About Techcelerate Ventures
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21 October, 2020
Venture
Pulse
Q3 2020
Global analysis of
venture funding
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KPMG International entities provide no services to clients. All rights reserved.
Welcome
message
Welcome to the Q3’20 edition of KPMG Private Enterprise’s Venture Pulse, a
quarterly report highlighting the key trends, opportunities, and challenges facing
the venture capital market globally and in key jurisdictions around the world.
Despite ongoing concerns related to COVID-19, geopolitical tensions, the
upcoming US presidential election, and a potential hard Brexit, VC investment
during the quarter remained robust across all regions of the world.
An increasing number of mega-deals helped drive investment value up, with
three deals above $1 billion. Late-stage companies in general attracted the
lion’s share of investment in Q3’20, while funding for early-stage companies
continued to falter across the globe. The prolonged decline in early-stage
deals activity is concerning as it will likely have negative impacts on the
pipeline, particularly for Series B rounds, down the road.
After 2 quiet quarters, Asia saw a strong rebound in VC investment, led by a
$1.5 billion raise WM Motor in China, and a $1.3 billion raise by Flipkart in
India. The Americas also saw strong VC activity, led by a $1.9 billion raise by
SpaceX and two $600 million plus raises by RobinHood. VC investment in
Europe remained steady, led by a $650 million raise by Sweden-based
Klarna, a $632 million raise by Germany-based CureVac, and a $580 million
raise by Revolut in the UK.
IPO activity picked up during Q3’20, with strong IPO exits by Snowflake,
JFrog, and Unity Software, direct listings by Palantir Technologies and Asana,
and the announcement of SPAC-based IPOs by Skillz and Opendoor. With
China-based mega-giant Ant Financial filing IPO documents for listing on the
HKSE, in addition to AirBnb and Wish in the US, IPO activity is expected to
increase further in Q4’20.
With many jurisdictions now entering a second wave of the COVID-19
pandemic, VC investors are expected to remain focused on companies able to
help people and businesses adapt to and thrive within the ‘new normal’.
Health and biotech investment will likely remain very high, along with
investment in fintech, business productivity solutions, and digital platforms.
In this quarter’s edition of Venture Pulse, we look at these and a number of
other global and regional trends, including:
— The ongoing strength and resilience of the VC market despite the ongoing
pandemic
— The ramifications of a long-term decline in early-stage deals
— The rising tide of IPO activity
— The rebound in Asia-based VC investment
We hope you find this edition of Venture Pulse insightful. If you would like to
discuss any of the results in more detail, please contact a KPMG adviser in
your area.
Throughout this document, “we”, “KPMG”, "KPMG Private Enterprise", “us” and “our” refers to the global
organization or to one or more of the member firms of KPMG International Limited (“KPMG International”),
each of which is a separate legal entity. KPMG International Limited is a private English company limited by
guarantee and does not provide services to clients. No member firm has any authority to obligate or bind
KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any
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Unless otherwise noted, all currencies reflected throughout this document are US Dollar.
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Global Co-Leader — Emerging
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In Q3’20 European
VC-backed
companies raised
$12.1B
across
1,024 deals
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Venture capital investment in Europe reached a new record high in Q3’20, helped by new record levels
of investment in Germany, Israel, and the Nordic Region. A diverse range of sectors attracted $100
million+ megadeals in Europe, including fintech, drug discovery, automotive, entertainment, and health
diagnostics.
Investor caution affecting valuations and early-stage rounds
Europe achieved a new quarterly record for total VC investment in Q3’20. Despite this fact, the
investment climate has not been completely rosy. There has been a significant amount of uncertainty
over the past 6 months due to COVID-19, which has been reflected in the valuations of businesses,
particularly those businesses unable to predict future demand. This, combined with the focus of VC
investors on protecting their existing portfolio companies, has led to more cautious valuations and even
more challenges for early-stage companies working to raise funding.
UK continues to attract large VC rounds
VC investment in the UK remained relatively strong in Q3’20, despite a significant decline in the number
of deals. Fintech was a key area of investment with digital bank Revolut raising $580 million and cloud-
based banking platform Thought Machine raising $125 million. London-based kitchen space startup
Karma Kitchen also made news with a $314 million raise this quarter. During the quarter, the UK
government continued to focus on supporting recovery initiatives — announcing a £2 billion Kickstart
scheme focused on providing young people with job placements for 6 months. The program could
enable startups to find and retain talented young people.
Germany sees very robust VC investment in Q3’20
Germany attracted a significant amount of VC investment during Q3’20, led by a $632 million raise by
CureVac and a $291 million raise by AUTO1 and a $246 million raise by agtech company Infarm. The
size of these deals reflects a number of factors, including the maturity of Germany’s VC ecosystem and
the confidence of investors in proven companies with business models that are resilient to COVID-19’s
impacts.
Travel price aggregator Omio also raised Euro84M million during the quarter, bucking the downward
trend affecting many travel-focused companies. In sectors hit hard by the pandemic, some VC investors
are making bets on what companies will emerge as clear industry leaders. This could lead to
consolidation as smaller companies struggle or fail to attract funding.
IPO market in Europe on cusp of potential rebound
While there was a reluctance for IPO exits over the past 12 months across Europe, a window of
opportunity might be opening. During Q3’20, a number of companies announced IPO plans, including
Germany-based education publisher Springer Nature, Sweden-based game company Huuuge Inc., and
Poland-based fintech Allegro. Should these companies hold successful IPO exits in the near future,
other mature startups in Europe feeling exit pressure from their investors could follow in their wake.
Robust VC investment in Europe despite
continued drop in deal numbers
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Robust VC investment in Europe despite
continued drop in deal numbers, cont’d.
VC investment in Israel shows resilience
VC investment in Israel remained resilient during Q3’20, due in part, to the strong applicability of
key innovation clusters, including digital health, cybersecurity, and payments. In the digital health space,
remote diagnostics was particularly hot, including solutions based on data analytics and AI capabilities. With
the significant acceleration in digital trends, cybersecurity is expected to remain a very hot area of
investment in Israel for the foreseeable future. Digital banking is also expected to be a hot area of
investment as players in the Israeli economy look to ride the digital acceleration wave.
$650 million Klarna and Northvolt deals drives surge in Nordic VC investment
VC investment in the Nordic region rose in Q3’20, led by two massive deals in Sweden — a $650 million
raise by digital bank Klarna and a $600 million deal by energy company Northvolt. Other big venture capital
deals in the Nordics included a $230 million raise by Finland-based mobile phone company HMD Global.
Sweden-based milk alternative company Oatly also obtained $200 million in PE funding during the quarter,
making it the region’s newest unicorn. While gaming and fintech have been strong sectors of investment in
the Nordic region, other sectors are beginning to mature and gain more investment. Cloud-based B2B
solutions is one growing area; during Q3’20, Finland-based cloud software-as-a-service providers Super
Metrics and MariaDB raised $46 million1 and $25 million2 respectively.
Organizations in Ireland working to boost early-stage funding programs
Early-stage companies across Europe have found it difficult to obtain funding, a trend that began months
prior to the pandemic but which has been exacerbated over the past two quarters. During
Q3’20, five tech sector organizations in Ireland launched the Alliance for an Innovation Driven Recovery in
order to suggest changes to existing government programs (e.g., wage subsidy programs, debt and equity
funding programs) and tax incentives in order to better support early-stage companies and encourage more
early-stage investment by private investors. The impact of this initiative will be important to watch heading
into Q4’20.
Trends to watch for in Europe
As Europe continues to adjust to a new reality, VC investors in Europe are expected to remain highly
focused on areas such as health and biotech, fintech, and the future of work. Investment in edtech is also
likely to grow given that it could be a critical necessity over the next few quarters. While the pandemic has
overshadowed Brexit negotiations over the past 6 months, there are growing concerns over the possibility of
a hard Brexit as of December 31, 2020, making it a critical area to watch heading into Q4’20.
1 https://techcrunch.com/2020/08/24/supermetrics/
2 https://mariadb.com/newsroom/press-releases/mariadb-announces-25-million-funding-round-to-scale-skysql-operations/
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Venture financing in Europe
2013–Q3'20
As must be reiterated, especially in a complex venture ecosystem like Europe, private markets data can
experience lags. That said, the ongoing waves of policy responses across different countries and territories is
likely to slow down the logistics of dealmaking to some degree. However, for safer bets and funding of unicorns, it
definitely hasn’t impeded much, as is evident from the record high of VC invested in Q3 2020.
A record high even as volume slides
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 10/21/2020.
0
500
1,000
1,500
2,000
2,500
$0
$2
$4
$6
$8
$10
$12
$14
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($B)
Deal count
Angel/Seed
Early VC
Later VC
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Median deal size ($M) by stage in Europe
2013–2020*
Up, flat or down rounds in Europe
2013–2020*
A late-stage surge while down rounds rise
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
$0.3
$0.4
$0.5
$0.5
$0.6
$0.7
$0.8
$1.2
$1.1
$1.3
$1.2
$1.3
$1.3
$1.8
$1.9
$2.7
$2.6
$2.9
$2.7
$2.8
$2.9
$3.5
$4.4
$5.9
2013
2014
2015
2016
2017
2018
2019
2020*
Angel/seed
Early VC
Later VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020*
Up
Flat
Down
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Median deal size ($M) by series in Europe
2013–2020*
Early to midstage tallies hold steady
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
$0.3
$0.3
$0.6
$0.6
$0.7
$0.9
$1.1
$1.3
$2.8
$3.0
$3.6
$4.3
$5.5
$5.5
$6.1
$6.4
$5.0
$7.0
$8.8
$10.2
$11.0
$15.0
$19.5
$20.0
2013
2014
2015
2016
2017
2018
2019
2020*
Seed
Series A
Series B
$8.8
$12.8
$16.3
$20.3
$15.2
$24.8
$30.0
$41.8
$10.9
$30.0
$51.5
$25.5
$35.0
$34.0
$53.5
$68.0
2013
2014
2015
2016
2017
2018
2019
2020*
Series C
Series D+
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© 2020 KPMG International Cooperative (“KPMG International”). KPMG International provides no client
services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Deal share by series in Europe
2013–2020*, number of closed deals
Deal share by series in Europe
2013–2020*, VC invested ($B)
Capital flees the riskiest stages: angel & seed
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013
2014
2015
2016
2017
2018
2019
2020*
Series D+
Series C
Series B
Series A
Angel/seed
$0
$5
$10
$15
$20
$25
$30
2013
2014
2015
2016
2017
2018
2019
2020*
Series D+
Series C
Series B
Series A
Angel/seed
10
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European venture financings by sector
2013–2020*, number of closed deals
European venture financings by sector
2013–2020*, VC invested ($B)
Healthcare climbs in proportions
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20132014201520162017201820192020*Commercial
Services
Consumer Goods &
Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20132014201520162017201820192020*Commercial
Services
Consumer Goods &
Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
11
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Corporate VC participation in venture deals in Europe
2013–Q3'20
CVCs join in larger rounds to set new high
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 10/21/2020.
The rise in quarterly VC invested tallies with corporate participation has been one of the decade’s more consistent
trends across the European venture ecosystem, a testament to the growing perception that more direct exposure, both
financial and strategic, to innovation earlier in its cycle is an imperative for extant corporations. As a natural result,
during an uncertain time, large corporate players are still backing the more mature businesses in their larger, later-stage
rounds.
0
50
100
150
200
250
300
350
400
$0
$1
$2
$3
$4
$5
$6
$7
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($B)
Deal count
12
#Q3VC
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First-time funding decline moderates mildly
First-time venture financings of companies in Europe
2013–2020*
Once again, a caveat must be noted: In a complex environment such as Europe, first-time fundings may take
longer to be ascertained and confirmed. However, in good news for the health of the overall European
entrepreneurial pipeline, the rate of decline in first-time funding improved somewhat as more 2020 data has been
collected. $2.1 billion invested across 954 financings is still off prior highs by a considerable sum, but not to a
catastrophic degree.
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
$3.0
$2.5
$2.6
$2.9
$3.1
$4.5
$3.2
$2.1
2,132
2,381
2,133
2,023
1,942
1,988
1,789
954
2013
2014
2015
2016
2017
2018
2019
2020*
Deal value ($B)
Deal count
13
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Venture-backed exit activity in Europe
2013–Q3'20
Aggregate exit value surged even further in Q3 2020, even though volume slid slightly once again. The overall
pace of M&A and IPOs has understandably moderated across the continent, although it’s worth noting that given
record breaking debuts on public exchanges elsewhere, it may be just a matter of time before soon-to-be or
current European unicorns eventually do the same.
Exit volume slides slightly, if not as steeply
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 10/21/2020.
0
20
40
60
80
100
120
140
160
180
200
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Exit value ($B)
Exit count
14
#Q3VC
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
M&A propels exit volume, IPOs surge
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Venture-backed exit activity (#) by type
in Europe
2013–2020*
Venture-backed exit activity ($B) by type
in Europe
2013–2020*
$0
$10
$20
$30
$40
$50
$60
$70
Strategic Acquisition
Buyout
IPO
0
100
200
300
400
500
600
700
Strategic Acquisition
Buyout
IPO
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Fundraising continues at a strong pace
European venture fundraising
2013–2020*
An oft-repeated narrative in venture is that the best companies are founded in downturns. Consequently, the best
investment opportunities are also to be found in similar periods. The overall push toward upping allocations to
alternative investments has been a defining theme explaining the growth in private equity and VC investing and
fundraising this past decade, and 2020 has been no different. Promisingly for the European venture ecosystem,
ongoing strong tallies this year will only help keep funding robust even if further economic uncertainty persists.
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
$9.6
$9.6
$11.3
$16.2
$13.1
$15.5
$14.1
$12.3
0
50
100
150
200
250
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2013
2014
2015
2016
2017
2018
2019
2020*
Capital raised ($B)
Fund count
16
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Venture fundraising (#) by size in Europe
2013–2020*
First-time vs. follow-on venture funds (#) in Europe
2013–2020*
Fundraising keeps skewing larger
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020*
Under $50M
$50M-$100M
$100M-$250M
$250M-$500M
$500M-$1B
$1B+
0
50
100
150
200
250
2013
2014
2015
2016
2017
2018
2019
2020*
Follow-on
First-time
17
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Venture financing in the United Kingdom
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Despite slide, VC invested stays strong
0
100
200
300
400
500
600
700
800
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($B)
Deal count
“There has never been a more important time for innovation and advancements in the health
sector — a fact that is being reflected in the interest of VCs and other investors here in the UK,
across Europe, and globally. The best medtech and healthtech businesses can expect exponential
growth in the coming years.”
Kevin Smith
Head of KPMG Private Enterprise in EMA, Global Co-Leader — Emerging Giants,
KPMG Private Enterprise, KPMG International, Partner, KPMG in the UK
18
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Venture financing in London
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
London sees continued influx of VC
VC keeps flowing to prominent companies such as Revolut. In particular, fintech has been behind much of the
robust performance London’s venture ecosystem has registered in terms of capital raises, even if the tally of
financings slides somewhat due to overall caution.
0
50
100
150
200
250
300
350
400
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($B)
Deal count
19
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Venture financing in Ireland
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Ireland VC boomerangs lower again
In the absence of significantly sized rounds, VC invested in Ireland plunged alongside a slump in volume, though
that is likely a temporal aberration given the variability in investment flows across the Irish ecosystem overall, per
the historical evidence.
0
20
40
60
80
100
120
$0
$50
$100
$150
$200
$250
$300
$350
$400
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
“It’s clear that private equity and venture capital firms are placing big bets on later stage companies, so
the big concern is who is going to fund earlier stage companies, or are they going to be funded at all? In
Ireland, we’re seeing an industry push to make funding programs more accessible, because if early-stage
companies don’t receive funding, they will not be capable of securing follow-on investment down the
road. That will have a big impact on the ecosystem.”
Anna Scally
Partner, Head of Technology and Fintech Lead,
KPMG in Ireland
20
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Venture financing in Germany
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Mega-deals continue to close
The German venture ecosystem recorded stable flows of capital in both value and volume for over a year prior to
the gradual diminution due to the pandemic, but mega-deals continue to close, propping up overall VC invested
and continuing to aid the maturation of the nation’s handful of large, venture-backed companies.
0
50
100
150
200
250
$0
$500
$1,000
$1,500
$2,000
$2,500
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
“Looking at deals in Germany, it’s quite a broad field of verticals where companies are attracting
funding. Yet, sustainability, which should be the major issue for all of us, has been deflected
somewhat given Covid-19. Looking forward, everything to do with Education Tech, Collaboration ,
healthcare, smart cities, data analytics and other areas, will be growing areas coming out of the
pandemic.”.
Dr. Ashkan Kalantary
Partner, Deal Advisory Venture Services
KPMG in Germany
21
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Venture financing in Berlin
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Volume stays subdued
0
10
20
30
40
50
60
70
80
90
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
“Banking is still something that everyone needs, but what we don’t necessarily need is a bank. So
those startups that really provide infrastructure or that provide for banking as a service for other
providers are really growing. We’re seeing some European champions really building up in this
space and attracting big funding rounds.”
Tim Dümichen
Partner
KPMG in Germany
22
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Venture financing in Spain
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
VC invested rises even further
Although milder resurgences in the coronavirus continue to plague various nations, and Spain’s central bank
released a downgraded economic forecast, VC continued to flow unabated across the nation. It is possible that this
is primarily driven due to the opportunities abounding amid a sudden shift to e-commerce and digital workflows.
0
20
40
60
80
100
120
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
23
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Venture financing in France
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Figures remain relatively robust
The past two years have seen a boom in VC invested for France as a bevy of companies matured and continued to
rake in large late-stage rounds. Despite any resurgences in COVID-19 infections, the fact of the matter is that much
of the venture ecosystem benefits from the shift to digital across multiple workflows, and until the ripple effects of
their customers going out of business may impact startups, capital flows are likely to persist.
0
50
100
150
200
250
300
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
24
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Venture financing in Paris
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Paris sees a steep, likely temporary, drop
0
20
40
60
80
100
120
140
$0
$200
$400
$600
$800
$1,000
$1,200
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
25
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Venture financing in the Nordics
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Nordic mega-deals prop up VC invested
A handful of the top 10 financings globally helped propel the region’s aggregate deal value to a new record, thanks
to the ongoing fundraises by the likes of Klarna as some of most prominent, largest, venture-backed Nordic
enterprises look to expand business internationally.
0
50
100
150
200
250
300
$0
$500
$1,000
$1,500
$2,000
$2,500
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
“In the Nordics, we have a lot of B2B SaaS companies on different sectors that have attracted either
pre-seed, seed, or Series A funding and we’ll likely see a lot of these companies coming into the
Series B-C stage over the next couple of years. There’s a lot of potential in that market if you have
potential software, product-market-fit and the right kind of team and strategy to commercialize it.”
Jussi Paski
Head of Startup Services
KPMG in Finland
26
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Venture financing in Israel
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Israel notches yet another high
0
20
40
60
80
100
120
140
160
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
Boosted in part by one of the largest fundraises in the entire quarter — the $168 million funding of network
management software provider BioCatch — the Israeli ecosystem continues to relatively thrive given its areas of
key strength, such as cybersecurity, have benefited in large part from the responses to the pandemic.
“The idea that bigger is stronger is especially correct in times of crisis because the larger
companies, the unicorns, will ride the wave and take advantage of the opportunities that the new
reality is presenting. At the same time, if we fast forward two or three years, I think we will see fewer
companies because small companies right now are having a lot of challenges raising their initial
money from Angel and Series A. This will likely have a long-term impact.”
Dina Pasca-Raz
Partner, Head of Technology,
KPMG in Israel
27
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Klarna — $650M, Stockholm
Financial software
Late-stage VC
CureVac — $632.8M, Tubingen
Drug discovery
Late-stage VC
Northvolt — $600M, Stockholm
Energy
Late-stage VC
Revolut — $580M, London
Fintech
Series D
Karma Kitchen — $314.4M, London
Commercial services
Series A
7
8
6
9
5
3
2
1
Mirakl — $300M, Paris
E-commerce
Series D
AUTO1 Group — $291.3M, Berlin
Automotive
Late-stage VC
Infarm — $246.3M, Berlin
Agtech
Series C
HMD Global — $230M, Espoo
Computer hardware
Series A2
BioCatch — $168M, Tel-Aviv
Network management software
Series C
Fintech, remote & digitization still stand out
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 10/21/2020.
7
6
3
8
5
9
2
1
Top 10 financings in Q3'20 in Europe
10
10
4
4
28
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KPMG Private Enterprise Emerging Giants
Network. From seed to speed, we’re here
throughout your journey
Contact us:
Kevin Smith
Co-Leader, KPMG Private Enterprise
Emerging Giants Network
E: kevin.smith@kpmg.co.uk
Conor Moore
Co-Leader, KPMG Private Enterprise
Emerging Giants Network
E: conormoore@kpmg.com
(SAR)
(jurisdiction)
29
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KPMG International entities provide no services to clients. All rights reserved.
About KPMG Private Enterprise
You know KPMG, you might not know KPMG Private Enterprise. KPMG Private Enterprise advisers in
member firms around the world are dedicated to working with you and your business, no matter where you
are in your growth journey — whether you’re looking to reach new heights, embrace technology, plan for
an exit, or manage the transition of wealth or your business to the next generation. You gain access to
KPMG’s global resources through a single point of contact — a trusted adviser to your company. It is a
local touch with a global reach.
The KPMG Private Enterprise Global Network for Emerging Giants has extensive knowledge and
experience working with the startup ecosystem. Whether you are looking to establish your operations,
raise capital, expand abroad, or simply comply with regulatory requirements — we can help. From seed
to speed, we’re here throughout your journey.
About KPMG Private Enterprise
30
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KPMG International entities provide no services to clients. All rights reserved.
We acknowledge the contribution of the following individuals who assisted in the
development of this publication:
Jonathan Lavender, Global Head, KPMG Private Enterprise, KPMG International
Conor Moore, Global Co-Leader Emerging Giants, KPMG Private Enterprise, KPMG International, Partner,
KPMG in the US
Kevin Smith, Head of KPMG Private Enterprise in EMA, Global Co-Leader Emerging Giants, KPMG Private
Enterprise, KPMG International, Partner, KPMG in the UK
Amarjeet Singh, Partner, KPMG in India
Anna Scally, Partner, Head of Technology and Media and Fintech Lead, KPMG in Ireland
Dr. Ashkan Kalantary, Partner, Deal Advisory Venture, KPMG in Germany Services
Dina Pasca-Raz, Partner, Head of Technology, KPMG in Israel
Diogo Garcia Correia, Venture Capital & Emerging Giants Business Development, KPMG in Brazil
Egidio Zarrella, Partner, Clients and Innovation, KPMG China
Irene Chu, Head of New Economy and Life Sciences, Hong Kong, KPMG China
Lindsay Hull, Director, Emerging Giants Global Network, KPMG Private Enterprise, KPMG International
Melany Eli, Managing Director, Marketing and Communications, KPMG Private Enterprise, KPMG
International
Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India
Philip Ng, Partner, Head of Technology, KPMG China
Robson Del Fiol, Partner, Head of Emerging Giants & Digital Marketing Strategist, KPMG in Brazil
Sidharth Tewari, Associate Director, KPMG in India
Sunil Mistry, Partner, KPMG Private Enterprise, Technology, Media and Telecommunications, KPMG in
Canada
Tim Dümichen, Partner, KPMG in Germany
Acknowledgements
31
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KPMG uses PitchBook as the provider of venture data for the Venture Pulse report.
Please note that the MESA and Africa regions are NOT broken out in this report. Accordingly, if you add up
the Americas, Asia-Pacific and Europe regional totals, they will not match the global total, as the global
total considers those other regions. Those specific regions were not highlighted in this report due to a
paucity of datasets and verifiable trends.
In addition, particularly within the European region, the Venture Pulse does not contain any transactions
that are tracked as private equity growth by PitchBook. As such rounds are often conflated with late-stage
venture capital in media coverage, there can be confusion regarding specific rounds of financing. The key
difference is that PitchBook defines a PE growth round as a financial investment occurring when a PE
investor acquires a minority stake in a privately held corporation. Thus, if the investor is classified as PE by
PitchBook, and it is the sole participant in the recipient company’s financing, then such a round will usually
be classified as PE growth, and not included in the Venture Pulse datasets.
Also, if a company is tagged with any PitchBook vertical, excepting manufacturing and infrastructure, it is
kept. Otherwise, the following industries are excluded from growth equity financing calculations: buildings
and property, thrifts and mortgage finance, real estate investment trusts, and oil & gas equipment, utilities,
exploration, production and refining. Lastly, the company in question must not have had an M&A event,
buyout, or IPO completed prior to the round in question.
Fundraising
PitchBook defines venture capital funds as pools of capital raised for the purpose of investing in the equity of
startup companies. In addition to funds raised by traditional venture capital firms, PitchBook also includes
funds raised by any institution with the primary intent stated above. Funds identified as growth-stage vehicles
are classified as PE funds and are not included in this report. A fund’s location is determined by the country in
which the fund is domiciled, if that information is not explicitly known, the HQ country of the fund’s general
partner is used. Only funds based in the US that have held their final close are included in the fundraising
numbers. The entirety of a fund’s committed capital is attributed to the year of the final close of the fund.
Interim close amounts are not recorded in the year of the interim close.
Deals
PitchBook includes equity investments into startup companies from an outside source. Investment does
not necessarily have to be taken from an institutional investor. This can include investment from individual
angel investors, angel groups, seed funds, venture capital firms, corporate venture firms and corporate
investors. Investments received as part of an accelerator program are not included, however, if the
accelerator continues to invest in follow-on rounds, those further financings are included. All financings are
of companies headquartered in the US. The impact of initial coin offerings on early-stage venture financing
as of yet remains indefinite. Furthermore, as classification and characterization of ICOs, particularly given
their security concerns, remains crucial to render accurately, we have not detailed such activity in this
publication until a sufficiently robust methodology and underlying store of datasets have been reached.
Angel/seed: PitchBook defines financings as angel rounds if there are no PE or VC firms involved in the
company to date and it cannot determine if any PE or VC firms are participating. In addition, if there is a
press release that states the round is an angel round, it is classified as such. If angels are the only
investors, then a round is only marked as seed if it is explicitly stated.
Methodology
32
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Early-stage: Rounds are generally classified as Series A or B (which PitchBook typically aggregates
together as early-stage) either by the series of stock issued in the financing or, if that information is
unavailable, by a series of factors including: the age of the company, prior financing history, company
status, participating investors and more.
Late-stage: Rounds are generally classified as Series C or D or later (which PitchBook typically
aggregates together as late-stage) either by the series of stock issued in the financing or, if that
information is unavailable, by a series of factors including: the age of the company, prior financing history,
company status, participating investors, and more.
Corporate: Corporate rounds of funding for currently venture-backed startups that meet the criteria for
other PitchBook venture financings are included in the Venture Pulse as of March 2018.
Corporate venture capital: Financings classified as corporate venture capital include rounds that saw both
firms investing via established CVC arms or corporations making equity investments off balance sheets or
whatever other non-CVC method actually employed.
Exits
PitchBook includes the first majority liquidity event for holders of equity securities of venture-backed
companies. This includes events where there is a public market for the shares (IPO) or the acquisition of
the majority of the equity by another entity (corporate or financial acquisition). This does not include
secondary sales, further sales after the initial liquidity event, or bankruptcies. M&A value is based on
reported or disclosed figures, with no estimation used to assess the value of transactions for which the
actual deal size is unknown.
In the edition of the KPMG Venture Pulse covering Q1 2019, PitchBook’s methodology regarding
aggregate exit values changed. Instead of utilizing the size of an IPO as the exit value, instead the
prevaluation of an IPO, based upon ordinary shares outstanding, was utilized. This has led to a significant
change in aggregate exit values since, yet is more reflective of how the industry views the true size of an
exit via public markets.
Methodology, cont’d.
home.kpmg/venturepulse [website]
@kpmg [Twitter]
The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavor to provide accurate
and timely information, there can be no guarantee that such information is accurate as of the
date it is received or that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough examination of the
particular situation.
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(“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English
company limited by guarantee and does not provide services to clients. For more detail about our structure
please visit home.kpmg/governance.
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Some or all of the services described herein may not be permissible for KPMG audit clients and
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21 October, 2020
Venture
Pulse
Q3 2020
Global analysis of
venture funding
2
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Welcome
message
Welcome to the Q3’20 edition of KPMG Private Enterprise’s Venture Pulse, a
quarterly report highlighting the key trends, opportunities, and challenges facing
the venture capital market globally and in key jurisdictions around the world.
Despite ongoing concerns related to COVID-19, geopolitical tensions, the
upcoming US presidential election, and a potential hard Brexit, VC investment
during the quarter remained robust across all regions of the world.
An increasing number of mega-deals helped drive investment value up, with
three deals above $1 billion. Late-stage companies in general attracted the
lion’s share of investment in Q3’20, while funding for early-stage companies
continued to falter across the globe. The prolonged decline in early-stage
deals activity is concerning as it will likely have negative impacts on the
pipeline, particularly for Series B rounds, down the road.
After 2 quiet quarters, Asia saw a strong rebound in VC investment, led by a
$1.5 billion raise WM Motor in China, and a $1.3 billion raise by Flipkart in
India. The Americas also saw strong VC activity, led by a $1.9 billion raise by
SpaceX and two $600 million plus raises by RobinHood. VC investment in
Europe remained steady, led by a $650 million raise by Sweden-based
Klarna, a $632 million raise by Germany-based CureVac, and a $580 million
raise by Revolut in the UK.
IPO activity picked up during Q3’20, with strong IPO exits by Snowflake,
JFrog, and Unity Software, direct listings by Palantir Technologies and Asana,
and the announcement of SPAC-based IPOs by Skillz and Opendoor. With
China-based mega-giant Ant Financial filing IPO documents for listing on the
HKSE, in addition to AirBnb and Wish in the US, IPO activity is expected to
increase further in Q4’20.
With many jurisdictions now entering a second wave of the COVID-19
pandemic, VC investors are expected to remain focused on companies able to
help people and businesses adapt to and thrive within the ‘new normal’.
Health and biotech investment will likely remain very high, along with
investment in fintech, business productivity solutions, and digital platforms.
In this quarter’s edition of Venture Pulse, we look at these and a number of
other global and regional trends, including:
— The ongoing strength and resilience of the VC market despite the ongoing
pandemic
— The ramifications of a long-term decline in early-stage deals
— The rising tide of IPO activity
— The rebound in Asia-based VC investment
We hope you find this edition of Venture Pulse insightful. If you would like to
discuss any of the results in more detail, please contact a KPMG adviser in
your area.
Throughout this document, “we”, “KPMG”, "KPMG Private Enterprise", “us” and “our” refers to the global
organization or to one or more of the member firms of KPMG International Limited (“KPMG International”),
each of which is a separate legal entity. KPMG International Limited is a private English company limited by
guarantee and does not provide services to clients. No member firm has any authority to obligate or bind
KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any
su©2ch02 a0u thCoporiyr
ty igtoh t ooblwignaedte bory o
binned o ar nmy omree mof bethr efi KrmP.MG International entities.
Unless otherwise noted, all currencies reflected throughout this document are US Dollar.
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You know KPMG, you might not
know KPMG Private Enterprise.
KPMG Private Enterprise advisers in
member firms around the world are
dedicated to working with you and
your business, no matter where you
are in your growth journey — whether
you’re looking to reach new heights,
embrace technology, plan for an exit,
or manage the transition of wealth or
your business to the next generation.
Jonathan Lavender
Global Head, KPMG Private
Enterprise, KPMG International
Conor Moore
Global Co-Leader — Emerging
Giants, KPMG Private Enterprise
Partner, KPMG in the US
Kevin Smith
Head of KPMG Private Enterprise
in EMA, Global Co-Leader —
Emerging Giants, KPMG Private
Enterprise
Partner, KPMG in the UK
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In Q3’20 European
VC-backed
companies raised
$12.1B
across
1,024 deals
4
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Venture capital investment in Europe reached a new record high in Q3’20, helped by new record levels
of investment in Germany, Israel, and the Nordic Region. A diverse range of sectors attracted $100
million+ megadeals in Europe, including fintech, drug discovery, automotive, entertainment, and health
diagnostics.
Investor caution affecting valuations and early-stage rounds
Europe achieved a new quarterly record for total VC investment in Q3’20. Despite this fact, the
investment climate has not been completely rosy. There has been a significant amount of uncertainty
over the past 6 months due to COVID-19, which has been reflected in the valuations of businesses,
particularly those businesses unable to predict future demand. This, combined with the focus of VC
investors on protecting their existing portfolio companies, has led to more cautious valuations and even
more challenges for early-stage companies working to raise funding.
UK continues to attract large VC rounds
VC investment in the UK remained relatively strong in Q3’20, despite a significant decline in the number
of deals. Fintech was a key area of investment with digital bank Revolut raising $580 million and cloud-
based banking platform Thought Machine raising $125 million. London-based kitchen space startup
Karma Kitchen also made news with a $314 million raise this quarter. During the quarter, the UK
government continued to focus on supporting recovery initiatives — announcing a £2 billion Kickstart
scheme focused on providing young people with job placements for 6 months. The program could
enable startups to find and retain talented young people.
Germany sees very robust VC investment in Q3’20
Germany attracted a significant amount of VC investment during Q3’20, led by a $632 million raise by
CureVac and a $291 million raise by AUTO1 and a $246 million raise by agtech company Infarm. The
size of these deals reflects a number of factors, including the maturity of Germany’s VC ecosystem and
the confidence of investors in proven companies with business models that are resilient to COVID-19’s
impacts.
Travel price aggregator Omio also raised Euro84M million during the quarter, bucking the downward
trend affecting many travel-focused companies. In sectors hit hard by the pandemic, some VC investors
are making bets on what companies will emerge as clear industry leaders. This could lead to
consolidation as smaller companies struggle or fail to attract funding.
IPO market in Europe on cusp of potential rebound
While there was a reluctance for IPO exits over the past 12 months across Europe, a window of
opportunity might be opening. During Q3’20, a number of companies announced IPO plans, including
Germany-based education publisher Springer Nature, Sweden-based game company Huuuge Inc., and
Poland-based fintech Allegro. Should these companies hold successful IPO exits in the near future,
other mature startups in Europe feeling exit pressure from their investors could follow in their wake.
Robust VC investment in Europe despite
continued drop in deal numbers
5
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Robust VC investment in Europe despite
continued drop in deal numbers, cont’d.
VC investment in Israel shows resilience
VC investment in Israel remained resilient during Q3’20, due in part, to the strong applicability of
key innovation clusters, including digital health, cybersecurity, and payments. In the digital health space,
remote diagnostics was particularly hot, including solutions based on data analytics and AI capabilities. With
the significant acceleration in digital trends, cybersecurity is expected to remain a very hot area of
investment in Israel for the foreseeable future. Digital banking is also expected to be a hot area of
investment as players in the Israeli economy look to ride the digital acceleration wave.
$650 million Klarna and Northvolt deals drives surge in Nordic VC investment
VC investment in the Nordic region rose in Q3’20, led by two massive deals in Sweden — a $650 million
raise by digital bank Klarna and a $600 million deal by energy company Northvolt. Other big venture capital
deals in the Nordics included a $230 million raise by Finland-based mobile phone company HMD Global.
Sweden-based milk alternative company Oatly also obtained $200 million in PE funding during the quarter,
making it the region’s newest unicorn. While gaming and fintech have been strong sectors of investment in
the Nordic region, other sectors are beginning to mature and gain more investment. Cloud-based B2B
solutions is one growing area; during Q3’20, Finland-based cloud software-as-a-service providers Super
Metrics and MariaDB raised $46 million1 and $25 million2 respectively.
Organizations in Ireland working to boost early-stage funding programs
Early-stage companies across Europe have found it difficult to obtain funding, a trend that began months
prior to the pandemic but which has been exacerbated over the past two quarters. During
Q3’20, five tech sector organizations in Ireland launched the Alliance for an Innovation Driven Recovery in
order to suggest changes to existing government programs (e.g., wage subsidy programs, debt and equity
funding programs) and tax incentives in order to better support early-stage companies and encourage more
early-stage investment by private investors. The impact of this initiative will be important to watch heading
into Q4’20.
Trends to watch for in Europe
As Europe continues to adjust to a new reality, VC investors in Europe are expected to remain highly
focused on areas such as health and biotech, fintech, and the future of work. Investment in edtech is also
likely to grow given that it could be a critical necessity over the next few quarters. While the pandemic has
overshadowed Brexit negotiations over the past 6 months, there are growing concerns over the possibility of
a hard Brexit as of December 31, 2020, making it a critical area to watch heading into Q4’20.
1 https://techcrunch.com/2020/08/24/supermetrics/
2 https://mariadb.com/newsroom/press-releases/mariadb-announces-25-million-funding-round-to-scale-skysql-operations/
6
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Venture financing in Europe
2013–Q3'20
As must be reiterated, especially in a complex venture ecosystem like Europe, private markets data can
experience lags. That said, the ongoing waves of policy responses across different countries and territories is
likely to slow down the logistics of dealmaking to some degree. However, for safer bets and funding of unicorns, it
definitely hasn’t impeded much, as is evident from the record high of VC invested in Q3 2020.
A record high even as volume slides
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 10/21/2020.
0
500
1,000
1,500
2,000
2,500
$0
$2
$4
$6
$8
$10
$12
$14
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($B)
Deal count
Angel/Seed
Early VC
Later VC
7
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Median deal size ($M) by stage in Europe
2013–2020*
Up, flat or down rounds in Europe
2013–2020*
A late-stage surge while down rounds rise
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
$0.3
$0.4
$0.5
$0.5
$0.6
$0.7
$0.8
$1.2
$1.1
$1.3
$1.2
$1.3
$1.3
$1.8
$1.9
$2.7
$2.6
$2.9
$2.7
$2.8
$2.9
$3.5
$4.4
$5.9
2013
2014
2015
2016
2017
2018
2019
2020*
Angel/seed
Early VC
Later VC
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020*
Up
Flat
Down
8
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Median deal size ($M) by series in Europe
2013–2020*
Early to midstage tallies hold steady
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
$0.3
$0.3
$0.6
$0.6
$0.7
$0.9
$1.1
$1.3
$2.8
$3.0
$3.6
$4.3
$5.5
$5.5
$6.1
$6.4
$5.0
$7.0
$8.8
$10.2
$11.0
$15.0
$19.5
$20.0
2013
2014
2015
2016
2017
2018
2019
2020*
Seed
Series A
Series B
$8.8
$12.8
$16.3
$20.3
$15.2
$24.8
$30.0
$41.8
$10.9
$30.0
$51.5
$25.5
$35.0
$34.0
$53.5
$68.0
2013
2014
2015
2016
2017
2018
2019
2020*
Series C
Series D+
9
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
Deal share by series in Europe
2013–2020*, number of closed deals
Deal share by series in Europe
2013–2020*, VC invested ($B)
Capital flees the riskiest stages: angel & seed
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013
2014
2015
2016
2017
2018
2019
2020*
Series D+
Series C
Series B
Series A
Angel/seed
$0
$5
$10
$15
$20
$25
$30
2013
2014
2015
2016
2017
2018
2019
2020*
Series D+
Series C
Series B
Series A
Angel/seed
10
#Q3VC
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European venture financings by sector
2013–2020*, number of closed deals
European venture financings by sector
2013–2020*, VC invested ($B)
Healthcare climbs in proportions
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20132014201520162017201820192020*Commercial
Services
Consumer Goods &
Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
20132014201520162017201820192020*Commercial
Services
Consumer Goods &
Recreation
Energy
HC Devices &
Supplies
HC Services &
Systems
IT Hardware
Media
Other
Pharma & Biotech
Software
11
#Q3VC
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Corporate VC participation in venture deals in Europe
2013–Q3'20
CVCs join in larger rounds to set new high
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 10/21/2020.
The rise in quarterly VC invested tallies with corporate participation has been one of the decade’s more consistent
trends across the European venture ecosystem, a testament to the growing perception that more direct exposure, both
financial and strategic, to innovation earlier in its cycle is an imperative for extant corporations. As a natural result,
during an uncertain time, large corporate players are still backing the more mature businesses in their larger, later-stage
rounds.
0
50
100
150
200
250
300
350
400
$0
$1
$2
$3
$4
$5
$6
$7
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($B)
Deal count
12
#Q3VC
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First-time funding decline moderates mildly
First-time venture financings of companies in Europe
2013–2020*
Once again, a caveat must be noted: In a complex environment such as Europe, first-time fundings may take
longer to be ascertained and confirmed. However, in good news for the health of the overall European
entrepreneurial pipeline, the rate of decline in first-time funding improved somewhat as more 2020 data has been
collected. $2.1 billion invested across 954 financings is still off prior highs by a considerable sum, but not to a
catastrophic degree.
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
$3.0
$2.5
$2.6
$2.9
$3.1
$4.5
$3.2
$2.1
2,132
2,381
2,133
2,023
1,942
1,988
1,789
954
2013
2014
2015
2016
2017
2018
2019
2020*
Deal value ($B)
Deal count
13
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Venture-backed exit activity in Europe
2013–Q3'20
Aggregate exit value surged even further in Q3 2020, even though volume slid slightly once again. The overall
pace of M&A and IPOs has understandably moderated across the continent, although it’s worth noting that given
record breaking debuts on public exchanges elsewhere, it may be just a matter of time before soon-to-be or
current European unicorns eventually do the same.
Exit volume slides slightly, if not as steeply
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 10/21/2020.
0
20
40
60
80
100
120
140
160
180
200
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Exit value ($B)
Exit count
14
#Q3VC
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services and is a Swiss entity with which the independent member firms of the KPMG network are affiliated.
M&A propels exit volume, IPOs surge
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Venture-backed exit activity (#) by type
in Europe
2013–2020*
Venture-backed exit activity ($B) by type
in Europe
2013–2020*
$0
$10
$20
$30
$40
$50
$60
$70
Strategic Acquisition
Buyout
IPO
0
100
200
300
400
500
600
700
Strategic Acquisition
Buyout
IPO
15
#Q3VC
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Fundraising continues at a strong pace
European venture fundraising
2013–2020*
An oft-repeated narrative in venture is that the best companies are founded in downturns. Consequently, the best
investment opportunities are also to be found in similar periods. The overall push toward upping allocations to
alternative investments has been a defining theme explaining the growth in private equity and VC investing and
fundraising this past decade, and 2020 has been no different. Promisingly for the European venture ecosystem,
ongoing strong tallies this year will only help keep funding robust even if further economic uncertainty persists.
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
$9.6
$9.6
$11.3
$16.2
$13.1
$15.5
$14.1
$12.3
0
50
100
150
200
250
$0
$2
$4
$6
$8
$10
$12
$14
$16
$18
2013
2014
2015
2016
2017
2018
2019
2020*
Capital raised ($B)
Fund count
16
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Venture fundraising (#) by size in Europe
2013–2020*
First-time vs. follow-on venture funds (#) in Europe
2013–2020*
Fundraising keeps skewing larger
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013
2014
2015
2016
2017
2018
2019
2020*
Under $50M
$50M-$100M
$100M-$250M
$250M-$500M
$500M-$1B
$1B+
0
50
100
150
200
250
2013
2014
2015
2016
2017
2018
2019
2020*
Follow-on
First-time
17
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Venture financing in the United Kingdom
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Despite slide, VC invested stays strong
0
100
200
300
400
500
600
700
800
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($B)
Deal count
“There has never been a more important time for innovation and advancements in the health
sector — a fact that is being reflected in the interest of VCs and other investors here in the UK,
across Europe, and globally. The best medtech and healthtech businesses can expect exponential
growth in the coming years.”
Kevin Smith
Head of KPMG Private Enterprise in EMA, Global Co-Leader — Emerging Giants,
KPMG Private Enterprise, KPMG International, Partner, KPMG in the UK
18
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Venture financing in London
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
London sees continued influx of VC
VC keeps flowing to prominent companies such as Revolut. In particular, fintech has been behind much of the
robust performance London’s venture ecosystem has registered in terms of capital raises, even if the tally of
financings slides somewhat due to overall caution.
0
50
100
150
200
250
300
350
400
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($B)
Deal count
19
#Q3VC
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Venture financing in Ireland
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Ireland VC boomerangs lower again
In the absence of significantly sized rounds, VC invested in Ireland plunged alongside a slump in volume, though
that is likely a temporal aberration given the variability in investment flows across the Irish ecosystem overall, per
the historical evidence.
0
20
40
60
80
100
120
$0
$50
$100
$150
$200
$250
$300
$350
$400
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
“It’s clear that private equity and venture capital firms are placing big bets on later stage companies, so
the big concern is who is going to fund earlier stage companies, or are they going to be funded at all? In
Ireland, we’re seeing an industry push to make funding programs more accessible, because if early-stage
companies don’t receive funding, they will not be capable of securing follow-on investment down the
road. That will have a big impact on the ecosystem.”
Anna Scally
Partner, Head of Technology and Fintech Lead,
KPMG in Ireland
20
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Venture financing in Germany
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Mega-deals continue to close
The German venture ecosystem recorded stable flows of capital in both value and volume for over a year prior to
the gradual diminution due to the pandemic, but mega-deals continue to close, propping up overall VC invested
and continuing to aid the maturation of the nation’s handful of large, venture-backed companies.
0
50
100
150
200
250
$0
$500
$1,000
$1,500
$2,000
$2,500
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
“Looking at deals in Germany, it’s quite a broad field of verticals where companies are attracting
funding. Yet, sustainability, which should be the major issue for all of us, has been deflected
somewhat given Covid-19. Looking forward, everything to do with Education Tech, Collaboration ,
healthcare, smart cities, data analytics and other areas, will be growing areas coming out of the
pandemic.”.
Dr. Ashkan Kalantary
Partner, Deal Advisory Venture Services
KPMG in Germany
21
#Q3VC
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Venture financing in Berlin
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Volume stays subdued
0
10
20
30
40
50
60
70
80
90
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
“Banking is still something that everyone needs, but what we don’t necessarily need is a bank. So
those startups that really provide infrastructure or that provide for banking as a service for other
providers are really growing. We’re seeing some European champions really building up in this
space and attracting big funding rounds.”
Tim Dümichen
Partner
KPMG in Germany
22
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Venture financing in Spain
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
VC invested rises even further
Although milder resurgences in the coronavirus continue to plague various nations, and Spain’s central bank
released a downgraded economic forecast, VC continued to flow unabated across the nation. It is possible that this
is primarily driven due to the opportunities abounding amid a sudden shift to e-commerce and digital workflows.
0
20
40
60
80
100
120
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
23
#Q3VC
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Venture financing in France
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Figures remain relatively robust
The past two years have seen a boom in VC invested for France as a bevy of companies matured and continued to
rake in large late-stage rounds. Despite any resurgences in COVID-19 infections, the fact of the matter is that much
of the venture ecosystem benefits from the shift to digital across multiple workflows, and until the ripple effects of
their customers going out of business may impact startups, capital flows are likely to persist.
0
50
100
150
200
250
300
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
24
#Q3VC
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Venture financing in Paris
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Paris sees a steep, likely temporary, drop
0
20
40
60
80
100
120
140
$0
$200
$400
$600
$800
$1,000
$1,200
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
25
#Q3VC
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KPMG International entities provide no services to clients. All rights reserved.
Venture financing in the Nordics
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Nordic mega-deals prop up VC invested
A handful of the top 10 financings globally helped propel the region’s aggregate deal value to a new record, thanks
to the ongoing fundraises by the likes of Klarna as some of most prominent, largest, venture-backed Nordic
enterprises look to expand business internationally.
0
50
100
150
200
250
300
$0
$500
$1,000
$1,500
$2,000
$2,500
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
“In the Nordics, we have a lot of B2B SaaS companies on different sectors that have attracted either
pre-seed, seed, or Series A funding and we’ll likely see a lot of these companies coming into the
Series B-C stage over the next couple of years. There’s a lot of potential in that market if you have
potential software, product-market-fit and the right kind of team and strategy to commercialize it.”
Jussi Paski
Head of Startup Services
KPMG in Finland
26
#Q3VC
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Venture financing in Israel
2013–Q3'20
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. *As of 9/30/20. Data provided by PitchBook, 10/21/20.
Israel notches yet another high
0
20
40
60
80
100
120
140
160
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2013
2014
2015
2016
2017
2018
2019
2020
Deal value ($M)
Deal count
Boosted in part by one of the largest fundraises in the entire quarter — the $168 million funding of network
management software provider BioCatch — the Israeli ecosystem continues to relatively thrive given its areas of
key strength, such as cybersecurity, have benefited in large part from the responses to the pandemic.
“The idea that bigger is stronger is especially correct in times of crisis because the larger
companies, the unicorns, will ride the wave and take advantage of the opportunities that the new
reality is presenting. At the same time, if we fast forward two or three years, I think we will see fewer
companies because small companies right now are having a lot of challenges raising their initial
money from Angel and Series A. This will likely have a long-term impact.”
Dina Pasca-Raz
Partner, Head of Technology,
KPMG in Israel
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Klarna — $650M, Stockholm
Financial software
Late-stage VC
CureVac — $632.8M, Tubingen
Drug discovery
Late-stage VC
Northvolt — $600M, Stockholm
Energy
Late-stage VC
Revolut — $580M, London
Fintech
Series D
Karma Kitchen — $314.4M, London
Commercial services
Series A
7
8
6
9
5
3
2
1
Mirakl — $300M, Paris
E-commerce
Series D
AUTO1 Group — $291.3M, Berlin
Automotive
Late-stage VC
Infarm — $246.3M, Berlin
Agtech
Series C
HMD Global — $230M, Espoo
Computer hardware
Series A2
BioCatch — $168M, Tel-Aviv
Network management software
Series C
Fintech, remote & digitization still stand out
Source: Venture Pulse, Q3’20, Global Analysis of Venture Funding, KPMG Private Enterprise. Data provided by PitchBook, 10/21/2020.
7
6
3
8
5
9
2
1
Top 10 financings in Q3'20 in Europe
10
10
4
4
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KPMG Private Enterprise Emerging Giants
Network. From seed to speed, we’re here
throughout your journey
Contact us:
Kevin Smith
Co-Leader, KPMG Private Enterprise
Emerging Giants Network
E: kevin.smith@kpmg.co.uk
Conor Moore
Co-Leader, KPMG Private Enterprise
Emerging Giants Network
E: conormoore@kpmg.com
(SAR)
(jurisdiction)
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About KPMG Private Enterprise
You know KPMG, you might not know KPMG Private Enterprise. KPMG Private Enterprise advisers in
member firms around the world are dedicated to working with you and your business, no matter where you
are in your growth journey — whether you’re looking to reach new heights, embrace technology, plan for
an exit, or manage the transition of wealth or your business to the next generation. You gain access to
KPMG’s global resources through a single point of contact — a trusted adviser to your company. It is a
local touch with a global reach.
The KPMG Private Enterprise Global Network for Emerging Giants has extensive knowledge and
experience working with the startup ecosystem. Whether you are looking to establish your operations,
raise capital, expand abroad, or simply comply with regulatory requirements — we can help. From seed
to speed, we’re here throughout your journey.
About KPMG Private Enterprise
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KPMG International entities provide no services to clients. All rights reserved.
We acknowledge the contribution of the following individuals who assisted in the
development of this publication:
Jonathan Lavender, Global Head, KPMG Private Enterprise, KPMG International
Conor Moore, Global Co-Leader Emerging Giants, KPMG Private Enterprise, KPMG International, Partner,
KPMG in the US
Kevin Smith, Head of KPMG Private Enterprise in EMA, Global Co-Leader Emerging Giants, KPMG Private
Enterprise, KPMG International, Partner, KPMG in the UK
Amarjeet Singh, Partner, KPMG in India
Anna Scally, Partner, Head of Technology and Media and Fintech Lead, KPMG in Ireland
Dr. Ashkan Kalantary, Partner, Deal Advisory Venture, KPMG in Germany Services
Dina Pasca-Raz, Partner, Head of Technology, KPMG in Israel
Diogo Garcia Correia, Venture Capital & Emerging Giants Business Development, KPMG in Brazil
Egidio Zarrella, Partner, Clients and Innovation, KPMG China
Irene Chu, Head of New Economy and Life Sciences, Hong Kong, KPMG China
Lindsay Hull, Director, Emerging Giants Global Network, KPMG Private Enterprise, KPMG International
Melany Eli, Managing Director, Marketing and Communications, KPMG Private Enterprise, KPMG
International
Nitish Poddar, Partner and National Leader, Private Equity, KPMG in India
Philip Ng, Partner, Head of Technology, KPMG China
Robson Del Fiol, Partner, Head of Emerging Giants & Digital Marketing Strategist, KPMG in Brazil
Sidharth Tewari, Associate Director, KPMG in India
Sunil Mistry, Partner, KPMG Private Enterprise, Technology, Media and Telecommunications, KPMG in
Canada
Tim Dümichen, Partner, KPMG in Germany
Acknowledgements
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KPMG uses PitchBook as the provider of venture data for the Venture Pulse report.
Please note that the MESA and Africa regions are NOT broken out in this report. Accordingly, if you add up
the Americas, Asia-Pacific and Europe regional totals, they will not match the global total, as the global
total considers those other regions. Those specific regions were not highlighted in this report due to a
paucity of datasets and verifiable trends.
In addition, particularly within the European region, the Venture Pulse does not contain any transactions
that are tracked as private equity growth by PitchBook. As such rounds are often conflated with late-stage
venture capital in media coverage, there can be confusion regarding specific rounds of financing. The key
difference is that PitchBook defines a PE growth round as a financial investment occurring when a PE
investor acquires a minority stake in a privately held corporation. Thus, if the investor is classified as PE by
PitchBook, and it is the sole participant in the recipient company’s financing, then such a round will usually
be classified as PE growth, and not included in the Venture Pulse datasets.
Also, if a company is tagged with any PitchBook vertical, excepting manufacturing and infrastructure, it is
kept. Otherwise, the following industries are excluded from growth equity financing calculations: buildings
and property, thrifts and mortgage finance, real estate investment trusts, and oil & gas equipment, utilities,
exploration, production and refining. Lastly, the company in question must not have had an M&A event,
buyout, or IPO completed prior to the round in question.
Fundraising
PitchBook defines venture capital funds as pools of capital raised for the purpose of investing in the equity of
startup companies. In addition to funds raised by traditional venture capital firms, PitchBook also includes
funds raised by any institution with the primary intent stated above. Funds identified as growth-stage vehicles
are classified as PE funds and are not included in this report. A fund’s location is determined by the country in
which the fund is domiciled, if that information is not explicitly known, the HQ country of the fund’s general
partner is used. Only funds based in the US that have held their final close are included in the fundraising
numbers. The entirety of a fund’s committed capital is attributed to the year of the final close of the fund.
Interim close amounts are not recorded in the year of the interim close.
Deals
PitchBook includes equity investments into startup companies from an outside source. Investment does
not necessarily have to be taken from an institutional investor. This can include investment from individual
angel investors, angel groups, seed funds, venture capital firms, corporate venture firms and corporate
investors. Investments received as part of an accelerator program are not included, however, if the
accelerator continues to invest in follow-on rounds, those further financings are included. All financings are
of companies headquartered in the US. The impact of initial coin offerings on early-stage venture financing
as of yet remains indefinite. Furthermore, as classification and characterization of ICOs, particularly given
their security concerns, remains crucial to render accurately, we have not detailed such activity in this
publication until a sufficiently robust methodology and underlying store of datasets have been reached.
Angel/seed: PitchBook defines financings as angel rounds if there are no PE or VC firms involved in the
company to date and it cannot determine if any PE or VC firms are participating. In addition, if there is a
press release that states the round is an angel round, it is classified as such. If angels are the only
investors, then a round is only marked as seed if it is explicitly stated.
Methodology
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Early-stage: Rounds are generally classified as Series A or B (which PitchBook typically aggregates
together as early-stage) either by the series of stock issued in the financing or, if that information is
unavailable, by a series of factors including: the age of the company, prior financing history, company
status, participating investors and more.
Late-stage: Rounds are generally classified as Series C or D or later (which PitchBook typically
aggregates together as late-stage) either by the series of stock issued in the financing or, if that
information is unavailable, by a series of factors including: the age of the company, prior financing history,
company status, participating investors, and more.
Corporate: Corporate rounds of funding for currently venture-backed startups that meet the criteria for
other PitchBook venture financings are included in the Venture Pulse as of March 2018.
Corporate venture capital: Financings classified as corporate venture capital include rounds that saw both
firms investing via established CVC arms or corporations making equity investments off balance sheets or
whatever other non-CVC method actually employed.
Exits
PitchBook includes the first majority liquidity event for holders of equity securities of venture-backed
companies. This includes events where there is a public market for the shares (IPO) or the acquisition of
the majority of the equity by another entity (corporate or financial acquisition). This does not include
secondary sales, further sales after the initial liquidity event, or bankruptcies. M&A value is based on
reported or disclosed figures, with no estimation used to assess the value of transactions for which the
actual deal size is unknown.
In the edition of the KPMG Venture Pulse covering Q1 2019, PitchBook’s methodology regarding
aggregate exit values changed. Instead of utilizing the size of an IPO as the exit value, instead the
prevaluation of an IPO, based upon ordinary shares outstanding, was utilized. This has led to a significant
change in aggregate exit values since, yet is more reflective of how the industry views the true size of an
exit via public markets.
Methodology, cont’d.
home.kpmg/venturepulse [website]
@kpmg [Twitter]
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circumstances of any particular individual or entity. Although we endeavor to provide accurate
and timely information, there can be no guarantee that such information is accurate as of the
date it is received or that it will continue to be accurate in the future. No one should act on such
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