EUROPEAN VENTURE CAPITAL
The Acceleration Point:
Why Now is the Time
for European Venture Capital
Invest Europe
The Acceleration Point: Why Now is the Time for European Venture Capital
C
Invest Europe
Contents
The Acceleration Point: Why Now is the Time for European Venture Capital
What’s in this report
Foreword
Why Now is the Time
for European Venture Capital
By Nenad Marovac Invest Europe Vice-Chair
Page 02
01
1
Section One:
Why Europe?
Why Now? Pages 04-15
Page 04
A strong economy committed
to growth
Page 05
European VC is experienced
Page 07
Proven ability to create global leaders
To find out more about Invest Europe please visit:
www.investeurope.eu
Page 09
Increased exit options
Page 11
Outsized returns in
a low-yield environment
Page 13
Robust fundraising
Page 15
Europe’s hottest sectors
For PDF download to your computer:
Please visit our website at www.investeurope.eu
if you would like to download this report as
a standalone PDF.
2
Section Two:
Europe’s Innovation
Economy Pages 16-22
Page 17
European tech cities
Page 18
Benelux
Page 19
France, Spain & Switzerland
Page 20
Germany
Page 21
UK & Ireland
Page 22
Scandinavia
Page 23
In conclusion
Page 24
References and data methodology
Invest Europe
The Acceleration Point: Why Now is the Time for European Venture Capital
Foreword
Foreword by Nenad Marovac
Why now is the time for European venture capital
02
The European venture capital (VC) industry has reached an acceleration point.
Europe’s prospering economies, the unprecedented rise of the European tech
industry and the region’s experienced fund managers make it the right time to invest
in European venture capital.
Nenad Marovac Invest Europe Vice-Chair,
Founder & Managing Partner of DN Capital
Fundraising has hit its highest level since 2007, including nearly a tenth of capital
coming from North American investors, thanks to Europe’s thriving ecosystem and
talented entrepreneurs creating world-class companies. These pioneering businesses
are cost-effective investments and valuations remain low by global standards, meaning
European VC funds can rival the best in the world for returns to investors.
Europe is home to the largest single market in the world and every one of the
28 European Union (EU) countries is forecast to enjoy economic growth in 2017
and 2018. New EU initiatives are set to boost VC fund sizes and attract larger private
investors. Entrepreneurs and VCs are returning from other parts of the world. Now is
the time for global investors to look to Europe and harness the opportunities on offer.
Invest Europe
1
The Acceleration Point: Why Now is the Time for European Venture Capital
SECTION
Why Europe?
Why Now?
Page 04
A strong economy committed
to growth
Page 05
European VC is experienced
Page 07
Proven ability to create
global leaders
Page 09
Increased exit options
Page 11
Outsized returns in
a low-yield environment
Page 13
Robust fundraising
Page 15
Europe’s hottest sectors
Section 1: Why Europe? Why Now?
03
Invest Europe
Section 1: Why Europe? Why Now?
The Acceleration Point: Why Now is the Time for European Venture Capital
A strong economy
committed to growth
Europe remains the world’s largest
single market with an open economy,
stable political system,
a proud history of innovation and
a highly educated workforce.
EU-wide growth is expected to reach 1.7% in 2017,
according to European Commission figures,
suggesting that continued monetary easing and
positive economic sentiment is putting the region
on a solid path to further growth.
With forecasts for further growth in 2018 and beyond,
which factor in the Brexit effect and other potential
political developments, economic prospects for the
region are promising.
This is underpinned by sound economic policy.
One of the key tasks, both for EU policymakers and
national governments, is to identify and promote
long-term opportunities for growth. VC will continue
to benefit from regulatory tailwinds because of its
role in helping to fuel innovation and growth across
the continent.
The European Commission, as part of its ambitions
to develop a single market and Capital Markets Union
(CMU), is working to make investment easier and
remove barriers to the cross-border distribution
of funds.
Recent initiatives include the amendment of the
EU VC regulation (EuVECA) allowing more fund
managers to use its marketing passport, the launch
of a pan-European VC fund-of-funds to grow larger
VC funds using public and private capital, as well
as the publication of a study on VC tax incentives.
As the market continues to grow, this will crucially
allow larger institutional investors to access
VC funds in Europe.
04
Viewpoint
“Innovation and technological
development have always been at
the heart of the European economy.
Continued government investment
in research and science as well as the
involvement of high quality academic
institutions have created a highly skilled
workforce and provide Europe’s VCs
with a wealth of investment opportunity.”
Christoph Jung General Partner, Holtzbrinck Ventures
Eight of the world’s ten most innovative
economies are in Europe, according to the 2016
Global Innovation Index, with the top three spots
occupied by European nations.
1 Switzerland
6 Singapore
2 Sweden
7 Ireland
3 United Kingdom
8 Denmark
4 USA
9 Netherlands
5 Finland
10 Germany
Invest Europe
Section 1: Why Europe? Why Now?
The Acceleration Point: Why Now is the Time for European Venture Capital
European VC is experienced
European VC is experienced.
Many of its leading firms have
lived through multiple economic
cycles and know the US markets well.
It is a rich ecosystem, with European
VCs fully equipped to grow start-ups
into global leaders.
05
We are seeing technological breakthroughs and
business successes hailing from across Europe,
with cities such as Berlin, London and Stockholm
leading the way in different sub-sectors.
Around half of the VC firms in Europe today have
now been in operation for more than 12 years,
have been through at least two economic cycles, and
understand the challenges inherent in sourcing highly
promising businesses and building them into global
leaders through good times and bad.
While many leading firms have also been successful
investors in the US VC market, the most attractive
opportunities for them are in Europe.
“Europe has a long history
of scientific discovery and
innovation. That is backed up with
a pool of repeat entrepreneurs and
an increasingly available seed and
early stage funding scene.”
Ekaterina Smirnyagina Partner, Capricorn Venture Partners
Long-running European VC firms are creating
experienced fund managers
Share of European VC firms by founding period considered
active as of end of 2015 Source: Invest Europe
35
31%
30
25%
25
22%
20
16%
15
10
5
0
5%
1990
-1994
1995
-1999
2000
-2004
2005
-2009
2010
-2015
Since the 2000s, Europe’s VC value chain has
become richer. The emergence of experienced
‘super angels’ has significantly improved seed
financing, while corporate venturing programmes
now provide another source of smart capital.
Super angels
Just as in the US, many of Europe’s most successful
entrepreneurs have now established ‘super angel’
funds and entrepreneur-led VC funds. There are now
over 100 start-up accelerators across Europe.
By providing seed stage financing and mentoring,
these programmes are improving the quality and
quantity of deal flow for European VCs.
Corporate venturing programmes
The region is now attracting serious interest from
a new breed of corporate venturers, providing
valuable contacts, expertise and potential exit
routes for Europe’s brightest prospects. According
to Invest Europe figures, almost a third of
corporate venturing programmes in Europe
have been established since 2010, a development
that has boosted the ecosystem. Over the last few
years, these investors have recruited experienced
teams that work together with VC firms to build
great companies.
Invest Europe
The Acceleration Point: Why Now is the Time for European Venture Capital
Section 1: Why Europe? Why Now?
06
European VC is experienced
Viewpoint
“Europe’s uniquely differentiated
VC ecosystem taps into
exceptional, local talent that
enables founders to build viable,
vibrant businesses and access
highly skilled venture firms to
maximise their reach and potential.”
“Europe’s entrepreneurial
landscape has transformed
over the last 20 years. The
talent pool has increased in both
depth and quality. Start-ups are a
highly attractive career choice for
executives from large corporations.”
Helen Steers Partner, Pantheon
Max Bautin Managing Partner, IQ Capital
“Europe’s VCs now have the
firepower to provide larger
rounds of capital to support
entrepreneurs’ ambitions to
expand on a global stage.”
“Europe is home to some of the world’s
leading innovation in sustainability
– indeed, the majority of our corporate
venturing portfolio is based here.”
Jan-Gisbert Schultze Managing Partner, Acton Capital
Christian Ehrenborg Managing Director, IKEA GreenTech
Invest Europe
Section 1: Why Europe? Why Now?
The Acceleration Point: Why Now is the Time for European Venture Capital
Proven ability
to create global leaders
Since the financial crisis,
European VC has gained
traction, investment
is rising and European
VCs have demonstrated
their ability to help build
global leaders.
07
European unicorns by country in 2016
We have already witnessed the
creation of over 50 venture-backed
unicorns (companies valued at $1bn+)
since 2000, with many of these now
set to reach to the $10bn mark.
This is a significant development.
As we have seen from earlier
“poster children” in the US:
success breeds success.
Country
Netherlands Switzerland
UK
Germany
Sweden
France
Finland
Luxembourg
Russia
Belgium
Denmark
Ireland
Italy
No. of unicorns
15
9
6
4
2
2
2
1
2
1
1
1
Last 12 month additions
2
2
1
0
0
0
0
0
1
0
0
0
1
Emerging unicorn foals
3
3
1
1
0
0
0
0
1
0
0
1
0
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis as at April 2016 & Invest Europe
1
Invest Europe
Section 1: Why Europe? Why Now?
The Acceleration Point: Why Now is the Time for European Venture Capital
08
Proven ability
to create global leaders
VC investments in Europe show strong momentum
European VC investments by total amount 2012-2016 Source: Invest Europe
bn 5
4
3.2bn
3.5bn
3.6bn
2013
2014
4.2bn
4.3bn
2015
2016
3
2
1
0
2012
Viewpoint
As a result of recent start-up successes,
talent, experienced investors and
capital are now more available to help
increasingly ambitious founders build
globally competitive companies.”
“If you look at where people in Silicon
Valley come from, they are not all
Americans. They come from all over
the world. 50% of the talent in Silicon
Valley was not born in the US.”
Thomas Kristensen Principal, LGT Capital Partners
Mattias Ljungman Partner, Atomico
According to Invest Europe data,
European VC investment totals have
increased each year for the last five years,
reaching a post-crisis high of €4.3bn
in 2016.
Invest Europe
Section 1: Why Europe? Why Now?
The Acceleration Point: Why Now is the Time for European Venture Capital
Increased exit options
European exit options have increased
with recent activity coming from
a variety of routes including IPOs
and strategic sales to European
and international buyers.
IPOs
Since 2014 the public markets have welcomed
new IPOs and Europe’s VCs have been ready to
seize the opportunity.
King.com, the Swedish maker of Candy Crush, had
a $7bn debut on Nasdaq, and German clothing
retailer Zalando listed on the Frankfurt Stock
Exchange with a valuation of €5.6bn. Also in 2014,
the UK’s Adaptimmune listed on NASDAQ,
Switzerland’s Molecular Partners listed on the
Swiss Stock Exchange and the Belgian Biocartis
on the Euronext, all achieving multi-hundred million
market cap. The following year saw Dutch electronic
trading business FlowTraders raise over €1.5bn.
Acquisitions
Over the last few years we’ve seen successful exits
of world-class portfolio companies to strategic
buyers, including recent sales to Western buyers,
such as Dutch biotech company Dezima, which
was acquired by Amgen for $1.55bn, and UK-based
app developer TouchType, which was acquired by
Microsoft for over €230m. Other recent European
examples include Astra Zeneca’s €4bn acquisition
of Netherlands based biotech company Acerta, the
second largest European VC-backed exit ever.
We have also witnessed a significant upsurge in activity
from Chinese acquirers in recent years. According to
Rhodium Group, €46bn of deals were completed
across Europe by Chinese buyers between 2000 and
2014, with the vast majority invested after 2009.
Examples from 2016 include YinYi’s €1bn acquisition of
Belgian Punch Powertrain, Ctrip’s €1.4bn deal to buy the
UK’s Skyscanner and TenCent’s $8.7bn acquisition of a
stake in Finland’s Supercell.
Indeed, the value of Chinese acquisitions in Western
Europe rose by over 200% to nearly $86bn in 2016,
according to White & Case & Mergermarket figures.
Technology, Media and Telecoms was the top sector
by value for overall inbound M&A from overseas
acquirers with a deal total of $143bn in 2016.
09
Wide range of exit options
(% of exit value at investment cost)
In technology alone, there has been $46bn of exits
since 2011, including world-renowned companies,
such as ARM and CSR, which have generated
multi-billion dollar realisations for European VCs.
European VC exits 2012-2016
Source: Invest Europe
Trade sale
7%
Public offering
9%
Write-off
6%
39%
Repayment of preference
shares/loans or mezzanine
Sale to another
private equity firm
8%
Sale to financial institution
Sale to management
4%
Other means
18%
9%
Invest Europe
The Acceleration Point: Why Now is the Time for European Venture Capital
Section 1: Why Europe? Why Now?
10
Increased exit options
Viewpoint
“Europe has experienced and
well-capitalised corporate VC arms.
These investors provide complementary
capital and expertise in VC portfolios.”
Michael Lee Managing Director, Syngenta Ventures
“There is an established exit
ecosystem in Europe for VC-backed
companies. IPOs, sales to corporates
and exits to private equity players have
all picked up over the last few years as
Europe’s entrepreneurial companies
have demonstrated their world-class
credentials.”
Stephan Morais Board Member, Caixa Capital
“European portfolios are looking the
best they ever have. More than 50
European venture-backed companies with
a valuation of €1bn or more have emerged
so far this decade, compared with just
three between 2000 and 2010.”
Cem Sertoglu Partner, Earlybird, VC Management
“European VCs have strong networks
worldwide. This not only helps with
company expansion plans, but also
improves exit prospects considerably
– we can cast the net globally to secure
the best possible exit.”
Alex Brabers Chief Business Operations, Gimv
Invest Europe
Section 1: Why Europe? Why Now?
The Acceleration Point: Why Now is the Time for European Venture Capital
Outsized returns in a low-yield environment
The European Investment Fund’s (EIF) exit pattern
over recent years, when analysed by vintage year,
demonstrates the upward trend in European VC
returns, as multiple on cost has broadly risen
since 2001 (see chart, right).
Valuations
There is one other important measure to note.
Only the very best companies in Europe get funding
and often they are funded at lower valuations than
their US counterparts.
The situation in Europe couldn’t be more different:
median deal values have remained relatively constant
at around the $2m mark. This demonstrates that
valuations remain low by global standards, making
European early and later-stage companies better
value than peers elsewhere.
Exit returns of EIF-backed VC investments by vintage year, weighted multiple on cost
Source: EIF
5x
100%
4x
80%
3x
60%
2x
40%
1x
20%
0x
‘97
‘98
‘99
‘00
‘01
% Realised from each
vintage year to date
‘02
‘03
‘04 ‘05 ‘06
Vintage Year
‘07
‘08
Average Exit MoC
Note: Based on early-stage investments between 1997 and 2012 by EIF-backed funds,
including write-offs, liquidations and profitable trade sales.
‘09
‘10
‘11
‘12
0%
Median Exit MoC
Share of exited investments
We have witnessed a long-term shift in allocations
from traditional assets such as bonds and equities to
alternative assets such as VC and private equity (PE)
as investors search for higher-yielding asset classes.
In the US, technology valuations of €1bn-plus
companies are, on average, 46 times the revenue
produced by the company; in Europe, this is much
lower, at 18 times, according to GP Bullhound
research. In China, median valuations have soared
in recent years, from $4m in 2013 to $8m in 2015,
according to EY.
Multiple on Cost
In today’s low-yield environment,
investors are having to work harder
to find the growth they need to meet
long-term liabilities and satisfy their
underlying beneficiaries. According to
European Investment Fund (EIF) data,
returns on European VC investments
are on a healthy upward trend.
11
Invest Europe
The Acceleration Point: Why Now is the Time for European Venture Capital
Section 1: Why Europe? Why Now?
12
Outsized returns in a low-yield environment
Viewpoint
“In a low global growth environment
and at a time of persistently low
interest rates, European VC is one
of the few opportunities that can
generate double-digit returns.”
Rainer Strohmenger General Partner, Wellington Partners
“European valuations are lower than
those in the US – we can bring high quality
start-ups to the world stage with less
capital here than in many other markets.
For investors, that clearly means the
potential for higher returns.”
Jari Mieskonen Managing Partner, Conor Venture Partners
“The lack of capital forces entrepreneurs
here to figure out how to be more frugal.
One of our portfolio companies has
achieved more than its only competitor
in San Diego on half the capital.”
Anne Glover Chief Executive, Amadeus Capital Partners
Invest Europe
Section 1: Why Europe? Why Now?
The Acceleration Point: Why Now is the Time for European Venture Capital
Robust fundraising
Investors around the world are coming
to the same conclusion about Europe’s
accelerating VC market.
13
According to Invest Europe data, fundraising for
European VC funds reached a nine-year high
in 2016.
This robust fundraising environment represents a
clear sign of investor faith in the asset class and will
also ensure that growth capital is around to fuel the
next generation of European start-up successes.
European VC now has a healthy mix of both public
and private sources of funding provided by a strong
global investor base. Family offices and individuals
European VC fundraising now at its highest level since 2007
7
€6.4bn
€6.1bn
€5.1bn
5
€3.2bn
€3.7bn
€3.6bn
Venture capital – Fundraising geographic breakdown 2016
(2015) – Source of funds – % of total amount
This shows in which regions the investors (LPs)
into European venture funds are based
Source: Invest Europe/PEREP_Analytics
North
America
9.2%
€3.8bn
Asia
Australia
1
0
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2.8%
19.3%
12.3%
2.5%
(10.5%)
(1.8%)
Rest of
World
Unclassified
0.6%
7.2%
(0.0%)
(17.8%)
39.9%
(34.3%)
3
2
7.2%
9.9%
€5.5bn
€4.5bn
4
Larger VC funds are also gaining momentum. In 2016,
13 of the 45 VC funds raised closed at €100m or more.
Strong global investor base
Venture capital fundraising for European funds 2007-2016
Source: Invest Europe
€bn 8 €7.7bn
6
contributed 20% of the total raised by European VCs
in 2016, with funds of funds and corporate investors
adding 15% each. Meanwhile, the share raised from
government agencies has been falling over recent
years from a historical level of around 30%, with a
25% contribution recorded in 2016. Investors outside
Europe contributed 12% of the €6.4bn raised.
Europe
10.8%
3.8%
7.4%
(
0.4%
2.2%
Invest Europe
The Acceleration Point: Why Now is the Time for European Venture Capital
Section 1: Why Europe? Why Now?
14
Robust fundraising
Viewpoint
“We see real opportunity in European VC
funds. We’ve invested in many companies
together with the leading European
VCs over the years. There is a depth of
experience and talent now in Europe to
rival some of the best US funds.”
Jan Westerhues Investment Partner,
Robert Bosch Venture Capital
“European VC ecosystem has matured
rapidly over the last ten years. There is
now a wealth of choice for us as investors
in high quality, innovative companies
that we see as the entrepreneurial stars
of tomorrow. Institutional investors are
taking note and are committing capital
to Europe’s highly experienced VC teams
to generate strong returns.”
Fredrik Cassel Partner, Creandum
“European VC is generating returns
that investors should expect from the
asset class. Our portfolio now has VC
built in since the crisis and has 50 funds
with double-digit internal rate of returns.”
Patric Gresko Head of Innovation and Technology Investments,
European Investment Fund
Invest Europe
Section 1: Why Europe? Why Now?
The Acceleration Point: Why Now is the Time for European Venture Capital
Europe’s hottest sectors
Europe’s innovation and start-up activity spans a variety
of sectors. In 2016, most capital was invested in ICT (44%),
followed by biotech and healthcare (27%), with the rest
largely spread across consumer goods and services, energy
and environment, business products and services, financial
services and transportation.
15
Europe’s leading life sciences hotspots
European countries are home to some of the most
successful new companies in biotech, medtech,
healthcare & pharmaceuticals.
FINLAND
Location of VC-backed exits by number of companies
and divestment amount at cost
May 2000 – June 2015
1
NORWAY
1
1
SWEDEN
2
Venture capital by sector
Source: Invest Europe/PEREP_Analytics
1
UK
13
€bn 5
Transportation
IRELAND
3
Real estate
4
THE
NETHERLANDS
1
5
1
4
1
Business products & services
KEY:
COUNTRY
>$100m exit
>$500m exit
Biotech & healthcare
0
Agriculture
2012
2013
2014
2015
FRANCE
SWITZERLAND
5
5
16
Consumer goods & services
Chemicals and materials
5
9
Energy and environment
Construction
GERMANY
BELGIUM
Financial & insurance services
2
6
2
ICT (Communications,
computer and electronics)
3
DENMARK
2016
Countries with >$1bn exit
AUSTRIA
1
12
ITALY
2
Invest Europe
The Acceleration Point: Why Now is the Time for European Venture Capital
2
SECTION
Europe’s Innovation Economy
Page 17
European tech cities
Page 18
Benelux
Page 19
France, Spain & Switzerland
Page 20
Germany
Page 21
UK & Ireland
Page 22
Scandinavia
Section 2: Europe’s Innovation Economy
16
Invest Europe
Section 2: Europe’s Innovation Economy
The Acceleration Point: Why Now is the Time for European Venture Capital
European tech cities
17
It’s not just about one region.
Entrepreneurial hubs and clusters are
thriving with an A to Z of opportunities
across Europe from Amsterdam to
Zurich, thanks to an educated workforce
and economic reforms.
The creation and development of hubs around
Europe’s cities has transformed the prospects
for many of the region’s start-ups. They become
magnets for the brightest talent from around
Europe and the wider world.
14
15
13
11
7
10
1
12
3
2
4
EUROPEAN
TECH CITIES
1
2
3
4
5
6
7
msterdam & Leiden,
A
Netherlands
Ghent & Brussels,
Belgium
Eindhoven, Netherlands
Paris, France
Barcelona, Spain
Zurich & Basel, Switzerland
Berlin & Munich, Germany
8
9
8
9
10
11
12
13
14
15
Munich, Germany
Rhein-Main-Neckar,
Germany
Cambridge, UK
Dublin, Ireland
London, UK
Copenhagen, Denmark
Helsinki, Finland
Stockholm, Sweden
5
6
Invest Europe
Section 2: Europe’s Innovation Economy
The Acceleration Point: Why Now is the Time for European Venture Capital
Benelux
18
1
2
1
3
AMSTERDAM & LEIDEN, NETHERLANDS
2
GHENT & BRUSSELS, BELGIUM
3
EINDHOVEN, NETHERLANDS
Focus: ICT and life sciences
Focus: Life sciences
Focus: Green sustainable technologies, software, medtech
Academic institutions: University of Amsterdam,
Amsterdam University of Applied Sciences, Leiden University
Academic institutions: Université Catholique de Louvain,
Katholiek Universiteit Leuven, VIB-VUB
Academic institutions: Eindhoven University of Technology
Birthplace of:
Birthplace of:
Also home to: High Tech Campus
Also home to: European Investment Bank
Birthplace of:
Selection of Invest Europe VC members:
Selection of Invest Europe VC members:
Selection of Invest Europe VC members:
For complete list of Invest Europe VC members go to: www.investeurope.eu/about-us/members/member-search/
Invest Europe
Section 2: Europe’s Innovation Economy
The Acceleration Point: Why Now is the Time for European Venture Capital
France, Spain & Switzerland
19
4
6
5
4
PARIS, FRANCE
Focus: Media, advertising, e-commerce, sharing economy,
artificial intelligence, life sciences
Academic institutions: Universities of Paris VI and Paris VII,
Institute de Recherché et d’Innovation
5
BARCELONA, SPAIN
6
ZURICH & BASEL, SWITZERLAND
Focus: Mobile telecoms, e-commerce, gaming, software
Focus: Medtech and pharma/life sciences
Academic institutions: ESADE, IESE, Universitat Politècnica
de Catalunya
Academic institutions: University of Basel, University
of Berne, University of Zurich
Also home to: Mobile World Congress
Also home to: LeWeb, Le Camping
Birthplace of:
Birthplace of:
Birthplace of:
Selection of Invest Europe VC members:
Selection of Invest Europe VC members:
Selection of Invest Europe VC members:
For complete list of Invest Europe VC members go to: www.investeurope.eu/about-us/members/member-search/
Invest Europe
Section 2: Europe’s Innovation Economy
The Acceleration Point: Why Now is the Time for European Venture Capital
Germany
20
7
8
9
7
BERLIN, GERMANY
>2,000 start-ups
Focus: Digital media, social games,
consumer web services, SaaS
Academic institutions: Freie Universität Berlin, Humboldt
University of Berlin, Technical University of Berlin
8
MUNICH, GERMANY
Focus: Hardware, software, tech, life sciences
and media
Academic institutions: Technische Universität München,
Ludwig-Maximilians-Universität München
Also home to: TechFounders, Wayra, ABC Venture Gates
Also home to: Tech Open Air
Birthplace of:
9
RHEIN-MAIN-NECKAR, GERMANY
>5,000 software companies
Focus: IT
Academic institutions: Technical University of Darmstadt,
Johann Wolfgang Goethe, University of Frankfurt am Main,
University of Mannheim, University of Heidelberg
Also home to: European Space Operations Centre
Birthplace of:
Birthplace of:
Selection of Invest Europe VC members:
Selection of Invest Europe VC members:
Selection of Invest Europe VC members:
For complete list of Invest Europe VC members go to: www.investeurope.eu/about-us/members/member-search/
Invest Europe
Section 2: Europe’s Innovation Economy
The Acceleration Point: Why Now is the Time for European Venture Capital
UK & Ireland
21
11
10
12
10
CAMBRIDGE, UK
11
DUBLIN, IRELAND
12
LONDON, UK
Focus: Semiconductors, wireless, data and biotech
Focus: Hardware, medtech
>2,200 technical and creative businesses
Academic institutions: Cambridge University,
Anglia Ruskin University, Sanger Institute
Academic institutions: Trinity College,
University College, University College Cork
Focus: Consumer web services, digital media,
e-commerce, fintech, life sciences
Also home to: Cambridge Angels, Cambridge Network
Academic institutions: Imperial College
Also home to: Seedcamp, Touchstone Innovations,
The Wellcome Trust
Birthplace of:
Birthplace of:
Birthplace of:
Selection of Invest Europe VC members:
Selection of Invest Europe VC members:
For complete list of Invest Europe VC members go to: www.investeurope.eu/about-us/members/member-search/
Selection of Invest Europe VC members:
Invest Europe
Section 2: Europe’s Innovation Economy
The Acceleration Point: Why Now is the Time for European Venture Capital
Scandinavia
22
14
15
13
13
COPENHAGEN, DENMARK
14
HELSINKI, FINLAND
15
STOCKHOLM, SWEDEN
Focus: Life sciences
Focus: Mobile telecoms, gaming, open source
Focus: Telecoms, peer to peer, software, life sciences
Academic institutions: University of Oslo,
University of Trondheim
Academic institutions:
Aalto University, University of Helsinki
Academic institutions:
Royal Institute of Technology, Stockholm University,
Karolinska Institutet
Birthplace of:
Birthplace of:
Birthplace of:
Selection of Invest Europe VC members:
Selection of Invest Europe VC members:
For complete list of Invest Europe VC members go to: www.investeurope.eu/about-us/members/member-search/
Selection of Invest Europe VC members:
Invest Europe
Conclusion and recommendations
The Acceleration Point: Why Now is the Time for European Venture Capital
In conclusion
1
4
Europe is the world’s
largest single market
with a highly educated
workforce, stable
rules-based economy
and commitment to
global free trade
This success is being
recognised in the form
of profitable sales to
global buyers and IPOs
23
2
5
The VC industry is
experienced with
a rich ecosystem
3
Investment has increased
and Europe has been
producing a steady
stream of VC-backed
global champions on
a consistent basis
What to do now
Exits are driving attractive
returns, investor interest
and increased fundraising
•Download data and case studies from
Invest Europe’s website
•Meet investors and VCs at our Investors’ Forum
and Venture Capital Forum
•Have a European office? Join Invest Europe
•Talk to us – contact Michael Collins, Invest Europe’s
Chief Executive on +32 2 715 00 20 or email
[email protected]
Invest Europe
The Acceleration Point: Why Now is the Time for European Venture Capital
References and data methodology
References and data methodology
References
Data methodology
P04 2016 Global Innovation Index; Cornell, INSEAD
P05Share of European VC firms by founding
period considered active as of end of 2015
Source: Invest Europe
P07 European unicorns by country
Source: Company data, Capital IQ,
Mergermarket, press articles,
GP Bullhound analysis as at April 2016
& Invest Europe
P08European VC investments by total amount
2012-2016 (€bn)
Source: Invest Europe
P09European venture capital exits 2012-2016
Source: Invest Europe
P11Increasing money multiples for
European VC funds
Sources: European Investment Fund (EIF), EY
P13 Venture capital fundraising for
European funds 2007-2016
Source: Invest Europe
P13Venture Capital – Fundraising geographic
breakdown 2016 (2015) – Source of funds
– % of total amount
Source: Invest Europe/EDC
P15 Venture Capital by sector 2012-2016
Source: Invest Europe
Activity data
(Sources referring to Invest Europe/
EDC)
The activity data used in this report – covering
fundraising, investment, divestment – are produced
by Invest Europe and EDC.
The activity data used in this report are aggregated
according to market statistics. These refer to the
country in which the investee company is based,
regardless of the location of the private equity fund.
At the European level, this relates to investments
in European companies regardless of the location
of the private equity firm.
24
European Data Cooperative (EDC)
The European Data Cooperative (EDC) is a joint
initiative developed by Invest Europe and its national
association partners to collect Europe-wide industry
activity on fundraising, investments and divestments.
The EDC serves as the single data entry point for
members of private equity and venture capital
associations and other contributors across Europe.
The EDC platform is jointly owned and operated by
the private equity and venture capital associations
across Europe.
Figures are updated on a continuous basis and are
thus subject to change.
For more information on Invest Europe data please contact:
[email protected] or + 32 2 715 00 20,
or visit Invest Europe Research and Data
www.investeurope.eu/research
About Invest Europe
Invest Europe is the association representing Europe’s private equity, venture capital
and infrastructure sectors, as well as their investors.
Invest Europe’s members take a long-term approach to investing in privately held
companies, from start-ups to established firms. They inject not only capital but
dynamism, innovation and expertise. This commitment helps deliver strong and
sustainable growth, resulting in healthy returns for Europe’s leading pension funds
and insurers, to the benefit of the millions of European citizens who depend on them.
Invest Europe aims to make a constructive contribution to policy affecting private
capital investment in Europe. We provide information to the public on our members’
role in the economy. Our research provides the most authoritative source of data on
trends and developments in our industry.
Invest Europe is the guardian of the industry’s professional standards, demanding
accountability, good governance and transparency from our members.
Invest Europe is a non-profit organisation with 25 employees in Brussels, Belgium.
For more information please visit www.investeurope.eu
Invest Europe | [email protected] | +32 2 715 00 20 | www.investeurope.eu
Invest Europe
Place du Champ de Mars 5
B-1050 Brussels, Belgium
T+32 2 715 00 20
F+32 2 725 07 04
www.investeurope.eu
[email protected]