European Venture Capital Report October 2018 by Dealroom

European Venture Capital Report October 2018 by Dealroom, updated 12/16/18, 7:11 PM

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October was the second most active month of 2018 with investment of €2.7 billion

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Monthly European Venture Capital report
6 November 2018
October 2018
October was the second most active month of 2018
with investment of 2.7 billion
Source: Dealroom.co. Includes Israel. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
Investment in Europe, Israel & Biotech
2
Impact of mega-rounds
2.0B
1.6B
1.1B
1.9B
1.4B
1.6B 1.6B
2.3B
2.1B
1.9B
1.7B
1.6B
2.2B
2.6B
2.0B
1.7B
2.4B
1.7B
1.9B
2.1B
2.6B
2.8B
2.3B
2.1B
1.9B
2.7B

0.5B
1.0B
1.5B
2.0B
2.5B
3.0B
3.5B
Oct
Nov
Dec
Jan
Feb Mar
Apr May
Jun
Jul
Aug
Sep
Oct
2018
Europe excl. Israel
Biotech
Israel
1.5B
1.3B
0.9B
1.2B
0.9B
1.1B
1.3B
1.7B 1.7B
1.4B
0.9B
1.3B
1.8B
0.4B
0.3B
0.4B
0.3B
0.2B
0.4B
0.4B
0.4B 0.4B
0.4B
0.4B
0.3B
0.5B
0.7B
0.4B
0.3B
0.8B
0.6B
0.4B
0.4B
0.5B
0.7B
0.6B
0.8B
0.3B
0.4B
2.6B
2.0B
1.7B
2.4B
1.7B
1.9B
2.1B
2.6B
2.8B
2.3B
2.1B
1.9B
2.7B

0.5B
1.0B
1.5B
2.0B
2.5B
3.0B
3.5B
Oct
Nov
Dec
Jan
Feb Mar
Apr May
Jun
Jul
Aug
Sep
Oct
2017
2018
All other rounds
Top 10 largest rounds
Top 3 largest rounds
October was a
record month
excluding top 3
and top 10
rounds
Four rounds above $1 billion valuation, and five
rounds above $100 million
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
Go to online data
3
NAME
INVESTORS
INDUSTRY
LOCATION
ROUND
VALUATION
JFrog
JFrog provides software developers with a binary repository management solution
Battery Ventures, Insight Venture Partners
Dell Technologies Capital

Enterprise Software
Israel
$ 165 m
SERIES D
$ 1.0 b
Green Yellow
Electricity provider for private individuals
Bpifrance, Tikehau Capital
Energy
France
150 m
GROWTH EQUITY
-
GoEuro
Multi-mode search tool that compares rail, air, bus and car for European destinations
Investment AB Kinnevik, Temasek,
Hillhouse Capital
Transportation
Germany
$ 150 m
GROWTH EQUITY
$ 1.0 b
Monzo
Monzo is a London-based digital-only bank platform
Accel, General Catalyst Partners, Thrive
Capital, Orange Digital Ventures

Fintech
UK
85 m
SERIES E
1.1 b
Prima.it
An insurance intermediary selling car insurance online
Blackstone, Goldman Sachs
Fintech
Italy
100 m
GROWTH EQUITY
-
Galecto
Developing drugs for the treatment of fibrosis, inflammation and other serious human diseases
Seventure Partners, OrbiMed, Maverick

Health
Denmark
79 m
SERIES C
-
Truphone
Free and low cost mobile international calls via GSM and VoIP technology
Minden, Roman Abramovich
Telecom
UK
$ 71 m
LATE VC
$ 500 m
Syncron
Cloud-based service parts inventory, price and uptime management solutions
Summit Partners
Enterprise Software
Sweden
$ 67 m
GROWTH EQUITY
-
Oxford Nanopore Technologies
Developing nanopore-based electronic systems for analysis of single molecules
Amgen
Health
UK
50 m
GROWTH EQUITY
1.5 b
Mash
Automated platform to deliver superior finance and payments solutions
-
Fintech
Finland
50 m
LATE VC
-
1,712
1,508

200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec
2017
2018
24B
23B

5B
10B
15B
20B
25B
30B
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017
2018
2018 continues to be on track for an all-time record,
ahead of 2017 so far (which was a record year itself)
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 2018 vs. 2017 (B)
Cumulative number of rounds 2018 vs. 2017 (>2M)
The UK, Germany, France and Israel (the big four)
continue to receive 70% of total investment
5
11% YoY growth
87%
17%
10%
(35%)
(10%)
(11%)
(17%)
10%
43%
Number of rounds Jan-Oct '18 (1)
Investment by country (B) Jan-Oct '18
676
501
280
265
255
200
188
128
128
108
88
75
68
68
50
33
29
17
13
United Kingdom
France
Spain
Sweden
Germany
Israel
Netherlands
Italy
Switzerland
Ireland
Norway
Russia
Denmark
Finland
Belgium
Austria
Hungary
Turkey
Greece
5.9B
3.6B
3.3B
2.4B
1.3B
0.9B
0.9B
0.6B
0.5B
0.4B
0.4B
0.4B
0.4B
0.3B
0.3B
0.2B
0.2B
0.1B
0.1B
United Kingdom
Germany
France
Israel
Spain
Sweden
Switzerland
Ireland
Netherlands
Finland
Denmark
Portugal
Italy
Belgium
Russia
Norway
Estonia
Cyprus
Austria
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
1. Rounds below $2M are included here.
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
1. Rounds below $2M are included here.
6
By investment, the UK continues its lead, followed by
Germany and France
2018 cumulative number of rounds (1)
2018 cumulative amount invested by country
5.9B
3.6B
3.3B
2.4B

1.0B
2.0B
3.0B
4.0B
5.0B
6.0B
7.0B
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
United Kingdom
Germany
France
Israel
676
255
501
200

100
200
300
400
500
600
700
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
United Kingdom
Germany
France
Israel
Health, fintech and enterprise software continue to be
the most invested industries
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
Note: industries, business models and keywords can and do overlap.
7
By industry vertical
Business model
By keyword
Number of
rounds 2018
Jan - Oct
Amount (B)
invested 2018
Jan - Oct
4.7B 4.6B
3.8B
2.4B 2.3B
1.5B 1.2B 1.2B 1.2B 1.1B 0.8B 0.7B 0.5B 0.4B 0.3B 0.4B 0.3B
8.3B
5.7B
4.2B
2.6B 2.4B
5.7B
2.3B
0.9B 0.7B
0.2B
642
521
480
252
254
228
204
178
174
140
133
100
92
69
58
49
51
1,336
715
404
234
197
913
426
158
102
29
Noticeable increase in focus on deep tech related
areas such as robotics and blockchain
8
Absolute
change
vs. last
year (in
B)
% change
vs. last
year
(number
of
rounds)
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.
Note: industries, business models and keywords can and do overlap.
By industry vertical
Business model
By keyword
1.0B
0.9B
0.5B 0.5B
0.2B 0.2B 0.2B
0.0B
( 0.0B)
( 0.2B) ( 0.2B) ( 0.2B)
( 0.3B)
( 0.4B) ( 0.4B)
( 0.6B)
( 0.8B)
1.1B
0.8B 0.8B
( 0.4B)
( 0.6B)
0.5B
( 0.2B)
( 0.2B) ( 0.3B)
( 0.4B)
61%
36%
18%
17%
15%
10%
10%
1%
(2%)
(3%)
(4%)
(5%)
(7%)
(7%)
(10%)
(12%)
(28%)
35%
33%
14%
(18%)
(20%)
80%
33%
15%
(3%)
(14%)
342
406
246

50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec
2017
2018
35B
40B
102B

20B
40B
60B
80B
100B
120B
Jan Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec
2017
2018
By VC backed exits, 2018 is far ahead of 2017 driven
by a handful of mega-exits
Source: Dealroom.co
9
Cumulative value of VC-backed exits 2018 vs. 2017
Cumulative number of VC backed exits 2018 vs. 2017
October: 6.3 billion venture backed exits
companies
Source: Dealroom.co
NAME
ACQUIROR
SELLER
INDUSTRY
LOCATION
TRANSACTION
VC BACKED
Magneti Marelli
Production of hi-tech systems and components for the automotive
sector
KKR
-
Automotive
Italy
6.2b
BUYOUT
Nexperia
A global technology leader in discretes, logic and MOSFET devices
Wingtech Technology
Wise Road Capital
Beijing Jianguang Asset
Management
NXP Semiconductors
Electronics
Netherlands
$ 3.6 b
ACQUISITION
Elastic
Providing innovative and advanced open source distributed search
engine, support and consulting services
-
Index Ventures
Benchmark, Data Collective
Rod Johnson
SV Angel
Enterprise Software
Netherlands
$ 2.5 b
IPO

FNZ
Wealth management platforms for financial advisers
Generation Investment
Management, Caisse de
dpt et placement du
Qubec (CDPQ)
HIG Capital
General Atlantic
Finance
UK
1.7 b
ACQUISITION

BorsodChem
European chemicals producer
Wanhua Chemical Group
Permira
Chemical
Hungary
1.2 b
ACQUISITION
Nemera
Development and manufacturing of high quality innovative drug delivery
solutions
Astorg
-
Health
France
1.2 b
ACQUISITION
Orchard Therapeutics
Treating rare disorders through innovative gene therapies
-
F-Prime Capital Partners
Temasek, Baillie Gifford

Health
UK
$ 1.3 b
IPO

HEMA
HEMA operates a chain of department stores in the Netherlands
Ramphastos Investments
N.V.
Lion Capital
Retail
Netherlands
753 m
BUYOUT
Westwing
Online shopping club for Home & Living
-
Holtzbrinck Ventures
Kinnevik, Rocket Internet

Home / Marketplace
Germany
550 m
IPO

Perfecto Mobile
A cloud-based test environment for mobile apps
Perforce Software
Viola Ventures, Vertex
Ventures, FTV Capital
...
Enterprise Software
Israel
$ 200 m
ACQUISITION

10
Go to online data
UK and Sweden are leading by VC-backed exits
Source: Dealroom.co
11
11% YoY growth
87%
17%
10%
(35%)
(10%)
(11%)
(17%)
10%
43%
Acquisitions & IPOs of venture-backed
companies (B) Jan-Oct '18
Acquisitions & IPOs of venture-backed
companies (B) Jan-Oct '18
63
29
26
19
14
13
8
8
7
6
4
4
3
3
3
United Kingdom
France
Germany
Sweden
Spain
Netherlands
Switzerland
Ireland
Italy
Belgium
Poland
Denmark
Russia
Norway
Finland
37.7B
28.4B
11.3B
5.0B
4.5B
4.1B
2.9B
0.9B
0.4B
0.4B
0.3B
0.2B
0.1B
0.1B
United Kingdom
Sweden
Netherlands
Italy
France
Germany
Czech Republic
Turkey
Switzerland
Iceland
Ireland
Austria
Poland
Denmark
(mainly Spotify)
(Adyen & Elastic)
Source: Dealroom.co
12
By exits, the UK is now in the lead following a string of
sizeable IPOs and acquisitions
2018 cumulative exits by country
37.7B
28.4B
11.3B
5.0B
0.0B
10.0B
20.0B
30.0B
40.0B
50.0B
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
United Kingdom
Sweden
Netherlands
Italy
France
Germany
Selected example exits:
Global database to identify & track growth
opportunities and innovative companies