commerce middleware platform
DE | DE
July 2018
Sale
SaaS knowledge management solutions
US | GB | FR
April 2018
Investment by
Software for multi public cloud data management
8
US Strategic
London | Paris | Milan | San Francisco
EUROPEAN TECH VENTURE ENVIRONMENT RECENT TRENDS
2.
© Silverpeak LLP 2019
Overall VC investment in European tech companies is on track to
reach a new high in 2019, having already hit €20B in 2019YTD
B & C rounds in 2019 totalled €4B and are set to exceed last year’s
amount
General trend towards larger deals, with median B rounds at
€16.5m and C rounds at a staggering €39.1m
The UK is showing some signs of a downturn with lower amounts
raised in H1-19 vs H1-18; H2-19 is too early to call
Of the 10 the largest B rounds so far in 2019, 6 were fintech
companies
The largest C rounds were dominated by French companies,
producing 5 out of the top 10 largest rounds (compared to UK’s
2)in 2019
EUROPEAN TECH B & C-ROUNDS REMAIN HEALTHY
2019 is turning out to
be a great year for
European tech private
companies, supported
by a strong flow of
capital.
PIETRO STRADAMANAGING PARTNER
Note: 2019 YTD is up to 30/09/19, includes rounds with undisclosed values
02 // KEY TAKEAWAYS
10 London | Paris | Milan | San Francisco
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
02 // SUMMARY OF ALL ROUNDS TECH DEALS IN EUROPE
11
3,657
4,733
3,696
3,557
2,415
4,5804,435
3,578
2,719
2015 2016 2017 2018 2019 YTDFirst half-year Second half-year
2019 looks on track to reach new highs for VC investmentTotal VC Financing Amounts (€b) and Deal Count by Half-Year, 2015-2019 Q3
1,000 Deal count in each period
Source: Pitchbook Definition: Primary industry → Information Technology; all verticals
Total amount invested
Note: 2019 YTD is up to 30/09/19
575
€450m€613m
€702m
€486m
€1,220m
€842m
€1,606m
€1,130m
€1,684m
€661m
€259m
€495m
€694m
€449m
€273m
€762m
€731m
€648m
€1,450m
€710m
50
69 6971
68
76
103
86
106
48
0
20
40
60
80
100
120
0
500
1,000
1,500
2,000
2,500
3,000
3,500
H1'15 H2'15 H1'16 H2'16 H1'17 H2'17 H1'18 H2'18 H1'19 Q3'19
Series C
Series B
Total # deal
Source: Pitchbook
02 // EUROPEAN TECH VENTURE ENVIRONMENT
B & C rounds on an upward trend in value
© Silverpeak LLP 2019
Series B & C Total Financing Amounts (€m) and Deal Count by Half-Year, 2015-2019 YTD
Source: Pitchbook
12 London | Paris | Milan | San Francisco
Note: includes rounds with undisclosed values
Median C round values are pulling away, B rounds flattish
© Silverpeak LLP 2019
Median size (in €m) of Series B & C rounds by Half-Year, 2015-2019YTD
Source: Pitchbook
02 // EUROPEAN TECH VENTURE ENVIRONMENT
13 London | Paris | Milan | San Francisco
7.4
10.0
11.9
7.3
11.5 12.0
14.6 14.9
20.0
16.516.7
18.5
20.1
13.1
20.018.9
20.8
34.4
32.8
39.1
H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Q3 2019
Series B
Median
Series C
Median
Note: 2019 YTD is up to 30/09/19
€178m €182m€237m
€125m
€732m
€312m
€528m
€427m €443m
€231m
€100m
€236m €115m
€157m
€69m
€451m
€292m
€185m
€325m
€110m
20 20
18
21
26
29
3132
30
14
0
5
10
15
20
25
30
35
0
100
200
300
400
500
600
700
800
900
H1'15 H2'15 H1'16 H2'16 H1'17 H2'17 H1'18 H2'18 H1'19 Q3'19
Series C
Series B
Deal Count
02 // EUROPEAN TECH VENTURE ENVIRONMENT
UK Series B & C investment showing signs of a slowdown
© Silverpeak LLP 2019
Series B & C Total Financing Amounts (€m) and Deal Count by Half-Year in the UK, 2015-2019 YTD
Source: Pitchbook
14 London | Paris | Milan | San Francisco
Note: includes rounds with undisclosed values
02 // EUROPEAN TECH VENTURE ENVIRONMENT
AI and Fintech remain the most active in B&C series rounds
© Silverpeak LLP 2019
Volume of B&C rounds by vertical 2018-2019 YTD
Source: Pitchbook
15 London | Paris | Milan | San Francisco
44
24
24
20
19
17
10
10
6
4
4
35
36
20
10
10
12
10
2
2
3
3
0 10 20 30 40 50 60 70 80
Other
AI
FinTech
Mobile
E-Commerce
Industrials
CleanTech
Big Data
MarTech
HealthTech
Digital Health
2018
2019
Note: 2019 YTD is up to 30/09/19
© Silverpeak LLP 2019 London | Paris | Milan | San Francisco16
Selected B & C Round Fundraisings in the mobility sector, 2015-2019 Q3
INV
ESTM
EN
T
BY
Series B
SEP. 2019
€51.5m
As at the 30th of September 2019
Series B
AUG. 2019
€14.2m
Series C
JUL. 2019
undisclosed
Series B
JUN. 2019
€7.0m
Series B
MAY 2019
€33.9m
Series B
APR. 2019
€13.4m
Series B
FEB. 2019
€20.0m
Series B
FEB. 2019
€24.5m
Series B
FEB. 2019
€20.0m
Series B
OCT. 2018
€10.5m
Series B
FEB. 2018
€40.0m
Series B
JAN. 2018
€31.2m
Series C
JAN. 2018
€32.0m
Series C
SEP. 2017
undisclosed
Series C
AUG. 2016
€10.0m
Series C
APR. 2016
€105.9m
Series B
OCT. 2015
€10.7m
Series B
JUL. 2015
€36.3m
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
INV
ESTM
EN
T
BY
2019 Q4 UPDATE
€77.2m
€54.5m
€35.9m
02 // EUROPEAN TECH VENTURE ENVIRONMENT
London | Paris | Milan | San Francisco
EUROPEAN TECH B-ROUNDS
3.
A POSITIVE FUNDING ENVIRONMENT
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
03 // EUROPEAN TECH B-ROUNDS
18
What is a Series B?
Source: Fundz
While a Series A funding round is to really get the team and product developed, a Series B
Funding is all about taking the business to the next level, past the development stage.
Typically before these funding rounds occur, the company has completed significant
milestones and now its time to really build upon that success with additional investment.
Series B is to pour the gas on for growth with a larger investment round.
At this stage, the company has shown the ability to reach and surpass well planned goals,
so now its time to double down and get a better sense of where things can really go.
Note: For the purpose of this analysis, Series B is any fundraising announced as Series B on Pitchbook
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
€479m
€613m€702m
€486m
€1,223m
€842m
€1,606m
€1,130m
€1,684m
€661m
45
51
47
51
56
50
83
68
75
32
0
10
20
30
40
50
60
70
80
90
0
200
400
600
800
1,000
1,200
1,400
1,600
H1'15 H2'15 H1'16 H2'16 H1'17 H2'17 H1'18 H2'18 H1'19 Q3'19
Total financing amounts
Deal count
19
B-Rounds in 2019 look on track for moderate growth YOYSeries B Total Financing Amounts (€m) and Deal Count by Half-Year, 2015-2019YTD
Source: Pitchbook
03 // EUROPEAN TECH B-ROUNDS
Note: includes rounds with undisclosed values
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
41%
26% 25%
13%7%
16%
29%
22%
22%
13%
30%29%
32%
33%
33%
12%15%
17%
26%
41%
1% 1%4% 5% 6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017 2018 2019 YTD
> €50m
€20-50m
€10-20m
€5-10m
< €5m
20
There is a continuous trend towards larger B-Round dealsBreakdown of Series B rounds by value
Source: Pitchbook Note: 2019 YTD is up to 30/09/19
03 // EUROPEAN TECH B-ROUNDS
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
OUTLIER DEAL
€464mMay 2017
19.5
16.5
23.2
10.6
24.8
17.8
20.5
16.6
22.5
20.7
11.6
16.2
22.5
9.3
12.6
13.8
15.414.9
20.0
16.5
H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Q3 2019
Average size
Median size
21
The median size of B-Rounds is on an upward trendMedian and Average size (in €m) of Series B rounds by Half-Year, 2015-2019YTD
Source: Pitchbook
03 // EUROPEAN TECH B-ROUNDS
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
28%
18%
15%
7%
7%
United Kingdom
Germany
France
Switzerland
Netherlands
8%
55%
16%
25%
297%
28%
22%
17%
6%
5%
United Kingdom
Germany
France
Switzerland
Spain
16%
5%
20%
20%
60%
22
The top three countries make up over 60% of the total value
and number of European Series B rounds
# of Series B-Rounds by country(2019 YTD)
Value of Series B-Rounds by country(2019 YTD)
31
20
16
8
8
€674m
2019 YTDCompared to 2018 YTD
€534m
€399m
€137m
€127m
2019 YTDCompared to 2018 YTD
% change in # of deals % change in total value of deals
Note: 2019 YTD is up to 30/09/2019Source: Pitchbook
03 // EUROPEAN TECH B-ROUNDS
London | Paris | Milan | San Francisco© Silverpeak LLP 2019 23
UK, France and Germany take the top three spots in 2019Total volume and value of Series B funding rounds in the most active European countries in 2019YTD
31
16
UNITED KINGDOM
€674m
20
FRANCE
€399m
GERMANY
€534m
4
DENMARK
€127m
8
ITALY
€50m
#Total number of Series
B funding rounds
Total value of Series
B roundsSource: Pitchbook
110
66
65
54
52
50
49
49
41
39
1
2
3
4
5
6
7
8
9
10
Rank Company Country Deal Size (€m)
4IRELAND
€84m8
NETHERLANDS
€94m
5
SWITZERLAND
€137m
Note: 2019 YTD is up to 30/09/19
03 // EUROPEAN TECH B-ROUNDS
London | Paris | Milan | San Francisco© Silverpeak LLP 2019 24
SWITZERLANDNETHERLANDSIRELAND
NORWAYHUNGARYCZECH.REPBELGIUMAUSTRIA
FRANCE
GERMANY
DENMARK SPAINITALY
Source: Pitchbook
PORTUGAL
UNITED KINGDOM
03 // EUROPEAN TECH B-ROUNDS
Note: Selected companies
London | Paris | Milan | San Francisco© Silverpeak LLP 2019 25
There is a large pool of “serial” B-round investors97 investors who participated in more than two Series B funding rounds in 2018-2019YTD
3 4 5 6 7 8 10+
43
17
16
54
2
7
Source: Pitchbook
9
3
Note: 2019 YTD is up to 30/09/19
03 // EUROPEAN TECH B-ROUNDS
London | Paris | Milan | San Francisco© Silverpeak LLP 2019 26
48 investors have led more than one round between 2018
and 2019 YTD
2 3 4 5+
7
2
1227
Note: 2019 YTD is up to 30/09/19Source: Pitchbook
03 // EUROPEAN TECH B-ROUNDS
London | Paris | Milan | San Francisco
EUROPEAN TECH C-ROUNDS
4.
ALL SEEMS WELL
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
04 // EUROPEAN TECH C-ROUNDS
28
What is a Series C?
Source: CFI
A Series C round is the fourth stage of a company’s financing, and typically the last
stage of venture capital financing.
However, some companies opt to conduct more rounds, such as series D, E, etc.
Companies that aim to obtain series C funding are no longer start-ups.
They are usually established, successful companies in their late stages of
development, with solid revenues and profits.
Their core products or services generate strong demand in the marketplace, attracting
a substantial customer base.
Note: For the purpose of this analysis, Series C is any fundraising announced as Series C on Pitchbook
€377m
€495m
€694m
€449m
€273m
€762m €731m€648m
€1,450m
€710m
1718
22
20
14
26
20
18
31
16
0
5
10
15
20
25
30
35
0
200
400
600
800
1,000
1,200
1,400
H1'15 H2'15 H1'16 H2'16 H1'17 H2'17 H1'18 H2'18 H1'19 Q3'19
Total financing amounts
Deal count
Note: includes rounds with undisclosed values
04 // EUROPEAN TECH C-ROUNDS
2019 remains a robust year for Series C funding rounds
© Silverpeak LLP 2019
Series C Total Financing Amounts (€m) and Deal Count by Half-Year, 2015-2019 YTD
Source: Pitchbook
29
OUTLIER DEALS
€230m
€130m
€125m
London | Paris | Milan | San Francisco
Note: 2019 YTD is up to 30/09/19Source: Pitchbook
04 // EUROPEAN TECH C-ROUNDS
Slow down in small size deals, hike in mega rounds
© Silverpeak LLP 2019
Breakdown of Series C rounds by value
30 London | Paris | Milan | San Francisco
26%30% 32%
25%
16%
61% 52%
62%
63%
57%
13%17%
6%13%
27%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017 2018 2019 YTD
> €50m
€10-50m
< €10m
04 // EUROPEAN TECH C-ROUNDS
The median size has doubled over the last four years
© Silverpeak LLP 2019
Median and Average size (in €m) of Series C rounds by Half-Year, 2015-2019YTD
Source: Pitchbook
31 London | Paris | Milan | San Francisco
22.2
27.5
31.5
22.5
29.3
36.5
36.0
46.8
43.9
16.7
18.520.1
13.1
20.018.9
20.8
34.432.8
39.1
-5.00
5.00
15.00
25.00
35.00
45.00
55.00
H1 2015 H2 2015 H1 2016 H2 2016 H1 2017 H2 2017 H1 2018 H2 2018 H1 2019 Q3'19
Average size
Median size
37%
20%
18%
7%
6%
United Kingdom
Germany
France
Switzerland
Netherlands
29%
23%
21%
8%
4%
United Kingdom
Germany
France
Switzerland
Netherlands
€142m
€130m
04 // EUROPEAN TECH C-ROUNDS
France is attracting larger Series C rounds; its total value
has zoomed past UK’s but with 30% fewer deals
© Silverpeak LLP 2019
# of Series C Rounds by country(2019YTD)
Value of Series C Rounds by country(2019YTD)
15
12
11
4
2
€811m
€434m
€394m
Note: 2019 YTD is up to 30/09/2019Source: Pitchbook
32 London | Paris | Milan | San Francisco
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
04 // EUROPEAN TECH C-ROUNDS
France dominates the Series C scene in 2019Total volume and value of Series C funding rounds in the most active European countries in 2019YTD
15
11
UNITED KINGDOM
€434m
12
FRANCE
€811m
GERMANY
€394m
2
#Total number of Series C
funding rounds
Total value of Series C
roundsSource: Pitchbook
230
130
125
104
98
79
70
70
62
60
1
2
3
4
5
6
7
8
9
10
Rank Company Country Deal Size (€m)
Note: 2019 YTD is up to 30/09/19
33
SPAIN
€142m
2
BELGIUM
€86m
London | Paris | Milan | San Francisco© Silverpeak LLP 2019
04 // SELECTED EUROPEAN TECH C-ROUNDS IN THE LAST 18 MONTHS
34
SWITZERLANDSPAINBELGIUM
IRELANDFINLANDESTONIAAUSTRIA
FRANCE
GERMANY
DENMARK
Source: Pitchbook
LUXEMBOURG
UNITED KINGDOM
MALTA NETHERLANDS SWEDEN
Note: Selected companies
04 // EUROPEAN TECH C-ROUNDS
© Silverpeak LLP 2019
51 investors participated in more than one Series C funding round in 2018-2019YTD
2 4 53
38
9
3
1
There is a growing pool of serial C-round investors
Source: Pitchbook
35
Note: 2019 YTD is up to 30/09/2019
London | Paris | Milan | San Francisco
04 // EUROPEAN TECH C-ROUNDS
© Silverpeak LLP 2019
The number of repeat Series C lead investors is small
2 3 4
Source: Pitchbook
36
Note: 2019 YTD is up to 30/09/2019
2
1
8
11 investors lead more than one Series C funding round in 2018-2019YTD
London | Paris | Milan | San Francisco
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© Silverpeak LLP 2019 Silverpeak LLP is authorised and regulated by the Financial Conduct Authority
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Disclaimer
This presentation has been prepared exclusively for internal use and does not carry any right of publication or disclosure to any other party. Neither this presentation nor any
of its contents may be used for any other purpose without the prior written consent of Silverpeak LLP, trading as ‘Silverpeak technology investment banking’ (“Silverpeak”).
The information in this presentation reflects prevailing conditions and our views as of this date, all of which are subject to change. In preparing this presentation, Silverpeak
has relied upon and assumed, without independent verification, the accuracy and completeness of all information available to us or from public sources or which was
otherwise reviewed by us.
37
Thank you from Silverpeak LLP