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November 2018
Quarterly European Venture Capital report
Q3 2019
October 2019
TeamViewer (Germany)Enterprise Software
IPO€5.3B
FlixBus (Germany)Travel
$500M Series F$2B Valuation
Amal Therapeutics (Switzerland)
HealthBoehringer Ingelheim Acquisition
€325M
Deposit Solutions (Germany)Fintech
€40M Series E$1B Valuation
Elastifile (Israel)Enterprise SoftwareGoogle Acquisition
$200M
Five new unicorns and six large venture-backed exits.
Quarterly European Venture Capital report – Q3 2019
October 2019Page / 2
Valuation
Acronis (Switzerland)Enterprise Software
$147M Late VC$1B Valuation
Mnubo (Spain)Enterprise Software
Aspen Technology Acquisition $78M
Numbrs (Switzerland)Fintech
$40M Late VC$1B Valuation
Breath Therapeutics (Germany)Health
Zambon Pharma Acquisition €140M
Babylon Health (UK)Health
$550M Series C$2B Valuation
July ‘19 August ‘19 September ‘19
CMR Surgical (UK)Health
$240M Series C$1B Valuation
MeilleursAgents.com (France)Real Estate
Axel Springer Acquisition €200M
Source: Dealroom.co
Source: Dealroom.co
The 10 largest rounds in Q3 accounted for €2.6 billion or 29% of total investment.
Quarterly European Venture Capital report – Q3 2019
Page / 3
NAME INVESTORS LOCATION ROUND
Babylon HealthHealthcare via mobile phone
Kinnevik, Vostok New Ventures, PIF Public Investment Fund, … London$550M
SERIES C
FlixBusBus travel across Europe
HV Holtzbrinck Ventures, Permira, Technology Crossover Ventures, … Munich$500M
SERIES F
KlarnaPayment solutions for online storefronts
Institutional Venture Partners, Dragoneer Investment Group, … Stockholm$460M
GROWTH EQUITY
BioNTechPersonalized cancer immunotherapies
Sanofi, Bayer AG, Genentech, Eli Lilly and Company Mainz$325M
SERIES B
CMR SurgicalRobotic system for minimal access surgery
LGT Capital Partners, Cambridge Innovation Capital, … Cambridge$240M
SERES C
SignavioWorkflow management and compliance software
Deutsche Telekom Capital Partners, Apax Digital Berlin$177M
SERIES C
N26 GroupBank account that can be managed from a smartphone
Earlybird Venture Capital, Insight Partners, Valar Ventures, Tencent, … Berlin$170M
SERIES D
AcronisDisaster recovery and data protection solutions
Goldman Sachs Schaffhausen$147M
LATE VC
AM-PharmaRecombinant alkanine phosphatase therapies
Ysios Capital, LSP Life Sciences Partners, Forbion Capital Partners, … Bunnik$128M
LATE VC
WifirstWifi, fiber and connected services
Bpifrance, Amundi Private Equity Funds, Socadif Pessac$127M
LATE VC
October 2019
Source: Dealroom.co
Investment in the European and Israeli startups reached €9.8 billion in Q3 2019, and it’s on track to break another record in 2019.
Quarterly European Venture Capital report – Q3 2019
October 2019Page / 4
Investment in Europe, Israel & Biotech Impact of mega-rounds
€ 3.4B € 3.5B
€ 4.6B
€ 5.6B € 5.4B
€ 4.9B
€ 5.4B
€ 5.9B € 5.4B € 5.5B
€ 6.5B
€ 9.0B
€ 7.4B
€ 4.3B € 4.6B
€ 5.4B
€ 6.6B
€ 7.5B
€ 6.6B € 6.9B
€ 7.9B
€ 6.8B
€ 7.5B
€ 8.4B
€ 10.7B
€ 9.8B
–
€ 3.0B
€ 6.0B
€ 9.0B
€ 12.0B
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2016 2017 2018 2019
Europe Biotech Israel
€ 3.3B € 3.2B
€ 4.4B € 4.6B
€ 5.0B € 5.1B € 4.9B
€ 6.3B
€ 5.1B
€ 6.2B € 6.1B
€ 6.7B € 7.1B
€ 4.3B € 4.6B
€ 5.4B
€ 6.6B
€ 7.5B
€ 6.6B € 6.9B
€ 7.9B
€ 6.8B
€ 7.5B
€ 8.4B
€ 10.7B
€ 9.8B
–
€ 3.0B
€ 6.0B
€ 9.0B
€ 12.0B
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2016 2017 2018 2019
All other rounds Top 10 largest rounds Top 3 largest rounds
Source: Dealroom.co
Year to date, already €28 billion was invested in Europe & Israel in 2019 compared with €21 billion same time last year.
Quarterly European Venture Capital report – Q3 2019
October 2019Page / 5
Cumulative amount invested – 2019 vs. 2018 (€B) Cumulative number of rounds – 2019 vs. 2018 (>€2M)
€ 21B
€ 29B
€ 28B
–
€ 5.0B
€ 10.0B
€ 15.0B
€ 20.0B
€ 25.0B
€ 30.0B
€ 35.0B
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2019
1,527
2,074
1,342
–
500
1,000
1,500
2,000
2,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2018 2019
Source: Dealroom.co
Also in Q3, the growth is mainly driven by larger rounds. Rounds below €10 million are not growing anymore: a sign of a maturing ecosystem.
Quarterly European Venture Capital report – Q3 2019
Page / 6
Investments in Europe & Israel by round size
The value of rounds above €100 million accounts for 33% of the total investments in Q3 2019.
October 2019
€ 1.7B € 1.8B € 1.9B € 1.7B € 1.9B € 1.8B € 1.7B € 2.1B € 1.6B € 1.8B € 1.5B € 1.5B € 1.5B
€ 1.1B € 1.1B € 1.3B € 1.3B
€ 1.3B € 1.2B € 1.4B € 1.7B
€ 1.5B € 1.7B
€ 1.5B € 1.6B € 1.6B
€ 0.9B € 0.6B € 0.6B
€ 0.6B € 1.0B € 1.1B € 0.9B
€ 1.1B
€ 1.5B € 1.1B € 1.8B € 1.6B € 1.5B € 0.3B € 0.4B
€ 0.6B € 0.4B
€ 0.6B € 1.0B € 1.0B
€ 0.7B € 1.1B € 1.1B € 1.1B € 1.3B € 1.3B
€ 0.5B € 0.5B
€ 1.1B € 2.2B
€ 2.2B € 1.7B € 2.0B € 1.5B € 1.6B
€ 1.2B
€ 2.5B
€ 4.8B
€ 3.3B
€ 4.3B € 4.6B
€ 5.4B € 6.6B
€ 7.5B € 6.6B € 6.9B € 7.9B € 6.8B € 7.5B
€ 8.4B
€ 10.7B
€ 9.8B
–
€ 3.0B
€ 6.0B
€ 9.0B
€ 12.0B
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2016 2017 2018 2019
€ 0-10M € 10-25M € 25-50M € 50-100M € 100M+
Source: Dealroom.co
The UK, Germany, France and Israel received 70% of total VC investment in Q3 2019.
Quarterly European Venture Capital report – Q3 2019
October 2019Page / 7
Investment by country Q3 ‘19 Number of rounds by country Q3 ‘19
€ 2.6B
€ 2.0B
€ 1.2B
€ 1.0B
€ 0.6B
€ 0.5B
€ 0.4B
€ 0.4B
€ 0.2B
€ 0.1B
€ 0.1B
€ 0.1B
€ 0.1B
€ 0.1B
€ 0.1B
United Kingdom
Germany
Israel
France
Sweden
Switzerland
Netherlands
Spain
Italy
Denmark
Ireland
Belgium
Finland
Austria
Russia
180
127
121
75
63
36
28
26
21
15
12
11
9
6
6
United Kingdom
France
Germany
Israel
Spain
Netherlands
Sweden
Switzerland
Italy
Denmark
Austria
Ireland
Belgium
Norway
Finland
Source: Dealroom.co
Every major region showed strong year-on-year growth this quarter. Germany led by relative growth, while the UK led by absolute investment.
Quarterly European Venture Capital report – Q3 2019
October 2019Page / 8
Venture capital investment
€ 2.3B
€ 2.6B
€ 1.6B
€ 2.0B
€ 2.3B € 2.3B
€ 2.1B
€ 3.2B
€ 2.6B
€ 0.8B
€ 0.6B
€ 2.0B
€ 0.8B € 0.8B
€ 1.0B € 1.1B
€ 1.3B
€ 2.0B
€ 0.6B € 0.7B € 0.8B
€ 1.4B
€ 0.8B € 0.8B
€ 1.3B
€ 1.5B
€ 1.1B
€ 3.1B
€ 1.9B € 1.9B
€ 2.6B
€ 2.3B € 2.2B
€ 2.8B
€ 3.3B
€ 3.0B
–
€ 1.0B
€ 2.0B
€ 3.0B
€ 4.0B
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019
United Kingdom Germany France The rest of Europe
October 2019
Source: Dealroom.co
European VCs and Corporate VCs raised €2.7 billion in 25 new funds in the third quarter of 2019.
Quarterly European Venture Capital report – Q3 2019
Page / 9
€ 2.3B
€ 3.1B € 3.0B
€ 3.3B
€ 1.6B
€ 2.9B
€ 2.6B € 2.8B
€ 4.1B
€ 1.7B
€ 3.2B
€ 4.0B
€ 2.7B
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2016 2017 2018 2019
25
34 34
39
19
3738
34
54
33
36
44
25
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2016 2017 2018 2019
Amount of capital raised by European VCs & Corporates per quarter Number of VC & Corporate funds announced per quarter
Source: Dealroom.co
Two new $1 billion funds are in the making: Rocket Internet and Lakestar.
Quarterly European Venture Capital report – Q3 2019
Investor Location Fund size Date
Rocket Internet Berlin €900M Sep 2019
Lakestar Zurich, Berlin, London $700M ($1B target) Sep 2019
Project A Berlin $200M Sep 2019
IQ Capital Cambridge $175M Jul 2019
Outward VC (1st time fund) London £75M Jul 2019
Seventure Partners (1st non-life science fund) Paris, Munich €80M Jul 2019
London Venture Partners London $80M Sep 2019
Peak Capital Amsterdam €66M Aug 2019
First (1st time fund) Courbevoie, Paris €60M Jul 2019
Cogito Capital Partners (1st time fund) Warsaw €55M Jul 2019
October 2019Page / 10
Top European VC funds raised in Q3 2019
Source: Dealroom.co
Investment from the USA and Asia into Europe has shifted quite dramatically in 2019 to date, reaching more than 40% of total investment.
Quarterly European Venture Capital report – Q3 2019
October 2019Page / 11
Investment in Europe by source, in € amounts% of European rounds with at least one USA or Asian investor
27% 27% 25%20%
26% 26% 29%
2%6%
4%
6%
11% 8%
17%
6%
5%
3%3%
4%5%
3%22%
21%25%
24%
18% 22%
22%
43% 41% 43% 46%41% 38%
30%
0%
25%
50%
75%
100%
'13 '14 '15 '16 '17 '18 '19 YTD
Domestic
Europe cross-border
Rest of World (incl Africa)
Asia
USA
10%
16%
21%
'13 '14 '15 '16 17 '18 '19YTD
Quarterly European Venture Capital report – Q3 2019
October 2019Page / 12
Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. Europe excludes Israel.
Notable roundsQ3 2019
$550MSeries C
$500MSeries F
$460MGrowth Equity
$325MSeries B
$240MSeries C
$177MSeries C
QuarterlyInvestment
Europe
$700MSeries B
$600MLate VC
$500MSeries C
$400MEarly VC
$400MSeries D
$434MSeries F
Asia
$1.0BGrowth Equity
$1.0BLate VC
$400MSeries C
$350MSeries E
$350MGrowth Equity
$370MSeries G
North America
North America and Asia received respectively 3x and 2x more investments than Europe in Q3 2019.
$ 6.0B $ 5.2B $ 5.9B $ 6.4B $ 6.2B $ 5.8B $ 7.5B
$ 10.3B $ 9.6B
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2017 2018 2019
$ 26.5B $ 29.0B
$ 18.8B
$ 41.2B
$ 30.5B $ 29.7B
$ 18.2B $ 15.1B
$ 18.8B
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2017 2018 2019
$ 24.5B $ 22.0B
$ 28.5B
$ 34.1B $ 37.8B
$ 34.1B $ 35.2B
$ 30.3B $ 31.9B
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2017 2018 2019
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Gligor Micajkov
Research Analyst
Ivan Draganov
Research Analyst
Lotf Belych
Research Analyst
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