quarterly european venture capital report q1 2019 · € 3.2b € 4.1b € 4.6b € 5.0b € 4.8b...
TRANSCRIPT
Quarterly European Venture Capital report
9 April 2019
Q1 2019
Q1 2019 broke the all-time record for investment in Europe, with €7.3 billion invested (€8.3 billion including Israel)
Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
Investment in Europe, Israel & Biotech
2
Impact of mega-rounds
€ 4.4B
€ 4.0B
€ 3.5B € 3.2B
€ 4.1B
€ 4.6B
€ 5.0B € 4.8B
€ 4.6B
€ 5.8B
€ 4.9B
€ 6.1B € 6.0B
€ 6.0B
€ 5.2B
€ 4.5B € 4.6B
€ 5.1B
€ 6.6B
€ 7.5B
€ 6.3B € 6.6B
€ 7.4B
€ 6.6B
€ 7.4B
€ 8.3B
–
€ 2.0B
€ 4.0B
€ 6.0B
€ 8.0B
€ 10.0B
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019
All other rounds Top 10 largest rounds Top 3 largest rounds
€ 4.6B
€ 4.1B
€ 3.6B € 3.5B
€ 4.2B
€ 5.6B € 5.4B
€ 4.7B
€ 5.1B
€ 5.6B € 5.2B
€ 5.4B
€ 6.5B € 6.0B
€ 5.2B
€ 4.5B € 4.6B
€ 5.1B
€ 6.6B
€ 7.5B
€ 6.3B € 6.6B
€ 7.4B
€ 6.6B
€ 7.4B
€ 8.3B
–
€ 2.0B
€ 4.0B
€ 6.0B
€ 8.0B
€ 10.0B
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019
Europe Biotech Israel
Driven by mega-rounds: the 10 largest rounds in Q1 accounted for €2.2 billion or 26% of total
3
NAME INVESTORS INDUSTRY LOCATION ROUND VALUATION
VeeamInnovative products for virtual infrastructure management and data protection
Insight Venture Partners, Canada Pension Plan Investment Board
Enterprise software Switzerland$ 550M
GROWTH EQUITY$ 1.0B
OakNorth BankFast, flexible and accessible debt finance
SoftBank, The Clermont Group Fintech UK$ 440M LATE VC
$ 2.4B
N26Bank account that can be managed entirely from a smartphone
Insight Venture Partners, GIC Fintech Germany$ 300M SERIES D
$ 2.7B
OVO EnergyEnergy technology company and supplier
Mitsubishi Corporation Energy UK£ 200M
GROWTH EQUITY£ 1.0B
Relex SolutionsSupply chain management and predictive analytics software
Technology Crossover Ventures Enterprise software Finland$ 200M LATE VC
$ 450M
Arvelle TherapeuticsInnovative solutions to patients suffering from CNS disorders
LSP Life Sciences Partners, Novaquest, HIG Capital
…Health Switzerland
$ 180M SERIES A
-
DoctolibAn appointment online to a doctor or dentist
Accel Partners, General Atlantic, Bpifrance, Eurazeo, Kernel Media
Health France€ 150M LATE VC
€ 1.0B
Innoviz TechnologiesHigh-Performance Solid-State LiDAR & Perception Software
Shenzhen Capital Group, Phoenix Holdings, New Alliance Capital
…Transportation Israel
$ 132MSERIES C
$ 575M
YnsectUses insects and transforms them into nutrient resource for agriculture
Talis Capital, Bpifrance,Idinvest Partners
…Food France
€ 110M SERIES C
-
wefoxService platform for insurance brokers insurers and end-customers
Talis Capital, Bpifrance,Idinvest Partners
…Fintech Germany
€ 110M SERIES B
-
Go to online data »
Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
€ 6.6B
€ 28B
€ 8.3B
–
€ 5.0B
€ 10.0B
€ 15.0B
€ 20.0B
€ 25.0B
€ 30.0B
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2019
Year to date, already €8.3 billion was invested in Europe & Israel in 2019 compared with €6.6 billion same time last year
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. 4
Cumulative amount invested – 2019 vs. 2018 (€B) Cumulative number of rounds – 2019 vs. 2018 (>€2M)
453
1,954
446
–
500
1,000
1,500
2,000
2,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2019
Another all time record is shown in terms of number and value of mega-rounds
Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 5
Investments in Europe & Israel by round size
…while smaller rounds are keeping the same trend with a total investment of ~ € 2 billion per quarter
The value of rounds above €25 million is showing noticeable growth. It almost doubled in Q1 2019 compared to Q1 2017…
€ 1.6B € 1.6B € 1.7B € 1.8B € 1.9B € 1.6B € 1.9B € 1.8B € 1.6B € 1.9B
€ 1.5B € 1.6B € 1.4B
€ 1.2B € 1.3B € 1.2B € 1.1B € 1.3B € 1.3B
€ 1.2B € 1.2B € 1.4B
€ 1.7B
€ 1.5B € 1.7B
€ 1.5B
€ 1.1B € 0.9B € 0.6B € 0.6B
€ 0.6B € 1.0B € 1.2B
€ 0.9B € 1.0B
€ 1.3B
€ 1.1B
€ 1.8B
€ 1.5B
€ 0.8B € 0.4B
€ 0.4B € 0.6B
€ 0.5B € 0.7B
€ 1.0B
€ 1.0B € 0.6B
€ 1.1B
€ 1.0B
€ 1.0B
€ 1.3B € 1.3B
€ 0.9B
€ 0.7B € 0.5B
€ 0.8B
€ 2.0B
€ 2.2B
€ 1.5B € 2.0B
€ 1.5B
€ 1.6B
€ 1.4B € 2.6B
€ 6.0B
€ 5.2B
€ 4.5B € 4.6B
€ 5.1B
€ 6.6B
€ 7.5B
€ 6.3B € 6.6B
€ 7.4B
€ 6.6B
€ 7.4B
€ 8.3B
–
€ 2.0B
€ 4.0B
€ 6.0B
€ 8.0B
€ 10.0B
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019
$ 0-10M $ 10-25M $ 25-50M $ 50-100M $ 100M+
Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 6
Europe
UK, Germany, France
Rest of Europe
Number of rounds above $50 million
Another all time record: number and value of mega-rounds
21
11
32
–
10
20
30
40
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019
All the big four received each more than billion in VC investment since the start of 2019
7
11% YoY growth
87%
17%
10%
(35%)
(10%)
(11%)
(17%)
10%
43%
Number of rounds Q1 ’19 (1)
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.1. Rounds below $2M are included here.
€ 2.1B
€ 1.2B
€ 1.2B
€ 1.0B
€ 0.9B
€ 0.6B
€ 0.2B
€ 0.2B
€ 0.2B
€ 0.2B
€ 0.1B
€ 0.1B
€ 0.1B
€ 0.1B
€ 0.1B
United Kingdom
France
Germany
Israel
Switzerland
Sweden
Finland
Netherlands
Denmark
Spain
Belgium
Ireland
Italy
Norway
Austria
162
133
85
76
48
47
34
29
24
23
19
15
13
12
11
United Kingdom
France
Germany
Israel
Sweden
Netherlands
Spain
Switzerland
Italy
Denmark
Norway
Finland
Austria
Belgium
Ireland
Investment by country Q1 ‘19
Q1 was one of the most active quarters not only for UK, Germany and France but also for the rest of Europe
Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. 8
Investment in Europe by key geography
€ 2.0B
€ 1.1B
€ 1.3B
€ 1.0B
€ 1.3B
€ 2.3B € 2.3B
€ 2.4B
€ 1.5B
€ 1.9B
€ 2.1B € 2.2B
€ 2.1B
€ 0.5B € 0.5B € 0.5B € 0.6B
€ 0.7B
€ 1.1B
€ 0.7B € 0.7B
€ 1.9B
€ 0.8B € 0.8B
€ 1.0B
€ 1.2B
€ 0.6B € 0.5B
€ 0.7B
€ 1.0B
€ 0.6B
€ 0.8B
€ 0.6B € 0.7B € 0.8B
€ 1.3B
€ 0.8B
€ 0.9B
€ 1.2B
€ 2.2B
€ 2.5B
€ 1.4B
€ 1.8B
€ 2.0B
€ 1.9B
€ 3.1B
€ 1.9B
€ 1.8B
€ 2.5B
€ 2.3B
€ 2.2B
€ 2.8B
–
€ 1.0B
€ 2.0B
€ 3.0B
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019
United Kingdom Germany France The rest of Europe
Health, fintech and enterprise software continue to be the most invested industries in 2019 to date…
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.Note: industries, business models and keywords can and do overlap. 9
By industry vertical Business model
Number of
rounds Q1
2019
Amount (€B)
invested Q1
2019
€ 2.7B € 2.4B
€ 1.5B
€ 0.9B € 0.9B € 0.6B € 0.6B € 0.5B € 0.5B € 0.3B € 0.1B € 0.1B
€ 3.4B
€ 1.9B
€ 1.0B € 1.0B
€ 0.4B
199
131 128
67 67 60 51 48 44 33 24 17
324
164
80 74 52
Investment value in Fintech and Software keeps surging with an increase of 60% compared to the previous quarter
10
Industries driving the investment growth
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.Note: industries can and do overlap.
€ 1.2B
€ 1.4B
€ 1.0B
€ 0.9B
€ 1.3B
€ 1.9B
€ 1.2B € 1.2B € 1.2B
€ 1.5B
€ 1.3B
€ 1.7B
€ 2.7B
€ 1.2B
€ 0.8B € 0.7B
€ 0.6B
€ 1.2B € 1.1B
€ 1.0B
€ 1.7B
€ 1.4B € 1.3B € 1.4B
€ 1.5B
€ 2.4B
€ 1.3B
€ 0.9B
€ 0.7B
€ 1.2B
€ 0.8B
€ 1.2B
€ 2.0B
€ 1.6B
€ 1.3B
€ 1.8B
€ 1.3B
€ 1.5B € 1.5B
–
€ 1.0B
€ 2.0B
€ 3.0B
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2016 2017 2018 2019 2016 2017 2018 2019
Enterprise software Fintech Health
Q1 2019 counted for €4.8 billion of VC backed exits in Europe
Source: Dealroom.co
NAME ACQUIROR SELLER INDUSTRY LOCATION TRANSACTION VC BACKED
WorldPayGlobal leader in payments processing technology and solutions
FIS GlobalAdvent International, Bain
CapitalFintech UK
$ 35BACQUISITION
Scout24 HoldingDigital marketplaces for real estate and automotive
Blackstone, Hellman & Friedman
- Marketplace Germany€ 5.7B
ACQUISITION
LuxoftIT Services provider focused on custom software development
DXC TechnologyVTB Capital, Waddell &
ReedEnterprise software Switzerland
$ 2.0BACQUISITION
✓
FidessaInvestment and information solutions for the financial community
Temenos ION Group Fintech UK£ 1.4B
ACQUISITION
eFrontA software provider dedicated to the financial industry
Blackrock Bridgepoint Fintech France$ 1.3B
ACQUISITION
AVITOThe biggest site for online classified ads in Russia
NaspersKinnevik, Adevinta
…Marketplace Russia
$ 1.2BACQUISITION
✓
TomTom TelematicsUnit of TomTom dedicated to fleet management, vehicle telematics
Bridgestone TomTom Transportation Netherlands$ 1.0B
ACQUISITION
Nightstar TherapeuticsDevelops gene therapies to cure retinal dystrophies
BiogenSyncona Partners
New Enterprise Associates…
Health UK$ 773B
ACQUISITION✓
World First UKCurrency exchange broker
Ant FinancialIndustry Ventures, StepStone Group,
FTV Capital Fintech UK
$ 700MACQUISITION
✓
FoundryComputer graphics, visual effects and 3D design software Roper
HG Capital, Mosaic Ventures
Fintech UK£ 410M
ACQUISITION✓
11
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Gligor Micajkov
Research Analyst
Ivan Draganov
Research Analyst
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