European Tech Venture Coming of Age: Why is PE Getting Interested?

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1 European Tech Venture Coming of Age: Why is PE Getting Interested? Jean-Michel Deligny, Managing Director Thursday 18 th February Hanover Square London W1S 1JB United Kingdom T: +44 (0)

2 Disclaimer Neither this presentation nor any of its contents may be used without the prior written consent of Silverpeak LLP, trading as Silverpeak technology investment banking ( Silverpeak ). The information in this presentation reflects prevailing conditions and our views as of this date, all of which are subject to change. In preparing this presentation, Silverpeak has relied upon and assumed, without independent verification, the accuracy and completeness of all information available to us or from public sources or which was otherwise reviewed by us. Silverpeak LLP is an authorised representative of Silverpeak Capital Ltd, which is authorised and regulated by the Financial Conduct Authority Prepared for IPEM 016

3 Contents Silverpeak Overview The European Market Is Coming Of Age Appendices p3 p7 p17 page 3 Prepared for IPEM 016

4 Silverpeak Technology Investment Banking Banks growth tech companies and corporates seeking to acquire and invest in them ESTABLISHED INVESTMENT BANK TO GROWTH TECH COMPANIES 3 partners with 80+ man/years of experience in technology investment banking 150+ deals and assignments completed to date 15-strong team, based in London M&A and financing advisory services for growth companies t SPONSOR OF GO4VENTURE.COM Provides tech private funding market information based on Headline Transaction Index (HTI) data published since 004 Home of the European Venture & Growth Equity Market Monthly Bulletin (11,000 recipients) Building a community around market information ( INTERNET & DIGITAL MEDIA ENTERPRISE SOFTWARE & SaaS ENABLING TECH. & SERVICES HEALTHTECH ecommerce / Marketplaces Digital Entertainment Internet Infrastructure Adtech Fintech ERP / CRM / HRM Security Databases & Content Management SUB-SECTOR SPECIFIC EXPERTISE Materials Semiconductors / Components Communication Infrastructure Electronics / Robotics Cleantech Medical Devices M-Health Genomics Diagnostics / Imaging Healthcare IT page 4 Prepared for IPEM 016

5 Headline Transactions Index (HTI) Company, Investor and Transaction Database 11,000 subscribers 4,000 transactions 3,000 companies,000 investors Spanning investors, trade buyers and finance professionals Proprietary index capturing the level of activity in European technology investment Authoritative editorial on private investments activity and market trends Republished month by BoA Merrill Lynch, data used in European Investment Fund (EIF) European Small Business Finance Outlook (ESBFO) report First published on October 4, 004 page 5 Prepared for IPEM 016

6 The Go4Venture.com Service The Information Platform for European Venture-Grade Companies Launched on September, users as of Mid-February 016 Find co-investors Corporates Investors Non-Execs Service Providers page 6 Prepared for IPEM 016

7 Contents Silverpeak Overview The European Market Is Coming Of Age Appendices p3 p7 p17 page 7 Prepared for IPEM 016

8 The European Venture Market Is Seeing An Explosion Of Activity Total Value and Volume of Landmark HTI ( 0mn) Investments ( ) 70% 9,000 8,585mn 350 # of Landmark HTI Investments 8,000 7,000 6,000 + Value of Landmark HTI Investments ( mn) Value of all HTI Investments ( mn) % Value of Landmark HTI Investments as % of Value of all HTI Investments 75% 5,43mn +48% 6,034mn ,000 4,000 3,000,000 1, %,348mn 769mn +50% 46%,508mn 1,154mn % 45% 3,184mn 1,443mn +9% 3,788mn 1,866mn % 4,069mn % Source: Go4Venture HTI Database. page 8 Prepared for IPEM 016

9 VC-backed Exits Have Accelerated Over The Last 1 Months Total Volume of European Tech Exits ( ) Buyer Demographics of European VC-backed Exits # of VC-backed Exits 30% <10% + % # of all European Tech Exits # of VC-backed Exits as % of # of all European Tech Exits 36% +66% % Exits to Financial Buyers Exits to Corporates or Others Data shown by # of Exits Financial Buyers of VC-backed European Tech Companies 8 +38% EUROPE US Sources: 451 Research, Capital IQ, PitchBook, Tech.eu. page 9 Prepared for IPEM 016

10 Recently Larger Deals Have Primarily Been Internet And Software Plays Internet Services 6 Cleantech Medtech Total Volume of 015 Landmark HTI ( 0mn) Investments by Sector Telecom Services Hardware Software Marketplace Fintech 10 Food & Drink 4 8 Music Internet Infrastructure 3 Travel 6 3 Other (1) ecommerce Source: Go4Venture HTI Database. (1) Other category includes Content, Business Management, File Transfer, Logistics and Marketing. page 10 Prepared for IPEM 016

11 A Wide Variety of Investors Led Larger European Tech Deals In 015 Total Volume of 015 Landmark HTI ( 0mn) Investments by Lead Investor Category 97 Undisclosed 0 Institutionals, Family Offices & State Funds Private Equity 1 Growth Equity 9 77 Corporates Large VCs Source: Go4Venture HTI Database. page 11 Prepared for IPEM 016

12 EUROPE US Large VCs: US Investors Are Leading The Game # of deals led ( ) Investors who led 1 deal ( ) # of deals led ( ) Investors who led 1 deal ( ) Source: Go4Venture HTI Database. page 1 Prepared for IPEM 016

13 EUROPE US REST OF THE WORLD Every Corporate Is Getting Involved (And Leading) # of deals led ( ) # of deals led ( ) 3 Investors who led 1 deal ( ) Investors who led 1 deal ( ) # of deals led ( ) Investors who led 1 deal ( ) Source: Go4Venture HTI Database. page 13 Prepared for IPEM 016

14 EUROPE US Healthy Growth Equity Segment (Heavily US) # of deals led ( ) Investors who led 1 deal ( ) # of deals led ( ) Investors who led 1 deal ( ) Source: Go4Venture HTI Database. page 14 Prepared for IPEM 016

15 EUROPE US Diverse Range Of Private Equity Funds # of deals led ( ) Investors who led 1 deal ( ) 4 # of deals led ( ) Investors who led 1 deal ( ) Source: Go4Venture HTI Database. page 15 Prepared for IPEM 016

16 FAMILY OFFICES INSTITUTIONALS Traditional Public Investors Are Moving In # of deals led ( ) Investors who led 1 deal ( ) 8 # of deals led ( ) Investors who led 1 deal ( ) 3 5 Minden Percacer Wicklow Capital Source: Go4Venture HTI Database. page 16 Prepared for IPEM 016

17 Contents Silverpeak Overview p3 The European Market Is Coming Of Age p7 Appendices - Additional European Venture Market Data p17 - Silverpeak Completed Mandates p0 page 17 Prepared for IPEM 016

18 50 A New Generation of Mega Deals Is Emerging 45 Total Value and Volume of Mega HTI ( 100mn) Investments ( ) # of Mega Rounds Value of Investments ( mn),533mn % 5 0 1,351mn % 1 691mn +591% 4 4 7mn 118mn 100mn Source: Go4Venture HTI Database. page 18 Prepared for IPEM 016

19 A Closer Look At Where Investors Put Their Money in 015 Share of Total Value of Landmark HTI Investments by Sector Share of Total Value of Landmark HTI Investments by Region Internet Services Software Hardware 16% 11% 3% % UK DACH Nordics France Benelux 3% % 1% 1% 10% 13% 37% Medtech Ireland Telecom Services 68% CEE Southern Europe 33% Share of Total Number of Landmark HTI Investments by Sector Internet Services Software Hardware Medtech Telecom Services 8% Source: Go4Venture HTI Database. 5% % 1% 64% page 19 Prepared for IPEM 016 Share of Total Number of Landmark HTI Investments by Region UK DACH France Nordics Benelux CEE Ireland Southern Europe 14% 8% % 3%3% 4% 31% 35%

20 Silverpeak Recently Completed Mandates (selected 1/) More than 150 closed deals and assignments to date UK / US Denmark / US & Norway UK / Japan Mauritius / South Africa Ireland / Ireland Optical fiber protection solutions for FTTx and industrial applications has been sold to Mobile advertising network and supply side platform (SSP) has been sold to Electronic ticketing software for transit, tourism and loyalty schemes has been sold to BSS and analytics software for mobile operators in emerging markets has acquired control of IT consulting and professional services has been acquired by Advisor to mfx Advisor to adquota Advisor to Smart Transactions Group Advisor to Digitata Advisor to System Dynamics JANUARY 016 OCTOBER 015 AUGUST 015 JULY 015 JULY 015 UK / France Estonia & UK / Japan UK / UK UK / Hong Kong UK / US Health and personal protection insurance software Virtual fitting rooms for clothing e-commerce websites Workflow software for BB sales persons Next-gen orchestration SaaS for Unified Communications Online marketplace: secondary ticketing platform has been acquired by has been acquired by Venture debt and equity financing has been acquired by has been acquired by Advisor to Activus Advisor to Fits.me Advisor to Artesian Advisor to Syntelligence Advisor to Seatwave JULY 015 JULY 015 JUNE 015 JUNE 015 NOVEMBER 014 page 0 Prepared for IPEM 016

21 Silverpeak Recently Completed Mandates (selected /) More than 150 closed deals and assignments to date Portugal / US US & France / Finland & France Netherlands / UK France / France Ireland / UK, Switzerland & Belgium Cloud based, real-time threat detection platform has merged with Open source e-commerce software Series-B Financing Cloud-based event ticketing and management software Growth Equity Financing Fabless semiconductors (manycore processors) $8,000,000 Series C Mobile engagement for consumerfacing companies $19,000,000 Series C Advisor to Anubis Networks $7,300,000 Advisor to Commerce Guys $11,800,000 Advisor to Ticketscript Advisor to Kalray Advisor to Brandtone OCTOBER 014 JUNE 014 MAY 014 FEBRUARY 014 JANUARY 014 Italy / Italy Sweden / Norway Italy / Italy France / Japan France / China & France Cell-handling platform for medical applications and research has been acquired for 50,000,000 by System integrator of fiber-based city and regional networks has sold its system integration BU to Drug delivery company specialised in delivery through autologous red blood cells 15,000,000 Series-B financing led by Humanoid robots for consumer applications Majority investment (+$100,000,000) by Ultra-fast lasers for research and medical applications Majority investment ($4,000,000) Advisor to Silicon Biosystems Advisor to PacketFront Int l Focus Gestioni Advisor to EryDel Advisor to Aldebaran Robotics Advisor to Amplitude SEPTEMBER 013 AUGUST 013 JULY 013 FEBRUARY 01 JANUARY 01 page 1 Prepared for IPEM 016

22 Thank you. Silverpeak LLP 3 Hanover Square London W1S 1JB United Kingdom Silverpeak IB is authorised and regulated by the Financial Conduct Authority