SME Equity Financing Atlas - PwC France · 2017-06-23 · SME Equity Financing Atlas 201 3 Key insights 1. Boom in equity investment in SMEs - deals up by 108% and capital invested

SME Equity Financing AtlasA new investment boom phase driven by startups and tech

www.pwcaccelerator.com

First editionMarch 2017

2 PwC’s Accelerator

This document is exclusively designed for the general information of readers and is (i) not intended to address the specific circumstances of any particular individual or entity and (ii) not necessarily comprehensive, complete, accurate or up to date and hence cannot be relied upon to take business decisions. Consequently, PwC’s Accelerator does not guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. The reader must be aware that the information to which he/she has access in this document is provided “as is” without any express or implied guarantee by PwC’s Accelerator and does not constitute the giving of an investment advice.

PwC’s Accelerator cannot be held liable for mistakes, omissions, or for the possible effects, results or outcome obtained further to the use of this publication or for any loss which may arise from reliance on materials contained in it, which is issued for informative purposes only. No reader should act on or refrain from acting on the basis of any matter contained in this publication without considering and, if necessary, taking appropriate advice in respect of his/her own particular circumstances.

1SME Equity Financing Atlas 2016

Table of contentForeword 2

Global perspective 4Boom in equity investments in SMEs: deals +108% and capital invested +122% in 5 years 6

Ticket sizes have increased at all stages of investment... 8

...with +159% in pre-money valuations in later stage deals 9

Investor activity: accelerators and incubators on the rise 10

Investments in IT count for over a third of the total capital invested in 2015 12

Europe picking up the pace, but still far behind the US 14

Deals per 100,000 inhabitants (per capita) in 2015 15

Industry focus by country 16

Series A investors take biggest equity stakes (on average) 18

Follow-up financing after seed-round - 52% make it to a Series A round 19

A journey of equity financed SMEs over a 10 year period (part 1) 20

A journey of equity financed SMEs over a 10 year period (part 2) 21

Regional perspective 22USA still globally dominant in terms of deals and volumes 24

As a North American SME, where do I look for the highest density of investor(s) according to my industry and my financing need? 26

Slowdown in deals in European SMEs in 2015 28

As a European SME, where do I look for highest density of investor(s) according to my industry and my financing need? 30

China and India are the dominating hubs in Asia 32

As an Asian or Middle East SME, where do I look for the highest density of investor(s) according to my industry and my financing need? 34

Countries in the spotlight 36German equity investment market in SMEs 38

Slowdown in deals and increase in capital invested 39

Top three most active investors investing in German SMEs by ticket size and industry (within last two years) 40

French equity investment market in SMEs 41

Slowdown in deals and volatile capital invested 42

Top three most active investors investing in French SMEs by ticket size and industry (within last two years) 43

Industry in the spotlight 44Significant growth of investments in “Big Data” focused SMEs 46

Location of equity investor backed Big Data SMEs worldwide (last five years) 48

Example of innovative Big Data SMEs receiving equity in last two years 49

Most active investors in Big Data SMEs by deals size (last two years) 50


SME Equity Financing AtlasA new investment boom phase driven by startups and tech

Laurent ProbstPwC’s Accelerator Global Leader

Cyrille FoillardPwC’s Accelerator Managing Director

Why?Our objective was to evaluate the equity financing market for SMEs, identify barriers and enablers at a global, cross-border and regional level.

How?We analysed equity investments in SMEs from 2010-2015 (based on Pitchbook and World Bank data), covering:

• 52,614 companies that employ less than 250 persons;

• 81,141 deals with a known deal size under EUR 500m

• 33,490 equity investors

– including VC deals and PE growth and expansion deals from all investor types (angels, venture capital funds, family offices, etc.);

– excluding secondary market transactions (buy-outs, buy-ins, M&As).

For whom?Our Atlas is both addressing CEOs of SMEs looking for equity financing with an overview of key aspects in current equity financing relevant to them, as well as equity investors wanting to gain an overview of the current market situation. We also give policy makers a panorama of the equity financing ecosystem to help them address relevant questions.


Key insights

1. Boom in equity investment in SMEs - deals up by 108% and capital invested by 122% in five years, resulting in 18,186 deals and nearly EUR 150bn in capital invested in 2015.

2. Significant increases in pre-money valuation of young companies (especially in later-stage investments) puts pressure on CEOs to deliver on expectations.

3. Accelerator and incubators on the rise and investing in young companies, as shown by the growth of 578% in number of deals in five years (from 547 to 3,709).

4. More and more corporates are creating their own venture capital funds to source and invest in young innovative SMEs with > EUR 20bn capital invested in 2015.

5. SMEs operating in booming industry verticals such as FinTech, Big Data, Mobile or Cybersecurity are increasingly attracting equity investors.

6. Europe picking up with 21% of deals done with European ventures, but still far behind the US. More and more cross-border deals show foreign investors’ interest in local ventures.

7. Of the 1,182 equity-backed companies we’ve followed over a period of 10 years, only 5% are able to exit via IPO, with the vast majority being US companies (75%).

Key questions for government and policy makers to muscle the ecosystem!1. Staying or leaving?Are the capital gains and exit through equity investment in SMEs reinjected into the local ecosystem? Are successful entrepreneurs re-investing or leaving the territory?2. Is your local ecosystem attractive enough for equity investments in SMEs?Are SMEs or your ecosystem attracting external financing in the form of equity financing or do they have to go abroad for financing?3. Are your local incubators and accelerators strong enough to support SMEs in your

ecosystem?Do your local incubators and accelerators provide strong enough assistance to SMEs to grow fast in domestic and international markets?4. Growing or selling your SMEs?What are the entrepreneurs of your ecosystem likely to do: grow or sell their SMEs? How many IPOs relative to M&As happen in your ecosystem? What are the true remaining barriers for SMEs growth in your ecosystem?5. Enough engagement of corporates?How can you boost corporate investments into SMEs? How active are corporates in investing in SMEs?6. Enough entrepreneurs?Do you have enough good entrepreneurs in your ecosystem?


33,490equity

investors

52,614SMEs

86,141deals


Part 1

5

Global perspective

SME Equity Financing Atlas 2016

Equity investments in SMEs have been growing steadily over the last years. The main drivers are the accumulation of capital in investors’ hands, new technologies and the low-interest rates. Since some asset classes (e.g. debt asset classes, like bonds)

can’t yield good returns anymore, some investors turn towards riskier asset classes, like equity for start-ups. It’s difficult to estimate how this growing trend will look in the future, as new macroeconomic factors (e.g. Brexit) might have a role to play.

Nevertheless, SMEs and their often disruptive and innovative solutions can offer significant returns for investors.

Equity investments in SMEs worldwide

Boom in equity investments in SMEs:deals +108% and capital invested +122% in 5 years

00.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

Number of deals closed Capital invested in EUR bn

2015

Q4

2014

Q4

2013

Q4

2012

Q4

2011

Q4

2010

Q4

2015

Q2

2014

Q2

2013

Q2

2012

Q2

2011

Q2

2010

Q2

2015

Q3

2014

Q3

2013

Q3

2012

Q3

2011

Q3

2010

Q3

2015

Q1

2014

Q1

2013

Q1

2012

Q1

2011

Q1

2010

Q1

Total capital invested (in EUR bn) Number of deals (#)



• Strong growth in deals and capital invested over the last five years.

• Significant slowdown in deals in 2015 (mainly in Europe).

• Growth in deals for 2010-2015 (+108%) is slightly lower than for capital invested (+122%).

• Significant growth in capital invested in the last three years (+70%).

• First signs in the first half of 2016 that these evolutions will continue.

Key information

Year to year perspective

Source: PitchBook Inc.

2010

8,723

10,453

13,017

16,426

18,686 18,186

2011 2012 2013 2014 2015

20,000 200.00

150.00

100.00

50.00

0.00

15,000

10,000

5,000

0



Since 2013, ticket sizes have increased at all stages of investment, mainly due to an increase in capital inflows. Moreover, in recent years the “Unicorn Club” (private companies that exceed USD 1bn pre-money valuation mark) had become increasingly crowded, with prominent companies like AirBnB, Dropbox or Uber.

Average ticket size per series

0.00 2.50 5.00 7.50

10.00 12.50 15.00 17.50 20.00 22.50 25.00 27.50 30.00 32.50 35.00 37.50 40.00

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Seed Series A Series B Series C

in EUR m

Nevertheless, increasing valuations raise the bar for young companies' future performance. These valuations can put pressure on the firm to deliver on the expectations - this requires strong partners helping to meet expectations. Not meeting expectations in the form of down-rounds can lead to dilution and

misalignment. From the investors’ perspective, mainly the later-stage ones are currently affected by the increase of valuations.

Ticket sizes have increased at all stages of investment...


• Significant growth in average ticket size per series since 2015, reaching new heights for the last years.

• Pre-money valuation, across all series, reaching new heights.• Very large sized tickets (> 25m) show largest growth in pre-money

valuation.• High pre-money valuations are mainly seen with SMEs in the

information technology sector, but also in areas such as Life Science or CleanTech.

• Superior growth in ticket size over pre-money valuation has also led to an increased dilution for investors.

Key information

Pre-money valuation median by ticket size

2.54

3.90

6.49

17.35

37.96

76.13

8.25

19.98

47.58

215.88


2010

2010

2010

2010

2010

1.15

1.46

2010

2015

2015

2015

2015

2015

2015

0 - 499k

500k - 0.9m

1m - 4.9m

5m - 9.9m

10m - 24.9m

> 25m

+27.5%

+53.5%

+27.2%

+15.2%

+25.3%

+159.9%

...with +159% in pre-money valuations in later stage deals


Share of capital invested by investor type over the period 2010-2015

Median deal size by type of investor

0

2.5

5

7.5

10

12.5

15

2010 2011 2012 2013 2014 2015

Angel (group & individual) & family office Accelerators & incubators Venture capital firm Corporate VC PF growth/expansion or mezzanine fund Government or universities

in EUR m

Investor activity: accelerators and incubators on the rise

Following the big success of projects initially funded through incubators or accelerators (e.g. AirBnB, Dropbox), more and more similar projects are rolled-out globally. However, venture capital remains the main source of funding for early-stage companies.

This is firstly due to the historic appetite of venture capital investors for risky business ideas (start-ups) and secondly, because they provide management assistance, client introduction and expertise, which are key for the critical stages of a start-up.

Nevertheless, private equity funds and venture capital investors remain the dominant players in terms of capital invested, as they nearly account for 2/3 of all invested capital.

41%

36%

10%

3% 9%

1%

PE growth/expansion or mezzanine fund Venture capital firms Angel (group & individual) & family office

Government or universities

Corporate VC Accelerators & incubators

41%

36%

10%

3% 9%

1%

PE growth/expansion or mezzanine fund Venture capital firms Angel (group & individual) & family office

Government or universities

Corporate VC Accelerators & incubators


• Venture capital investors remain the biggest investors with the majority of all deals done.

• Governmental investors remain the smallest investor accounting only for 3% of all deals.

• Accelerators and incubators show the biggest growth (+578% from 2010 to 2015) in terms of deals (now the

3rd largest investor after VC’s and angels/family offices).

• Rise of deals from angels and family office investors, particular in small ticket sizes (< 5m).

• Venture capital and PE investors remain dominant in terms of capital invested, accounting for 2/3 of all capital invested.

Key information

Growth in deals by investor type (2010 - 2015)


152%150% 150%

125%22%Corporate VCs

Angels & family offices Government

& universities

Venture capital firms

PE expansion or mezzanine

fund578%

Accelerators & incubators

Deals 2015: 3,709Deals 2010: 547

Deals 2015: 1,186Deals 2010: 471

Deals 2015: 8,362Deals 2010: 3,718

Deals 2015: 1,601Deals 2010: 4,009 Deals 2015: 645

Deals 2010: 258

Deals 2015: 3,709Deals 2010: 547


Investments in IT count for over a third of the total capital invested in 2015


Capital invested by industry sector

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

0%

0%

25%

25%

100%

100%

75%

75%

50%

50%

Materials & Resources

Information Technology

Healthcare Financial Services Energy Consumer Products & Services

Business Products & Services

Deals by Industry Sector


• The majority of deals are done with SMEs in the information technology sector (42% in 2015).

• Since 2010, information technology deals have gained market share, both in terms of number of deals and capital invested.

• Median pre-money valuations are above average (> 15m) in the sectors SaaS, Big Data, FinTech, Life Sciences and Mobile.

• Emerging SMEs in the area of 3D Printing (+1667% from 2010 to 2015) and Wearables/Quantified Self (+1536%) show significant growth in terms of deals, but remain minor in terms of absolute number of deals.

Key information

Source: PitchBook Inc. and World Bank Data

Hot industry verticals (number of deals 2015)

1,308

Life Sciences

Deals 2010: 1,072

3,522SaaS

Deals 2010: 1,325

2,967Mobile

Deals 2010: 931

1,503Manufacturing

Deals 2010: 941

1,257E-Commerce

Deals 2010: 399

750FinTech

Deals 2010:175

722Big Data

Deals 2010:140

603CleanTech

Deals 2010:641

541HealthTech

Deals 2010:132

425EdTech

Deals 2010:92 405

MarketingTech

Deals 2010:185

401IoT

Deals 2010:87

298AdTech

Deals 2010:211

229Wearables

Deals 2010:14

209Robotics &

Drones

Deals 2010:32

1063D Printing

Deals 2010:6

Deals 2015: 18,186

Deals 2010: 8,723


Europe picking up the pace, but still far behind the US

There’s a historical link between a country’s size of the economy and the capital available for young companies. Countries with more developed economies are able to supply young companies with more capital and foster innovation. However, what we’ve seen in terms of number of deals per 100,000 inhabitants is that although some countries are small, they manage to do more deals than larger states.

Europe

3,862 EUR 23bn

>5 or 0 deals 99 – 5 deals 199 – 100 deals 499 – 200 deals 999 – 500 deals >1000 deals

North America 12,186 EUR 90bn

South America

208 EUR 2bn

Africa

73 EUR 0.5bn

Oceania

189 EUR 0.3bn

Asia

1,755 EUR 29bn


Deals per 100,000 inhabitants (per capita) in 2015

<0.01 0.09 – 0.01 0.24 – 0.1 0.49 – 0.25 0.99 – 0.5 >1

Israel

EstoniaIreland

Iceland SingaporeLuxembourg

United Kingdom

United States

2nd

1st

3rd

5th 6th 7th 8th

4th

Relatively small economies that have attracted significant capital investments in SMEs

Large mature equity markets with high volume of capital


Industry focus by country

No. 1 industry by global region in terms of capital invested in 2015

Business products & services

Consumer products & services

Financial services

Energy Healthcare Information technology

Resources & materials


Source: PitchBook Inc. and World Bank Data

• The most important industry varies significantly across countries. In most of the northern economies, the IT industry dominates.

• The US remain dominant in deals and volume, but Europe and Asia are picking up year by year.

• Europe has seen a significant slowdown in deals in 2015 (-12% compared to 2014).

• Countries like Israel, Ireland Finland, Luxembourg, Estonia, Sweden or Switzerland come close to the US in terms of per capita deals.

• Most important countries by absolute number of deals following the US are: United Kingdom, Canada, Israel, Germany, Ireland, France, Italy, China and India.

Key information

Evolution of deals by global regions (by number of deals)

0%

20%

40%

60%

80%

100%

2015 2014 2013 2012 2011 … 2005

Oceania Middle East

Africa Asia

South & Central America Europe

Canada United States

62%

21%

9% 3%

14%

76%

0%

20%

40%

60%

80%

100%

2015 2014 2013 2012 2011 … 2005

Oceania Middle East

Africa Asia

South & Central America Europe

Canada United States

62%

21%

9% 3%

14%

76%

PwC’s Accelerator

Series A investors take biggest equity stakes (on average)

Average equity stake taken by investors (2015)

Seed Series A Series B Series C Series D Series E

20.8%

28.5%23.3%

20.5%16.8%

11.2%


18


Follow-up financing after seed-round 52% make it to a Series A round

% of these companies that received equity financing in follow up Series (until 2015)

tillSeries A

tillSeries B

tillSeries C

tillSeries D

tillSeries E+

No follow-up

No follow-up

51.8%39.6%

19.3%12.0%

3.7%

48.2%

SMEs received their first seed equity financingin 2005(Seed)

187



A journey of equity financed SMEs over a 10 year period (part 1)

Companies applying for equity financing in 2005

“Only a small number of all SMEs worldwide are raising capital from equity investors. For the management of SMEs it’s highly important to identify the right investors in their domain, before approaching them. Moreover, the inability to manage expectations and lack of experience in the screening phase can often result in unsuccessful fundraising of SMEs.”

René AndresPwC’s Accelerator Senior Advisor

SMEs received their first seed equity financingin 2005(Seed)

187

1,182 SMEs worldwide raised their first money in 2005 from equity investors (Seed or Series A)

On average only

0.56% of companies that apply for equity financing actually receive it1

1. Based on PwC´s Accelerator internal knowledge


A journey of equity financed SMEs over a 10 year period (part 2)M&As remain the most attractive exit option for investors. This is because IPOs are complex and timing is a further difficult factor to control. It takes a lot of time and preparation work to make companies ready to go public, compared to M&As. Moreover, investors can’t directly liquidate all their shares in an IPO compared to an M&A.

1,182SMEs worldwide raised their first Seed or Series A money in 2005 from equity investors

only 1 in 125 companies is able to exit via an IPO > 1b EUR

After 10 years…

Valuation % % of US ventures

0-10m 34% 40%

10m-20m 13% 41%

20-50m 16% 47%

50-100M 13% 48%

> 100m 24% 63.%

A trade sale is8.34 times more frequent than an IPO.

For European SMEs that exited via M&A

35% were bought by US companies and

10% by Asian companies.

Origin of ventures:

75% US ventures, with only 11% EU ventures

Status in 2015 Number of companies

% (of 1,182 companies)

IPO and current enterprise Value > 1b EUR 10 0.8%

IPO and current enterprise Value < 1 b EUR 51 4.3%

Were acquired or merged 509 43.0%

Are generating revenue and have > 15 employees 241 20.4%

Are generating revenue and have < 15 employees 157 13.2%

Are still in clinical trials/product development

27 2.3%

Out of Business or Bankruptcy/Liquidation 187 15.8%


22 PwC’s Accelerator 22 PwC’s Accelerator

Part 2


Regional perspective



USA still globally dominant in terms of deals and volumes

The USA are the biggest market for equity financing worldwide. Over many years, the USA have created local hubs with a high density of start-ups and investors. This and the fact that investors generally prefer proximity to their ventures explain why many deals are local. As there are so many young companies for example in Palo Alto, many investors are also located there and invest in them. Moreover, for very large deals (> EUR 25m) many non-US ventures (e.g. Canadian, Mexican) seek money in the USA, due to the availability of capital and expertise in this region.

0

20,000

40,000

60,000

80,000

100,000

-

2,500

5,000

7,500

10,000

12,500

15,000

2010 2011 2012 2013 2014 2015

USA

0

2,500

5,000

7,500

10,000

12,500

15,000

-

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

Canada

0

2,500

5,000

-

250

500

2010 2011 2012 2013 2014 2015

Foreign investors1 Local investors1

Mexico

1. Percentage of foreign (local) investors that invested in SMEs in the respective country in 2015


Capital invested in local SMEs (in EUR m) by ticket size and importance of foreign investors involved (2015)

Country 0-499k 500k-1m 1m-5m 5m-10m 10m-25m 25m+USA% local inv.

66487%

99487%

7,76185%

7,31684%

14,24180%

36,65375%

Canada% local inv.

4158%

4478%

29853%

25239%

65537%

1,12844%

Mexico% local inv.

546%

387%

1750%

3720%

3816%

44533%

100 120 140 160 180 200

0

100

200

300

400

500

2010 2011 2012 2013 2014 2015

Number of deals closed

-

1,000

2,000

3,000

4,000

5,000

2010 2011 2012 2013 2014 2015

Capital invested inEUR m

Explanation



Industry 0 – 1m 1m-10m +10m

SaaS (2015 – EUR 14.93bn)

Mobile (2015 – EUR 7.24bn)

Life science (2015 – EUR 14.64bn)

Manufacturing (2015 – EUR 8.89bn)

E-Commerce (2015 – EUR 3.45bn)

CleanTech (2015 – EUR 3.13bn)

Big Data (2015 – EUR 3.73bn)

FinTech (2015 – EUR 3.20bn)

Cybersecurity (2015 – EUR 2.39bn)

IoT (2015 – EUR 1.04bn)


- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada India

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA UK China

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA China Canada

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA Canada Mexico

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada France

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA UK Canada

- 125 250 375 500

USA Canada Japan

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA UK Canada

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada Israel

- 125 250 375 500

USA Canada

Canada

France

- 125 250 375 500

USA Canada Australia

- 125 250 375 500

USA Ireland UK

- 125 250 375 500

USA UK

+500

+500

+500

+500

+500

+500

+500

+500

+500

+500

Explanation: The numbers displayed include investors having at least done one investment in the last two years in the given industry (sorted by the top three countries with the greatest amount of active investors in that industry and deal range).

UK Canada Australia USA India China France Ireland Israel

Ticket size

As a North American SME, where do I look for the highest density of investor(s) according to my industry and my financing need?

There’s so much capital available in all industries in the US that ventures don’t necessarily need to look for investors in other countries. Only for some industries, US ventures could consider the UK or Canada as a second option.

Industrialised and well developed countries (US, Germany, France, UK, etc.) mainly focus on IT-driven ventures (SaaS, Cybersecurity, Big data), whereas many emerging and developing countries have more capital invested in B2C or B2B products and services.

2. Capital invested in North American SMEs in 2015 in these industry vertical



SaaS (2015 – EUR 14.93bn)









IoT (2015 – EUR 1.04bn)


- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada India

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA UK China

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA China Canada

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA Canada Mexico

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada France

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA UK Canada

- 125 250 375 500

USA Canada Japan

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA UK Canada

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada Israel

- 125 250 375 500

USA Canada

Canada

France

- 125 250 375 500


- 125 250 375 500

USA Ireland UK

- 125 250 375 500

USA UK

+500

+500

+500

+500

+500

+500

+500

+500

+500

+500



Ticket size


SaaS (2015 – EUR 14.93bn)









IoT (2015 – EUR 1.04bn)


- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada India

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA UK China

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA China Canada

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA Canada Mexico

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada France

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA UK Canada

- 125 250 375 500

USA Canada Japan

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA UK Canada

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada Israel

- 125 250 375 500

USA Canada

Canada

France

- 125 250 375 500


- 125 250 375 500

USA Ireland UK

- 125 250 375 500

USA UK

+500

+500

+500

+500

+500

+500

+500

+500

+500

+500



Ticket size


SaaS (2015 – EUR 14.93bn)









IoT (2015 – EUR 1.04bn)


- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada India

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA UK China

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA China Canada

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA Canada Mexico

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada France

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada China

- 125 250 375 500

USA UK Canada

- 125 250 375 500

USA Canada Japan

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA UK Canada

- 125 250 375 500

USA Canada UK

- 125 250 375 500

USA Canada Israel

- 125 250 375 500

USA Canada

Canada

France

- 125 250 375 500


- 125 250 375 500

USA Ireland UK

- 125 250 375 500

USA UK

+500

+500

+500

+500

+500

+500

+500

+500

+500

+500



Ticket size


Slowdown in deals in European SMEs in 2015 The EU is attractive for many ventures and their investors, due to the size of the market and the number of potential customers. Another benefit is the nearly harmonised approach when it comes to regulation and the use of a single currency across several countries.

0

2,000

4,000

6,000

8,000

10,000

-

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

UK

0

2,000

4,000

6,000

8,000

10,000

-

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

Ireland

-

2,000

4,000

6,000

8,000

10,000

0

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

Germany

-

2,000

4,000

6,000

8,000

10,000

0

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

France

-

2,000

4,000

6,000

8,000

10,000

0

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

Spain

-

2,000

4,000

6,000

8,000

10,000

0

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

Netherlands

Foreign investors Local investors



Country 0-499k 500k-1m 1m-5m 5m-10m 10m-25m 25m+UK% local inv.

10958%

12359%

83050%

62052%

1,30642%

5,70837%

Ireland% local inv.

841%

1060%

8933%

2250%

11926%

1867%

Germany% local inv.

1048%

1571%

18155%

15649%

39043%

2,37619%

France% local inv.

1578%

4074%

36074%

25274%

39662%

1,46555%

Spain% local inv.

1458%

1658%

7551%

3844%

18931%

1,01831%

Netherlands% local inv.

1158%

980%

6943%

6943%

6316%

71617%



- 125 250

UK USA France

SaaS (2015 – EUR 3.55bn)









IoT (2015 – EUR 0.45bn)

- 125 250

UK USA Italy

- 125 250

UK USA Germany

- 125 250

USA Germany UK

- 125 250

USA UK Germany

- 125 250

UK USA Germany

- 125 250 UK France Spain

- 125 250 UK Germany France

- 125 250 USA UK Switzerland

- 125 250 UK France Germany

- 125 250 UK France USA

- 125 250 France Germany UK

- 125 250

UK Spain Italy

- 125 250

UK France USA

- 125 250

USA UK Germany

- 125 250

UK France Italy

- 125 250

UK France Germany

- 125 250

UK Germany France

- 125 250

UK France Germany

- 125 250

UK USA France

- 125 250

France UK USA

- 125 250

UK Germany Spain

- 125 250

UK USA Germany

- 125 250

USA UK Germany

- 125 250

UK France USA

- 125 250

UK USA France

- 125 250

USA UK Israel

- 125 250 UK Italy Spain

- 125 250 France UK Germany

- 125 250 France UK Switzerland


UK Germany USA Italy Switzerland France Spain Israel


As a European SME, where do I look for highest density of investor(s) according to my industry and my financing need?


- 125 250

UK USA France

SaaS (2015 – EUR 3.55bn)









IoT (2015 – EUR 0.45bn)

- 125 250

UK USA Italy

- 125 250

UK USA Germany

- 125 250

USA Germany UK

- 125 250

USA UK Germany

- 125 250

UK USA Germany







- 125 250

UK Spain Italy

- 125 250

UK France USA

- 125 250

USA UK Germany

- 125 250

UK France Italy

- 125 250

UK France Germany

- 125 250

UK Germany France

- 125 250

UK France Germany

- 125 250

UK USA France

- 125 250

France UK USA

- 125 250

UK Germany Spain

- 125 250

UK USA Germany

- 125 250

USA UK Germany

- 125 250

UK France USA

- 125 250

UK USA France

- 125 250

USA UK Israel







- 125 250

UK USA France

SaaS (2015 – EUR 3.55bn)









IoT (2015 – EUR 0.45bn)

- 125 250

UK USA Italy

- 125 250

UK USA Germany

- 125 250

USA Germany UK

- 125 250

USA UK Germany

- 125 250

UK USA Germany







- 125 250

UK Spain Italy

- 125 250

UK France USA

- 125 250

USA UK Germany

- 125 250

UK France Italy

- 125 250

UK France Germany

- 125 250

UK Germany France

- 125 250

UK France Germany

- 125 250

UK USA France

- 125 250

France UK USA

- 125 250

UK Germany Spain

- 125 250

UK USA Germany

- 125 250

USA UK Germany

- 125 250

UK France USA

- 125 250

UK USA France

- 125 250

USA UK Israel







- 125 250

UK USA France

SaaS (2015 – EUR 3.55bn)









IoT (2015 – EUR 0.45bn)

- 125 250

UK USA Italy

- 125 250

UK USA Germany

- 125 250

USA Germany UK

- 125 250

USA UK Germany

- 125 250

UK USA Germany







- 125 250

UK Spain Italy

- 125 250

UK France USA

- 125 250

USA UK Germany

- 125 250

UK France Italy

- 125 250

UK France Germany

- 125 250

UK Germany France

- 125 250

UK France Germany

- 125 250

UK USA France

- 125 250

France UK USA

- 125 250

UK Germany Spain

- 125 250

UK USA Germany

- 125 250

USA UK Germany

- 125 250

UK France USA

- 125 250

UK USA France

- 125 250

USA UK Israel









China and India are the dominating hubs in Asia

Israel has become a start-up hub over the last few years, known all around the world. One of the explanations for this trend lays in the entrepreneurial mindset in Israel. Also the ecosystem includes many investors and research institutions constantly developing and supporting new innovative solutions. This ecosystem has also already attracted many foreign investors (the US for example).

0

5,000

10,000

15,000

20,000

-

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

India

0

2,000

4,000

6,000

8,000

10,000

-

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

Israel

0

5,000

10,000

15,000

20,000

-

500

1,000

1,500

2,000

2010 2011 2012 2013 2014 2015

China

Foreign investors Local investors



Country 0-499k 500k-1m 1m-5m 5m-10m 10m-25m 25m+China% local inv.

550%

950%

10157%

35555%

1,20574%

13,92344%

India% local inv.

4360%

5765%

43252%

53038%

1,04731%

7,29629%

Israel% local inv.

1633%

2548%

27441%

20640%

51137%

40830%



SaaS (2015 – EUR 4.62b)

Mobile (2015 – EUR 8.54b)

Life Science (2015 – EUR 1.32b)

Manufacturing (2015 – EUR 1.77b)

E-Commerce (2015 – EUR 7.57b)

CleanTech (2015 – EUR 0.49b)

Big Data (2015 – EUR 0.37b)

FinTech (2015 – EUR 1.84b)

Cybersecurity (2015 – EUR 0.21b)

IoT (2015 – EUR 0.29b)


- 125 250

USA China Israel

- 125 250

USA Israel India

- 125 250

USA India Israel

- 125 250

India USA Singapore

- 125 250

USA China India

- 125 250

China USA Japan

- 125 250

USA South Korea India

- 125 250

Israel Japan USA

- 125 250

USA China Israel

- 125 250

India USA South Korea

- 125 250

USA China India

- 125 250

China Israel USA

- 125 250

India USA Singapore

- 125 250

USA India Singapore

- 125 250

China USA India

- 125 250

India USA Singapore

- 125 250

USA Israel India

- 125 250

USA India China

- 125 250

India Israel USA

- 125 250

USA Israel South Korea

- 125 250

USA Israel China

- 125 250

USA Singapore Japan

- 125 250

USA India Japan

- 125 250

China USA Hong Kong

- 125 250

India USA Israel

- 125 250

Israel USA Germany

- 125 250

Israel China USA

- 125 250

Israel India South Korea

- 125 250

USA Taiwan Japan

- 125 250

USA Israel Japan


UK India USA Singapore China Japan Taiwan Israel South Korea


As an Asian or Middle East SME, where do I look for the highest density of investor(s) according to my industry and my financing need?


SaaS (2015 – EUR 4.62b)









IoT (2015 – EUR 0.29b)


- 125 250

USA China Israel

- 125 250

USA Israel India

- 125 250

USA India Israel

- 125 250

India USA Singapore

- 125 250

USA China India

- 125 250

China USA Japan

- 125 250


- 125 250

Israel Japan USA

- 125 250

USA China Israel

- 125 250


- 125 250

USA China India

- 125 250

China Israel USA

- 125 250

India USA Singapore

- 125 250

USA India Singapore

- 125 250

China USA India

- 125 250

India USA Singapore

- 125 250

USA Israel India

- 125 250

USA India China

- 125 250

India Israel USA

- 125 250


- 125 250

USA Israel China

- 125 250

USA Singapore Japan

- 125 250

USA India Japan

- 125 250

China USA Hong Kong

- 125 250

India USA Israel

- 125 250

Israel USA Germany

- 125 250

Israel China USA

- 125 250


- 125 250

USA Taiwan Japan

- 125 250

USA Israel Japan




SaaS (2015 – EUR 4.62b)









IoT (2015 – EUR 0.29b)


- 125 250

USA China Israel

- 125 250

USA Israel India

- 125 250

USA India Israel

- 125 250

India USA Singapore

- 125 250

USA China India

- 125 250

China USA Japan

- 125 250


- 125 250

Israel Japan USA

- 125 250

USA China Israel

- 125 250


- 125 250

USA China India

- 125 250

China Israel USA

- 125 250

India USA Singapore

- 125 250

USA India Singapore

- 125 250

China USA India

- 125 250

India USA Singapore

- 125 250

USA Israel India

- 125 250

USA India China

- 125 250

India Israel USA

- 125 250


- 125 250

USA Israel China

- 125 250

USA Singapore Japan

- 125 250

USA India Japan

- 125 250

China USA Hong Kong

- 125 250

India USA Israel

- 125 250

Israel USA Germany

- 125 250

Israel China USA

- 125 250


- 125 250

USA Taiwan Japan

- 125 250

USA Israel Japan




- 125 250

UK USA France

SaaS (2015 – EUR 3.55bn)









IoT (2015 – EUR 0.45bn)

- 125 250

UK USA Italy

- 125 250

UK USA Germany

- 125 250

USA Germany UK

- 125 250

USA UK Germany

- 125 250

UK USA Germany







- 125 250

UK Spain Italy

- 125 250

UK France USA

- 125 250

USA UK Germany

- 125 250

UK France Italy

- 125 250

UK France Germany

- 125 250

UK Germany France

- 125 250

UK France Germany

- 125 250

UK USA France

- 125 250

France UK USA

- 125 250

UK Germany Spain

- 125 250

UK USA Germany

- 125 250

USA UK Germany

- 125 250

UK France USA

- 125 250

UK USA France

- 125 250

USA UK Israel







36 PwC’s Accelerator 36 PwC’s Accelerator 36 PwC’s Accelerator

Part 3

37SME Equity Financing Atlas 2017 37SME Equity Financing Atlas 2015

Countries in the Spotlight

Germany France Germany France

At European level, we have seen a slowdown in deals in 2015. Factors influencing that development include stable/slightly declining fundraising of investor funds as well as market uncertainty.

The major investor hubs for Germany remain Berlin and Munich, as well as for France Paris, with a focus on software ventures (especially SaaS, mobile and E-Commerce). Most SMEs employ new and interesting solutions, with a current trend to use more and more machine learning and deep learning approaches.



German equity investment market in SMEs

Share of Foreign investors

56%

Munich

Bonn

Hamburg

Switzerland Luxembourg UK

Investor # deals(<EUR 10m)

High-Tech Gründerfonds

37

Axel Springer Plug & Play Accelerator 18

IBB 11

Target Partners 10

ProSiebenSat.1 Accelerator

10

B-to-v Partners 8

Innovationsstarter Hamburg

8

Holtzbrinck Ventures 7

Cavalry Ventures 7

Capnamic Ventures 7

Investor # deals(>EUR 10m)

Holtzbrinck Ventures 12

Rocket Internet 10

Wellington Partners 6

Highland Capital Partners Europe

5

B-to-v Partners 5

Tengelmann Ventures

4

Mangrove Capital Partners

4

Earlybird Venture Capital

4

DN Capital 4

High-Tech Gründerfonds

4

Most active investors in German SMEs


Location of ten most active investors (last two years)

1 1

1

1

2 2

2

2 3 3

3

3

4 4

4

5 5

5

5

6 6

6

6

7 7

7

7

8 8

8

89 9

9

9

10 10

10

10

10


Slowdown in deals and increase in capital invested

Ten most important industry verticals (# deals – last five years) for German SMEs Deals and capital invested (German SMEs)


116 142

188

256

302 270

-

1,000

2,000

3,000

4,000

5,000

0

100

200

300

400

500

2010 2011 2012 2013 2014 2015

Capital invested

in EUR m


259

225

152

121

114

71

53

35 37 34

SaaS Mobile E-Commerce Manufacturing Life Sciences CleanTech FinTech Internet of Things Big Data LOHAS & Wellness


Top three most active investors investing in German SMEs by ticket size and industry (within last two years)

Deals size

SaaS Mobile Life science

Manu-facturing

Clean-Tech

Big Data FinTech Cyber-security

E-Commerce

0-1m

1m-10m

>10m

Hig

h-Te

ch G

ründ

erfo

nds

Axel

Spr

inge

r Plu

g an

d Pl

ay A

ccel

erat

or

Poin

t Nin

e Ca

pita

l

Targ

et P

artn

ers

Iris

Cap

ital M

mgt

.

Hig

h-Te

ch G

ründ

erfo

nds

Hol

tzbr

inck

Ven

ture

s

Hig

hlan

d Ca

pita

l Par

tner

s Eur

ope

Cava

lry

Vent

ures

Star

tupb

ootc

amp

Inno

vatio

nsst

arte

r Ham

burg

ProS

iebe

nSat

.1 A

ccel

erat

or

Targ

et P

artn

ers

Iris

Cap

ital M

mgt

.

Capn

amic

Ven

ture

s

Hig

hlan

d Ca

pita

l Par

tner

s Eur

ope

Roc

ket I

nter

net

Wel

lingt

on P

artn

ers

Hig

h-Te

ch G

ründ

erfo

nds

Inno

vatio

nsst

arte

r Ham

burg

Busi

ness

Ang

els S

tutt

gart

Reg

ion

Hig

h-Te

ch G

ründ

erfo

nds

Pepp

erm

int V

entu

re P

artn

ers

BioM

Wel

lingt

on P

artn

ers

BioM

edPa

rtne

rs

Life

Sci

ence

s Par

tner

s

Foun

der.o

rg

Euro

pean

Pio

neer

s

Star

tupb

ootc

amp

IBB

SHS

NEO

Inve

stm

ent

Hig

h-Te

ch G

ründ

erfo

nds

Wel

lingt

on P

artn

ers

Rob

ert B

osch

Ven

ture

Cap

ital

Star

tupb

ootc

amp

Hig

h-Te

ch G

ründ

erfo

nds

Foun

der.o

rg

Mun

ich

Vent

ure

IBB

eCAP

ITAL

ent

repr

eneu

rial

Par

tner

s

Wel

lingt

on P

artn

ers

Hig

h-Te

ch G

ründ

erfo

nds

Inno

gy V

entu

re C

apita

l

Hig

h-Te

ch G

ründ

erfo

nds

Kim

a Ve

ntur

es

IBB

Teng

elm

ann

Vent

ures

Kim

a Ve

ntur

es

IBB

Wel

lingt

on P

artn

ers

Poin

t Nin

e Ca

pita

l

Cipi

o Pa

rtne

rs

Poin

t Nin

e Ca

pita

l

Hig

h-Te

ch

Inno

vatio

nsst

arte

r

Red

alpi

ne V

entu

re

Hol

tzbr

inck

Ven

ture

s

Earl

ybir

d Ve

ntur

e Ca

pita

l

Hol

tzbr

inck

Ven

ture

s In

dex

Vent

ures

Phen

omen

Ven

ture

s

Targ

et P

artn

ers

Plug

& P

lay

Axel

Spr

inge

r Ven

ture

Hig

h-Te

ch G

ründ

erfo

nds

LBBW

Ven

ture

Cap

ital

Hol

tzbr

inck

Ven

ture

s

ABR

Y Pa

rtne

rs

ProS

iebe

nSat

.1 A

ccel

erat

or

Hig

h-Te

ch G

ründ

erfo

nds

Plug

and

Pla

y

Hig

h-Te

ch G

ründ

erfo

nds

e.ve

ntur

es

Cher

ry V

entu

res

Roc

ket I

nter

net

Hol

tzbr

inck

Ven

ture

s

Insi

ght V

entu

re P

artn

ers

Example of innovative German SMEs receiving equity in the last two years*

Early stage Later stage

Seerene Blue Yonder

Konux Navvis

Deposit Solutions Kreditech

Gestigon Adjust

Mambu Arago

Zenmate Searchmetrics

Riskmethods Webtrekk

Testbirds Facelift

Treasury Intelligence Solutions Azeti


Most active investors in German SMEs

* Selection is based on innovativeness and interesting new use cases of the solutions and only represent a small fraction of all firms


French equity investment market in SMEs

Degree of Foreign investors 37%

USA

Investor # deals(<EUR 10m)

Bpifrance 58

Kima Ventures 19

Alven Capital Partners 19

Audacia 16

Cap Decisif Management

15

GO Capital 14

Rhône-Alpes Création

12

xAnge Private Equity 11

Seventure Partners 11

Partech Ventures 11

Investor # deals(>EUR 10m)

Bpifrance 20

IDInvest Partners 10

CM-CIC Investissement 4

BNP Paribas Développement

4

Alven Capital Partners

4

Accel Partners 4

Ventech 3

Serena Capital 3

Omnes Capital 3

Naxicap Partners 3


Location of ten most active investors (last two years)

1

1

1

1

2

2

2

2

33 3

3

4

4

4

4

5

5

5

5

6

6

6

6

7

7

7

7

8

8

8

8

9

9

9

9

10

10

10

10

Most active investors in French SMEs


Slowdown in deals and volatile capital invested

Capital invested

in EUR m


331

325

241

174

163

93

55

53 54

52

SaaS Mobile E-Commerce

Manufacturing Life sciences CleanTech

Marketing Tech AdTech

Internet of Things Big Data

307 328

365

402 432

400

-

1,000

2,000

3,000

4,000

5,000

0

100

200

300

400

500

2010 2011 2012 2013 2014 2015

Ten most important industry verticals (# deals - last five years) for French SMEs Deals and capital invested (French SMEs)



Top three most active investors investing in French SMEs by ticket size and industry (within last two years)

Bpifr

ance

Kim

a Ve

ntur

es

AXA

Stra

tegi

c Ve

ntur

es

Pari

s Inc

ubat

eurs

Fem

mes

Bus

ines

s Ang

els

Cap

Dec

isif

GO

Cap

ital

Seve

ntur

e Pa

rtne

rs

SEB

Allia

nce

New

fund

Bpifr

ance

Auda

cia

PACA

Inve

stis

sem

ent

Scie

ntip

ole

Capi

tal

Ture

nne

Capi

tal P

arte

nair

es W

estT

ech

Vent

ures

Mic

roso

ft Ac

cele

rato

r Pa

ris I

ncub

ateu

rs

AXA

Stra

tegi

c Ve

ntur

es K

ima

Vent

ures

SOR

IDEC

Elai

a Pa

rtne

rs

PACA

Inve

stis

sem

ent

IT-T

rans

latio

n

Kim

a Ve

ntur

es

Part

ech

Vent

ures

Tech

star

s

Bpifr

ance

Alve

n Ca

pita

l Par

tner

s

Kim

a Ve

ntur

es

Bpifr

ance

Alve

n Ca

pita

l Par

tner

s

xAng

e Pr

ivat

e Eq

uity

Cap

Dec

isif

Bpifr

ance

Seve

ntur

e Pa

rtne

rs

Bpifr

ance

Emer

tec

Ges

tion

Dem

eter

Par

tner

s

Entr

epre

neur

Ven

ture

Xer

ys

GO

Cap

ital

Alve

n Ca

pita

l Par

tner

s Se

rena

Cap

ital

Truf

fle C

apita

l

Part

ech

Vent

ures

xAng

e Pr

ivat

e Eq

uity

Tekt

on V

entu

res

xAng

e Pr

ivat

e Eq

uity

SOR

IDEC

Bpifr

ance

CM-C

IC C

apita

l

Alve

n Ca

pita

l Par

tner

s

Part

ech

Vent

ures

Alve

n Ca

pita

l Par

tner

s Ac

cel P

artn

ers

Lead

Edg

e Cap

ital

IDIn

vest

Par

tner

s

Lead

Edg

e Cap

ital

Acce

l Par

tner

s

Bpifr

ance

Edm

ond

de R

oths

child

Inve

stm

ent P

artn

ers

Vers

ant V

entu

res

Bpifr

ance

Sofim

ac P

artn

ers

Robo

lutio

n Ca

pita

l

Bpifr

ance

Xery

s

Om

nes C

apita

l

Vent

ech

Seve

ntur

e Par

tner

s

Sere

na C

apita

l

Prim

e Ven

ture

s

Part

ech

Vent

ures

IDIn

vest

Par

tner

s

Bpifr

ance

Vent

ech

Deals size

SaaS Mobile Life sciences

Manu-facturing

Clean-Tech

Big Data FinTech Cyber-security

E-Commerce

0-1m

1m-10m

>10m


Example of innovative French SMEs receiving equity in the last two years*

Early stage Later stage

Neotys PeopleDoc

CybelAngel Netatmo

Sqreen SlimPay

Ledger Intersec

Enovacom Talentsoft

Clustree Qowisio

Finalcad Actility

Netwave Augure

* Selection is based on innovativeness and interesting new use cases of the solutions and only represent a small fraction of all firms.


Part 4


Industry in the Spotlight

With the increase of computational power and of the quantity of data generated and stored, more and more machine learning and deep learning approaches are used to build new solutions for important business problems. The majority of these Big Data SMEs are located in the US. Many of the applications are B2B driven, and target big corporates, located in developed economies. Europe (mainly in Germany, France and the UK) has some very interesting ventures in the field of Big Data, while India and China are also on the rise.

Big Data


• Strong annual growth in Big Data SMEs investments since 2003 (average annual growth: +37% in deals and +56% in capital invested).

• The first signs in the first half of 2016 show that these evolutions are going to continue.

• Equity investors invested EUR 5.2bn in 727 deals in Big Data SMEs in 2015.

• Pre-money valuation of Big Data SMEs is constantly above the global industry average.

• Biggest pre-money valuation premiums in 2014 (+3.2 m) compared to global industry average.

Key information

Equity investments in Big Data SMEs worldwide

20102009200820072006200520042003

20 23 45 48 57

90112

165

235

386

588

680

727

2011 2012 2013 2014 2015

1,000

2,000

3,000

4,000

5,000

6,000

500

750

250

0


Significant growth of investments in “Big Data” focused SMEs


Median pre-money valuation (Big Data vs. global average)

-

-

-

-

-

4.00

8.00

12.00

16.00

2010 2011 2012 2013 2014 2015

Med

ian

pre

-mon

ey v

alu

atio

n in

EU

R m

Big Data median Global median


Europe

300

<5 SMEs or 0 SMEs > 100 SMEs 100-50 SMEs 49-20 SMEs 19-10 SMEs 9-5 SMEs

North America

1,010

South America

20

Africa

2

Oceania

5

Asia

121

Location of equity investor backed Big Data SMEs worldwide (last five years)


Example of innovative Big Data SMEs receiving equity in last two years*

Asi

a an

d

Mid

dle

Eas

t Company name Activity/solution Country of originThetaRay Fraud detection analytics Israel

Wecash Credit scoring platform China

DeepGlint 3D image analytics China

Logz.io Predictive analytics solution Israel

Windward Data analytics for maritime Israel

CB4 Predictive analytics solution Israel

Eu

rop

e

Company name Activity/solution Country of originImport io Data extract solution United Kingdom

Frops Fraud prevention solution United Kingdom

Kreditech Credit scoring platform Germany

Blue Yonder Predictive analytics solution Germany

Onfido Background checking platform United Kingdom

Intersec Data analytics solution France

No

rth

A

mer

ica

Company name Activity/solution Country of originSight Machine Manufacturing analytics USA

Civitas Learning Predictive analytics platform USA

Datavisor Fraud detection analytics USA

Rapidminer Predictive analytics solution USA

DataRobot Machine learning software USA

Datameer Data analytics solution USA

* Selection is based on innovativeness and interesting new use cases of the solutions and only represent a small fraction of all firms


Most active investors in Big Data SMEs by deal size (last two years)


Investor # deals(0-1m)

Techstars 12

500 Startups 6

Y Combinator 5

Frost Data Capital 5

Acceleprise 5

DeamIT Ventures 4

Working Capital Accelerator

3

Start-Up Chile 3

Tim Ventures 3

Enterprise Ireland 3

Investor # deals (1-10m)

Data Collective 12

AME Cloud Ventures 12

New Enterprise Associates 9

Khosla Ventures 7

True Ventures 6

Social Starts 6

Redpoint Ventures 6

Plug and Play 6

Marado Venture Partners 6

Blumberg Capital 6

Investor # deals (>10m)

New Enterprise Associates

12

Battery Ventures 10

Accel Partners 9

Data Collective 8

Sequoia Capital 7

Redpoint Ventures 7

Intel Capital 7

General Catalyst Partners

7

Andreesseen Horowitz 7

AME Cloud Ventures 7



PwC’s Accelerator can help

ConnectPwC's Accelerator2, Gerhard MercatorBP 1443 L-1014 Luxembourg


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For more detailed and regular updates on SMEs and SME equity financing, please visit www.pwcaccelerator.com

Laurent ProbstNetwork Global Leader,PwC’s Accelerator

[email protected]+352 49 48 48 2199

Cyrille FoillardManaging Director,PwC’s Accelerator

[email protected]+352 49 48 48 4579

For a deeper discussion on these results, please contact us.


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Documents

SME Equity Financing Atlas - PwC France · 2017-06-23 · SME Equity Financing Atlas 201 3 Key insights 1. Boom in equity investment in SMEs - deals up by 108% and capital invested