UK’s leadership in European tech accelerates

and extends beyond London

October 2018

Prepared for Tech Nation and the Government’s Digital Economy Council by Dealroom.co

▪ Following the IPOs of Farfetch and Funding Circle, the UK currently has 15 unicorns - companies valued at more than a $1bn, with an estimated combined value of $28bn

▪ In total 60 unicorns have now been created in the UK. The pace has been accelerating in the last three years

▪ It’s not just London that creates significant, fast-growing businesses. Major UK cities and capitals are competing successfully with other European capitals

▪ Oxbridge - the university cities of Oxford and Cambridge combined - have together produced nine unicorns, more than Paris which has produced five

▪ Manchester has created five unicorns of its own, the same number as Amsterdam and Paris

▪ The UK is also creating more potential future unicorns than any other European country and Israel

▪ The UK has 54 potential unicorn companies valued at $250m to $1bn. Germany and France have

created 28 and 27 potential unicorns respectively

Summary

Source: Dealroom. See methodology page for more info. 2

The United Kingdom leads with 60 unicorns created (35% out

of 169 in Europe & Israel)

3Source: Dealroom. See methodology page for more info.

Cumulative number of companies by year in which $1 billion valuation mark

is crossed

5 5 8

10 12 13

24

35

43

51

60

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

United Kingdom

Germany

Israel

Netherlands

Sweden

France

Switzerland

Spain

Russia

Rest of Europe

Since 2016 more new unicorns were created in the UK than in

Germany, France, Sweden and the Netherlands

4Source: Dealroom. See methodology page for more info.

United

Kingdom

The Hut Group

Oxford Nanopore

Deliveroo

TransferWise

Mimecast

Global Switch

Skyscanner

Metro Bank

OakNorth Bank

Improbable

Blue Prism

Brewdog

Alfa

PurpleBricks

Matchesfashion

Host Europe Group

Revolut

Greensill

Darktrace

SumUp

On The Beach

Callcredit

FNZ

Autolus

Monzo

Trivago

1&1 InternetFlixbus

N26

BioNTech

About You

Celonis

NuCom Group

Germany

Coolblue

Takeaway.com

Gitlab

ElasticNetherlands

Evolution GamingBambora

Paradox InteractiveiZettle Sweden

OVHExclusive Group

DeezerFrance

United Kingdom Germany, France, Sweden, Netherlands

8 8 9

2016 2017 2018

6

3

10

2016 2017 2018

Number of new unicorns Number of new unicorns

54

companies

28

25

27

12

9

8

7

6

5

4

3

The UK also continues to lead Europe by number of

potential future unicorns

Source: Dealroom.co 5

Combined value of companies valued $250M to $1B Selected potential future unicorns

$18.6B

$8.8B

$8.1B

$7.7B

$3.5B

$2.6B

$2.6B

$2.1B

$2.0B

$1.5B

$1.0B

$0.9B

United Kingdom

Germany

Israel

France

Switzerland

Ireland

Spain

Russia

Sweden

Netherlands

Austria

Finland

London Berlin

Unicorns

Unicorn stats 36 unicorns worth $132B 8 unicorns worth $32B

Investment per

capita$610 $490

Top universitiesImperial College London (#8)

London School of Economics and Political Science (#25)Humboldt University of Berlin (#62)

Accelerators 146 42

6Unicorns: number of companies founded since 1990 that reached $1 billion valuation.

Investment per capita based on investment in 2017 and city population.

University rank as per Times Higher Education.

Cambridge & Oxford Paris

Unicorns

Unicorn stats 9 unicorns worth $57B 5 unicorns worth $10B

Investment per

capita

$ 1,800(Cambridge)

$650 (Oxford)$700

Top universitiesUniversity of Oxford (#1)

University of Cambridge (#2)

Paris Sciences et Lettres (#74)

Grenoble Alpes University (#301)

HEC Paris, ESSEC

Accelerators 22 51

7Unicorns: number of companies founded since 1990 that reached $1 billion valuation.

Investment per capita based on investment in 2017 and city population.

University rank as per Times Higher Education.

Manchester Amsterdam

Unicorns

Unicorn stats 5 unicorns worth $13B 5 unicorns worth $29B

Investment per

capita$490 $400

Top universities University of Manchester (#54) University of Amsterdam (#59)

Accelerators 10 18

8Unicorns: number of companies founded since 1990 that reached $1 billion valuation.

Investment per capita based on investment in 2017 and city population.

University rank as per Times Higher Education.

9

London: 36 unicorns

Manchester: 5

Cambridge: 5

Berlin: 8

Paris: 5

Stockholm: 8

Amsterdam: 5

Oxford: 4

Munich: 6

Source: Dealroom.co

Note: Cities with two or more $1B+ companies created since 1990.

Dublin: 2

Hamburg: 2

Uniquely, the UK has six tech hubs in which already two or

more unicorns have been created

Edinburgh: 2Leeds: 2

Madrid: 3

Barcelona: 2

Copenhagen: 4

Summary slide

London Oxbridge Berlin Paris Manchester Amsterdam Edinburgh Dublin Leeds

Unicorns created 36 9 8 5 5 5 2 2 2

Population 8.2M 290K 3.5M 2.2M 510K 821K 489K 565K 780K

Investment per

capita$610 $1,150 $490 $700 $490 $400 $100 $490 $33

Highest ranked

university8 1 & 2 62 72 54 59 27 117 139

Number of

accelerators146 22 42 51 10 18 6 14 10

10Unicorns: number of companies founded since 1990 that reached $1 billion valuation.

Investment per capita based on investment in 2017 and city population.

University rank as per Times Higher Education.

Realised unicorns: 45 Unrealised unicorns: 15 Future unicorns: 54

Appendix: overview of UK unicorns

Source: Dealroom.co 11

About Dealroom.co

Source: Dealroom.co1. Verified rounds excluding secondary, ICOs, debt and other non-equity rounds. 12

The most comprehensive European data sourceIntelligence, trusted by world-leading clients

■ Dealroom is a global company information database & research firm

■ Its software, database and bespoke research enable its clients to stay at

the forefront of innovation, discover promising companies and identify

strategic opportunities

■ Among its clients are world-leading strategy consulting firms, investment

banks, multinationals, technology firms, venture capital & buyout firms and

governments

Number of European VC rounds tracked in 2017 (1)

Not disclosed in official report

Selected publishers of Dealroom data

Selected Dealroom clients

Europe’s most comprehensive database of promising companies and investment

Growth metrics like product usage, funding and valuation momentum (web, iOS, Android)

Track team size, background, composition and growth

Discover potential unicorns, long before others do

Industry taxonomy and database structure designed for innovative technology startups & scaleups

Stay at forefront of innovation and investment trends

▪ Investment numbers refer to venture capital investment rounds such as seed, series A, B, C, …. late stage, growth equity rounds. It excludes debt or other non-equity funding, lending capital, grants and ICOs

▪ Buyouts, M&A, secondary rounds, and IPOs are treated as exits: excluded from funding data, but included in exit data

▪ A unicorn is defined as an independent private company (i.e. not publicly listed) that has reached a $1 billion valuation, on the basis of a funding round or -retrospectively- on the basis of an acquisition or IPO

▪ There are some notable edge-cases:

- Companies that IPO-ed at or above $1 billion but subsequently dipped below that valuation, are still included (e.g. Alfa, Rovio, eDreams)

- Some companies have at some stage reached a $1 billion but subsequently raised, IPO-ed or were acquired below that value. In this case the company is not counted as a unicorn (examples: Blippar, Home24, ironSource, Fanduel, Ulmart, Conduit, Wonga, VE Interactive, Powa)

- If a unicorn moved HQ, the company is counted in the country where it reached unicorn status. Occasionally companies received dual HQ status (1)

▪ This report focuses on companies that have crossed the $1 billion mark in the post-internet age, i.e. after 2000. Most but not all unicorns are venture backed

▪ Companies in the included in the analysis are tech-driven. Industries include software, ecommerce, online marketplaces, hardware, ICT infrastructure. The full industry & business model taxonomy can be found online via app.dealroom.co/heatmaps/funding/industries

▪ Increasingly, innovative models are scaling offline or via hybrid online-retail models. Examples are beer brand Brewdog which innovated distribution and marketing, by leveraging viral marketing and crowdfunding to build a brand and Metro Bank, a retail-first challenger bank

▪ Dealroom’s proprietary database and software aggregate data from multiple sources including processing of public news-flow, data feeds, web scraping, crowd-sourced contributions (verified by Dealroom) and manual research

▪ Data is verified and curated with an extensive manual process, augmented by data processing

▪ Most underlying data from the report is available online. For more info please visit dealroom.co or contact support@dealroom.co

Source: Dealroom.co. 1. Examples include: King.com (UK/Sweden), Intercom (USA/Ireland), Sitecore (Denmark/USA), Cybereason (Israel/USA).

Methodology & definitions

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