Silverpeak LLP is an authorised representative of Silverpeak Capital Ltd, which is authorised and regulated by the Financial Conduct Authority
26 January 2018
European Venture Market Update
International Private Equity Market Conference
Jean-Michel Deligny, Managing Director
Agenda
1. Silverpeak overview 2
2. Update on the tech financing environment 6
3. Themes for discussion 14
Silverpeak advise innovative, fast growing technology companies on M&A
and growth financing transactions
360+
150yearsexperience
45+Strong team
SNAPSHOT
9partners deals
4
53 members on every continent in 42 countries and 63 cities
page | By Silverpeak
Global reach: offices in London, Paris
Milan, Hamburg, Munich, Berlin.
Where we are different:
▪ Technology sector specialist
▪ M&A + larger financings
▪ Truly international DNA and global
relationships
▪ Seniority of partners
2/3M&A
1/3Larger
Financing
LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
Worldwide reach both directly and through our international partner network Globalscope
Proven ability to reach a global audience
Locations with people on the ground
5page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
Recently completed mandates
JANUARY 2018
US / LUXEMBOURG
Investment in
Social media analytics & monitoring software
IT-as-a-Service (ITaaS) & cloud transformation consultancy
FEBRUARY 2017
UK / US
Advisor to Virtual Clarity
Investment by
Employee performance
optimisation software
FEBRUARY 2017
UK / US
Advisor to Silver Lining Solutions
Sold to
Silicon IP for post-silicon debugging
MAY 2017
UK
Advisor to UltraSoC
£5,000,000 equity funding by
Logistics software
APRIL 2017
UK / UK
Advisor to Blackbay
Sold to
JANUARY 2017
UK / US
Investment in
6page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
MAY 2017
GERMANY / GERMANY
Cognitive insight platform
Investment in
+
Advisor to Genui
Optical communications
solutions (NASDAQ: XCOM)
FEBRUARY 2017
UK / US
Exclusive financial advisor to
H.I.G. Capital & management
Acquired with the support
of management
Agenda
1. Silverpeak overview 2
2. Update on the tech financing environment 6
3. Themes for discussion 14
60
88 87
120
193202
259
€1.6Bn€2.1Bn
€2.5Bn
€4.4Bn
€7.0Bn €6.3Bn
€9.8Bn
-
$0b
$0b
$0b
$0b
$0b
$0b
0
50
100
150
200
250
300
2011 2012 2013 2014 2015 2016 2017YTD
Venture and growth financing is healthy
1: As of October 2017; Source: Go4Venture.com
European tech financings (≥€10mn)1
# of deals
© Silverpeak LLP 2017
Value of deals€16.4bn(annualised)
369(annualised)
€1.4bn ACCOUNTED FOR IN
TOP 3 DEALS
8page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
1 1
3
4
11
9
17
€0.1Bn€0.1Bn
€0.6Bn
€1.4Bn
€2.1Bn
€1.5Bn
€3.7Bn
-
$0b
$0b
$0b
$0b
$0b
$0b
$0b
$0b
0
2
4
6
8
10
12
14
16
18
2011 2012 2013 2014 2015 2016 2017YTD
Mega-deals (≥€100mn) have picked-up again strongly
© Silverpeak LLP 2017
# of deals Value of deals
TOP 10 financings 2015-2017YTD
Company Financing (€) Date
€496m Feb-17
€469m Jun-15
€469m May-17
€387m May-15
€360m May-17
€359m May-17
€300m Apr-16
(Sorted by Financing size)
€250m Aug-16
€245m Aug-16
€178m Sep-15
9page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
1: As of October 2017; Source: Go4Venture.com
Internet services is leading the way, followed by software
© Silverpeak LLP 2017
# of European tech financings by sector (≥€10mn)1
Total # of deals = 369
Internet Services, 252
Software, 70
Hardware, 18
Medtech, 13Cleantech, 9
Telecom Services, 7
Mark
etp
lace
-93
Fin
tech
-73
E-C
om
merc
e-
24
SaaS
-18
eH
ealt
h-
3
Dig
ital M
edia
-2
Food
-2
Oth
er
-37
10page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
1: As of October 2017; Source: Go4Venture.com
UK is the largest destination for large financings
Other counties: Netherlands, Ireland, Finland, Poland, Norway, Belgium, Luxembourg, Germany, UK, Denmark,
Cyprus, Russia, Estonia, Turkey, Spain, Sweden, Romania, Iceland, Austria, Italy
© Silverpeak LLP 2017
# of European tech financings by country (≥€10mn)1
Total # of deals = 369
1: As of 10th October 2017
Source: Go4Venture.com
UK: 130 deals
35%
20%
20%
4%
4%
3%
14%
Germany: 72 deals
France: 73 deals
Spain: 16 deals
Sweden: 13 deals
Other: 53 deals
Switzerland: 12 deals
11page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
23%
37%
19%
21%Late-Stage: 79 deals Series A: 85 deals
Series B: 135 deals
Series C: 70 deals
Large financings take place at all stages
© Silverpeak LLP 2017
# of European tech financings by stage (≥€10mn)1
Total # of deals = 369
12page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
1: As of 10th October 2017
Source: Go4Venture.com
€469m
€203m€157m
Improbable Adyen Tricentis
Top European deals by series
Series A Series B
Series C Series D & Later
€100m
€64m €63m
Mindmaze Sirin Labs Wimdu
Individual investors
& &
€300m
€166m€118m
GFG Letgo Klarna
€469m €469m
€460m
Delivery Hero Spotify Auto1 Group
50+ Investors
13page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
Source: Go4Venture.com | Pitchbook
Most active investors in Europe
Investor Latest Investments Investor Latest Investments
Top European Investors Top US Investors
14page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
Source: Go4Venture.com | Pitchbook
Agenda
1. Silverpeak overview 2
2. Update on the tech financing environment 6
3. Themes for discussion 14
Themes for discussion
▪ Size of rounds inflation: valuation inflation? e.g. Series A
▪Unicorn obsession? e.g. mega rounds
▪Exits flat when investment is up (end of FAGNs?)
• Are we in a bubble?
• Everyone is a tech investor – blessing or a curse?
• New sectors: fashions or trends
▪Allow VCs to be growth investors?
▪Private equity moving in - source of exits?
▪Role of state sources: country states, EIF, SWFs
- More and first-time VCs?
- More cross-border?
- More corporates, family offices
▪Bitcoin / blockchain
▪AI /Big Data / IOT
▪Cybersecurity
▪Deep tech?
16page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
Themes for discussion
• Europe: is Brexit an opportunity for other to catch up?
• Future of VCs?
▪The Big 3: UK losing its shine, Germany showing its limits, France making a comeback?
▪ Is Nordic = Sweden?
▪Are Benelux and Switzerland making progress?
▪New geographies: Spain, Portugal, Italy, CEE?
▪More open or more proprietary?
▪New teams – new energy
▪Other VCs and asset managers – new competition
▪ ICOs – new way of financing innovation?
17page | By Silverpeak LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN
Thank you.
page | CONFIDENTIAL | Prepared for Octopus Ventures
Neither this presentation nor any of its contents may be used 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.
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