26 January 2018 - Silverpeak · 26 January 2018 European Venture Market Update ... GFG Letgo Klarna...

Silverpeak LLP is an authorised representative of Silverpeak Capital Ltd, which is authorised and regulated by the Financial Conduct Authority

26 January 2018

European Venture Market Update

International Private Equity Market Conference

Jean-Michel Deligny, Managing Director

[email protected]

Agenda

1. Silverpeak overview 2

2. Update on the tech financing environment 6

3. Themes for discussion 14

Silverpeak advise innovative, fast growing technology companies on M&A

and growth financing transactions

360+

150yearsexperience

45+Strong team

SNAPSHOT

9partners deals

4

53 members on every continent in 42 countries and 63 cities

page | By Silverpeak

Global reach: offices in London, Paris

Milan, Hamburg, Munich, Berlin.

Where we are different:

▪ Technology sector specialist

▪ M&A + larger financings

▪ Truly international DNA and global

relationships

▪ Seniority of partners

2/3M&A

1/3Larger

Financing

LONDON | PARIS | MILAN | HAMBURG | MUNICH | BERLIN

Recently completed mandates

JANUARY 2018

US / LUXEMBOURG

Investment in

Social media analytics & monitoring software

IT-as-a-Service (ITaaS) & cloud transformation consultancy

FEBRUARY 2017

UK / US

Advisor to Virtual Clarity

Investment by

Employee performance

optimisation software

FEBRUARY 2017

UK / US

Advisor to Silver Lining Solutions

Sold to

Silicon IP for post-silicon debugging

MAY 2017

UK

Advisor to UltraSoC

£5,000,000 equity funding by

Logistics software

APRIL 2017

UK / UK

Advisor to Blackbay

Sold to

JANUARY 2017

UK / US

Investment in


MAY 2017

GERMANY / GERMANY

Cognitive insight platform

Investment in

+

Advisor to Genui

Optical communications

solutions (NASDAQ: XCOM)

FEBRUARY 2017

UK / US

Exclusive financial advisor to

H.I.G. Capital & management

Acquired with the support

of management

Agenda




60

88 87

120

193202

259

€1.6Bn€2.1Bn

€2.5Bn

€4.4Bn

€7.0Bn €6.3Bn

€9.8Bn

-

$0b

$0b

$0b

$0b

$0b

$0b

0

50

100

150

200

250

300

2011 2012 2013 2014 2015 2016 2017YTD

Venture and growth financing is healthy

1: As of October 2017; Source: Go4Venture.com

European tech financings (≥€10mn)1

# of deals

© Silverpeak LLP 2017

Value of deals€16.4bn(annualised)

369(annualised)

€1.4bn ACCOUNTED FOR IN

TOP 3 DEALS


1 1

3

4

11

9

17

€0.1Bn€0.1Bn

€0.6Bn

€1.4Bn

€2.1Bn

€1.5Bn

€3.7Bn

-

$0b

$0b

$0b

$0b

$0b

$0b

$0b

$0b

0

2

4

6

8

10

12

14

16

18

2011 2012 2013 2014 2015 2016 2017YTD

Mega-deals (≥€100mn) have picked-up again strongly


# of deals Value of deals

TOP 10 financings 2015-2017YTD

Company Financing (€) Date

€496m Feb-17

€469m Jun-15

€469m May-17

€387m May-15

€360m May-17

€359m May-17

€300m Apr-16

(Sorted by Financing size)

€250m Aug-16

€245m Aug-16

€178m Sep-15



Internet services is leading the way, followed by software


# of European tech financings by sector (≥€10mn)1

Total # of deals = 369

Internet Services, 252

Software, 70

Hardware, 18

Medtech, 13Cleantech, 9

Telecom Services, 7

Mark

etp

lace

-93

Fin

tech

-73

E-C

om

merc

e-

24

SaaS

-18

eH

ealt

h-

3

Dig

ital M

edia

-2

Food

-2

Oth

er

-37



UK is the largest destination for large financings

Other counties: Netherlands, Ireland, Finland, Poland, Norway, Belgium, Luxembourg, Germany, UK, Denmark,

Cyprus, Russia, Estonia, Turkey, Spain, Sweden, Romania, Iceland, Austria, Italy


# of European tech financings by country (≥€10mn)1


1: As of 10th October 2017

Source: Go4Venture.com

UK: 130 deals

35%

20%

20%

4%

4%

3%

14%

Germany: 72 deals

France: 73 deals

Spain: 16 deals

Sweden: 13 deals

Other: 53 deals

Switzerland: 12 deals


23%

37%

19%

21%Late-Stage: 79 deals Series A: 85 deals

Series B: 135 deals

Series C: 70 deals

Large financings take place at all stages


# of European tech financings by stage (≥€10mn)1



1: As of 10th October 2017

Source: Go4Venture.com

€469m

€203m€157m

Improbable Adyen Tricentis

Top European deals by series

Series A Series B

Series C Series D & Later

€100m

€64m €63m

Mindmaze Sirin Labs Wimdu

Individual investors

& &

€300m

€166m€118m

GFG Letgo Klarna

€469m €469m

€460m

Delivery Hero Spotify Auto1 Group

50+ Investors


Source: Go4Venture.com | Pitchbook

Most active investors in Europe

Investor Latest Investments Investor Latest Investments

Top European Investors Top US Investors


Source: Go4Venture.com | Pitchbook

Agenda




Themes for discussion

▪ Size of rounds inflation: valuation inflation? e.g. Series A

▪Unicorn obsession? e.g. mega rounds

▪Exits flat when investment is up (end of FAGNs?)

• Are we in a bubble?

• Everyone is a tech investor – blessing or a curse?

• New sectors: fashions or trends

▪Allow VCs to be growth investors?

▪Private equity moving in - source of exits?

▪Role of state sources: country states, EIF, SWFs

- More and first-time VCs?

- More cross-border?

- More corporates, family offices

▪Bitcoin / blockchain

▪AI /Big Data / IOT

▪Cybersecurity

▪Deep tech?


Themes for discussion

• Europe: is Brexit an opportunity for other to catch up?

• Future of VCs?

▪The Big 3: UK losing its shine, Germany showing its limits, France making a comeback?

▪ Is Nordic = Sweden?

▪Are Benelux and Switzerland making progress?

▪New geographies: Spain, Portugal, Italy, CEE?

▪More open or more proprietary?

▪New teams – new energy

▪Other VCs and asset managers – new competition

▪ ICOs – new way of financing innovation?


Thank you.

page | CONFIDENTIAL | Prepared for Octopus Ventures

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.

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London W1S 1BN

United Kingdom

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26 January 2018 - Silverpeak · 26 January 2018 European Venture Market Update ... GFG Letgo Klarna...

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