PARIS
LONDON
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In collaboration with
European Innovation Financing
H1 2015 Update
About Clipperton Finance
CONTRIBUTORS
Thibaut Revel
Partner
Antoine Ganancia
Senior Associate
Martin Vielle
Associate
Clipperton is a leading European corporate finance boutique exclusively dedicated to the High Tech and
Media industries. Clipperton advises high growth companies on financial transactions, fundraisings,
or Mergers and Acquisitions. With teams based in London, Berlin and Paris and an international
reach, Clipperton is a recognized leader in the sector.
About Digimind and WhoGotFunded.com
Digimind is a SaaS intelligence software company based in Paris, Boston and Singapore, providing
advanced information management platforms and technologies that perform massive data collection,
automatic intelligence extraction and visualisation. Using its unique web mining expertise, Digimind
developed WhoGotFunded.com, the world's most comprehensive funding database, discovering over
100 fresh funding deals every day in real time all across the world.
Clipperton European Innovation Financing Update - July 2015
The
momentum of private funding for European
innovative companies is reaching new highs. This
HEADLINES
traction is felt across the board, in different spaces of
the tech industry from internet to software and biotech
and in all major geographies. The acceleration of large
funding rounds (north of $30m) we had highlighted in
past newsletters is massive. In the digital space,
despite a few high profile IPOs such as JustEat last
year, private markets seem to have become the
Do trees grow to heaven in 2015 in the
tech space? Impressive growth of 85%
yoy of investment value vs H1 2014!
preferred funding route for companies looking for
One key driver: money is coming
increasingly from new pockets such as
Russian funds (DST very active in
2015 in Europe), Middle East investors
(e.g. Showroomprive secondary deal
following Venteprivee last year), listed
companies (the Rocket Internet
phenomenom) and increased activity
from
US
tech
funds
having
established presence in London (TCV,
Google Ventures)
50m$+. The recent Made.com transaction led by
Partech Ventures or FanDuel’s $275m Series-E round
led by KKR announced mid-July are good examples.
This phenomenon of "private IPOs" has been widely
commented in the US. This does not apply however to
the biotech space where the IPO market remains
robust.
With such unprecedented levels of funding pouring
into the European tech ecosystem, is there a risk of
irrational
exuberance
in
terms
of
valuation?
Seemingly not: on one side, an impressive new wave of
super fast growing companies with real business
models, new segments of investors moving to the tech
Trends --> "(much) more of the same":
space and successful companies deciding against or
- more Consumer Internet
deferring their IPOs, and on the other, increasing
competition between investors for the top deals
driving higher multiples while large exits are not that
common in Europe.
- more UK deals - but Germany and
France also strong
- more large rounds
Content
Introduction................................................................p.2
Innovation Financing Overview..............................p.3
Geographical and Sectorial Views...........................p.4
Top Deals by Geography..........................................p.5
Top Deals by Sector...................................................p.6
Methodology & Disclaimer......................................p.7
© 2015 Clipperton Finance Limited - All Rights Reserved
www.clipperton.net
2
Clipperton European Innovation Financing Update - July 2015
Mega-rounds for Europe’s unicorns pushing Venture funding to a record-high $7B
D
riven by a strengthening fundraising environment across the globe, the
venture ecosystem deployed significantly more capital to the European
Innovation economy in H1 2015 than in the previous semester (70% increase).
The European Innovation industry sets a new record, racking up $7.0 billion in
total investments in a very active 6-months of deals.
Despite signs of some parts of the market overheating, investors have renewed
their confidence in Europe’s Unicorns (Delivery Hero, Funding Circle, Home24,
Spotify, ...) that have taken advantage of the favorable funding environment by
taking on more money to fuel their growth. In total, the Top 10 deals of H1
2015 account for a whopping $2.2B or exactly a third of total
innovation-driven investments during that period (with a big assist from
Delivery Hero’s monster $0.7B round that saw Rocket Internet acquire a 30%
stake in the business).
TOTAL AMOUNT INVESTED IN EUROPE
H1 2013 to H1 2015
$4,228m
$4,097m
$3,748m
Top 10 European Fundings H1-2015
$2,925m
Delivery Hero
DE
$568m
Food Delivery
Spotify
SE
$526m
Online Music
Kreditech
DE
$200m
Credit Scoring
Funding Circle
UK
$150m
Fintech
Home24
DE
$132m
E-commerce
Hellofresh
DE
$126m
Food Delivery
Nabriva Therap.
AT
$120m
Biotech
Auto1 Group
DE
$118m
Car Marketplace
Sigfox
FR
$115m
IoT Network
Foodpanda
DE
$110m
Food Delivery
$6,969m
Of which close to $1 billion linked to Rocket
Internet companies including Delivery Hero,
Foodpanda, Hellofresh, Home24, Helpling,
Westwing, Borro amongst other
$2,767m
$964m
$1,911m
$1,844m
$1,103m
$1,961m
H1 2013
$1,664m
$1,904m
H2 2013
H1 2014
$2,186m
H2 2014
Deals equal or below $30m
$2,741m
H1 2015
Deals above $30m
Sources: WhoGotFunded / Clipperton Finance Analysis
European VCs increasingly investing in larger rounds with a 82% increase versus H1 2014
• We tracked 541 venture financing deals in total in H1 2015, a solid 37% increase vs H1 2014
• Strong uptake in the number of large rounds (above $10m) with 135 deals across Europe (vs only 78 in the previous semester)
• The number of deals below the $10 million mark has been on par with what we observed in the previous semester with 406 transactions
announced (same figure as H2 2014)
DISTRIBUTION BY ROUND SIZE - VOLUME
H1 2014 - H2 2014 - H1 2015
MEDIAN DEAL VALUE
Q4 2012 to Q2 2015
H1 2014
$4.2m
H2 2014
233 233
H1 2015
176
72
94 96
<= $1m
72 79 77
$1-5m
$5-10m
Sources: WhoGotFunded / Clipperton Finance Analysis
© 2015 Clipperton Finance Limited - All Rights Reserved
87
47 52
$10-30m
27 26
48
> $30m
$2.2m
$2.5m
$2.8m
$2.6m
$3.0m
$2.8m
$2.0m
$2.6m
$3.2m
$3.0m
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
2012 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015
Sources: WhoGotFunded / Clipperton Finance Analysis
www.clipperton.net
3
Clipperton European Innovation Financing Update - July 2015
Increased polarisation of European innovation
financing towards the UK, France and DACH
• Strong increase in innovation financing driven by the UK,
France and DACH: respectively +126%, +78% and +222% (+133%
excluding Delivery Hero) in value vs. H1 2014
INVESTMENT AREAS
H1 2015
Volume H1 2014
Volume H1 2015
Value H1 2014
• +74% vs. H1 2014 in deal value in the UK at $1.8B
44
Value H1 2015
• A handful of British start-ups in the fintech space grabbed
significant amount of money during the quarter, with landmark
transactions including Funding Circle, Transferwise, Worldremit,
Azimo and Currency Cloud
129
• Proven appetite for DACH foodtech start-ups in the wave of
Rocket Internet: IPO candidate Delivery Hero grabbed $670m,
Foodpanda closed a $110m round, and Hellofresh cashed-in $126m
from Rocket Internet and US-based Insight Venture
154
• Mega-deals in the DACH region make it #1 investment area in
value in H1 2015
47
$1.8B
$1.0B
$0.6B
NORDICS
159
$0.6B
• France ranks #1 in deal volume with 159 transactions closed in
H1 vs. 154 for the UK and 81 for DACH
• Number of deals in Spain & Portugal grew from 9 transactions in
H1 last year to 20 deals. The $40m Series-B closed by local mobile
marketplace Wallapop saw Insight Venture joining Accel on board
with a $25m investment
DACH
FRANCE
103
$0.8B
$1.0B
$2.5B(1)
OTHER COUNTRIES (Southern
Europe, Ireland, Benelux, Eastern
Europe)
Sources: WhoGotFunded / Clipperton Finance Analysis
(1) Includes the $568m investment in Delivery Hero
• Besides Spotify’s mega-round aside, the Nordics decreased by 13%
in value, with fewer large deals vs. H1 2014
81
56
UNITEDKINGDOM
• Solid H1 in France: + 130% and 60% in Q1 and Q2 respectively vs.
the same periods last year. IoT Network operator Sigfox received
$115m in Q1 from a couple of strategics. Other French businesses
closed large funding rounds with US investors such as Believe
Digital with TCV ($60m) or Advanced Accelerator Applications with
Adage Management ($26m)
$1.0B(2)
61
$0.8B
100
$0.6B
(2) Includes the $526m investment in Spotify
SECTORIAL BREAKDOWN - VALUE
H1 2015
The increase in VC money spent in H1 2015
spreads over all sectors of innovation
Life Sciences
Cleantech
5%
15%
• IT start-ups attracted 80% of total innovation financing in H1
2015, with $5.6B invested in the sector during the semester,
(+95% vs. last year)
$6,969m
• Money invested in Internet and New Media businesses more
than doubled vs. last year to $4.1B (up from $1.8B). Volume
deals only grew by 37% which suggests larger transactions in
the sector
IT
80%
• Almost $1B was invested into Business Cloud and Software
start-ups, an increase of 20% vs. last year
• Rebound of the Consumer Electronics segment with 21
transactions announced and $96m invested during H1 2015.
Two $20m+ transactions in France with Innov8 ($27m) and
Devialet ($20m)
Consumer
$5,557m
Hardware /
Telecom
• Cleantech start-ups seem to have re-captured investor
interest: north of $420m across 40 transactions to be compared
with $156m and 20 transactions in H1 2014
• 82 Life Sciences transactions were closed over the period
(+30%), with north of $1B invested in the sector (+30%)
2%
Electronics
Internet and New
Media
74%
7%
Business Cloud
and Software
17%
DEAL SIZES (IT Sector)
Median Value
Internet and
New Media
Business Cloud
and Software
$3.0m
$2.7m
Hardware
Telecom
Consumer
Electronics
$5.7m
$2.1m
Sources: WhoGotFunded / Clipperton Finance Analysis
© 2015 Clipperton Finance Limited - All Rights Reserved
www.clipperton.net
4
Clipperton European Innovation Financing Update - July 2015
TOP DEALS BY GEOGRAPHY - H1 2015
Funds in bold are reported to be lead investors
UNITED - KINGDOM
COMPANY
DACH
AMOUNT
INVESTORS
COMPANY
AMOUNT
INVESTORS
$150m
DST Global, Baillie Gifford,
Temasek, Sands Capital
Delivery Hero
$568m
Rocket Internet
Worldremit
$100m
Technology Crossover Ventures,
Accel
Kreditech
$200m
Victory Park Capital
Verne Global
$98m
Stefnir, General Catalyst, The
Wellcome Trust, Novator Partners
Home24
$132m
Baillie Gifford, Rocket Internet
Farfetch
$85m
Vitruvian Partners, Conde Nast,
Ceyuan, Advent Ventures
Hellofresh
$126m
Rocket Internet, Insight Venture
Kobalt Music
$60m
Google Ventures, MSD Capital
Nabriva Therapeutics
$120m
Vivo Capital, OrbiMed, EcoR1,
Boxer Capital, HBM, Phase4
Transferwise
$58m
Andreessen Horowitz
Auto1 Group
$118m
DST Global, DN Capital, Piton
Capital
Kymab
$50m
Bill & Melinda Gates Foundation,
Woodford Invest. Management
Delivery Hero
$110m
Undisclosed investors
Ezbob
$47m
Oaktree Capital Management
Foodpanda
$110m
Rocket Internet
Gigaclear
$46m
Prudencial, Woodford
Management
Foodpanda
$100m
Goldman Sachs, historical investors
Blippar
$45m
Undisclosed investors
Crispr Therapeutics
$89m
SR One, Celgene, NEA, Abinworth,
Versant Ventures
Funding Circle
FRANCE
COMPANY
Sigfox
OTHER COUNTRIES
AMOUNT
$115m
INVESTORS
COMPANY
Elliot Management, Engie, Air
Liquide, Eutelsat, historical inv.
Spotify (SE)
AMOUNT
$526m
INVESTORS
Telia Sonera, Goldman Sachs,
Baillie Glifford, TCV, others
Showroomprivé.com
$80m
Undisclosed Middle-East investors
Trustpilot (DK)
$74m
Vitruvian, DFJ, DFJ Esprit, Index,
Northzone, Seed Capital
Believe Digital
$60m
Technology Crossover Ventures,
XAnge Private Equity
Cortendo (SE)
$60m
RA Capital, NEA, TVM Capital,
HealthCap, Granité, hist. inv.
Echosens
$40m
OrbiMed, Cathay Capital, Other
Cardio3 Biosciences (BE)
$42m
Undisclosed investors
Prodways
$33m
Groupe Gorgé, Fimalac
Wallapop (SP)
$40m
Insight Venture, Caixa Capital,
Accel, Bonsai
Aledia
$31m
Valeo, Bpifrance, IKEA GreenTech,
Historic Investors
Saltside Tech. (SE)
$40m
Hillhouse Capital, AB Kinnevik,
Brummer & Partners
Innov8
$27m
CM-CIC, BNP P. Développement,
BNP P. Principal Inv.
Biotie Therap. (FI)
$36m
Vivo Capital, Versant Ventures,
OrbiMed,The Baupost Group
Advanced Accelerator Apps $26m
Adage Capital Management, T.
Rowe Price, Rock Springs
Jobandtalent (SP)
$25m
Pelayo Cortina Koplowitz, Qualitas
Equity, Kibo Ventures, other
Actility
$25m
Ginko Ventures
Wetransfer (NL)
$25m
Highland Capital
Crocus Technology
$21m
Idinvest, Sofinnova Partners,
Ventech, CEA Invest., other
Omada (DK)
$24m
C5 Capital
Sources: WhoGotFunded / Clipperton Finance Analysis
MOST ACTIVE FUNDS
A
fter raising close to $1.5 billion upon IPO in October 2014, Rocket Internet was particularly active during the first half of 2015, with a strong appeal
for foodtech businesses - Delivery Hero ($568m + $56m secondary deal), Hellofresh ($126m) or Foodpanda/Hellofood ($110m investment in March) - but not
only as it participated in fundings for Home24 ($132m), Westwing ($30m), Helpling ($45m) or Borro ($20m).
While ‘usual suspects’ Index Ventures and Accel Partners closed respectively 12 and 7 deals, one would notice the participation of Yuri Milner’s DST
Global in two landmark fundraisings with European businesses: UK lending platform Funding Circle ($150m raised in April) and German used-car trader
Auto1 Group. Also worth noticing is Goldman Sachs investing in a handful of European tech businesses including Foodpanda, Mister Spex, Windeln (pre-IPO)
OneTwoTrip and Spotify.
In France and Germany, public funds were quite active, with Bpifrance participating in 12 deals (including Sigfox - $115m, Actility - $25m or Augure - $15m)
and High-tech Gründerfonds investing in 13 start-ups. Active French VCs include Alven Capital who invested in Drivy (follow-up), Dataiku, Algolia or
Capitaine Train, Serena in Dataiku, Augure, Textmaster or Cheerz and Partech Ventures in Kantox, Teads, Alkemics, ISKN.
© 2015 Clipperton Finance Limited - All Rights Reserved
www.clipperton.net
5
Clipperton European Innovation Financing Update - July 2015
TOP DEALS BY SECTOR - H1 2015
Funds in bold are reported to be lead investors
IT - Top 15
COMPANY
AMOUNT
LIFE SCIENCES - Top 5
COMPANY
INVESTORS
AMOUNT
INVESTORS
Delivery Hero
$568m
Rocket Internet
CureVac
$74m
B&M Gates Foundation,
Dievini Hopp BioTech Holding
Spotify
$526m
Telia Sonera, Goldman Sachs,
Baillie Glifford, TCV, others
Cortendo
$60m
RA Capital, NEA, TVM
Capital,HealthCap, hist. inv.
Kreditech
$200m
Victory Park Capital
Autolus
$44m
Syncona Partners
Funding Circle
$150m
DST Global, Baillie Gifford,
Temasek, Sands Capital
Veryan Holdings
$28m
Imperial Innovations, Invesco
Asset Managemt, Others
Home24
$132m
Baillie Gifford, Rocket
Internet
Advanced Accelerator Apps $26m
Adage Capital Mangement, T.
Rowe Price, Rock Springs
Hellofresh
$126m
Insight Ventures Partners,
Rocket Internet
Auto1 Group
$118m
Victory Park Capital
Sigfox
$115m
Elliot Management, Engie, Air
Liquide, Eutelsat, historic inv.
Worldremit
$100m
Technology Crossover
Ventures, Accel
Verne Global
$98m
Stefnir, General Catalyst,
the Wellcome Trust, Novator
Foodpanda
$110m
Rocket Internet
Green Biologics
$42m
Swire Pacific, Sofinnova
Partners
Foodpanda
$100m
Goldman Sachs, historical
investors
Actility
$25m
Ginko Ventures, Orange,
Swisscom, KPN, other
CLEANTECH - Top 5
COMPANY
AMOUNT
INVESTORS
Farfetch
$85m
Vitruvian, Conde Nast,
Ceyuan, Advent Ventures
Cambride Clean Energy
$21m
Amadeus Capital Partners
Showroomprive
$80m
Undisclosed Middle East
investors
Oxford Photovoltaics
$12m
MTI, Oxford University,
Longwall, Parkwalk
Trustpilot
$74m
Vitruvian, DFJ, DFJ Esprit,
Index, Northzone, Seed Cap.
TTceh Computertechnik
$66m
GE Ventures, Infineon
Technologies, Audio
Sources: WhoGotFunded / Clipperton Finance Analysis
FOCUS ON:
Digital Music
The much commented launch of AppleMusic in June following the acquisition of Beats last year seems to have kickstarted a global battle for leadership in the
digital music area as standalone competitor Spotify announced it received half a billion dollar from investors including Goldman Sachs and TCV. At the same
time, new players are emerging in the value chain offering right owners with solutions to manage, distribute and monetize their digital content. While
Sony acquired the remaining stake in digital music distribution service provider The Orchard in March this year, there seems to be a growing interest from
investors for this kind of asset. For instance, French digital media distributor and label service provider Believe Digital received $60 million from US
growth equity fund TCV along with historical investors XAnge and Ventech. Present in 30 countries, the company provides content owners with a suite of
services including music and video distribution (its MCNs* record over 3 billion views per month), digital marketing and promotion or content production
& management. With the acquisition of TrueCore in April, Believe also assists artists and labels in monetizing their content more efficiently with royalty
management and monitoring services. Also tackling the issue digital right management, London-based Kobalt Music closed a third round of financing of
$60 million with Google Ventures joining Michael Dell’s MSD Capital, Spark Ventures and Balderton on board. Founded in 2000, the company leverages
big-data technology to enable artists and labels track and collect royalties across the variety of digital music platforms. In late 2014, Kobalt Music acquired
the American Mechanical Rights Agency (later renamed the American Music Rights Agency) and now stands as the second largest music publisher in the
industry according to Billboard.
Mobile Classifieds
One of oldest sector of the digital economy, the online classifieds landscape is being shaken-up by the rise of mobile apps allowing shoppers to buy
second-hand products directly from their smartphones. Frontrunner Wallapop, a Barcelona-based hyper-local mobile marketplace for second-hand
products, received $40 million in funding from Insight Venture in May this year, following a $3 million Series-A with Accel in 2014. Another sign of the
growing appeal for the space, UK-counterpart Depop closed an $8 million A-round in January led by Balderton. Future will tell how market incumbents on
top of which Schibsted, Axel Springer and Ebay will react as these new-comers are making inroads into this multi-billion dollar market.
* MCN = multi-channel network
© 2015 Clipperton Finance Limited - All Rights Reserved
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56
Clipperton European Innovation Financing Update - July 2015
METHODOLOGY
T
his report is based on collaborative work and research performed by Digimind and Clipperton Finance. Based on Digimind’s WhoGotFunded
comprehensive financing deals database which is built in real-time through text-mining technologies, the analysis is focused on European deals with
the following characteristics:
- Investments completed in a European company (Russia included/ Israel excluded)
- The company is considered innovative i.e. with a clear technology or business model innovation – which excludes companies who operate technologies that they have not developed
- Investments higher than $500k, in order to exclude “friends & family” seed rounds
- Secondary deals (i.e. minority sales of shares to private funds) are included, majority deals are excluded.
- Fundraisings through public markets (IPO or public equity financing) are excluded
This represents a list of about 200-400 deals per quarter, which are then allocated to an innovation universe (IT / Life Science / Cleantech) and to a
sub-segment (e.g. Consumer Internet within IT).
DISCLAIMER
T
his document has been prepared by Clipperton Finance in collaboration with Digimind. It is communicated solely for the purpose of information
and should not be construed as a sollication or an offer to buy or sell any security or related financial instrument.
This publication is based of data and information made available to the public and other sources deemed reliable. While efforts have been made to garantee maximum exactitude and reliability, neither Clipperton nor Digimind can be held responsible for omission or errors. The information and analysis
accessible in this publication highlight industry trends in general, and should not be construed as providing any particular recommendations or analysis for any specific company that is mentioned in the publication. No representation or warranty (expressed or implied) is made as to, and no reliance
should be placed on, the fairness, accuracy or completeness of the information contained herein and, accordingly, none of Clipperton’s or Digimind’s
officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
Clipperton Finance Limited is authorised and regulated by the Financial Conduct Authority. Registered No. 570700
CONTACTS
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Thibaut REVEL
Antoine GANANCIA
Partner
Senior Associate
trevel@clipperton.net
66 avenue des Champs-Elysées
75008 PARIS
aganancia@clipperton.net
Martin VIELLE
Associate
mvielle@clipperton.net
© 2015 Clipperton Finance Limited - All Rights Reserved
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7