Startup grind scaling in europe fundraising (final) copy
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This document discusses scaling startups in Europe and access to capital. It provides the following key points: 1. There is growing capital available for European startups, from seed funding to later stage rounds, however the US still dominates in total funding amounts. 2. Capital comes from a variety of sources including angels, seed funds, crowdfunding, venture capital funds, corporate investors, and venture debt. Tax benefits in countries like the UK have also helped attract more funding. 3. While some hubs like London and Berlin are strong, the US remains dominant for late stage funding rounds. Founders must consider options for continuing their company's scaling internationally.
Startup grind scaling in europe fundraising (final) copy
- 1. Scaling In Europe - Fundraising Reshma Sohoni @rsohoni
- 2. Seedcamp is a founders 鍖rst round fund. We invest smart capital into pre-seed and seed stage startups, providing up to 200k and a lifelong platform of Learning, Network and Capital to support the most ambitious Founders.
- 3. The access to capital $420MTotal Funding Raised by companies since 2007 19% 81% of Seedcamp backed companies raise follow-on funding 84% 500 Total investors 120 US investors Some of the top VCs our companies are raising from
- 5. The generational effect 1990s pre-90s 2000s 2010s 1st generation 3rd generation 2nd generation 4th generation Supernova Silicon Valley Pre 90s 90s 00s 10s 90s 00s nowadays 2rd generation In EU
- 7. Angels - exited experience Barry Smith Skyscanner Errol Damelin Wonga Ed Wray Betfair Will Neale Grabyo Jeremy Yap Citymapper
- 8. The emergence of seed VCs Source: The Micro-VC crunch, pevcbanker.com, May 2016
- 9. Crowdfunding Customers as Shareholders Product validation Creates Brand Advocates
- 10. Bringing together public & private capital 贈25m to support London tech startups 贈200m invested in 169 fast growing UK startups Enterprise Capital Fund behind +
- 11. Tax bene鍖ts - unlike anywhere Source: Commentary EIS SEIS Of鍖cial Statistics, HMRC, January 2016 +58% Angel Investments 2013 vs 2012 Rapid growth 0 200 400 600 800 2011 2012-13 2013-14 2014-15 783 692 457 342 Amount Invested (million 贈) +34% +51% +13% Average fundraise increased to 贈535,615 income tax relief no capital gains tax offset loss EIS/SEIS 1994 - 2012
- 12. The Later Stage
- 13. Late stage capital drop Source: European Private Equity Activity, investeurope.com, 2015 Number of funds that reached 鍖rst, intermediate or 鍖nal closing during the year 0 50 100 150 200 2007 2008 2009 2010 2011 2012 2013 2014 2015 35 39 4646 58 57 60 66 69 6 10 911 20 17 18 17 27 57 80 5860 74 60 70 82 100 Early-stage Later-stage Balanced 196 165 148 134 152 117 113 129 58
- 14. Value add VCs Ongoing involvement Talent Marketing Sales Partnerships Operations Networking Hands-on approach
- 15. The Americans Source:The State of European Tech, SLUSH & ATOMICO, Nov 2015 (SWE) (GER) (SWE) (GER) (SWE) (GER) (GER) (UK) (SWE) (UK) (SWE) (UK) (UK) VC Selected investment in Europe (UK) (UK)
- 16. UNHWs, family of鍖ce and corporates Non-VC participation in mid & late stage startups 12.5% 25% 37.5% 50% 2009 2010 2011 2012 2013 2014 2015 44% 35%35% 31% 28%28% 25% 27% 20% 17% 11% 13% 8%9% Asst Mgmt / Family Of鍖ce / Hedge Fund / Mutual Fund Corporate / Corporate VC CAGR 09-14 18% 7% Source: VC-backed, US startups that have raised $15M+ total, ex. life sciences, CBInsights, 1/1/09-4/20/15
- 17. Venture debt Direct lending fundraising: North America vs. Europe-focused funds, 2006 - 2016 YTD 0 5 10 15 20 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD 0.9 18.8 13.2 8.5 3.5 1.1 2.9 0.61.20.40.3 1.7 17.1 19.8 14.5 7 3.3 3.9 1.1 17.4 7.7 1.8 North America-Focused Funds Europe-Focused Funds Source: Private Debt Spotlight, Preqin Ltd, May 2016
- 18. The Takeaways
- 19. Myth: Every great company gets funded Takeaway #1
- 20. Capital is king Takeaway #2
- 22. Get off the conveyor belt Takeaway #4