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NAVIGATING EUROPE:
MAPPING OUT THE OPPORTUNITIES
CÉDRIC KÖHLER
CREATHOR VENTURE
DACH
FRIEDRICH NEUHAUS
AUMENTA
Navigating Europe:
Mapping Out the Opportunities - DACH
Facts, Figures, and Trends about DACH region
Technology and Industry Clusters in DACH
Research and Innovations - Universities
Summary
Agenda
4
3
1
2a Example Berlin2b Fintech and Insurtech2c Industry 4.0/IOT2d Blockchain and Cryptocurrency2e Pharma/Healthcare & Chemicals
2
DACH Region is Europe‘s economic engine
Facts and Figures
Leading tech events relocating to/focusing on DACH-region
NOAH with second conference (besides London) in Berlin since 2015 since inception
NOAH Berlin has outnumbered NOAH London in participants
TechCrunch Disrupt Europe moved from London to Berlin from 2017 on
Pioneers Festival in Vienna attracting international investors and start-ups
Sources: Worldbank, Statista
1
Europe’s economically strongest and politically most stable countries
With a GDP of €4.549tn the DACH region depicts over 25% of the whole European GDP (GDP:
€17.2tn; including Switzerland)
The DACH region is the biggest homogenous language territory addressing approx. 96m
German native speakers
Positive
preconditions
Rapidly shifting focus
Existing world leading trade fairs
Frankfurt‘s International Motorshow IAA as one of the world‘s biggest automotive trade fairs
DM Exco in Cologne as Europe’s leading digital marketing conference
Hannover Messe is since decades the world’s leading industrial trade fair
International VCs with increased physical presence and investment activity in DACH
(e.g. Partech, Balderton, Atomico, Accel, Index, …)
Boost in startup & investment activity:
Berlin ranked among top global startup ecosystems
and rising the ranks
Berlin outranking other European hubs like Paris,
Stockholm and Tel Aviv and catching up with London
Investment activity as measured by the EIF ranks 5
DACH hubs among the European Top 15 hubs in
terms of activity since 2008 (Berlin #2, Munich #4,
Vienna #10, Hamburg #11, Cologne #15) –
(Switzerland not even included in study)
Sources: EIF, Venturebeat, Compass, EU-Startups
DACH Region is Europe‘s economic engine
Facts and Figures 1
DACH is more than “B2C/Ecommerce” and covers our full investment focus
Facts and Figures 1
Medtech
Life Sciences
Cloud
Computing
Technology
Wearables
eHealth
Education
HR
Media / Advertising
Finance / Insurance
Travel
Legal
Transportation / Logistics
Next-gen
Software
Agriculture
Property and Real-Estate
Virtual/ aug-mented reality
Autonomous
Systems
Internet
of
Things
Sharing
Economy
Artificial
Intelligence
Personalized
Medicine
Big
Data
Tools
Diagnostics
B2C Business Models – Example BERLIN
Technology & Industry Clusters in DACH
5 of 6 German “unicorns” (companies with valuation
beyond $1bn) have a B2C business model and large
part of its success is based on online marketing/growth
execution
Zalando (fashion eCommerce)
Rocket Internet (company builder, largely
eCommerce)
Delivery Hero (food delivery eCommerce)
Hellofresh (food delivery eCommerce)
Auto1 Group (used car market eCommerce)
Expertise further grown and developed through
active business angel roles of successful founders
Several new first time venture funds from successful
entrepreneurs successfully raised
Low cost of living, less war for talents with
corporates compared to other metropoles
Sources: CB Insights, Pitchbook, techcrunch
2a
Fintech and InsurTech
Technology & Industry Clusters in DACH
Many of the global Corporations are headquartered in the DACH
Region
• Immense density of globally leading:
– Banks (UBS, Credit Suisse, Deutsche Bank, Commerzbank,
plus Private Banks)
– Insurance Carriers
(Zurich, Swiss Life, Allianz, R&V, Mobiliar, …)
– Reinsurance Companies
(Swiss Re, Munich Re, Hannover Rück, XL, …)
• 197 Swiss fintech startups as of March 2017 (vs. 400 in London)
• Insurtech Venture Funding and Insurtech Acquisitions are way
behind Fintech. We expect a strong growth in
# Insurtech startups, Insurtech venture funding and
acquisitions in the DACH region the near future
Sources: Factive Fact Sheet Research Systems, Swiss Fintech Association
2bFinance / Insurance
Blockchain & Cryptocurrency – example Zug, CH
Technology & Industry Clusters in DACH
Sources: SECA, Swiss Fintech Association
2c
Blockchain & Crypto Currency – Zug/Switzerland:
• Canton of Zug with open-minded regulatory and legal
environment for crypto currencies
– Amid blockchain companies political stability and a reliable
regulatory environment are key to success and planability
– Local government of canton of Zug is the first in the world
to let citizens pay in Bitcoin
• Low tax environment and high density of capital &
investment firms
• Attracting internationally leading blockchain startups to
relocate to Zug:
– Xapo, Ethereum Foundation, Shapeshift
– CryptoValley Zug Association with more than 30 member
companies in the field of blockchain
“A tiny province in Switzerland is proving such a magnet for
blockchain startups that it's increasingly being compared to
California's famed Silicon Valley.” (Coindesk, leading blockchain
publication)
Finance / Insurance
Industry 4.0, Robotics
Technology & Industry Clusters in DACH
Industry 4.0 in Zurich & Munich/DACH:
• Industrial technologies with less media attention, but huge
economic potential:
– Advanced robotics & autonomous systems, advanced
materials, automation of knowledge work, Internet of
Things (IoT)
• DACH region in this context with:
– The 2 global leading automation technology companies by
revenue (Siemens, ABB)
– 3 of the 7 largest automotive companies in the world by
revenue (Volkswagen, BMW, Daimler)
– 2 of the 5 largest global OEM parts suppliers in the world
by revenue (Bosch, Continental)
– 3 of the 6 largest (metal-) 3D printing companies
(EOS, concept laser, SLM solutions)
Sources: E&Y, McK Kinsey, Venturebeat, Statista, European Startup Initiative Report
2d
“Our findings show that there is definitely room for specialization and
that smaller hubs can achieve a strong position on the start-up map. This
becomes most evident when looking at the rankings of the high-tech
groups. The examples of Zurich and Munich as go-to locations for capital-
intensive technology start-ups disprove the belief that the top choice is
only Berlin or London.” (European Startup Initiative Report 2016)
Transportation /
Logistics
Internet
Of Things
Healthcare, Pharma, Medtech & Chemicals
Technology & Industry Clusters in DACH2e
2
3
3
4
5
6
6
9
13
21
Japan
Great Britain
France
USA
Switzerland
Netherlands
Belgium
Germany
China
Italy
Countries with largest share of global Med-Tech
Export
In %, 2014
Pharma and Chemical Giants in DACH
• 11 of the global top 25 Pharma and Chemical Firms are from
Europe; thereof 7 are headquartered in the DACH region
– Novartis, Roche, Bayer, BASF, Boehringer, Actavis, Merck
• 2 out 10 top Med-Tech exporter are from German speaking
countries
– Germany (#2) and Switzerland (#6) contribute 13% and
5%, respectively, of the Global Med-Tech export in 2014
• German speaking Medtech companies are constantly growing
in revenues
– 1/3 of the revenues is being generated from products
younger than 3 years proving high rate of innovation
Medtech
Tools
Diagnostics
Sources: health magazine, SSC
Universities – Example Switzerland
Research and Innovation in DACH
Sources: SECA, startupticker.ch, ETH
3
ETH Zurich:
Overall constantly ranked among the world’s Top 10 universities (QS, Times)
#1 ranked university worldwide in «Computer Science» in 2017, before Stanford and MIT (Times)
Attracted global tech companies to build offices in Zurich:
Google runs it’s largest tech hub outside it’s US HQ in Zurich with more than 2’000 developers
Disney Research is globally headquartered in Zurich and run by an ETH professor
Apple, MagicLeap and GoPro have acquired ETH spinoff firms to build up local development
teams
– Produced more than 250 spinoffs in the past 20 years, of which many received venture capital
funding
EPFL Lausanne:
Overall ranked among the Top 10-15 universities in the world (QS, Times)
#11 in the world in the fields of Engineering, Computer Science and Technology
More than 230 spinoff companies in the past 20 years, many of which have raised venture funding
HSG St. Gallen: Ranked #1 „Master in Management“-program in the world
Internet
Of Things
Virtual/ aug-
mented reality
Artificial
Intelligence
The DACH Region is the most attractive Regions for Venture Capital in Europe
Summary4
1. DACH is the biggest, strongest and wealthiest economic region in Europe attracting global
investors, entrepreneurs and acquirers
2. Berlin is gaining more and more attractive to become Europes Leading Startup und Venture
Hub – despite Berlin DACH has strong additional start-up and venture clusters like Munich,
Zürich, Zug, Vienna, Hamburg....
3. Germany, Austria and Switzerland are the world leaders in automotive and automotive OEM
supply
4. Future Technologies addressing megatrends like industry 4.0, drones or robotics are made in
DACH
5. DACH is the perfect spot for insurtech startups, -investments, and –acquistions
6. Switzerland offers lowest regulations to test innovative cryptocurrency business concepts
7. Pharma, Medtech, Chemicals and Healthcare are core pillars of the DACH economies with high
innovation rates
8. Academic institutions like ETH, EPFL, RWTH Aachen, TU Munich, TU
Vienna, ... are world class leading
