ALL CHANGE
AT THE TOP
TITANS
OF TECH
Important disclosures appear at the back of this report
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JUNE 2019
CONTENTS
04 THE VIEW FROM

GP BULLHOUND
06 CHAPTER 1

Europe’s Billion-Dollar Companies

16 EXPERT VIEW

Rephael Sweary, WalkMe

22 EXPERT VIEW

Jacob de Geer, iZettle
26 CHAPTER 2

Mega Rounds The Final Puzzle Piece

32 EXPERT VIEW

Philippe Vimard, Doctolib
34 CHAPTER 3

The March Towards Europe’s First Titan

39 EXPERT VIEW

Tom Stafford, DST Global

40 EXPERT VIEW

José Neves, Farfetch
42 CHAPTER 4

Titans Of Tomorrow
49 METHODOLOGY
Contents
3
Europe’s tech scene is growing at an unprecedented rate.
A combination of experienced talent, funding and belief
has unlocked significant potential across the continent.
Titans of Tech, which we published for the first time five
years ago, is about raising ambition levels. By assessing
the factors required to create global leaders and learning
from some of Europe’s most successful entrepreneurs
and investors, we seek to inspire European entrepreneurs
to continue to define new boundaries.
In 2014, there were 30 billion-dollar companies across
Europe created since 2000. Over the past five years, that
number has almost tripled to 84, and the total valuation of
these has increased at a faster rate. The total equity raised
by this cohort of companies meanwhile has increased
nine-fold to $28 billion.
The velocity at which our entrepreneursare creating new
category leaders is increasing in a dramatic fashion. During
the past 12 months alone, 21 companies have reached the
billion- dollar mark compared with 13 the previous year.
Again there are some remarkable new entrant stories such
as UI Path, the robotic process automation company.
Originally founded in Romania the company has expanded
globally to become one of the fastest growing software
companies in history with a valuation of $7bn.
Speaking to the leaders of these firms, many of the historic
bottlenecks of growth have reduced with a much broader
pool of senior talent available who have experience of
taking growth organisations from tens of millions in revenue
into the hundreds. For many years our best companies
have not been able to access the significant growth rounds
which their US competitors have had ample access to. The
data clearly shows that this crucial part of the ecosystem is
firmly now in place. There was a staggering 60% increase
in the number of $100m rounds in Europe between 2017
and 2018, with multiple new pools of capital available
(see pp.28 and 30).
The Tech sector is on the front foot in Europe, and our
group of winners, now valued at over $300bn, is closing
the gap with the US & Asia. We hear from the leaders of
Farfetch, iZettle, Doctolib and WalkMe on driving customer
adoption and the attitudinal shift embracing Europe’s
entrepreneurs.
The composition of Europe’s tech sector is also changing;
in the past ecommerce generated many more billion-dollar
companies than other sectors, but investors are
increasingly switching focus from B2C ecommerce to B2B
enterprise software and fintech. Since 2016, the number
of billion-dollar companies in the enterprise software and
fintech verticals has increased respectively by 314% and
140%. This compares to a 63% increase in ecommerce.
This shift has also played out in the public markets:
while Zoom’s valuation shot up by 17% in the first 17 days
of trading post IPO, Lyft’s decreased by 22% in the same
period. Key to enterprise software’s rise is the move from
on-premise to cloud, reducing the stranglehold IBM, Oracle
and Microsoft once held over enterprise customers.
Becoming a Tech Titan should be considered in reach for
many of our European leaders, but to achieve this status
involves resetting their ambition and structure in a similar
fashion to Spotify and Adyen.
With many of the growth impediments removed we expect
to see Europe achieve this monumental milestone in 2021.
The View
FROM GP BULLHOUND
EXECUTIVE SUMMARY
ALESSANDRO CASARTELLI
Director
MANISH MADHVANI
Managing Partner
ALON KUPERMAN
Director
ALEXIS MAJOS
Analyst
ADAM PAGE
Associate
MARIA MACIAGOWSKA
Intern
“WE LED WITH OUR CONVICTION RATHER
THAN RATIONALE, BECAUSE RATIONALE
SAID IT WAS IMPOSSIBLE.”
Daniel Ek, Spotify
THE VIEW FROM GP BULLHOUND
5
4
Europe’s Billion-Dollar
Companies - Best Year On
Record For New Additions
Ever since we first published this report five years ago, the landscape has continued to grow, with
Europe producing some of the world’s most disruptive – and high-value – companies in all sectors.
From having just six companies worth more than $5 billion in 2014, that number has tripled to date,
with the number of billion-dollar companies rising from 30 to 84 in the same period.
This year is the culmination of the pattern we have seen in the last half-decade, having been the best
year on record for new billion-dollar companies, with 21 new additions in the past 12 months at a combined
value of $35 billion, driven by the unprecedented amount of capital available.
We’re seeing a significant shift in focus amongst the unicorn cohort; historically, B2C e-commerce has
been the dominant sector, but in recent years it has been swamped by other sectors, most notably B2B
enterprise software and fintech.
Amongst these success stories, which you will hear about in this chapter, is N26. Headquartered in Berlin,
it is leading the rise of challenger banks with 2.5 million customers throughout the Eurozone, and it is set
to launch in the Americas this year.
In recent years, several European markets have produced their very first billion-dollar tech companies:
Portugal has given rise to Outsystems, a web and mobile application developer; Romania has produced
UiPath – the fastest growing enterprise software company specialising in Robotic Process Automation.
France is going from strength-to-strength with seven unicorns, adding three over the last year, driven by
notable capital inflow into the region, while the Netherlands has reached the top five in the Unicorn league
table for the first time.
CHAPTER 1
EUROPE’S BILLION DOLLAR COMPANIES
7
6
The number of billion-dollar companies has almost trebled since 2014
Total equity raised has increased more than nine times, from $3bn in 2014 to $28bn in 2019
Ecosystem is now worth $302bn – more than three times the valuation in 2014
GP Bullhound classifies the companies featured in the Titans of Tech report into four key categories:
Titans, Decacorns, Unicorns, and Contenders, based on their market valuation
All companies featured in this report were founded in 2000 or later
The Journey To $50bn
A REFRESH ON THE TERMINOLOGY FOR OUR REPORT
Belief!
EUROPEAN TECH COMES OF AGE
TITANS
$50BN+
DECACORNS
$10-50BN
UNICORNS
$1-10BN
CONTENDERS
EXPECTED TO REACH $1BN+ IN NEXT 2 YEARS
CLASSIFICATION OF COMPANIES BY VALUATION
FOR FULL METHODOLOGY, PLEASE SEE PAGE 55 OF THIS REPORT.
$1BN+
2014
84
17
$302BN
$3BN
$89BN
30
$28BN
2019
GROWTH
AGGREGATE
VALUATION
TOTAL EQUITY
RAISED
$5BN+
COMPANIES
2.8X
3.4X
9.3X
6
2.8X
Source: Capital IQ, Mergermarket, CrunchBase, press releases. Equity funds raised refer to capital raised through primary equity offering
Note: Companies tracked as at 31 March 2019 and valued as of 13 May 2019
THE JOURNEY TO $50BN
BELIEF!
9
8
This page ranks all companies in Europe’s tech ecosystem, by valuation
Valuations are correct as of 13 May 2019
Europe’s Leading Tech Companies
BY VALUATION
SPOTIFYMOBILEYEYOOXMARKIT GROUPKING DIGITALZALANDODELIVERY HEROUIPATHWIXTAKEAWAYASOSROCKET INTERNETBOOHOOTRIVAGOKLAMAMONZOEVOLUTION GAMINGFANDUELUNITY TECHNOLOGIESKYRIBALEMONADECELONISXINGBITFURY GROUPOAKNORTHDOCTOLIBMINDMAZEZOOPLADEEZERIVALUAMOJANGGITLABOUTFIT7IZETTLEGLOBAL FASHION GROUPWALKME$10BN
$15BN
$20BN
$25BN
ADYENYANDEXSUPERCELLSKYPEFARFETCHRIGHTMOVEELASTICJUSTEATPOKERSTARSANAPLANAVITO.RUAUTO 1GREENSILLTHE HUTVKONTAKTEVENTE PRIVEEMIMECASTN26FLEETMATICS GROUPBENEVOLENTAIIMPROBABLETALENDCABIFYINTERCOMCRITEOSKRILLFUNDING CIRCLESITECORETRADESHIFTABOUT YOUBOLTCOLLIBRAJFROGORCAMOUTSYSTEMSWAZE$5BN
DARKTRACEBLABLACARTRANSFERWISEGETTSKYSCANNERDELIVEROOBLUEPRISMREVOLUTCHECKOUT.COMKASEYAGRAPHCORETELEGRAMLETGOINFINIDATHELLO FRESHIRONSOURCENEW BILLION-DOLLAR
COMPANY SINCE
LAST REPORT
NEW BILLION-DOLLAR
COMPANY SINCE
REPORT CUT-OFF
ACQUIRED
Source: Capital IQ, Mergermarket, CrunchBase, press releases. Equity funds raised refer to capital raised through primary offering
Note: Companies tracked as at 31 March and valued as of 13 May 2019
84
BILLION-DOLLAR
COMPANIES
17
COMPANIES HAVE REACHED
A $5BN+ VALUATION
41%
OF VALUE
CONCENTRATED
IN TOP 10
42
COMPANIES ARE STILL
PRIVATE (“UNICORNS”)
EUROPE’S LEADING TECH COMPANIES
EUROPE’S LEADING TECH COMPANIES
11
10
Significant shift in billion-dollar cohort from B2C E-commerce to B2B Enterprise Software & Fintech
Historically Consumer has been king with a large number of billion-dollar companies
created over the last decade: Facebook, Twitter, Spotify, Snapchat
21 new companies have reached a billion-dollar valuation in the past 12 months – unprecedented number
Step Change
IN NUMBER OF NEW BILLION-DOLLAR COMPANIES
Huge Shift In Sector Focus Of Unicorns
EUROPEAN BILLION-DOLLAR COMPANIES BY SECTOR
$19BN
$18BN
$35BN
2017
2018
2019
12
13
21
IN: 21
Weakening client base, missed earnings and slower
than anticipated growth are among the reasons for
the dropouts
OUT: 5
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis
Note: For 2019 based on companies tracked as of 31 March 2019 and valuation as at 13 May 2019. 2018 and 2017 restated as per prior year reports
2015
2019
+314%
+140%
+113%
+67%
+63%
ENTERPRISE
SOFTWARE
FINTECH
MARKETPLACES
E-COMMERCE
ENTERTAINMENT
OTHER
7
5
6
29
12
13
3
0
10
8
8
17
NUMBER OF BILLION-DOLLAR COMPANIES BY SECTOR
Source: Capital IQ, Mergermarket, CrunchBase, press releases. Equity funds raised refer to capital raised through primary equity offering
Note: Number of companies tracked as at 31 March
STEP CHANGE
HUGE SHIFT IN SECTOR FOCUS OF UNICORNS
13
12
Introducing
THE NEW KIDS ON THE BLOCK
Introducing
THE NEW KIDS ON THE BLOCK
VALUATION KEY INFORMATION
KEY INVESTORS
ABOUT
$1BN
DEVELOPER OF FULL-SERVICE BLOCKCHAIN SOFTWARE
AND HARDWARE SOLUTIONS NECESSARY FOR BUSINESSES,
GOVERNMENTS, ORGANISATIONS AND INDIVIDUALS TO
SECURELY MOVE ASSETS ACROSS DISTRIBUTED NETWORKS
PROVIDER OF ALTERNATIVE WORKING CAPITAL FINANCE
SOLUTIONS FOR COMPANIES GLOBALLY
PROVIDER OF MOBILE BANKING SERVICES INTENDED TO
REDESIGN BANKING FOR THE PEOPLE, MAKING IT SIMPLE,
FAST AND CONTEMPORARY
DIGITAL-ONLY BANK PLATFORM THAT PROVIDES RETAIL
BANKING SERVICES IN UNITED KINGDOM
DEVELOPER OF A MOBILE BASED PAYMENT APPLICATION
SYSTEM FOR SMALL BUSINESSES AND INDIVIDUALS
DEVELOPER OF A MOBILE BASED TAXI BOOKING PLATFORM
DESIGNED TO CONNECT RIDERS WITH LOCAL DRIVERS

PROVIDER OF AN ONLINE HEALTHCARE PLATFORM
DESIGNED FOR PATIENTS TO CHOOSE DOCTORS
AND MAKE APPOINTMENTS
PROVIDER OF ON-DEMAND MUSIC STREAMING SERVICES
PROVIDER OF AN E-COMMERCE PLATFORM DESIGNED
TO OFFER FASHION APPAREL AND ACCESSORIES
DEVELOPER OF ARTIFICIAL INTELLIGENCE
AND COMPUTATIONAL MEDICINE TO CHANGE
THE WAY DRUGS ARE DESIGNED, DEVELOPED,
TESTED AND BROUGHT TO MARKET
FOUNDED: 2011
EMPLOYEES: 300
SECTOR: FINTECH
KORELYA CAPITAl
$1BN
FOUNDED: 2011
EMPLOYEES: 200
SECTOR: FINTECH
GENERAL ATLANTIC,
SOFTBANK
$2.7BN
FOUNDED: 2013
EMPLOYEES: ~1,100
SECTOR: FINTECH
INSIGHT VENTURE
PARTNERS, ALLIANZ
X, TENCENT
$1.4BN
FOUNDED: 2015
EMPLOYEES: ~600
SECTOR: FINTECH
ACCEL PARTNERS,
GENERAL CATALYST
PARTNERS
$2.2bn
FOUNDED: 2010
EMPLOYEES: ~700
SECTOR: FINTECH
DAWN CAPITAL,
NORTHZONE
VENTURES, INTEL
CAPITAL, INDEX
VENTURES
$1BN
FOUNDED: 2013
EMPLOYEES: ~500
SECTOR:
MARKETPLACE
DAIMLER AG,
DIDI CHUXING
$1.1BN
FOUNDED: 2013
EMPLOYEES: ~800
SECTOR:
MARKETPLACE
GENERAL ATLANTIC,
EURAZEOL
$1.2BN
FOUNDED: 2007
EMPLOYEES: ~700
SECTOR:
ENTERTAINMENT
ACCESS INDUSTRIES,
KINGDOM HOLDING
COMPANY, ORANGE
S.A.
$1BN
FOUNDED: 2014
EMPLOYEES: ~400
SECTOR:
E-COMMERCE
SEVENVENTURES,
BESTSELLER
$2.1BN
FOUNDED: 2013
EMPLOYEES: ~200
SECTOR: OTHER
WOODFORD
INVESTMENT
MANAGEMENT
$1.7BN
FOUNDED: 2016
EMPLOYEES: ~200
SECTOR: OTHER
ATOMICO, SOFINA
DEVELOPER OF A NEW GENERATION COMPUTER
PROCESSOR DESIGNED TO ACCELERATE MACHINE
INTELLIGENCE LEARNING
VALUATION
KEY
INFORMATION
KEY
INVESTORS
ABOUT
$1BN
DEVELOPER OF AN INTELLIGENT BIG DATA TECHNOLOGY
DESIGNED TO ANALYSE AND VISUALISE EVERY PROCESS
IN A COMPANY
PROVIDER OF A CROSS-ORGANISATIONAL DATA GOVERNANCE
PLATFORM FOR MAXIMISING THE DATA VALUE ACROSS
THE ENTERPRISE
PROVIDER OF CYBER THREAT DEFENCE SYSTEMS DESIGNED
TO DETECT EMERGING CYBER-THREATS AND DEFEND
ENTERPRISES AGAINST CYBER-ATTACKS
DEVELOPER OF TECHNOLOGY THAT ENABLES USERS
TO SEARCH, ANALYSE AND VISUALISE STRUCTURED
AND UNSTRUCTURED DATA FROM VARIOUS SOURCES
AND IN SEVERAL FORMATS
PROVIDER OF AN OPEN-SOURCE, CODE-COLLABORATION
PLATFORM DESIGNED TO CREATE, REVIEW,
AND DEPLOY CODE
PROVIDER OF SOFTWARE MANAGEMENT SERVICES DESIGNED
TO ENHANCE INFRASTRUCTURE FOR SOFTWARE MANAGEMENT
AND DISTRIBUTION
DEVELOPER OF A CLOUD-BASED TREASURY AND CASH
MANAGEMENT SOFTWARE DESIGNED TO HELP IN SUPPLY
CHAIN FINANCE AND RISK MANAGEMENT OPERATIONS
DEVELOPER OF AN APPLICATION DEVELOPMENT
AND DELIVERY PLATFORM DESIGNED TO SEAMLESSLY
INTEGRATE CUSTOM CODE
PROVIDER OF A FLEXIBLE BUSINESS COMMERCE PLATFORM
DESIGNED TO REDEFINE HOW BUYERS AND SUPPLIERS
WORK TOGETHER IN THE PROCURE-TO-PAY INDUSTRY
DEVELOPER OF A CLOUD-BASED GUIDANCE
AND ENGAGEMENT PLATFORM
FOUNDED: 2011
EMPLOYEES: 600
SECTOR: SOFTWARE
83NORTH,
ACCEL PARTNERS
$1BN
FOUNDED: 2008
EMPLOYEES: ~500
SECTOR: SOFTWARE
CAPITALG,
BATTERY VENTURES,
ICONIQ CAPITAL
$1.7BN
FOUNDED: 2013
EMPLOYEES: ~900
SECTOR: SOFTWARE
VITRUVIAN
PARTNERS,
INSIGHT VENTURE
PARTNERS
$6.1BN
FOUNDED: 2012
EMPLOYEES: ~1,500
SECTOR: SOFTWARE
NEA, INDEX
VENTURES,
BENCHMARK CAPITAL
$1.1BN
FOUNDED: 2011
EMPLOYEES: ~600
SECTOR: SOFTWARE
GOLDMAN SACHS,
ICONIQ CAPITAL
$1BN
FOUNDED: 2008
EMPLOYEES: ~400
SECTOR: SOFTWARE
INSIGHT VENTURE
PARTNERS
$1.2BN
FOUNDED: 2000
EMPLOYEES: ~700
SECTOR: SOFTWARE
BRIDGEPOINT
ADVISERS
$6.1BN
FOUNDED: 2001
EMPLOYEES: ~1,200
SECTOR: SOFTWARE
GOLDMAN SACHS,
KKR
$1.1BN
FOUNDED: 2005
EMPLOYEES: ~900
SECTOR: SOFTWARE
GOLDMAN SACHS,
PSP INVESTMENTS
$1BN
FOUNDED: 2011
EMPLOYEES: ~800
SECTOR: SOFTWARE
INSIGHT VENTURE
PARTNERS
ENTERPRISE
SOFTWARE
FINTECH
MARKETPLACE
ENTERTAINMENT
E-COMMERCE
OTHER
ENTERPRISE
SOFTWARE
FINTECH
MARKETPLACE
ENTERTAINMENT
E-COMMERCE
OTHER
Source: Company data, Capital IQ, Mergermarket, CrunchBase, CB Insights, press articles, LinkedIn, GP Bullhound analysis
Source: Company data, Capital IQ, Mergermarket, CrunchBase, CB Insights, press articles, LinkedIn, GP Bullhound analysis
INTRODUCING THE NEW KIDS ON THE BLOCK
INTRODUCING THE NEW KIDS ON THE BLOCK
15
14
Expert view:
WalkMe
The universal digitisation of industry – a market now
worth an estimated two trillion USD – has opened up
opportunities for innovation that could not have been
imagined in the internet’s early years. If you can become
relevant in the digital economy and carve out a niche,
then you can make yourself your biggest competition.
To reach that stage requires both a creative idea, and the
commitment to turn that into a fully-realised product or
service. In the case of WalkMe, the idea was to provide
basic step-by-step e-guidance for those struggling to
navigate websites. What we have developed is so much
more than that.
The idea for WalkMe came from an unlikely source: a call
from my co-founder’s mother. She wanted to do something
on her bank account, but didn’t know how. Unable to help
her over the phone, my co-founder logged into the same
site and successfully walked her through.
Our software can now anticipate problems, not just react
to what’s in front of it. Imagine a GPS that on top of giving
directions, turns on by itself and says: ‘take the next right
because you’re going to run out of gas’. By using machine
learning, we’re able to engage the user, not just be
engaged by them.
For example, when you log into a health insurance website,
the basic process is simple: name, age, etc. The next
stage is more difficult. Are you allergic to anything? If no,
it’s simple. If yes, it gets complicated. Were you ill in the
last year? If no, simple. If yes, complicated.
It is a similar situation for banks moving away from
traditional passwords and towards fingerprint authentication.
To implement this, the bank needs to find a good way
of explaining how to use the technology to customers,
as well as the correct moment to approach them with it.
Where does WalkMe come in? Although the banks and
insurance companies may provide a helpline, they do not
anticipate when a user needs assistance, making the
process of getting help for the right part of the service
more difficult. Our software allows clients to understand
the issues that trigger difficulty for their users and
anticipate the correct moment to help.
We had a number of catalysts for our growth: firstly, the
tech ecosystem in Israel, which is one of the world’s most
advanced innovation nations. It is so important to have the
right environment around you to build a thriving business.
Second, we learned from our investors. They helped
us with every step of the company from building the
management infrastructure to preparing our IPO. Our
late-stage investors were especially important, as they
helped us to scale up. Fast companies have to overcome
barriers to scale, and often the more successful you are
at growing your customer base, the more financing you
need to support it, so don’t be afraid of investors. Once
you scale, you can find other avenues to accelerate
growth, for example we did this through several
acquisitions of smaller companies whose services
complement and improve our own.
Finally, we’ve begun to diversify our communicative
capability away from pure English. This has really
changed our route to market, allowing us to grow into
areas with other primary languages such as France,
Germany and Japan.
Most importantly, underpinning this whole process
and allowing us to grow at such scale, is a strong and
inclusive company culture, with employees from a range
of backgrounds. Not only do we interview for specific
traits, but we rotate positions around offices, provide
a weekly newsletter, and make all of our offices very
modern, light and colorful.
To create the business WalkMe is today, so far beyond
our original idea, took a lot of blood, sweat and tears. If
you believe in your business and implement a strong and
positive culture then with the right catalysts, it is worth it.
REPHAEL SWEARY
CO-FOUNDER AND PRESIDENT OF WALKME
EXPERT VIEW
REPHAEL SWEARY
17
16
An example of this is Instagram fending off Snapchat with their pace of development helping
them to launch competitive products
Consumer technology is dominated by tech giants (“FAANGS1”) that have proven effective
at fending off upstart rivals
We see this trend towards Enterprise Software in the public markets with very different
receptions for Zoom and Lyft in the first 17 days of trading post IPO
Since 2016 Enterprise Software IPOs have on average performed significantly
better than Consumer-tech
Public Markets
CONTINUING THE TREND
Facebook The New IBM
TECH GIANTS FENDING OFF UPSTART RIVALS
DAY 1DAY 2DAY 3DAY 4DAY 5DAY 6DAY 7DAY 8DAY 9DAY 10DAY 11DAY 12DAY 13DAY 14DAY 15DAY 16DAY 1765
75
85
95
105
115
125
135
SHARE PRICE PERFORMANCEENTERPRISE SOFTWARE
CONSUMER TECHNOLOGY
IPOS SINCE 2016
50
13
VS.
MEDIAN PERFORMANCE POST IPO
126%
15%
VS.
+17%
(22)%
2013
2014
2015
2016
2017
2018
2019
0
400
800
1200
1600
SNAPCHAT
LAUNCH
STORIES
SNAPCHAT
LAUNCH
ADS
INSTAGRAM
LAUNCH
STORIES
INSTAGRAM
LAUNCH
ADS
FACEBOOK DAU’S
SNAPCHAT DAU’S
INSTAGRAM STORIES DAUS
Source: Capital IQ, CrunchBase, Mergermarket, Pitchbook, Press Articles. 1) Facebook, Apple, Amazon, Netflix and Google
Source: Capital IQ, CrunchBase, Mergermarket, Pitchbook, Wall Street Journal
PUBLIC MARKETS
FACEBOOK THE NEW IBM
19
18
The UK has generated the most $bn dollar companies in the last year – adding five to its collection of 27
Wider distribution of new additions than in prior years with many countries creating their first unicorn
The UK is still leading the way, being #1 by number and value
Netherlands enters the top five building on the recent success of Adyen and Elastic
Champions League
BILLION-DOLLAR STABLES
Europe’s Tech Factories
NEW BILLION-DOLLAR COMPANIES
TOP 51
# OF BILLION $
COMPANIES
CUMULATIVE
VALUE
NET EVOLUTION VS.
PREVIOUS YEAR
$80BN
+2
27
$53BN
+1
8
$38BN
+3
11
$33BN
+2
4
$31BN
+1
9
CUMULATIVE VALUE
# OF BILLION $ COMPANIES
$10.3BN
$4.7BN
$3.5BN
$7.1BN
$2.0BN
$2.2BN
$1.1BN
$1.1BN
$1.0BN
$1.0BN
$1.0BN
5
3
3
2
2
1
1
1
1
1
1
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis
Note: Companies tracked as at 31 March and valued as of 13 May 2019. Companies presented ranked by largest to smallest valuation
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis
Note: Companies tracked as at 31 March and valued as of 13 May 2019
1) Companies ranked by largest to smallest valuation
CHAMPIONS LEAGUE
EUROPE’S TECH FACTORIES
21
20
Expert view:
iZettle
At iZettle, we have seen fintech evolve from obscurity
into one of the world’s most innovative and exciting
technology areas.
Instead of sitting back and simply watching the digital
transformation of financial services; we have grown and
developed alongside the industry in the eight years since
we launched the world’s first mini chip card reader for
mobile devices in 2011.
Our product helped small businesses take card payments
in an efficient and affordable way, which stood in stark
contrast to banks’ pricing of card terminals. We wanted
to democratise card payments, and bring value to
small businesses.
We were questioned by everyone in the industry
on how we would market the product, when everyone who
needed card terminals had them already. These questions
were answered on day one, when 6,000 Swedish small
businesses bought iZettle card readers.
Since then, we have gone from being a payment company
to more of a commerce platform to help small businesses
around the globe to start-up and grow their business.
The iZettle story is the story of fintech as a whole. We
were the pioneers of a new type of company that began
to emerge in the early part of the decade – ones for whom
‘customer first’ was the mantra. We took financial products
and services that already existed and made them easier
and cheaper for customers to use.
What we also have in common with all those that have
followed our lead is that we created products that were
not difficult to scale, because there was such a massive
demand for our services from the small business community.
Many companies seem to pivot from their founding mission
along the way, but looking back I wouldn’t ever say that
we have turned away from our original values. What we’ve
done is expand our offering, while ensuring our additional
services remain affordable and easily accessible.
This is what makes fintech such an important sector –
its pioneers are genuinely opening up the entire financial
services industry to those previously excluded. Online
banking applications in particular have been a great driver
for transformation across the whole industry. It is the tonic
we needed to recover from the economic crash, which
was exacerbated by the incumbent financial infrastructure.
The initial difficulties we had as a company weren’t
in creating a popular product – if anything it was the
opposite. Our popularity in the early days accelerated
incumbents seeing fintech as a threat to their profit
margins, and as a result we were constantly fighting
with the banks.
Now though, the path has been paved and all the
traditional institutions know they must embrace fintech.
The challenge for entrepreneurs starting up in 2019 is the
competition from everyone else in the sector. Competition
is healthy though: we challenge each other to improve
and come up with the next great innovations.
What I would advise any growing business to do is to
focus on business growth rather than the bottom line.
Increase your customer base and secure funds to expand
from investors first and foremost. If you choose the best
investors based on their relevant expertise - ensuring each
one is contributing with different qualities and value - then
you have a much better chance of success.
We were fortunate to work with investors that not
only strongly supported iZettle as a company, but also
empowered our management to make the best long-term
decisions, eventually leading to us agreeing the acquisition
by PayPal.
It has never been easier to start a business. With a good
idea you have a global marketplace, and nowadays you
have access to a large number of investors. In fintech
particularly, these investors are willing to take a chance
because they have seen how successful disruption of
the traditional institutions has been.
JACOB DE GEER
CO-FOUNDER & CEO OF IZETTLE
EXPERT VIEW
JACOB DE GEER
23
22
Source: Company data, Capital IQ, Mergermarket, CrunchBase, CB Insights, press articles, GP Bullhound analysis
Note: Companies tracked as at 31 March 2019 and valued as of 13 May 2019. Last year valuation restated as per prior year report.
18
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis. Note: Only takes in to account investors from private rounds; includes both past and
current investments
Note: Based on investments tracked as at 31 March 2019
Europe’s share of billion-dollar companies increases year on year
Europe’s tech ecosystem is growing at a faster rate than the US
Investors globally truly believe in the strength of European Tech
INVESTORS INVESTED IN THREE OR FOUR BILLION-DOLLAR COMPANIES
$302BN
+28%
$921BN
+36%
$1,651BN
+20%
EUROPE
CUMULATIVE VALUATIONS
GEOGRAPHICAL SPLIT OF BILLION-DOLLAR COMPANIES
49%
33%
18%
26
ADDITIONS
7
ADDITIONS
16
ADDITIONS
462
COMPANIES
$2,874BN
IN VALUE
INVESTORS BY NUMBER OF EUROPEAN BILLION-DOLLAR
COMPANIES IN WHICH THEY HAVE INVESTED
Growth Enablers
EUROPE’S MOST ACTIVE INVESTORS
US
ASIA
EUROPE
ASIA
US
INCREASE IN TOTAL VALUATION
TOTAL VALUATION
Global Comparison
CATCHING UP WITH US AND ASIA
US
ASIA
EUROPE
11
11
9
9
6
6
5
5
5
5
5
5
5
GROWTH ENABLERS
GLOBAL COMPARISON
25
24
Mega Rounds -
The Final Puzzle Piece
Historically one of the biggest reasons European Tech companies have lagged behind rivals from the US and
Asia is the availability of capital. Now Europe has more than a strong foothold in the game, with $100 million
plus mega-rounds here to stay.
A decade ago, Europe did not have access to capital on this scale, which was saved for Silicon Valley
scale-ups and later, their competitors in Asia. This year marks a step change with 32 $100m+ rounds in
2018, compared to 20 one year ago (an increase of 60%).
Investors are more confident than ever deploying larger amounts of capital in European Tech leaders.
Mega-rounds are crucial in helping companies generate sufficient growth and market share to complete
on a global scale. For as long as this capital remains available, the potential for Europe’s tech ecosystem
to accelerate growth is massive.
But where does this capital come from? Where are investors putting their money? In 2016 there was a
relatively small group of venture funds in Europe, but now there is a huge choice with multiple pockets
of capital available from Asian and US growth investors, strategics, public equity funds, and sovereign
wealth funds.
A growing proportion of these large rounds is being invested into Fintech and Enterprise Software, which
are the fastest-growing sectors in Europe for billion-dollar companies. A third (30%) of this funding through
mega-rounds in 2018 was invested into Fintech, with 28% invested in Enterprise Software, sparking a new
generation of billion-dollar companies.
Notable rounds include the likes of challenger bank Revolut ($250m), supply chain buying, payments and
apps platform Tradeshift ($300m), web and mobile application developer Outsystems ($360m), and robotic
process automation firm UiPath ($568m).
Capital is no longer a constraint for Europe, and this bodes well for the future of European Tech.
CHAPTER 2
MEGA ROUNDS - THE FINAL PUZZLE PIECE
27
26
Concentration of investments into Fintech & Enterprise Software consistent with shift in sector
focus of billion-dollar cohort
Mega-rounds are crucial in helping Europe’s leading tech companies generate sufficient growth
and market share to complete on a global scale
Significant growth in large rounds with a 60% increase in number of mega-rounds
Investors are more confident than ever in deploying large amounts of capital
$100m Rounds Are Here To Stay
60% INCREASE ON LAST YEAR
Where Are Investors Putting Their Money?
MEGA-ROUNDS BY SECTOR
2016
2017
2018
32
20
14
30%
28%
22%
9%
6%
5%
$5.8BN
OF INVESTMENT FROM
MEGA-ROUNDS
IN 2018
ENTERPRISE
SOFTWARE
FINTECH
OTHERS
E-COMMERCE
ENTERTAINMENT
MARKETPLACES
60% INCREASE
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis
Note: Data represents primary equity funding rounds of $100m+ in calendar year 2018
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis
Note: Data represents primary equity funding rounds of $100m+ in calendar years. Selection of companies presented.
$100M ROUNDS ARE HERE TO STAY
WHERE ARE INVESTORS PUTTING THEIR MONEY?
29
28
Spotify is a great example of how the convergence in different sources of capital can build a category leader
Availability of capital is no longer a constraint in Europe
New funds created by traditional buyout and venture funds to focus on growth investments
All investor types and regions now invest large amounts of capital in European technology leaders
Source Of Funding
HUGE CHOICE OF INVESTORS NOW COMPARED TO 2016
The Spotify Example
WIDENING THE INVESTOR BASE
Source: Capital IQ, Mergermarket, press articles, GP Bullhound analysis
Note: Selection of investors presented, not an exhaustive list
Source: Capital IQ, Mergermarket, press articles, GP Bullhound analysis Note: Selection of investors presented, not an exhaustive list 1) Tech funds focussing
on growth investments established by traditional buyout funds 2) Tech funds focussing on growth investments established by traditional venture funds
ASIA FUNDS
US FUNDS
SOVEREIGN WEALTH FUNDS
HEDGE FUNDS / ALTERNATIVES
EUROPEAN
PUBLIC EQUITY
US FUNDS - BUYOUT1
US FUNDS - VENTURE2
STRATEGICS
VENTURE
STRATEGIC
GROWTH / BUYOUT
HEDGE FUNDS / ALTERNATIVES
PUBLIC EQUITY
SOVEREIGN WEALTH FUNDS
SOURCE OF FUNDING
THE SPOTIFY EXAMPLE
31
30
Expert view:
Doctolib
Healthcare is an area which stands to benefit the most
from technology. As one of the most important sectors
in the world, digital solutions are vital to improving access
to and standards of care.
Doctolib was built to improve healthcare globally, and
we fundamentally believe that healthcare professionals
are at the heart of the digital transformation of the
industry, and therefore we design our services through
the professionals.
They are at the heart of what we do, helping us to
connect with patients quickly. We partner with over
80,000 professionals worldwide and we have 35 million
users on our platform, continually growing.
Our focus is to help healthcare professionals be more
efficient. By focusing on practitioners, we can help
doctors work more efficiently, meaning more patients
can be seen and referred.
Our growth comes down to a powerful mission, and
ambition. We could have chosen to focus only on our
domestic market which is large enough, but you have
to have ambition if you want to create a world-leading
business that makes a real impact – you have to go
beyond borders.
Great ambition allows you to attract the talent that will
then bring investment. You also need to do this early,
so the foundations, talent and funding are all there to
succeed in going global. The later you leave it, the
harder international growth becomes.
Of course, you also need a high-quality product, and
the standard of our service is central to how Doctolib
functions. We have learnt that ambition plus quality
equals impact.
All of this combined allowed our business to attract
funding. As funding increased, we saw more and more
people wanting to work on these kinds of projects.
For us, the next step is to expand our service offering
and to roll it out to more doctors. This will rapidly scale
the number of people we can reach; we just need to
establish which regions are best for us to expand into.
European start-ups have not had enough ambition in the
past – which is why they have not grown at the same
titanic rate as US equivalents, or even those in China.
In many cases, EU tech businesses have all too often
copied US versions to get into the market quicker.
But the last few years has seen a fundamental shift in
attitude, which is leading to more and more billion-dollar
companies throughout Europe, and hopefully soon its
first Tech Titan.
To get there, we need to attract more funds, attract more
talent, and create a favourable ecosystem – these are the
ingredients to generate more Spotifys throughout Europe.
The Nordics are leading the way, but France is starting to
change for the better as well.
In France, the state is trying to mobilise the private sector
to address challenges in healthcare, and therefore there is
a lot of confidence that growth is structural and not short
term. Sharing best practices in the private sector will help
our country’s start-ups reach a new level.
We have now more confidence than ever to secure the
funds and talent for the next generation of entrepreneurs
that are going to launch new products.
We need one more thing to ensure that Europe can create
future Tech Titans: media attention for our most innovative
businesses. We have to share the stories of the companies
who are ambitious enough to expand rapidly and changing
the industries in which they operate. Not only will this
change perceptions of European tech, it will change the
narrative for the next generation.
PHILIPPE VIMARD
GROUP COO / CTO & BOARD MEMBER OF DOCTOLIB
EXPERT VIEW
PHILIPPE VIMARD
33
32
The March Towards -
Europe’s First Titan
Six Technology Titans currently walk the globe. The fall of Tesla temporarily left an exact handful earlier this
year, but the rise of Bytedance – parent company of smash hit social platform TikTok – restored the pack
to its original starting number.
In 2019 Bytedance shuffled its way into headlines as one of the world’s most valuable start-up thanks to
its machine learning that delivers addictive content. Seven years young and already a Tech Titan, it has
1bn MAUs, counts $7.4bn in revenue and boasts a valuation of $75bn.
In addition to these impressive feats, Bytedance has stepped out from the pack by choosing not to raise
money from the BAT group (Baidu, Alibaba, Tencent) – a rare path for Asian giants to tread.
While the US and Asia continue as hotspots on the Titan landscape, we believe Europe will raise its first
Titan in 2021. That prediction is based on recent developmental trends in the European tech ecosystem
and, namely, the availability of capital to fuel the rise of a Titan.
Emerging European Titans include Spotify, Adyen, Yandex, Zalando and DeliveryHero.
Streaming giant Spotify continues to make noise around the world with its premium subscriber offer
growing by 36% year-on-year, bringing the total joining the band to 100 million subscribers. Now playing
in 78 counties, there is no sign that Apple Music is slowing down the Swedish player.
Adyen, which provides a single payments platform globally to accept payments and grow revenue,
has performed well since its June 2018 IPO.
Using today’s revenue multiple and forecast revenue growth, Spotify and Adyen both have the potential
to reach $50bn in 2021.
CHAPTER 3
THE MARCH TOWARDS - EUROPE’S FIRST TITAN
35
34
Five multi-billion-dollar European companies are frontrunners to become Europe’s first tech titans
Currently six Tech Titans; Tesla falls out of the club due to its valuation falling below $50bn
New Asian entrant Bytedance utilises machine learning to deliver addictive content
The Tech Titans
WHO ARE THEY?
Europe’s Emerging Titans
LEADING THE CHARGE
-14%
=
+4%
+100%
-39%
ANT FINANCIAL
TESLA
FACEBOOK
UBER
DIDI CHUXING
BYTEDANCE
BAIDU
-20%
+150%
$498BN$518BN$150BNVALUATION
CHANGE
=
+1
-3
=
=
OUT
NEW
RANK
$75BN$75BN$30BN$62BN$72BN$56BN$56BN$53BN$87BN$40BN$50BNLY VALUATION
CY VALUATION
Source: Company data, Capital IQ, Mergermarket, press articles. Current year valuation as at 13 May 2019 and last year valuation restated per prior year report.
$2.3BN
$1.3BN
$1BN
$1BN
$1.4BN
$23.9BN
$21.2BN
$11.3BN
$10.5BN
$8.7BN
2006
2006
20001
2008
2011
36% YOY PREMIUM SUBSCRIBERS
GROWTH, TO 96 MILLION2
NOW PRESENT IN MORE
THAN 78 COUNTRIES2
20183
€159BN PROCESSED VOLUME,
+47% VS. 20173
90%+ OF INTERNET USERS IN
RUSSIA USE YANDEX SERVICES4
18 OFFICES WORLDWIDE
>3BN SITE VISITS IN 2018,
80% COMING FROM MOBILE5
€5.4BN IN REVENUES 2018,
20% GROWTH VS 20175
402M ORDERS IN 2018,
45& YOY GROWTH6
77% 2018FY REVENUE
GROWTH VS. FY2017
DANIEL EK AND
MARTIN LORENTZON
PETER VAN
DER DOES
ARKADY VOLOZH, ILYA SEGALOVICH,
ELENA KOLMANOVSKAYA
ROBERT GENTZ,
DAVID SCHNEIDER
NIKLAS ÖSTBERG, KOLJA HEBENSTREIT,
MARKUS FUHRMANN AND LUKASZ GADOWSKI
VALUED
AT
RAISED
(TO DATE)7
FOUNDED
ORIGIN
FACTS
Source: CapIQ, Mergermarket, Press Articles, Annual Reports, CrunchBase, press articles, as of 13 May 2019. 1. Yandex website. 2. Annual report, 2018. 3.Annual Report, 2018
4. Mediascope, March 2017, 12-64 y. o., desktop and mobile device. 5. Zalando Website, 2018 figures. 6. Farfetch website, financials 2018 6. Source: 2018 Delivery Hero
Annual Report, 7. As at 13 May 2019
THE TECH TITANS
EUROPE’S EMERGING TITANS
37
36
Analysis highlights the valuation that could be achieved assuming
current multiples and forecast revenue growth
Europe’s First Titan
BY 2021
$47BN
$23.9BN
VALUATION
@ 4.05X
MULTIPLE
2018
2021
$5.9BN
+2
5%
C
AG
R
REVENUE FORECAST
$56BN
$21.2BN
@ 55.6X
MULTIPLE
2018
2021
$0.4BN
+3
8%
C
AG
R
$1.0BN
REVENUE FORECAST
$11.6BN
Source: Company data, Capital IQ, Mergermarket, CrunchBase, CB Insights, press articles, GP Bullhound analysis
Note: Valuation as of 13 May 2019. Adyen 2018 revenue multiple calculated using net revenues of $382m
Expert view:
DST
TOM STAFFORD
MANAGING PARTNER, DST GLOBAL
DST Global is an investor in Internet companies worldwide.
With headquarters in Hong Kong and offices in Silicon
Valley, London, Beijing and New York, we are a single
partnership with a global focus. Our portfolio has included
some of the most successful Internet companies of the
last decade such as Facebook, Alibaba, Meituan,
Whatsapp and JD.com, and we continue to back founders
that achieve sustained growth across the biggest markets
such as Airbnb, Nubank and Robinhood. Our past and
present investments in Europe include Spotify, Zalando,
Auto1, Klarna, Farfetch, Funding Circle, Revolut, Deliveroo,
Checkout.com and Bulb.
Our investment strategy focuses on three core elements:
team; size of TAM (total addressable market); and traction.
A strong leadership and executive team are critical
tounlocking an Internet company’s potential. We want
to partner with founders who have a clear, long-term
vision and who can cultivate the culture needed to
realise that vision.
We look for Internet companies that operate in large
markets and who have the desire to scale internationally
in their target markets.
A strong team with robust culture and compelling vision
who are targeting large markets, should result in customer/
user traction and business KPI growth. We like to dig deep
to understand the current growth and economic health of a
business, whilst thinking about the potential for the future.
We believe these elements – team, TAM and traction - are
critical to the success of an Internet company, no matter
the geography. Europe is no exception. Currently, there is
an unprecedented amount of seed, venture and growth
capital available in Europe, helped by the great returns
of the recent European IPOs of Spotify, Zalando, Adyen,
Farfetch and others. Now is the time for European
founders to build on the global stage – and we hope
to be a supportive partner.
VALUATION
EUROPE’S FIRST TITAN BY 2021
TOM STAFFORD
39
38
Expert view:
Farfetch
It’s hard to imagine internet shopping not being part of
our lives, but in 2007, Farfetch was among the first to bring
luxury brands to the internet. At the time, the idea of one
single digital platform connecting consumers to multiple
high-quality suppliers around the world was quite
revolutionary.
But we were part of a movement that enabled the seeds
of the evolution of a centuries-old industry. Everything
that seems so intuitive today – a real-time inventory from
thousands of boutiques, authentic customer service and
a full choice of options – was unheard of in 2007.
Since we launched, and after surviving the financial crash,
we’ve seen an unparalleled success of this marketplace
model: in transportation with Uber and Lyft, in food and
eating with Deliveroo, in music with Spotify and in many
other industries. Today it’s completely intuitive that an app
in your pocket can seamlessly connect client and supplier.
The power to connect diverse and geographically separate
groups is the major advantage of Farfetch as a product. We
wanted to make luxury accessible and make retail a more
enjoyable experience with more choice.
We want to connect the best creators, the best curators
and the best consumers around the world. Technology has
revolutionised retail, but in luxury it’s important that we are
trusted, both by consumers and by creators. With Farfetch,
we took the best of tech and the best of the luxury retail
experience and merged these to create an enduring
platform that meets customers’ needs and boosts retailer’s
potential to reach a global audience.
Digital is becoming the key channel for brands, and the
online luxury market is growing over 20% annually. But
luxury still only accounts for 10% of the online retail space.
There’s huge potential in this market, especially as the
millennial and generation Z customer base grows.
Millennials, and the generations after them, are digital
natives. They will look online before they enter physical
stores, and they’re driving 85% of the growth of the global
industry. We need to be bold to continue to capitalise on
this market, and especially bold if we are to compete with
Chinese and US players.
Farfetch has always been truly global – that’s the joy of
e-commerce, and with our recent IPO, it’s an exciting time
to work in tech.
It’s an amazing decade for technology businesses in
Europe. The days are gone where people look to America
only for technology, and tech hubs and fantastic starters
are booming across the European ecosystem.
London is the best city in the world for fashion and
technology. It has great fashion heritage and renowned
schools, is a global centre for culture and creativity, has
strong international connections and home to exceptional
e-commerce and technology talent.
JOSÉ NEVES
CEO OF FARFETCH
EXPERT VIEW
JOSÉ NEVES
41
40
Europe’s Next Generation -
Our Billion-Dollar
Contenders
The following chapter considers the businesses that are nearing the billion-dollar threshold. We aim to
highlight the companies that are demonstrating the greatest ambition and taking the largest risks, as well
as the countries and sectors that are set to propel the most companies into the billion-dollar category.
We analysed more than 500 European startups that have raised over $20m since 2014 to obtain the top
50 companies with the most potential to become $1bn companies in the next two years.
Our analysis considered three important factors. The first criteria was scale - the amount of capital raised
and the company’s headcount. The second was velocity – growth in capital raised and headcount. Finally,
we looked at sentiment - we ran a survey among top European VCs to choose the companies they believe
have the highest potential of reaching billion-dollar status.
So, how did we do last year? Looking back, some 26% of the companies we selected grew into unicorns.
Among this cohort were notable Enterprise Software companies including Darktrace, Collibra and Elastic.
Similarly, Fintech businesses have continued to prove their mettle as UK-founded Monzo and Sweden’s
iZettle gained unicorn status.
Looking ahead, the contenders of tomorrow are likely to be drawn from a diverse spread of sectors and
geographies. That said, we predict that certain sectors and countries will dominate the pack. In particular,
Enterprise Software, Marketplace/Ecommerce and Fintech will lead the charge towards Titan status in terms
of sectors on the rise. Meanwhile, Germany, Austria and Switzerland (DACH) alongside the UK & Ireland and
France will be the country hotspots where Titans are likely to find their feet.
ALL COMPANIES ANALYSED COMPLY
WITH THE FOLLOWING CRITERIA:
TECH COMPANIES ONLY, WITH A BIAS TOWARDS
INTERNET / SOFTWARE (CLEANTECH AND BIOTECH
ARE EXCLUDED IN OUR ANALYSIS)
HEADQUARTERED IN EUROPE (INCL. ISRAEL)
FOUNDED IN 2000 OR LATER
RAISED $20M+ OR HAD AN ENTERPRISE
VALUE OF $400M+ FROM 2014 ONWARDS
EXCEPTIONS MADE FOR SEVERAL
FAST-GROWING COMPANIES
OUR FORMULA TO ASSESS THE
CONTENDERS IS DATA-DRIVEN:
SCALE (1/3): CAPITAL RAISED OVER THE LAST
THREE YEARS AND HEADCOUNT AS AT MARCH 2019
VELOCITY (1/3): GROWTH IN CAPITAL RAISED
IN 2019 VS. 2018 AND GROWTH IN HEADCOUNT
BETWEEN MARCH 2017-19
SENTIMENT (1/3): CROWDSOURCED FROM
THE EUROPEAN VC COMMUNITY AND
THE GP BULLHOUND TEAM
CHAPTER 4
EUROPE’S NEXT GENERATION
43
42
24% of the companies we selected last year as a Contender became a Unicorn in the past 12 months
The GP Bullhound team analysed more than 500 European startups that have raised over $20m since 2014
to identify the top 50 companies with the most potential to become $1bn companies in the next two years
All of these companies were assessed by GP Bullhound’s team for Scale, Velocity and Sentiment
from which we have generated a top 50 rank of the most promising European startups
Europe’s Most Promising Startups
THE 2019 TOP 50 CONTENDERS
How Did We Do Last Year?
THE 2018 TOP 50 CONTENDERS
24%
OF THE COMPANIES
WE SELECTED
BECAME UNICORNS
2019
OVERALL
RANK
2018
OVERALL
RANK
Source: Company data, Capital IQ, Mergermarket, press articles, LinkedIn
Source: Company data, Capital IQ, Mergermarket, press articles, LinkedIn, as of March 2019.
EUROPE’S MOST PROMISING STARTUPS
HOW DID WE DO LAST YEAR?
45
44
We analysed the top 50 contenders and plotted them against sector and geography to create a heat map
that sheds light on which countries or industries are most likely to produce the next billion-dollar companies
Enterprise SaaS, E-Commerce and Fintech, and the UK, France, DACH as well as the Nordics
appear to be the most represented
From our ranking of Europe’s top 50 contenders for reaching a billion-dollar valuation,the top ten European
startups that have the potential to become $1bn companies in the next 2 years are highlighted below
For each metric, scores for all companies are rebased as a percentage of the leading company
at that metric (100%)
The Next European Billion-Dollar Company?
TOP TEN CONTENDERS
The Next European Billion-Dollar Company?
BY GEOGRAPHY AND SECTOR
100%
SCALE
VELOCITY SENTIMENT
87%
80%
97%
99%
85%
73%
90%
69%
96%
87%
75%
90%
73%
96%
69%
78%
69%
90%
84%
76%
76%
73%
82%
73%
90%
65%
69%
80%
71%
73%
TOP 50
ENTERPRISE SAASMARKETPLACE/ E-COMMERCEFINTECHBIG DATA & BICYBER SECURITYTRANSPORTATIONHEALTHCAREGAMINGDIGITAL MARKETINGDIGITAL MEDIAEDUCATIONTOTALDACH
26%
UK &
IRELAND
22%
FRANCE
18%
NORDICS
12%
ISRAEL
10%
RUSSIA
& CEE
4%
BENELUX
4%
SOUTHERN
EUROPE
4%
TOTAL
24%
20%
18%
16%
8%
4%
2%
2%
2%
2%
2%
50
98%
97%
96%
90%
90%
90%
86%
85%
85%
Source: Company data, Capital IQ, Mergermarket, press articles, LinkedIn, as of March 2018
Source: Company data, Capital IQ, Mergermarket, press articles, LinkedIn, as of March 2018
Note: Percentages shown are based on the Top 50 ranking
THE NEXT EUROPEAN BILLION-DOLLAR COMPANY?
THE NEXT EUROPEAN BILLION-DOLLAR COMPANY?
47
46
Expert view:
Contenders
“Our journey started off during the last recession, supply of talent was outstripping demand but companies
were still struggling to hire - Beamery was born to change the status-quo in talent acquisition. We started in
our parents’ garage with no funding, no salary - now we are growing rapidly and helping the world’s biggest
employers solve the challenges that define growth - attracting, engaging and retaining talent.
We are proud to be a technology company that was founded in London and that we have been able to build
a global business here. London has long been a financial centre and in a contemporary setting, and that
connectivity lends itself to becoming a leading technology hub as well. Creating a successful ecosystem
requires a critical mass of talent and companies that reach a certain scale which are all present in the UK.
Europe has some unique advantages compared to the US, with a lot of cultural diversity and proximity to
tremendous talent mobility from the rest of the world. It has become the kind of melting pot that once defined
New York. There is also a cost advantage here; you can build with much greater capital efficiency, and thus
create a more competitive business. With the quality of communication and collaboration tools, it is possible
to run a global and distributed business that serves the North American market - from Europe.”
- ABAKAR SAIDOV, CEO, BEAMERY
ABAKAR SAIDOV
CEO, BEAMERY
MATTHEW SCULLION
CEO, MATILLION
JOHANNES SCHILDT
CEO, KRY
“I got a taste for being a software entrepreneur when I was just 18 years old, founding my first startup that went
on to be acquired in the late 1990s. This started me on the path to creating Matillion in early 2011, a business
that was originally created to deliver managed business intelligence across the UK, Europe and the US. As
with many early stage companies, our true calling evolved – we became frustrated with the tools available for
building data warehouses, and so we designed our own. Our work solved a pain point that we felt personally
in our previous roles and proved to be a driver in our growth and investment.
The reality of doing business today means that every modern company not just wants to, but needs to compete
using data to survive and prosper. This is already a large market and it’s growing fast with enormous potential
for European tech businesses. Matillion was founded in Manchester, United Kingdom – a city that is quickly
becoming a significant tech hub and boasts significant advantages beyond London and the Bay Area.
The city has a great supply of ambitious and highly skilled talent that is supported by the presence of its world
leading university. Through scaling a global tech business from inception in Manchester, we have found that
the burgeoning city is one that people want to live in, which allows growth without the cost and churn of other
major tech hubs – giving vital stability.”
- MATTHEW SCULLION, CEO, MATILLION
“We founded KRY with a mission to create a healthcare system that works better for patients, doctors and all
other stakeholders, addressing the frustration we felt at the time and am sure also a lot of other people around
the world. Healthcare systems are incredibly complex and have been slower to adapt to digital transformation,
there is a significant appetite for change and we hope to be a part of solving this challenge. Digitally enabled,
KRY takes the inaccessible and makes it accessible. We are helping patients to move beyond the need to
travel, to call landlines, to wait and are delivering healthcare services at unprecedented speeds.
The size of the digital healthcare market in Europe currently knows no upper limit and is fertile ground for this
technology but not without its challenges. We are operating in a complex industry within an environment that
is heavily regulated. This is a challenge when scaling and taking these types of businesses internationally, but
equally it also presents an opportunity for companies expanding throughout Europe. The most successful tech
businesses will exploit the common characteristics that exist across the region and build mass market solutions.
Ambitious companies have to think outside of the domestic territory from the beginning and push out of small
native markets.”
- JOHANNES SCHILDT, CEO, KRY
AUTHORS
ALESSANDRO CASARTELLI
DIRECTOR
MANISH MADHVANI
MANAGING PARTNER
ALON KUPERMAN
DIRECTOR
ALEXIS MAJOS
ANALYST
ADAM PAGE
ASSOCIATE
MARIA MACIAGOWSKA
INTERN
We crunched the data on the European billion-dollar technology companies founded since 2000,
with the aim of analysing what it takes to create a outstanding success, what are key characteristics of
the founders and find any parallels and differences with US and Asia and our report from last year(1)(2)
WE HAVE INCLUDED:
Tech companies only, with a bias towards Internet/
Software (Cleantech and Biotech excluded).
Companies falling into the following macro-sectors:
eCommerce (e.g. sale of goods or services), Audience
(e.g. monetisation through ads and lead gen), Software
(e.g. license of Software), Gaming (including
gambling), Fintech, Marketplaces and Augmented
Reality / Virtual Reality (AR/VR).
Headquartered in Europe.(3)
Founded in 2000 or later.
With an equity valuation of $1bn+ in the public
or private markets (including acquired companies).
FIRST CAVEAT: our sources only include public data
(e.g. data platforms such as Capital IQ, Pitchbook,
press articles, etc.), and the accuracy of our dataset
is limited to the disclosed data.
SECOND CAVEAT: for this year’s report companies
are tracked for inclusion as billion-dollar companies until
31 March with valuations updated as at 13 May, unless
otherwise stated, which has obvious limitations related to,
for example. The state of equity markets, recent company
performance, etc.
OUR METHODOLOGY AND SOURCES
Methodology
1) When we reference Asian companies, we refer to Asia-Pacific and Middle-East (e.g. incl. UAE and New Zealand)
2) We have used a slightly longer timeframe than the US report in order to capture a large number of billion $ companies founded in 2000-2001
3) Including Israel; and companies which were founded in Europe and later relocated to different geographies
EXPERT VIEW - CONTENDERS
METHODOLOGY
49
48
INVESTMENTS
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