POLISH VENTURE CAPITAL REPORT 2016

You can buy deals raw data in XLS format which contains all Polish investments and M&A transactions in 2016 by following this link: http://growthup.com/research2

Contents

03

05

10

04

08

12

07

11

09

06

14

13

Investors Location

Key Takeaways

Most Active VCsInvestors by Type

Introduction & Research Methodology

Most Active Foreign Investors

Polish VC Investment Activity in 2016

Top Industries

Funded Companies HQ Location

IoT Investments

Top 10 Investments in 2016

Notable Tech M&A Deals in 2016

Acknowledgements

Polish Tech M&A Activity in 2016

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Introduction

Methodology

Polish Venture Capital Report 2016 is the first report in a series of reports that will cover the Central and Eastern European (CEE) Venture Capital Market.

Analysis of the available European and global reports has shown us that they often underestimate the actual venture capital activity in CEE. We’re going to improve the situation by providing access to the most comprehensive data from the region.

Compared to some Western European countries Polish VC market is relatively small, but it is the largest one in the Central and Eastern Europe region with a total investment volume of over $164 million in 2016.

We analyzed 114 Polish VC investment deals and 31 tech M&A transactions that occurred from January to December 2016. We included only those deals in which the funded company has headquarters (HQ) in Poland or/and at least has one Polish founder (currently lives or lived in Poland when the company was founded). For acquisitions, this condition works for the company that was acquired and in the case of a merger transaction for at least one of the companies.

To collect data we monitored publicly announced deals from news, corporate blogs, social networks and enriched it with data from databases (Crunchbase, AngelList) and direct information from deal participants (investors and representatives of the companies).

The data in the report should be taken as an approximation. In some cases, deals are not made public and are not published, so we can’t disclose them. In other cases, the round is known, but the invested amount hasn’t been released, so we count the number of deals, but we can’t calculate the total investment volume.

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Key Takeaways

Investment Volume ($ M) Number of Deals

Top Funding Round:DocPlanner has raised a $20 Million Series C round from Target Global, ENERN & EBRD.

The Largest M&A Transaction:Naspers Limited sells 100% stake in Polandbased Allegro Group, which includes both Allegro.pl and Ceneo.pl, to funds advised by private equity firms Cinven, Permira and Mid Europa for $3.253 Billion.

Top Industries by Number of Deals:

1. Internet B2B Services - 282. Hardware - 153. Mobile - 12

Top Industries by Investment Volume:

1. IoT - $28,4 M2. Marketplace - $24,13 M3. Fintech - $23,48 M

114 Total number of investment deals

42 Number of Active Funds (including foreign funds)

38% of the funded companies are headquartered in Warsaw

79 Seed/Angel Deals

Q2 ($ 58,18 Million Invested) Top Quarter by Investment Volume

$ 164 Million Total Invested in 2016

31Total

M&A Deals Number (Tech)

19Q1 – Q3

12Q4

34,3824,6

44,39

Q2

58,18

27

Q1 Q4Q3

3025 28

You can buy Report Raw Data in XLS format: http://growthup.com/reportYou can purchase raw deals data in XLS format which contains all Polish investments and M&A transactions in 2016 by following this link:5

VC Investment Activity in 2016

5,14Average

3,3Median

0,61

0,265

Seed/Angel

Early Stage

Number of Deals

5

25

78

Early Stage

97,71

Late Stage27,83

Seed/Angel35,63

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

10 10

5

10 814

617

4

7

138

14,3615,93

4,08

1,82

34,64

21,72

12,03

8,96

3,61

9,50

27,95

6,93

Investment Volume (SM)

Number of Dealsby Month (million $)

by Stage (million $) by Stage (million $)

VC Investment activity

VC Investment activity Median & Average Round Size

You can buy Report Raw Data in XLS format: http://growthup.com/report

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Top 10 Investments in 2016

DocPlanner is an online healthcare platform enabling patients to find local physicians online and book appointments

The better way to transfer money worldwide

Social learning network

Silvair is a turnkey smart lighting platform enablingmanufacturers to provide enhanced lighting experience

Zortrax designs,manufactures, and suppliesdesktop 3D printers for homeand office requirements

Estimote is a technologystart-up, building a sensor-based context andmicro-location platform formobile developers

Kontakt.io builds secure andconfigurable beacon hardware and software topower competitiveproximity-based solutions

SALESmanago operates acloud-based online marketingautomation platform

20 15 15 12

500Amount ($M)

11 10,7 6 5 4,6

Doc

Plan

ner A

zim

o

Bra

inly

Silv

air

Zort

rax

Estim

ote

Sale

sMan

ago

Kon

takt

.io

Developer of online socialcasino and gambling gamesH

uuug

e G

ames

Wis

h

Target Global, ENERN, EBRD

Lead: Rakuten. Other: MCI.TechVentures, eVentures,Frog Capital, Greycroft, Accion

Naspers CyberAgent Ventures,Digital Garage, New Europe Ventures,Trigon TFI SA

Dariusz Milek Lead: Javelin Venture PartnersOther Investors: Buran VentureCapitalBoxGroupCommerce VenturesDigital GarageHomebrewJosh McFarland

3TS Capital Partners

Credo Ventures Woori Technology Investment,Kiwoom Investment, SeoulInvestment Partners.

RoundInvestors

Round

Temasek Holdings (investment armof the government of Singapore)

Venture

VentureSeries C

Series B Series B Series B

Series A

Angel

Series ASeries A

Wish is the leading mobile commerce platform in North America and Europe. In 2010 Peter Szulczewski (born in Poland) and Danny Zhang founded ContextLogic, an advertising technology startup, and a year later pivoted it to Wish. We did not include this round because Peter hasn’t lived in Poland since 2000.

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Most Active VC’s

IQ Partners Experior Ventures VentureInc S.A.

CredoVentures

ErneVentures

Giza PolishVentures

RTAventures Trigon TFI SpeedUpMCI Capital SA

116 5 5 4 3 3 3 3 3

100% 56%Venture Capital

9,8%Accelerator

9,8%Angel

6,3%Gov

5,4%PE

3,6%Crowdfunding

8,9%Corporate

Number of Deals (Polish Companies)

Investors by Type

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Top Industries

28

15

12

9

7

7

6

5

4 28,4

4,91

24,13

23,48

16,0

17,38

13,64

11,37

Internet (B2B)

Internet (B2C)

Marketplace

Software (non-internet)

Games

IoT

Hardware

Mobile

Fintech

1,84

Top industries by Number of Deals

Top industries by Volume (million $)

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IoT Investments

Silvair is a turnkey smart lighting platform enabling manufacturers to provideenhanced lightingexperience.

0,2

Silv

air

Estimote is a technologystart-up, building asensor-based context and micro-location platform for mobile developersEs

timot

e

12 CyberAgent Ventures Digital GarageNew Europe VenturesTrigon TFI SA

Series A

Series A

10,7

Lead: Javelin Venture Partners

Other Investors: Buran Venture CapitalBoxGroupCommerce VenturesDigital GarageHomebrew

Husarion is a developmentand management platformfor Internet of Things in thearea of automation androbotics.H

usar

ion

KPD Investment

Seed

Kontakt.io builds secure andconfigurable beaconhardware and software topower competitiveproximity-based solutions.K

onta

kt.io

Credo Ventures

Amount ($M)

Round

5,5

RoundInvestors

Series B

Seed

In 2016, Polish IoT companies raised $28,4M in funding

You can buy Report Raw Data in XLS format: http://growthup.com/reportYou can purchase raw deals data in XLS format which contains all Polish investments and M&A transactions in 2016 by following this link:10

Funded Companies HQ Location

Warsaw

18%

35%

38%38%

Krakow

5%9%

2%

Rzeszow

2% 2%

Szczecin

Gdansk

Olsztyn

Gdynia

Wroclaw

Tychy

Other

Poznan

Kielce

5%9%

1%5%

5%8%

1%

4%3%

2%8%

By Investment Volume

By Number of Deals

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Investors Location

Poland

Asia

Other Europe

Other

US

By Number of Deals

By Investment Volume

7%

18%

3%

22%

73%

31%

29%

4%

2%11%

You can buy Report Raw Data in XLS format: http://growthup.com/reportYou can purchase raw deals data in XLS format which contains all Polish investments and M&A transactions in 2016 by following this link:12

Most Active Foreign Investors

Silvair is a turnkeysmart lightingplatform enablingmanufacturers toprovide enhancedlighting experience

Estimote is atechnology start-up,building asensor-based contextand micro-locationplatform for mobiledevelopers

SALESmanagooperates acloud-based onlinemarketingautomation platform

Web hosting solutions

Kontakt.io buildssecure andconfigurable beaconhardware andsoftware

ProvidesiPad-poweredwhiteboard

12 10,7 6

Amount ($M)

5,83 5 3,7

Silv

air

Estim

ote

Sale

sMan

ago

H88

(Hek

ko)

Kont

akt.i

o

Expl

ain

Ever

ythi

ng

DigitalGarage

NewEuropeVentures

3TSCapitalPartners

CredoVentures

RoundInvestors

Series A

Private Equity

Round

102,8Total

NewEuropeVentures

Series A Series A Series A

Series B

And others And others And others

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Foreign funds, which made two Polish deals in 2016

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Polish Tech M&A Activity in 2016

6 58

Q2

12

Q1 Q4Q3

53,3%43,3%AcquiredCorporate Majority

3,3%Merger

Number of M&A Deals by Quarter

M&A Deals Type

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Notable Tech M&A Deals in 2016

Nocowanie offers an onlineplatform specializing intourism e-commerce

5,7

3250Amount ($M)

No

cow

anie

Alle

gro

WirtualnaPolska

Cinven,Permira, MidEuropa Partners

Acquired Stake

Middleware products for TVindustry

8

DC

C L

abs

SeaChange

100%

Electronic payments provider

27,4

Mob

iltek

MCI Capital

100%

75%

Acquirer

Allegro is a most popular online marketplace in Poland

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Acknowledgements

We thank Ilya Boshnyakov and his team from BrainCombinator (braincombinator.com) for the help with automation of data collection from social media that significantly increased the total number of deals that we have analyzed.

We also thank our colleagues Sandra Sobańska for assistance in contacting to deals participants, and Anna Magiera for comments that greatly improved the report.

Designed by Top Leadtoplead.com.uamarina.budnik@toplead.com.ua

Prepered by GrowthUP Groupgrowthup.comnso@growthup.com (Nikolay Sokratov)