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com
SME Equity
Financing Atlas
A new investment boom phase
driven by startups and tech
First edition
March 2017
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, PwCs 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 PwCs Accelerator and does not constitute the giving of an investment advice.
PwCs 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.
2 PwCs Accelerator
Table of content
Foreword2
Global perspective 4
Boom 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 22
USA 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
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
Laurent Probst and World Bank data), covering:
PwCs Accelerator 52,614 companies that employ less than 250 persons;
Global Leader
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).
2 PwCs Accelerator
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 weve followed over a period of 10 years, only 5%
are able to exit via IPO, with the vast majority being US companies (75%).
52,614
SMEs
33,490
equity
86,141 investors
deals
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?
4 PwCs Accelerator
Global perspective
Equity investments in SMEs have been cant yield good returns anymore, some Nevertheless, SMEs and their often
growing steadily over the last years. The investors turn towards riskier asset classes, disruptive and innovative solutions can offer
main drivers are the accumulation of capital like equity for start-ups. Its difficult to significant returns for investors.
in investors hands, new technologies and estimate how this growing trend will look in
the low-interest rates. Since some asset the future, as new macroeconomic factors
classes (e.g. debt asset classes, like bonds) (e.g. Brexit) might have a role to play.
5,000 50.00
4,500 45.00
4,000 40.00
3,500 35.00
3,000 30.00
2,500 25.00
2,000 20.00
1,500 15.00
1,000
10.00
500
5.00
0
0.00
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
10
10
10
10
11
11
11
11
12
12
12
12
13
13
13
13
14
14
14
14
15
15
15
15
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
6 PwCs Accelerator
Year to year perspective
200.00
20,000 18,686 18,186
16,426
15,000 150.00
13,017
10,453
5,000 50.00
0 0.00
2010 2011 2012 2013 2014 2015
Key
information Strong growth in deals and capital
invested over the last five years.
First signs in the first half of
2016 that these evolutions will
Significant slowdown in deals in continue.
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%).
40.00
37.50
35.00
32.50
30.00
27.50
25.00
22.50
20.00
17.50
15.00
12.50
10.00
7.50
5.00
2.50
0.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
8 PwCs Accelerator
...with +159% in pre-money
valuations in later stage deals
Pre-money valuation median by ticket size
2010 1.15
0 - 499k
2015 1.46
+27.5%
2010 2.54
500k - 0.9m
2015 3.90
+53.5%
2010 6.49
1m - 4.9m
2015 8.25
+27.2%
2010 17.35
5m - 9.9m
2015 19.98
+15.2%
2010 37.96
10m - 24.9m
2015 47.58
+25.3%
2010 76.13
> 25m
2015 215.88
+159.9%
Key
information
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.
in EUR m
15
Angel (group & individual) & family office Accelerators & incubators
Venture capital firm Corporate VC
12.5
PF growth/expansion or mezzanine fund 3%Government
1% or universities
9%
10
7.5 10%
5
41%
2.5
0
2010 2011 2012 2013 2014 2015
3% 1%
9%
PE growth/expansion or mezzanine fund
Venture capital firms
Angel (group & individual) & family office
10% Corporate VC
Accelerators & incubators
Government or universities
41%
36%
10 PwCs Accelerator
PE growth/expansion or mezzanine fund
Venture capital firms
Growth in deals by investor type (2010 - 2015)
Accelerators &
incubators
578%
PE expansion
or mezzanine
fund
Deals 2015: 3,709
Deals 2010: 547 Corporate VCs
Venture 22%
152% capital firms Deals 2015: 3,709
Deals 2010: 547
125%
Angels & Government
Deals 2015: 1,186
family offices & universities
150%
Deals 2010: 471
150%
Deals 2015: 8,362
Deals 2010: 3,718
Key
information Venture capital investors remain 3rd largest investor after VCs and
the biggest investors with the majority angels/family offices).
of all deals done. Rise of deals from angels and
Governmental investors remain the family office investors, particular in
smallest investor accounting only for small ticket sizes (< 5m).
3% of all deals. Venture capital and PE investors
Accelerators and incubators show remain dominant in terms of capital
the biggest growth (+578% from 2010 invested, accounting for 2/3 of all
to 2015) in terms of deals (now the capital invested.
100%
75%
50%
25%
0%
75%
50%
25%
0%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Materials & Information Healthcare Financial Services Energy Consumer Products Business Products
Resources Technology & Services & Services
12 PwCs Accelerator
SaaS
3,522
Deals 2010: 1,325
Mobile
Hot industry verticals (number of deals 2015)
CleanTech
Deals 2010:
140
750 1,308 Deals 2010: 941
603
Deals 2010:
175 Deals 2010: 1,072
Deals 2010:
641
HealthTech
541 3D Printing
Deals 2010:
132 IoT
106
EdTech 401 Wearables Deals 2010: Robotics &
Drones
229
6
425 Marketing
Deals 2010:
87 AdTech
209
298
Tech Deals 2010:
Deals 2010:
405 14 Deals 2010:
92 32
Deals 2010:
Deals 2010: 211
185
Key
information
The majority of deals are done with Emerging SMEs in the area of 3D
SMEs in the information technology Printing (+1667% from 2010 to
sector (42% in 2015). 2015) and Wearables/Quantified
Since 2010, information technology Self (+1536%) show significant
deals have gained market share, both growth in terms of deals, but remain
in terms of number of deals and capital minor in terms of absolute number of
invested. deals.
Median pre-money valuations are
above average (> 15m) in the sectors
SaaS, Big Data, FinTech, Life Sciences
and Mobile.
Theres a historical link between a countrys 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 weve 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
Asia
1,755
EUR 29bn
North America
12,186
EUR 90bn
Africa Oceania
73 189
South America EUR 0.5bn EUR 0.3bn
208
EUR 2bn
>5 or 0 deals 99 5 deals 199 100 deals 499 200 deals 999 500 deals >1000 deals
14 PwCs Accelerator
Deals per 100,000 inhabitants
(per capita) in 2015
1st
United States <0.01 0.09 0.01 0.24 0.1 0.49 0.25 0.99 0.5 >1
2nd
Israel 3rd 8th
4th 5 th 7th
Estonia 6 th United Kingdom
Ireland Luxembourg
Iceland Singapore
16 PwCs Accelerator
Evolution of deals by global regions
(by number of deals) 100%
3%
9%
14%
80%
100% 21%
3%
9%
60%
14%
80%
21% 40%
76% 62%
60% 20%
0%
40% 2005 2011 2012 2013 2014 2015
28.5%
23.3%
20.8% 20.5%
16.8%
11.2%
18 PwCs Accelerator
Follow-up financing after seed-round
52% make it to a Series A round
No follow-up
187
51.8%
39.6%
SMEs received
their first seed
equity financing 19.3% 48.2%
in 2005 12.0%
(Seed) 3.7%
On average only
0.56%
of companies that
apply for equity
financing actually
1,182
SMEs worldwide
receive it1 raised their first
money in 2005 from
Only a small number of all SMEs equity investors (Seed
worldwide are raising capital from or Series A)
equity investors. For the management
of SMEs its 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.
Ren Andres
PwCs Accelerator
Senior Advisor
1. Based on PwCs Accelerator internal knowledge
20 PwCs Accelerator
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 cant directly liquidate all their shares in an IPO compared to an M&A.
1,182
SMEs worldwide
raised their first
Seed or Series A only
money in 2005 After 1 in 125
10 years
from equity companies
investors is able to exit via
an IPO > 1b EUR
Origin of ventures:
75% US ventures, with only 11% EU ventures
Number of % (of 1,182 Source: PitchBook Inc.
Status in 2015
companies companies) % of US
Valuation %
IPO and current enterprise ventures
Value > 1b EUR
10 0.8%
0-10m 34% 40%
IPO and current enterprise
Value < 1 b EUR
51 4.3%
10m-20m 13% 41%
Were acquired or merged 509 43.0% 20-50m 16% 47%
Are generating revenue and
have > 15 employees
241 20.4% 50-100M 13% 48%
Are generating revenue and
have < 15 employees
157 13.2% > 100m 24% 63.%
Are still in clinical trials/
27 2.3%
product development
Out of Business or
187 15.8%
Bankruptcy/Liquidation A trade sale is
8.34 times
For European SMEs that exited via M&A more frequent
35% were bought by US companies and than an IPO.
10% by Asian companies.
SME Equity Financing Atlas 2017 21
Part 2
22 PwCs Accelerator
Regional perspective
- 0
2010 2011 2012 2013 2014 2015
2,000 15,000
Canada
12,500
1,500
10,000
1,000 7,500
5,000
500
2,500
- 0
2010 2011 2012 2013 2014 2015
500 5,000
Mexico
250 2,500
- 0
2010 2011 2012 2013 2014 2015
24 PwCs Accelerator
Capital invested in local SMEs (in EUR m) by ticket size and
importance of foreign investors involved (2015)
Explanation
300 3,000
200
180
200 160 2,000
140
120
100
100 1,000
0 -
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
Ticket size
SaaS
UK UK UK
(2015 EUR 14.93bn)
Canada Canada Canada
+500 USA +500 USA +500 USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Manufacturing
UK UK China
(2015 EUR 8.89bn)
Canada Canada Canada
USA +500 USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
E-Commerce
Mexico UK China
(2015 EUR 3.45bn)
Canada Canada Canada
USA +500 USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
CleanTech UK France UK
(2015 EUR 3.13bn) Canada Canada Canada
USA USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Big Data
2. Capital invested in North American SMEs in 2015 in UK China Canada
(2015 EUR 3.73bn)
these industry vertical Canada Canada UK
USA +500 USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
26 PwCs Accelerator
FinTech
Japan UK Canada
(2015 EUR 3.20bn)
Ticket size
Industry 0 1m 1m-10m +10m
Industry 0 1m 1m-10m +10m
SaaS
UK UK UK
(2015 EUR 14.93bn)
SaaS Canada Canada Canada
+500 UK
USA +500 UK
USA +500 UKUSA
(2015 EUR 14.93bn)
Canada Canada Canada
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
+500 USA +500 USA +500 USA
Mobile - 125 250 375 500 India - 125 250 375 500 UK - 125 250 375 500 China
(2015 EUR 7.24bn)
Mobile Canada
India UK
Canada UK
China
+500 USA +500 USA +500 USA
(2015 EUR 7.24bn) Canada Canada UK
- 125 +500
250 375 500USA - 125 +500
250 375 500
USA - 125 +500
250 375 500
USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Life science UK UK Canada
(2015 EUR 14.64bn)
Life science Canada
UK UK
Canada China
Canada
(2015 EUR 14.64bn) USA USA USA
Canada Canada China
- 125 250 375 500USA - 125 250 375 500
USA - 125 250 375 500
USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Manufacturing
UK UK China
(2015 EUR 8.89bn)
Manufacturing Canada
UK UKCanada Canada
China
(2015 EUR 8.89bn) USA +500 USA USA
Canada Canada Canada
- 125 250 375 500USA - 125 +500
250 375 USA
500 - 125 250 375 USA
500
IoT
E-Commerce
IoT Australia UK Canada
(2015EUR
(2015 EUR 1.04bn) Mexico
Australia UKUK China
(2015 EUR3.45bn)
1.04bn) Canada
Canada Ireland
Canada
Canada
UK
Canada Ireland UKCanada
USA
USA +500 USA
USA USA
USA
USA USA USA
- 125 250 375 500 - 125 250 375 500
500 - 125 250 375 500
-- 125 250
125 250 375
375 500
500 -- 125
125 250
250 375
375 500 - - 125
125 250
250 375
375 500
500
CleanTech
Explanation:
Explanation: The
The numbers displayed include
numbers displayed includeinvestors
investorshaving
having
UK at atleast
leastdone
doneone
oneinvestment
investmentin in the
the
France last
last two
two years
years in in
thethe given
given UKindustry
industry
(sorted
(2015 by
(sorted the
EUR
by top
top three
three countries
the3.13bn) with the
countries with the greatest
greatestamount
amount ofofactive
Canadaactiveinvestors
investorsininthat
thatindustry
industry and
and
Canada deal
deal range).
range). Canada
USA USA USA
Australia
Australia Canada
Canada China
China France
France India
India Ireland
Ireland Israel
Israel UK
UK USA
USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Source:
Source: PitchBook
PitchBook Inc.Inc.
Big Data
UK China Canada
(2015 EUR 3.73bn)
Canada Canada UK
USA +500 USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
FinTech
Japan UK Canada
(2015 EUR 3.20bn)
Canada Canada UK
USA +500 USA USA
SME Equity Financing Atlas 2017 27
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
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.
2,000 10,000
UK
Foreign investors 8,000
1,500
Local investors
6,000
1,000
4,000
500
2,000
- 0
2010 2011 2012 2013 2014 2015
2,000 10,000
Ireland
8,000
1,500
6,000
1,000
4,000
500
2,000
- 0
2010 2011 2012 2013 2014 2015
2,000 10,000
Germany
8,000
1,500
6,000
1,000
4,000
500
2,000
0 -
2010 2011 2012 2013 2014 2015
2,000 10,000 2,000 10,000 2,000 10,000
Netherlands Spain France
8,000 8,000 8,000
1,500 1,500 1,500
6,000 6,000 6,000
1,000 1,000 1,000
4,000 4,000 4,000
500 500 500
2,000 2,000 2,000
0 - 0 - 0 -
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
28 PwCs Accelerator
Capital invested in local SMEs (in EUR m) by ticket size and
importance of foreign investors involved (2015)
SaaS
France Germany Germany
(2015 EUR 3.55bn)
USA USA UK
UK UK USA
- 125 250 - 125 250 - 125 250
Mobile
(2015 EUR 2.92bn) Italy Germany UK
USA USA Germany
UK UK USA
- 125 250 - 125 250 - 125 250
Life science
(2015 EUR 3.45bn) Spain France Switzerland
France Germany UK
UK UK USA
- 125 250 - 125 250 - 125 250
Manufacturing
Germany USA UK
(2015 EUR 3.53bn)
France France Germany
UK UK France
- 125 250 - 125 250 - 125 250
E-Commerce
Italy USA Germany
(2015 EUR 2.75bn)
Spain France UK
UK UK USA
- 125 250 - 125 250 - 125 250
Big Data
Germany France USA
(2015 EUR 0.32bn)
France USA UK
UK UK France
- 125 250 - 125 250 - 125 250
FinTech
Spain Germany Germany
(2015 EUR 1.830bn)
Germany USA UK
30 PwCs Accelerator UK UK USA
- 125 250 - 125 250 - 125 250
Industry 0 1m 1m-10m +10m
Industry 0 1m 1m-10m +10m
SaaS
France Germany Germany
SaaS
(2015 EUR 3.55bn)
USA
France USA
Germany UK
Germany
(2015 EUR 3.55bn)
UK
USA UK
USA USA
UK
- 125 250 UK - 125 250 UK - 125 250USA
- 125 250 - 125 250 - 125 250
Mobile
Mobile
(2015 EUR 2.92bn) Italy Germany UK
FinTech
Spain Germany Germany
(2015 EUR 1.830bn)
Source: PitchBook Inc.
Germany USA UK
UK UK SME Equity Financing Atlas
USA2017 31
- 125 250 - 125 250 - 125 250
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).
Foreign investors
Local investors
2,000 20,000
China
1,500 15,000
1,000 10,000
500 5,000
- 0
2010 2011 2012 2013 2014 2015
- 0 - 0
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015
32 PwCs Accelerator
Capital invested in local SMEs (in EUR m) by ticket size and
importance of foreign investors involved (2015)
SaaS
Israel India Israel
(2015 EUR 4.62b)
India Israel China
USA USA USA
- 125 250 - 125 250 - 125 250
Mobile
Singapore India Japan
(2015 EUR 8.54b)
USA China USA
India USA China
- 125 250 - 125 250 - 125 250
E-Commerce
Singapore Singapore India
(2015 EUR 7.57b)
USA India USA
India USA China
- 125 250 - 125 250 - 125 250
Big Data
USA South Korea China
(2015 EUR 0.37b)
Israel Israel Israel
India USA USA
- 125 250 - 125 250 - 125 250
FinTech
Japan Japan Hong Kong
(2015 EUR 1.84b)
Singapore India USA
USA USA China
- 125 250 - 125 250 - 125 250
SaaS
CleanTech - 125 250
Singapore
- 125 250
India
- 125 250
China
France Germany Germany
(2015
(2015 EUR
EUR 0.49b)
3.55bn) USA USA Israel India
CleanTech Singapore
USA
India
UKChina
India USA USA
(2015 EUR 0.49b) USA UK UK
Israel USA
India
-- 125
125 250250
India
-- 125
125 250
250USA
-- 125
125 250
250USA
- 125 250 - 125 250 - 125 250
Big Data
Mobile
USA Italy South Korea
Germany China
UK
(2015 EUR
(2015 EUR2.92bn)
0.37b)
Big Data IsraelUSA Israel
USA Israel
Germany
USA South Korea China
(2015 EUR 0.37b) India UK USAUK USA
USA
Israel Israel Israel
-- 125125 250
250 -- 125
125 250 -- 125
125 250
India USA USA
FinTech
Life science - 125 250 - 125 250 - 125 250
Japan Japan Hong Kong
(2015EUR
(2015 1.84b)
EUR3.45bn) Spain France Switzerland
FinTech Singapore
France
India
Germany
USA
UK
Japan Japan Hong Kong
(2015 EUR 1.84b) USA
UK
USA
UK
China
USA
Singapore India USA
-- 125
125 250250 -- 125
125 250
250 -- 125
125 250
250
USA USA China
FinTech
Spain Germany Germany
(2015 EUR 1.830bn)
Germany USA UK
UK UK USA
- 125 250 - 125 250 - 125 250
36 PwCs Accelerator
Countries in the
Spotlight
Germany
Germany France
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.
High-Tech
37 1 Holtzbrinck Ventures 12 1
Grnderfonds
Axel Springer Plug
18 2 Rocket Internet 10 2
& Play Accelerator
Hamburg
7
2
10
IBB 11 3 Wellington Partners 6 3
3
9 8
Highland Capital
2
Target Partners 10 4 5 4
56%
5 5
6 Accelerator
10
Tengelmann
B-to-v Partners 8 6 4 6
1
10
Ventures
Bonn Innovationsstarter
8 7
Mangrove Capital
4 7
Hamburg Partners
Earlybird Venture
Holtzbrinck Ventures 7 8 4 8
Capital
Munich
8
4 1 Cavalry Ventures 7 9 DN Capital 4 9
5 3
High-Tech
Capnamic Ventures 7 10 4 10
Grnderfonds
6 5
Switzerland
7 Luxembourg 9
UK Source: PitchBook Inc.
38 PwCs Accelerator
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)
34 Number Capital
35 of deals invested
37
closed in EUR m
53 259
500 5,000
71
400 4,000
114 302
300 270 3,000
256
225 188
200 2,000
121
142
116
152 100 1,000
SaaS Mobile
E-Commerce Manufacturing
Life Sciences CleanTech 0 -
FinTech Internet of Things 2010 2011 2012 2013 2014 2015
Big Data LOHAS & Wellness
0-1m
Deals
>10m
Konux
Mambu
Seerene
Gestigon
Testbirds
1m-10m
Zenmate
Riskmethods
Holtzbrinck Ventures Target Partners High-Tech Grnderfonds
Early stage
SaaS
Highland Capital Partners Europe Iris Capital Mmgt. Axel Springer Plug and Play Accelerator
Deposit Solutions
Cavalry Ventures High-Tech Grnderfonds Point Nine Capital
PwCs Accelerator
Highland Capital Partners Europe Target Partners Startupbootcamp
Mobile
Wellington Partners Capnamic Ventures ProSiebenSat.1 Accelerator
Life
BioMedPartners Peppermint Venture Partners Innovationsstarter Hamburg
science
Life Sciences Partners BioM Business Angels Stuttgart Region Most active investors in German SMEs
Azeti
Arago
Adjust
High-Tech Grnderfonds IBB Founder.org
Navvis
Facelift
Kreditech
Webtrekk
Wellington Partners SHS European Pioneers
Manu-
Blue Yonder
Later stage
Searchmetrics
facturing
Robert Bosch Venture Capital NEO Investment Startupbootcamp
(within last two years)
Example of innovative German SMEs receiving equity in the last two years*
Holtzbrinck Ventures Redalpine Venture Point Nine Capital
Bpifrance 58 1 Bpifrance 20 1
8 5 9
Kima Ventures 19 2 IDInvest Partners 10 2
8 10
7 9
4 1
Alven Capital CM-CIC
5 3 2 10 19 3 4 3
6 4
3 2
1 Partners Investissement
BNP Paribas
Audacia 16 4 4 4
Dveloppement
Degree of Foreign Cap Decisif Alven Capital
15 5
4
investors
5
Management Partners
7
Rhne-Alpes
12 7
Ventech 3 7
Cration
Seventure Partners 11 9
Omnes Capital 3 9
6
USA Partech Ventures 11 10 Naxicap Partners 3 10
53 52 Number Capital
54 of deals invested
closed in EUR m
55 331
500 5,000
432
93
402 400
400 365 4,000
328
307
163
300 3,000
SaaS Manufacturing
Mobile Life sciences
0 -
E-Commerce CleanTech 2010 2011 2012 2013 2014 2015
Marketing Tech Internet of Things
AdTech Big Data
42 PwCs Accelerator
size
0-1m
Deals
Ledger
>10m
Neotys
Sqreen
Finalcad
Clustree
Netwave
1m-10m
Enovacom
CybelAngel
Alven Capital Partners Bpifrance Bpifrance
Early stage
SaaS
Accel Partners Alven Capital Partners Kima Ventures
Mobile
Accel Partners xAnge Private Equity Cap Decisif
Life
Edmond de Rothschild Investment Partners Bpifrance Seventure Partners
sciences
Versant Ventures Seventure Partners SEB Alliance
Actility
Augure
Intersec
SlimPay
Qowisio
Netatmo
Talentsoft
PeopleDoc
Bpifrance Bpifrance Newfund
Later stage
Sofimac Partners Emertec Gestion Bpifrance
Manu-
facturing
Example of innovative French SMEs receiving equity in the last two years*
Serena Capital Truffle Capital Paris Incubateurs
firms.
FinTech
security
Bpifrance IT-Translation
in French SMEs by ticket size and industry
43
Part 4
44 PwCs Accelerator
Industry in the
Spotlight
Big Data
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.
727
750
680
5,000
588
4,000
500
386 3,000
2,000
235
250
165
112 1,000
90
45 48 57
23
20
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Key
information Strong annual growth in Big
Data SMEs investments since
Pre-money valuation of Big Data
SMEs is constantly above the
2003 (average annual growth: global industry average.
+37% in deals and +56% in Biggest pre-money valuation
capital invested). premiums in 2014 (+3.2 m)
The first signs in the first half of compared to global industry
2016 show that these evolutions average.
are going to continue.
Equity investors invested EUR
5.2bn in 727 deals in Big Data
SMEs in 2015.
46 PwCs Accelerator
Median pre-money valuation (Big Data vs. global average)
16.00-
Big Data median Global median
Median pre-money valuation in EUR m
12.00-
8.00-
4.00-
-
2010 2011 2012 2013 2014 2015
Europe
300
Asia
North America
121
1,010 Oceania
Africa
5
South America 2
20
> 100 SMEs 100-50 SMEs 49-20 SMEs 19-10 SMEs 9-5 SMEs <5 SMEs or 0 SMEs
48 PwCs Accelerator
Example of innovative Big Data SMEs
receiving equity in last two years*
* Selection is based on innovativeness and interesting new use cases of the solutions and only represent
a small fraction of all firms
New Enterprise
Y Combinator 5 9 Accel Partners 9
Associates
Working Capital
3 Redpoint Ventures 6 Intel Capital 7
Accelerator
General Catalyst
Start-Up Chile 3 Plug and Play 6 7
Partners
50 PwCs Accelerator
SME Equity Financing Atlas 2017 51
For more detailed and regular
updates on SMEs and SME equity
financing, please visit
www.pwcaccelerator.com Connect
PwC's Accelerator
2, Gerhard Mercator
BP 1443
L-1014 Luxembourg
www.pwcaccelerator.com
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52 PwCs Accelerator
SME Equity Financing Atlas 2017 53
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