EUROPEAN INNOVATION FINANCING H2 2015 UPDATE CONTRIBUTORS In collaboration with Thibaut Revel Partner Martin Vielle Associate About Clipperton Finance Clipperton is a European independent corporate finance advisory firm exclusively dedicated to the Technology space, advising innovative companies on M&A transactions, debt financings and equity offerings. With offices in London, Berlin, and Paris and an international reach, Clipperton is a European leader in Technology financial advisory. Over the past 15 years, the team has successfully completed more than 150 high profile transactions globally. About Digimind and WhoGotFunded Digimind is a SaaS intelligence software company based in Paris, Boston and Singapore, providing advanced information management platforms and technologies that perform massive data collection, automatic intelligence extraction and visualisation. Using its unique web mining expertise, Digimind developed WhoGotFunded.com, the world's most comprehensive funding database, discovering over 100 fresh funding deals every day in real time all across the world.
Transcript
EUROPEAN INNOVATION FINANCING
H2 2015 UPDATE
CONTRIBUTORS
In collaboration with
Thibaut Revel
Partner
Martin Vielle
Associate
About Clipperton Finance
Clipperton is a European independent corporate finance advisory firm
exclusively dedicated to the Technology space, advising innovative companies
on M&A transactions, debt financings and equity offerings. With offices in
London, Berlin, and Paris and an international reach, Clipperton is a European
leader in Technology financial advisory. Over the past 15 years, the team has
successfully completed more than 150 high profile transactions globally.
About Digimind and WhoGotFunded
Digimind is a SaaS intelligence software company based in Paris, Boston and
Singapore, providing advanced information management platforms and
technologies that perform massive data collection, automatic intelligence
extraction and visualisation. Using its unique web mining expertise, Digimind
developed WhoGotFunded.com, the world's most comprehensive funding
database, discovering over 100 fresh funding deals every day in real time all
across the world.
Clipperton European Innovation Financing Update –February 2016
GeographiesNearly $10B (75%) invested in 2015 in the three main European venture markets
H2 2015: growth of investments in IT paused while Life Science is on the rise
The UK, DACH and France attracted 75% of innovationmoney in 2015, with respectively $3.8B, $3.7B and $2.2Bbut showed different trends during the second semester;
The UK remains the number 1 destination for innovationfinancing with close to $2B invested over H2, up by 50%vs. last year;
Strong H2 in France with $1.3B invested (+32% vs. H1and twice as much as in H2 2014), across 159transactions. Following Blablacar’s $200m round, ahandful of large venture rounds in various sectors: Pretd’Union ($41m), Netatmo ($40m), Vestiaire Collective($37m), Talentsoft and Qwant ($33m each);
After a buoyant H1 notably driven by Rocket Internetportfolio companies which received $1B, investment inDACH dropped by 50% in H2 ($1.2B) but remainscharacterized by large rounds (avg. deal value of $17m,vs. $13m and $8m in the UK and France respectively);
Two mega deals worth mentioning in the Netherlands:auction platform Catawiki grabbed $100m from LeadEdge Capital along with historic investors while paymentstart-up Adyen closed a round valuing the company$2.5B.
Strong uptake of private investment in Life Sciencecompanies which attracted $1.3B in Q3 2015 alone, more3x times the amount invested in the same period lastyear;
Three $100m+ rounds in the segment - Immunocore inthe UK for $320m, Germany-based Curevac for $110mand Swiss medtech Cequr for $100m – followed by alarge number of big rounds (26 deals over $20m i.e. 30%of the total);
Investment in IT start-ups remains at high levels vs. lastyear (+35% vs. H2 2015) but decelerated in H2 vs. H1 (-30%);
Internet and New Media largely contributes to this trend:$2.5B invested vs. $4B in H1 and a volume oftransactions slightly decreasing (-8%);
Business Cloud and Software followed an opposite trend:+8% in volume (142 deals) and +23% in value at $1.1B;
Cleantech investment is now almost negligible in theoverall picture: $535m invested in 2015 or 4% of the totalmoney placed in European innovative start-ups.
Sectors – Value, H2-2015
Internet & New Media
Bus. Cloud & Software
Hardware, Telecom
Consumer Electronics
ME
DIA
N D
EA
L
VA
LU
ES
$5.9B
$3.9B
$2.5m $2.8m $2.7m $2.4m
Internet & New
Media
63%
Cons. Elect.
2%
Hard/Telecom
5%
Bus. Cloud & Software
29%
Cleantech2%
Life Science32%
IT 66%
OT
HE
R
CO
UN
TR
IES
*
Volume H2 2014
Volume H2 2015
Value H2 2014
Value H2 2015
* Italy, Spain, Portugal, Benelux, Ireland, Southern Europe, Eastern Europe
Sources: Clipperton – WhoGotFunded
Clipperton European Innovation Financing Update –February 2016
US funds have been particularly involved in European large rounds over H2. French ride-sharing platform Blablacarreceived $200m of fresh money last summer in a round that saw two additional US Tier-1 coming on-board:Insight Venture and Lead Edge Capital joined historic investors Accel and Index Ventures.
European offices of US funds proved particularly active: Highland Capital Partners participated in 4 transactions inEurope including Lovecrafts Collective ($20m), Brandwatch ($33m) and Getyourguide ($50m) while Accel closed 4deals.
After a very active H1, Bpifrance and High-Tech Gründerfonds continued on the same pace in H2. The Frenchpublic investment arm participated in 16 transactions across sectors: Life Sciences with Biom’up ($41m), hardwarewith Netatmo ($40m), or software with Lengow ($10m) or iAdvize ($16m)
Also worth highlighting is the strong activity of Alven Capital in France with follow-on investments (Mailjet,iAdvize, Peopledoc…) as well as Series A (Genymobile, Tinyclues or Frichti).
AMOUNTCOMPANY INVESTORS AMOUNTCOMPANY INVESTORS
AMOUNTCOMPANY INVESTORS AMOUNTCOMPANY INVESTORS
Clipperton European Innovation Financing Update –February 2016
This report is based on collaborative work and research performed by Digimind and Clipperton Finance. Based
on Digimind’s WhoGotFunded comprehensive financing deals database which is built in real-time through text-
mining technologies, the analysis is focused on European deals with the following characteristics:
- Investments completed in a European company (Russia included/ Israel excluded)- The company is considered innovative i.e. with a clear technology or business model innovation –which excludes companies who operate technologies that they have not developed- Investments higher than $500k, in order to exclude “friends & family” seed rounds- Secondary deals (i.e. minority sales of shares to private funds) are included, majority deals are excluded.- Fundraisings through public markets (IPO or public equity financing) are excluded
This represents a list of about 200-400 deals per quarter, which are then allocated to an innovation universe (IT
/ Life Science / Cleantech) and to a sub-segment (e.g. Consumer Internet within IT).
This document has been prepared by Clipperton in collaboration with Digimind. It is communicated solely for the
purpose of information and should not be construed as a sollication or an offer to buy or sell any security or
related financial instrument.
This publication is based of data and information made available to the public and other sources deemed reliable.
While efforts have been made to guarantee maximum exactitude and reliability, neither Clipperton nor Digimind
can be held responsible for omission or errors. The information and analysis accessible in this publication
highlight industry trends in general, and should not be construed as providing any particular recommendations or
analysis for any specific company that is mentioned in the publication. No representation or warranty (expressed
or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the
information contained herein and, accordingly, none of Clipperton’s or Digimind’s officers or employees accepts
any liability whatsoever arising directly or indirectly from the use of this document.
Clipperton Finance Limited is authorised and regulated by the Financial Conduct Authority. Registered No.
