Date post: | 16-Jul-2015 |
Category: |
Investor Relations |
Upload: | gil-dibner |
View: | 8,190 times |
Download: | 2 times |
Venture Capital in Europe & Israel Venture Investment Data: Fourth Quarter, 2014
Prepared by Gil Dibner @gdibner blog: yankeesabralimey Cabo da Roca, Westernmost point in mainland Europe
The data
• Back in June, I decided I wasn’t happy with available data sources on VC rounds in Europe & Israel, and that I’d need to build my own
• The data in this report consists entirely of data I’ve gathered manually based on publically available, free sources
• No paid data sources or API calls were harmed in the making of this dataset, every investment was manually classified
• This allows analysis of some aspects of the data I consider important – aspects that don’t appear in other data sources
• Seed investment is still under-reported, but I got a bit better at capturing it in the fourth quarter. Rounds smaller than $500K are excluded from this analysis
• The analysis is limited to ICT categories and excludes life sciences • The analysis excludes Turkey and FSU countries
@gdibner blog: yankeesabralimey
2
Monthly pace of venture investment • During the seven months
ended December, 2014, there were 371 reported venture investments across Europe & Israel
• A total of $4.138B was invested in Europe & Israel during this period, an average of $591M per month
• Average pace seems to be just over 50 investments per month
• There was a summer slowdown in August in the number of transactions, but a significant rebound in 4Q
@gdibner blog: yankeesabralimey 3
519 491565
644 626567
727
4542
30
50
79
73
52
0
100
200
300
400
500
600
700
800
900
1,000
0
10
20
30
40
50
60
70
80
90
Jun Jul Aug Sep Oct Nov Dec
Amou
nt in
vest
ed (U
S $M
)
Num
ber o
f inv
estm
ents
VC Investments in Europe & Israel, June-December 2014
Invested amount (US $M) Number of investments
Quarterly pace of venture investment • The fourth quarter saw
more VC activity in Europe and Israel than the third quarter
• The number of VC rounds rose from 122 to 204
• The amount of VC investment rose from $1.7B to $1.9 billion
@gdibner blog: yankeesabralimey 4
1,7001,919
122
204
0
500
1,000
1,500
2,000
2,500
0
50
100
150
200
250
Qtr3 Qtr4
Amou
nt in
vest
ed (U
S $M
)
Num
ber o
f inv
estm
ents
VC Investments in Europe & Israel, 2nd half of 2014
Invested amount (US $M) Number of investments
Four mega-rounds skew the investment totals • This analysis breaks down VC
investments into brackets by size:
• Seed (less than $2M) • Early venture ($2-8M) • Venture ($8-20M) • Growth ($20-100M) • Mega ($100M+)
• Four mega-rounds took place in Europe in the past four months:
• French ride-sharing marketplace BlaBlaCar raised $100M
• Spanish voting software company Scytl raised $104M
• German food delivery company DeliveryHero raised $350M
• Dutch payments processor Adyen raised $250M
• Adjusting for mega-rounds, September was the lowest volume month in 3Q and December was the lowest volume month in 4Q
@gdibner blog: yankeesabralimey 5
70 97 57 92121 121 103
108117
60
168 109 76 108
332171 342 26
366343
249
0
100
200
300
400
500
600
700
800
Jun Jul Aug Sep Oct Nov Dec
Qtr2 Qtr3 Qtr4
Amou
nt In
vest
ed (U
S $M
)
Pace of VC Investment in Europe and Israel, Jun-Dec 2014
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (.5-2)
Number of investments, by bracket • On this slide, Europe’s
summer & Christmas holiday effect comes into sharpest relief
• Angel and venture investments, which take the least time to close, were at their lowest in August & December
• Deal volume peaked in October, with 79 investments
• Fourth quarter activity consistently surpassed third quarter activity
@gdibner blog: yankeesabralimey 6
9 6 3 7
28 2615
17 2114
25
3129
2210 9
5
16
106
99 5
7
1
10
12
5
0
10
20
30
40
50
60
70
80
90
Jun Jul Aug Sep Oct Nov Dec
Num
ber o
f VC
inve
stm
ents
Number of investments in Europe and Israel by bracket, Jun-Dec 2014
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)
Average round size, by bracket • Within each bracket, round
sizes have remained relatively stable
@gdibner blog: yankeesabralimey 7
4.1 4.6 4.1 3.7 3.9 4.2 4.7
10.813.0 11.9 10.5 10.9
12.7 12.0
36.934.2
48.9
26.0
36.6
28.5
49.9
0
10
20
30
40
50
60
Jun Jul Aug Sep Oct Nov Dec
Amou
nt In
vest
ed (U
S $M
)
Average investment size in Europe and Israel by bracket, Jun-Dec 2014
Seed (<2) Early Venture (2-8)Venture (8-20) Growth (20-100)
Total venture investment by country, 2H 2014
• Israel led Europe with the total amount of venture dollars invested in the second half of 2014
US $M @gdibner blog: yankeesabralimey 8
882.6816.2
631.5306.4
294.8217.4
198.782.0
57.035.030.0
20.312.010.46.66.46.01.81.71.30.60.5
IsraelGermany
UKNetherlands
FranceSpain
SwedenFinland
HungaryNorwayIreland
DenmarkPoland
BelgiumSwitzerland
PortugalIcelandEstoniaGreeceAustria
LatviaItaly
0 100 200 300 400 500 600 700 800 900 1,000
Total VC investment volume by country, 2H 2014 (US $M)
Total venture investment by country, 3Q & 4Q 2014
• Investment volume in Israel nearly doubled in 4Q catapulting Israel to first place
• Investment volume in Germany increased by almost 50%, vaulting Germany over the UK to second place
• France & Sweden also saw meaningful increases
• Prezi’s $57M growth round put Hungary on the map in sixth place
@gdibner blog: yankeesabralimey 9
Israel, 315.2
Israel, 567.5
UK, 368.2
UK, 263.4
Germany, 180.2
Germany, 286.0
Sweden, 74.4 Sweden, 124.3
France, 29.1
France, 165.7
Spain, 61.7
Spain, 51.7Finland, 35.7Finland, 46.3
Hungary, 57.0
Netherlands, 31.6
Netherlands, 24.8Norway, 35.0Ireland, 30.0
Qtr3 Qtr40
100
200
300
400
500
600
Tota
l VC
inve
stm
ent (
US
$M)
Total VC investment, 3Q & 4Q (excluding mega-rounds)
Average venture round sizes, by country • Looking across all VC deals
in the second half of 2014, it’s possible to draw some conclusions about the funding environments in various countries
• Across all stages, French companies seem to raise rounds of the smallest size in each bracket
• In the UK & Ireland venture rounds tend to be smaller, but growth rounds are, on average, the largest in Europe
@gdibner blog: yankeesabralimey 10
Benelux, 4.0
Benelux, 11.9
DACH, 4.1
DACH, 11.9
DACH, 37.3
France, 3.7
France, 9.2
France, 24.2
Iberia, 4.5
Iberia, 13.8
Iberia, 30.0
Israel, 4.4
Israel, 12.8
Israel, 38.9
Nordic, 4.4
Nordic, 11.2
Nordic, 33.1
UK & Ireland, 4.1
UK & Ireland, 10.2
UK & Ireland, 40.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Early Venture (2-8) Venture (8-20) Growth (20-100)
Aver
age
roun
d siz
e (U
S $M
)
Average investment size in Europe and Israel by bracket, 2H 2014
Total venture investment by region, June-September 2014
• When VC investments across Europe are aggregated into regions, Israel, DACH, UK & Ireland, the Nordics, and France are the clear and consistent leaders
• Benelux, Iberia, Southern Europe, and Eastern Europe do produce meaningful VC investments (Adyen, Prezi, and many others), but the volumes are still low
• Taken as a group, the Nordics (which includes the Baltics) saw a significant increase in 4Q over 3Q
@gdibner blog: yankeesabralimey 11
Israel, 315.2Israel, 567.5
DACH, 532.2DACH, 291.9
UK & Ireland, 398.2UK & Ireland, 263.4
Nordic, 123.4Nordic, 221.1
Benelux, 285.2France, 129.1
France, 165.7Iberia, 167.2
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Qtr3 Qtr4
Tota
l VC
inve
stm
ent (
US
$M)
Total VC investment by region, Q3 & Q4 2014
Israel DACH UK & Ireland Nordic BeneluxFrance Iberia East. Eur. South. Eur.
Rounds by bracket & country • Israel led in the total
number of VC deals, including an impressive 10 growth rounds
• Excluding growth and mega-rounds, the UK & Ireland saw the highest number of seed, early venture and venture investments
• DACH slipped from fourth place in 3Q to fifth place in 4Q
@gdibner blog: yankeesabralimey 12
914 12 12
6 8 62
16
23
12 11
10 55
9
2
2 4
4
2
104
4 3
5
0
5
10
15
20
25
30
35
40
45
50
Israel UK &Ireland
Nordic France DACH Iberia Benelux East. Eur. South. Eur.
Num
ber o
f inv
estm
ents
Number of investments in Europe and Israel by bracket, 4Q 2014
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<.5-2)
Investment by region, by bracket • In 4Q, Israel led in terms of
total VC dollars invested, even with mega-rounds included
• DACH was in second place
• When growth and mega-rounds are excluded, UK & Ireland would come in second
• Note the impact of Adyen on Benelux and the impact of Prezi on Eastern Europe
@gdibner blog: yankeesabralimey 13
270 40
9951 42
23 20
121
45
20
25 3728
366
199 132132
72
57
250
0
100
200
300
400
500
600
Israel DACH UK &Ireland
Nordic France East. Eur. Iberia Benelux South. Eur.
Tota
l am
ount
inve
sted
(US
$M)
Investment in Europe and Israel by bracket by region, 4Q 2014(ranked excluding mega-rounds)
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)
Participation rate of US VC firms, by bracket • US VC firms are increasingly
active in the European and Israeli VC markets
• US VC firms participated in 17.4% of the rounds that took place in the fourth quarter
• US VCs participated in only 3% of seed rounds, and 20% of early venture and venture rounds
• US VCs get far more active in the later stages: almost half of growth rounds had US investors, as did Adyen’s mega-round
@gdibner blog: yankeesabralimey 14
94% 97% 92%80% 80% 80%
54% 52%
33%
6% 3% 8%20% 20% 20%
46% 48%
67%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr3 Qtr4 Qtr3 Qtr4 Qtr3 Qtr4 Qtr3 Qtr4
Seed (.5-2) Early Venture (2-8) Venture (8-20) Growth (20-100) Mega (>100)
Tota
l am
ount
inve
sted
(US
$M)
Did US VC firms participate in European & Israeli VC rounds?
Yes No
Participation of US VC firms by country • In 4Q, US VCs firms were
active in 12 different European countries, up from 10 in 3Q
• US VC firms were most active in Israel, where they participated in 14 investment rounds
@gdibner blog: yankeesabralimey 15
145 3 3 3 2 2
30
38
19
7 5
28
11 134
2 3 2 20
5
10
15
20
25
30
35
40
45
50
Isra
el UK
Germ
any
Net
herla
nds
Swed
en
Fran
ce
Finl
and
Spai
n
Denm
ark
Port
ugal
Pola
nd
Hung
ary
Nor
way
Belg
ium
Switz
erla
nd
Gree
ce
Aust
ria
Latv
ia
Esto
nia
Num
ber o
f VC
inve
stm
ents
In which countries are US VCs most active?4Q, 2014
No US VC involved US VC involved
Participation of US VC firms by country • Relative to the number of
VC rounds, the UK, Spain, and France remain surprisingly under-penetrated by US VC firms
• Hungary, Portugal, and Poland saw one VC investment each during 4Q, with US VC firms participating in each of them
@gdibner blog: yankeesabralimey 16
38% 32% 30%20% 15% 14% 12% 7% 7%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Hung
ary
Port
ugal
Pola
nd
Swed
en
Isra
el
Net
herla
nds
Denm
ark
Finl
and
Germ
any
UK
Spai
n
Fran
ce
Perc
ent o
f inv
estm
ent r
ound
s with
US
VC p
artic
iatio
n
Which countries are the most penetrated by US VCs?
No Yes
As a reminder, I am using a three-dimensional approach to sector mapping
Dimension Categories Explanation/Example
1. Target market Consumer, SMB, Enterprise, Government, Telecom, OEM
What sort of customer does the company target?
2. Vertical market
Adtech, Communications, Data, Development, Durables, Education, Electronics, Employment, Energy, Fashion, Financial, Food, Gaming, Health, HMI, Industrial, Infrastructure, Lifestyle, Logistics, Marketing, Media, Productivity, Real Estate, Security, Sports, Storage, Transportation, Travel, Water
What type of problem does the company solve?
3. Business model Commerce, Components, Content, Marketplace, SaaS, Semiconductors, Services, Software, Systems,
How does the company make money? What are customers paying for?
Combined segment descriptor Consumer + Travel + Marketplace AirBnB has built a travel-related marketplace for consumers 17
What target markets are attracting the most VC investment in Europe & Israel? • All target markets saw an
increase in investment activity across Europe & Israel in 4Q compared to 3Q
@gdibner blog: yankeesabralimey 18
474 599
493
79678
133
77
114
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Qtr3 Qtr4
Tota
l VC
inve
stm
ents
(US
$M)
European & Israeli venture financing by target market3Q & 4Q, 2014 (in US $M)
Government
Telecom
OEM
SMB
Enterprise
Consumer
What target markets are attracting the most VC investment in Europe & Israel? • In terms of dollars invested,
consumer-oriented companies accounted for just over a third of VC investment in the 4Q, down slightly from previous months
• In December, over 57% of VC dollars invested went to enterprise-oriented companies
@gdibner blog: yankeesabralimey 19
45%28%
53%42% 34% 39% 34%
46%
45%
40%45%
47% 40% 57%
7%
18% 6% 17%9% 5% 6% 12% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun Jul Aug Sep Oct Nov Dec
Tota
l VC
inve
stm
ents
(US
$M)
European & Israeli venture financing by target market3Q & 4Q, 2014 (in US $M)
Government Telecom OEM SMB Enterprise Consumer
Breakdown by region & target market • Interesting (and as
suggested by last quarter’s report), the DACH region saw a shift in investment focus in 4Q from consumer to enterprise
• The Israeli VC landscape continued to be dominated by non-consumer companies
• Other European markets such as the UK, the Nordics, and France were heavily weighted towards consumer investments in 4Q
@gdibner blog: yankeesabralimey 20
116 88136 129 89
17
393
171270
11054
30
17
18
27
57 18
56
23
3520
0
100
200
300
400
500
600
Israel DACH Benelux UK &Ireland
Nordic France East. Eur. Iberia South.Eur.
Tota
l am
ount
inve
sted
(US
$M)
Investment in Europe and Israel by target market by country4Q, 2014 (US $M)
Government Telecom OEM SMB Enterprise Consumer
Distribution of investment rounds by country • Across Europe & Israel, 41%
of VC investment rounds were in consumer companies in 4Q, roughly the same as 3Q
• In the DACH region, consumer companies took a back seat in 4Q, in a marked difference from 3Q
• The Nordic region saw the most emphasis on consumer investments
• Israel was heavily weighted towards enterprise investments, even more so than in 3Q
@gdibner blog: yankeesabralimey 21
60%
50%
50%
50%
44%
40%
38%
36%
23%
27%
37%
50%
40%
33%
62%
56%
66%
3%
50%
10%
16%
20%
4%
5%
7%
0%
4%
7%
3%
3%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Nordic
East. Eur.
France
South. Eur.
UK & Ireland
Iberia
Benelux
DACH
Israel
Investment in Europe and Israel by target market by country4Q 2014 (Number of investments)
Consumer Enterprise SMB OEM Telecom Government
Is Europe’s “consumer exuberance” over? • The majority of rounds
across all stages were in non-consumer oriented companies, a contrast from the 3rd quarter
• Interestingly, this was true for seed investments as well, which seem to be roughly balanced with later stages in terms
• Over half of early venture rounds in Europe were in enterprise-oriented companies
• These findings are made more significant by the exclusion of Israel, which has long had an enterprise focus.
@gdibner blog: yankeesabralimey 22
47%
55%
39%
40%
44%
36%
39%
36%
9%
6%
15%
14%
7%
8% 3%
3%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Seed (<2)
Early Venture (2-8)
Venture (8-20)
Growth (20-100)
Investment in Europe (excluding Israel) by target market by stage bracket 4Q 2014 (Number of investments)
Consumer Enterprise SMB
DACH moves toward the enterprise • DACH is clearly a region
with a record of strong consumer-oriented investment
• In 4Q this began to change
• It’s too early to tell if this will turn into a long-term trend, but I expect that Berlin will – like London – emerge as a key hub for a wide variety of startups
@gdibner blog: yankeesabralimey 23
100% 100%94%
56%
13%
64%
34%
2%
35%
57%
36%
66%
9%
9%
5%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun Jul Aug Sep Oct Nov Dec
Investment in DACH by target market by stage bracket4Q 2014 (Number of investments)
OEM SMB Enterprise Consumer
Investment rounds by vertical • Financial (“fintech”)
startups drove the highest number of VC rounds, followed by marketing, and infrastructure
• Deep diversity across Europe
@gdibner blog: yankeesabralimey 24
Financial, 17
Marketing, 15
Infrastructure, 15 Lifestyle, 13
Adtech, 11
Data, 10
Health, 9
Productivity, 8
Education, 8
Employment, 8
Payments, 8
Travel, 7Logistics, 7
Communications, 7Gaming, 7Electronics, 7Development, 7
Fashion, 6
Media, 6
European & Israeli venture financing by target market4Q 2014 (number of investments)
Which verticals for which markets? • Financial companies saw
the most investment activity in 4Q, split between enterprise, SMB, and consumer companies
• In 4Q, SMB-focused companies were funded across many verticals, compared to only two verticals in 3Q
• Many verticals saw investment into both consumer- and enterprise-oriented businesses
@gdibner blog: yankeesabralimey 25
IndustrialSCM
InformaticsSports
StorageAgtech
Real EstateFood
SocialDurables
ERPSecurity
EnergyFashion
MediaDevelopment
ElectronicsLogistics
CommunicationsGaming
TravelEmployment
PaymentsEducation
ProductivityHealth
DataAdtech
LifestyleInfrastructure
MarketingFinancial
0 2 4 6 8 10 12 14 16 18
European & Israeli venture financing by target market4Q, 2014 (number of investments)
ConsumerEnterpriseSMBOEMTelecomGovernment
Software & SaaS models led the pack in 4Q • In terms of dollars invested
during 4Q, software (26%) and SaaS (23%) were the leaders
• Services came in third, with 16% (this excludes Adyen, a services company)
• Marketplace business models took fourth place, with 10% of invested capital
• Physical products (systems, components, and semiconductors) accounted for only 14% of total investment combined
@gdibner blog: yankeesabralimey 26
Software, 443, 26%
SaaS, 389, 23%
Services, 264, 16%
Marketplace, 169, 10%
Commerce, 149, 9%
Systems, 149, 9%
Components, 46, 3%
Semiconductors, 34, 2%
Media, 26, 2%
European & Israeli venture financing by target market4Q, 2014 (in US $M) (excluding mega-rounds)
More software, SaaS, & services in 4Q • As a percentage of VC
investment, software, SaaS, and services all increased in 4Q relative to 3Q
• Marketplaces and commerce models declined in terms of relative share, from 38% of VC investment to only 19% in 4Q
@gdibner blog: yankeesabralimey 27
19% 27%
19%23%
11%
16%23%
10%15% 9%
9% 9%
0%10%20%30%40%50%60%70%80%90%
100%
Qtr3 Qtr4
European & Israeli venture financing by business model3Q vs 4Q, 2014 (in US $M)
Media Systems Components Semiconductors CommerceMarketplace Services SaaS Software
US VC interest is concentrated in specific business models • US VC firms investing in
Europe & Israel continued to focus mainly on SaaS, software, and services
• While commerce companies continued to attract attention from local investors, no US VC firms participated in a commerce investment during 4Q
• Components, and semiconductors attracted little interest from local VCs, and no interest at all from US VCs
@gdibner blog: yankeesabralimey 28
14 10 7 3 2
44
3330
27
11
2
15
3 20
10
20
30
40
50
60
70
SaaS Software Services Marketplace Systems Media Commerce Semiconductors Components
VC Investments in Europe & Israel4Q, 2014
No US VC involved US VC involved
The most popular segments in Europe • During 4Q the 204
investments in Europe & Israel fell into 110 distinct segments
• Of these, 98 fell into 23 segments of 3 or more companies
• The Nordics dominated gaming software and consumer communications services
• The UK was particularly strong in consumer financial services, consumer financial marketplaces, and enterprise adtech software
• Israel was particularly strong in enterprise marketing SaaS, enterprise infrastructure software, enterprise payments services, and enterprise security software
@gdibner blog: yankeesabralimey 29
0 1 2 3 4 5 6 7 8 9 10
Enterprise Data SoftwareConsumer Media SaaS
Enterprise Development SaaSEnterprise Adtech Services
Enterprise Development SoftwareConsumer Financial Marketplace
SMB Financial MarketplaceConsumer Communications Services
SMB Marketing SaaSEnterprise Adtech SoftwareEnterprise Productivity SaaS
Consumer Education ServicesEnterprise Security SoftwareConsumer Financial Services
Consumer Lifestyle CommerceEnterprise Payments Services
Consumer Electronics SystemsConsumer Fashion Commerce
Consumer Gaming SoftwareEnterprise Data SaaS
Enterprise Infrastructure SoftwareConsumer Lifestyle Marketplace
Enterprise Marketing SaaS
Investment in Europe & Israel by segment by country4Q 2014 (segments with 3 or more investments)
UK & Ireland
Nordic
Israel
France
DACH
Iberia
Benelux
South. Eur.
East. Eur.
The most popular segments in Europe & Israel for US VC firms • Across Europe & Israel, US
VC firms invested in 21 enterprise companies, 12 consumer companies, 2 SMB companies, 1 OEM, and 1 government-oriented company
@gdibner blog: yankeesabralimey 30
0 2 4 6 8 10 12
Systems
Services
SaaS
Media
SaaS
Marketplace
Services
Software
Systems
Marketplace
Services
Software
SaaS
OEM
Govt
SMB
Cons
umer
Ente
rpris
e
US VC Investments in Europe and Israel by end market, business model, country, 4Q 2014
Israel
Nordic
UK & Ireland
DACH
Benelux
Iberia
East. Eur.
France
Average investment size by target market • Growth rounds involving US
firms are significantly larger than rounds that do not
• This effect was especially pronounced for enterprise companies
• Enterprise companies seem to raise larger growth rounds than consumer comapnies
• At the early venture and venture stages, the involvement of US firms does not imply a larger round
@gdibner blog: yankeesabralimey 31
812
37
5357
11 128
14 13 15
29 2926
44
20
0
10
20
30
40
50
60
Cons
umer
Ente
rpris
e
Gove
rnm
ent
OEM SM
B
Tele
com
Cons
umer
Ente
rpris
e
OEM SM
B
Tele
com
Venture (8-20) Growth (20-100)
Average round size by target market during 2H 2014, (US $M)
US VC involved No US VC involved
Average investment size by business model • Growth rounds involving US
VC firms were larger across the board
• This was especially true for services, software, and systems companies
• Commerce companies were the exception: commerce companies with US backers tended to raise slightly smaller growth rounds
• US participation didn’t impact round size for venture investments
@gdibner blog: yankeesabralimey 32
812
912
8
26
46
20
46
53 53 53
12 12 1215
9 1013
32
23
37
3126 26 27
32
0
10
20
30
40
50
60
Com
mer
ce
Mar
ketp
lace
SaaS
Sem
icon
duct
ors
Serv
ices
Soft
war
e
Syst
ems
Com
mer
ce
Com
pone
nts
Mar
ketp
lace
Med
ia
SaaS
Sem
icon
duct
ors
Serv
ices
Soft
war
e
Syst
ems
Venture (8-20) Growth (20-100)
Average round size during 2H 2014, (US $M)
US VC involved No US VC involved
Focus on fintech: investment volume • $135M was invested across
Europe & Israel into 17 fintech companies
• The UK was far and away the leader in terms of dollars invested in fintech startups
• Other regions, however, are attracting similar levels of investment in early venture and venture stages
@gdibner blog: yankeesabralimey 33
27
3 5 3
915
17
31
23
0
10
20
30
40
50
60
70
UK France Israel Spain Germany Sweden
Tota
l am
ount
inve
sted
(US
$M)
Fintech VC investment in Europe and Israel by bracket by country,4Q 2014
Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)
Focus on fintech: target markets • The UK lead in terms of the
number of fintech companies raising finance
• Overall fintech investment activity was down in 4Q compared to 3Q, with handful of investments scattered across France, Israel, Spain, Germany and Sweden
@gdibner blog: yankeesabralimey 34
5
1 1 1
2
12
1
2
10
1
2
3
4
5
6
7
8
9
UK France Israel Spain Germany Sweden
Num
ber o
f inv
estm
ents
Fintech VC investment in Europe and Israel by bracket by country, 4Q 2014
SMB Enterprise Consumer
Focus on enterprise SaaS: investment volume • 39 enterprise SaaS
companies raised $264M during 4Q
• The biggest investment volume was in Israel, followed by the UK
• Growth investments were limited to the UK and Israel
@gdibner blog: yankeesabralimey 35
136 10 9
8 7
73
88
11 9
35
51
0
20
40
60
80
100
120
140
Israel UK France Germany Spain Belgium Netherlands Finland Austria Switzerland Greece
Tota
l am
ount
inve
sted
(US
$M)
Enterprise SaaS VC investment in Europe and Israelby bracket by country 4Q 2014
Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)
Focus on enterprise SaaS: verticals by country • Little change from 3Q, with
Marketing and Data remaining the two most popular vertical segments within enterprise SaaS
• Developer tooling saw three investments, two of which was based in the Netherlands
• Nine verticals saw one investment each, demonstrating the broad applicability of enterprise SaaS
@gdibner blog: yankeesabralimey 36
0 2 4 6 8 10
FinancialHealth
InfrastructureEnergy
LogisticsSCM
PaymentsCommunications
AgtechAdtech
EmploymentERP
EducationDevelopment
ProductivityData
Marketing
Enterprise SaaS VC investment in Europe and Israel by vertical by country, 4Q 2014 (number of investments)
Israel GermanyFrance NetherlandsUK BelgiumGreece SwitzerlandFinland SpainAustria
Focus on enterprise SaaS: verticals 3Q vs 4Q • The volume of enterprise
SaaS VC investment increased in 4Q compared to 3Q
• Marketing and productivity, the two most active verticals, saw an increase in 4Q
@gdibner blog: yankeesabralimey 37
0
50
100
150
200
250
300
Qtr3 Qtr4
Amou
nt in
vest
ed (U
S $M
)
Enterprise SaaS VC investment volume by vertical3Q & 4Q (US $M)
HealthLogisticsCommunicationsEnergySCMAgtechMediaERPEducationPaymentsFinancialDevelopmentAdtechEmploymentInfrastructureDataMarketingProductivity
About the author
Partner at based in Previously helped run European seed program for Worked seven years as a VC in Investments include If you found this useful, I hope you’ll subscribe to my blog.
38