Is it morning in European tech?ACCIÓ, Barcelona, 6 July 2017

Providing corporates, investors, governments with

data-driven intelligence about high-growth companies

Record €5.5 billion raised by European companies (incl. Israel) during the second quarter of 2017

3Source: Dealroom.co. Excludes buyouts, secondaries, debt, lending capital. Includes Israel.

€ 0.8B

€ 1.4B€ 1.2B € 1.2B

€ 1.0B

€ 1.4B

€ 1.1B

€ 1.8B€ 2.0B

€ 2.3B

€ 3.5B

€ 2.5B

€ 3.8B€ 3.7B

€ 4.2B

€ 3.7B

€ 4.4B € 4.3B

€ 3.7B

€ 4.1B€ 4.4B

€ 5.5B

€ 0.0B

€ 1.0B

€ 2.0B

€ 3.0B

€ 4.0B

€ 5.0B

€ 6.0B

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2012 2013 2014 2015 2016 2017

Preliminary data as of 1 July 2017. Please keep an eye on blog.dealroom.co for final Q2 report

During the last 12 months, a record €17.8 billion was raised by European companies (incl. Israel)

4Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, lending capital. Includes Israel.

€ 4.6B € 4.7B € 4.8B € 4.7B€ 5.3B

€ 6.3B€ 7.2B

€ 9.6B€ 10.4B

€ 12.2B

€ 13.5B€ 14.2B

€ 15.3B€ 16.0B

€ 16.6B€ 16.1B

€ 16.5B € 16.5B

€ 17.7B

€ 0.0B

€ 2.0B

€ 4.0B

€ 6.0B

€ 8.0B

€ 10.0B

€ 12.0B

€ 14.0B

€ 16.0B

€ 18.0B

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2013 2014 2015 2016 2017

UK, Germany and France are the leading tech hubs,

followed by Sweden, Spain, Netherlands

5

UKLondon

GermanyBerlin

FranceParis

SpainBCN & Madrid

Rest of Europe

Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, lending capital. Includes Israel.Note: Preliminary data as of 1 July 2017. Please keep an eye on blog.dealroom.co for final Q2 report.

€ 2.1B

€ 0.9B

€ 0.7B

€ 0.2B

€ 1.5B

€ 0.0B

€ 0.5B

€ 1.0B

€ 1.5B

€ 2.0B

€ 2.5B

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

2015 2016 2017 . 2015 2016 2017 . 2015 2016 2017 . 2015 2016 2017 . 2015 2016 2017

London Berlin Paris Barcelona & Madrid Rest of Europe

Paris has been a rising star in venture capital since

2016

6

London Paris Berlin Stockholm Amsterdam Barcelona Madrid

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

€ 2.2B

€ 1.7B

€ 833M € 910M

€ 123M€ 258M € 227M

–

100

200

300

400

500

600

€ 0.0B

€ 0.5B

€ 1.0B

€ 1.5B

€ 2.0B

€ 2.5B

€ 3.0B

€ 3.5B

'12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16

Amount invested (€ billions) Number of rounds

Barcelona Madrid

Rising stars

Exits

Investors

Funding

Barcelona and Madrid: two strong ecosystems

7Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, lending capital. Includes Israel.

€ 29M€ 96M

€ 220M

€ 318M€ 258M

31 41

69

85 93

'12 '13 '14 '15 '16

€ 19M € 31M

€ 106M € 112M

€ 227M

47 56

49

64

53

'12 '13 '14 '15 '16

UK Germany France Spain Other

The largest venture capital rounds in 2017 so far

8Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, lending capital. Includes Israel.Note: Preliminary data as of 1 July 2017. Please keep an eye on blog.dealroom.co for final Q2 report.

Evolution of investment themes in Europe

Peaked in 2015: Food, Fashion, Wellness, Taxi

1. Includes artificial intelligence, deep learning, robotics, aviation, semiconductors, augmented reality, virtual reality, computer vision.

Growth areas: FinTech, HealthTech, Deep Tech (1)

Stable funding: Enterprise/SaaS, Travel Tech, Gaming

€ 0.2B € 0.1B

€ 1.2B € 1.4B

€ 0.6B€ 0.4B€ 0.3B

€ 0.9B € 0.7B

€ 0.8B

€ 0.1B

€ 0.1B€ 0.4B

€ 0.2B

€ 0.3B€ 0.8B

€ 0.5B

€ 0.9B € 0.7B

€ 2.7B

€ 3.5B

€ 2.9B

2012 2013 2014 2015 2016

Food Fashion Wellness Transportation

€ 0.1B€ 0.4B € 0.6B

€ 1.5B€ 1.8B

€ 0.4B€ 0.4B

€ 1.2B

€ 1.7B€ 1.8B

€ 0.5B

€ 0.7B

€ 1.1B

€ 1.8B

€ 1.9B

€ 1.0B€ 1.5B

€ 2.9B

€ 5.0B€ 5.5B

2012 2013 2014 2015 2016

Deep tech FinTech Healthcare

€ 0.2B € 0.2B€ 0.5B

€ 0.9B € 0.7B€ 0.5B€ 0.9B

€ 1.6B

€ 1.9B € 2.0B

€ 0.1B

€ 0.2B

€ 0.3B

€ 0.6B € 0.6B

€ 0.9B€ 0.7B

€ 2.7B

€ 3.2B € 2.4B

2012 2013 2014 2015 2016

Travel Enterprise Gaming

9

€ 0.8B € 1.2B€ 1.8B

€ 4.4B € 4.7B

€ 3.7B € 4.0B

€ 8.3B

€ 10.4B€ 11.2B

€ 0.1B € 0.2B € 0.3B € 0.6B € 0.6B

–

500

1,000

1,500

2,000

2,500

3,000

3,500

€ 0.0B

€ 2.0B

€ 4.0B

€ 6.0B

€ 8.0B

€ 10.0B

€ 12.0B

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Amountinvested

Number ofrounds

Sources of venture capital funding in Europe

1. U.S based funds = Funds only. Excludes investment by U.S. corporates (Microsoft, GE, …). 10

Corporate6x growth

Investment funds3x growth

Angel, crowdfunding5x growth

Sources of venture capital funding in Europe (cont’d)

11

United States3x growth

Europe4x growth

Other6x growth

€ 1.2B€ 1.7B

€ 3.1B

€ 4.0B € 3.8B€ 3.0B € 3.3B

€ 6.7B

€ 9.8B

€ 10.8B

€ 0.3B € 0.3B € 0.6B€ 1.4B

€ 2.0B

–

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

€ 0.0B

€ 2.0B

€ 4.0B

€ 6.0B

€ 8.0B

€ 10.0B

€ 12.0B

2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016

Amountinvested

Number ofrounds

Room to grow: funding per capita indicates Europe is still underfunded in terms of venture capital

Source: Dealroom.co.

€ 313€ 231

€ 117€ 77

€ 59€ 49

€ 41€ 30

€ 25€ 24€ 24€ 22

€ 13€ 9.2

€ 4.3€ 2.7€ 2.0€ 0.4

Israel

USA

Sweden

Ireland

Finland

United Kingdom

France

Norway

Denmark

Germany

Netherlands

Belgium

Spain

Austria

Portugal

Italy

Russia

Turkey

2016 funding per capita

12

–

2,000

4,000

6,000

8,000

10,000

12,000

2012 2013 2014 2015 2016

Number of VC rounds

U.S. Europe (Excl. Israel)

Europe is catching up with the U.S. by number of venture capital rounds

6.2x smaller

2.2x smaller

Europe

U.S.

Source: Dealroom.co. 13

Exits: returning capital to investors

An increasingly diverse group of acquirers and investors is buying European tech companies

€ 15.4B

€ 6.5B € 7.4B € 5.7B€ 2.4B

€ 11.1B € 10.0B

€ 25.2B

€ 3.6B € 6.0B

€ 40.2B

€ 2.9B

€ 11.0B

€ 50.1B

€ 11.9B

€ 17.7B€ 16.0B

€ 1.8B

€ 9.5B € 3.0B€ 3.5B

€ 55.5B

€ 9.4B

€ 18.4B

€ 55.8B

€ 14.3B

€ 28.8B€ 26.1B € 27.0B

€ 13.1B€ 9.0B

2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016

Not VC-Backed exits VC-Backed exits

Source: Dealroom.co

Asian U.S. European IPOs

15

Capital returned (2014-2016) Notable exits Anticipated exits

Just Eat, Betfair, CSR, Markit, Skyscanner, Betfair, Zoopla, Biovex, Momondo Photobox, Mimecast,

Bebo, Swiftkey, Magic Pony, DeepMind

Funding Circle, Farfetch, Deliveroo, Fanduel, The Hut Group

Rocket, Zalando, Trivago, HERE, Hybris, TeamViewer, Unify, CityDeal, Delivery Hero

Auto1 Group, HelloFresh, Global Fashion Group, Check24, Flixbus

Supercell ?

Playtika, Wix, Valtech Infinidat, Gett

Takeaway.com, Bol.com Adyen

CRITEO, Fotolia, Showroomprivee Vente Privee, Sigfox, Jumia, Blablacar

Avito ?

TeamSystem, Yoox, Gruppo MutuiOnline ?

King.com Spotify, Klarna

SocialPoint, Softonic, eDreams, Privalia, Idealista, Wallapop

Letgo, Cabify

UK and Germany have returned the most capital back to investors

€ 30.9B

€ 22.8B

€ 9.7B

€ 7.9B

€ 5.1B

€ 2.8B

€ 2.4B

€ 1.4B

€ 1.2B

€ 1.1B

United Kingdom

Germany

Finland

Israel

Netherlands

France

Russia

Italy

Sweden

Spain

Source: Dealroom.co 16

Healthy ratio of capital returned vs. capital invested: Europe is able to sustain a thriving ecosystem

Source: Dealroom.co

Capital returned

2006 to 2013 2014 2015 20162017 & beyond

Ratio of capital returned ÷ invested

Capital invested(€ 5.0B)

(€ 10.4B)(€ 15.3B) (€ 16.5B)

€ 34.1B

€ 23.5B

€ 37.1B

Indicativeamount

of exits required to achieve 2x

return on venture capital

Venture capital invested Capital returned

17

Key drivers of success and failure for European tech

Impact of Brexit?

19Source: National Geographic.

United States: eroding its brand as haven for the

young, smart and ambitious

20

Political climate in United States

21

Political climate in United States

22

What happens when we lose trust in institutions…

23Source: Dealroom.co.

€ 313€ 231

€ 160€ 77

€ 59€ 49

€ 41€ 30

€ 25€ 24€ 24€ 22

€ 13€ 9.2

€ 4.3€ 2.7€ 2.0€ 0.4

Israel

USA

Sweden

Ireland

Finland

United Kingdom

France

Norway

Denmark

Germany

Netherlands

Belgium

Spain

Austria

Portugal

Italy

Russia

Turkey

2016 funding per capita

Meanwhile in France…

24

Ingredients for attracting talent:

opportunity

equal opportunity

trust in institutions

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