EUROPE STEPPING UP TO GLOBAL TECH LEADERSHIP

JUNE 2020

WHAT DOES IT TAKE?

Roxanne VarzaDirector

Saul KleinCo-founder

Klaus HommelsFounder

Megumi IkedaPartner

Gerard de GraafDirector

Peteris ZilgalvisHead of Unit

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Compare emerging tech hubs.

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Explore over 8,900 startups backed by EU programs.PLATFORM LAUNCH

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Alignment between public & private sector can be Europe’s superpower.

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PLATFORM LAUNCH

Friday 19 June 12:00 CET (1.5hrs)

How can Europe step up to global tech leadership?

Panelists: Klaus Hommels, Saul Klein, Roxanne Varza,

Megumi Ikeda

Who’s it for?Policy makers and broader tech community

Presented by Sifted & Dealroom

Save the dates.

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PLATFORM LAUNCH

Friday 26 June12:00 CET (to be confirmed)

Product tour & workshop:data-driven policy making

Webinar

Who’s it for?Policy makers, broader tech community,

data wonks

Presented by Sifted & Dealroom

NAVIGATING CRISIS

GOV’T ROLE LONG TERM

CAN EUROPE COMPETE?

HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

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Three major trends unfolding.

✔ Digital adoption has accelerated

✔ Remote working has levelled the playing field in the war for talent

✔ Technological sovereignty has become a hot topic

NAVIGATING CRISIS

HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

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Survey in partnership with 32 venture capital firms.

HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

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Source: survey by LocalGlobe, Latitude, Dealroom and Sifted in partnership with 32 VCs.

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40% of startups expects 2020 revenues to be at least 25% under plans

43% of startups have frozen hiring, another 28% have slowed hiring

Many turning to (Government-backed) bank loans and applying for grants

“Working from anywhere" is here to stay

And much more… full results will be released soon

Survey results: a teaser.

Country Covid-19 response Amount per startup with >€1M funding

FranceBpifrance

€5.2B Guarantees, accelerated tax credits, direct loans

€3.0M per1,700+ startups

GermanyBMWi / KfW / regional banks

€2BFund-of-funds, direct loans

€2.0M per1,000+ startups

UKBBB, Innovate UK, EIS

£1.25BCo-investing and direct loans

€0.5M per2,700+ startups

SwedenSaminvest, Almo, Vinnova

SEK3B Direct investing, guarantees, tax credits

€0.5M per600+ startups

NetherlandsRVO, BOM, InvestNL

€100M Direct loans

€0.2M per450+ startups

EUEIF, EIB, EIC, Horizon Europe

€300MFund-of-funds triggering investments of up to €1.2B

€40K per8,000+ startups

IsraelIsrael Innovation Authority

$180M Direct loans

€0.2M per900+ startups

USASmall Business Admin -- --

HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

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Note: preliminary Dealroom analysis.

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France has responded most decisively.

2019Jan-May

2020 Jan-May % change

France $2.3B $2.7B

Sweden $0.8B $0.9B

United Kingdom $5.7B $5.3B

United States $61B $52B

Netherlands $0.4B $0.3B

Germany $2.8B $2.0B

Israel $2.2B $1.6B

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HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

Cumulative venture capital investment amount from January to May

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France is also leading by VC investment growth so far this year.

GOVERNMENT ROLE LONG TERM

EuropeanStartups.co

Source: InvestEurope.

HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

VC funds raised in Europe by source

€ 1.1B € 1.8B € 1.4B € 1.6B € 1.4B € 1.5B € 2.4B € 2.6B € 2.5B € 3.0B» Government funding

» Funding from private institutions & individuals

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European VC has become less dependent on government funding.

33%34%

37% 35% 35% 22%27% 26% 19%

20%

» Europe €190B invested since 1995 €0.3T market cap (top 10)

» Asia €400B invested since 1995 €1.5T market cap (top 10)

5%

Global venture capital invested

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HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

» United States €1.2T invested since 1995 €3.6T market cap (top 10)

Amazon ($1.2T)

16%

Facebook ($650B)

Netflix ($180B)

Salesforce ($160B)

Tesla ($160B)

4%

Europe has a lot of catching up to do.

Google ($1.0T)

European startup ecosystem picking

up steam

EuropeanStartups.co

Valuation as 16th of June 2020.1. Europe’s most valuable VC backed starts founded since 2005 and the top most valuable USA VC backed companies from the same period.

HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

2x

(1)

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Since 2005, Europe has shown it can create big tech companies too.

$242B

$118B

Source: Benedict Evans’ Jan 2020 presentation Standing on the Shoulders of Giants (data from companies and Zenith). Source for B2B: “In-depth: B2B e-Commerce 2019” by ecommercedb.com

HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

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Market share in core domains

Europe is very dependent on Silicon Valley tech. Does technical sovereignty matter?

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HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

$982B

We can’t force a “European Google”. But we can make Europe the best home for the next super founder like Sergey Brin or Elon Musk.

55% of America's billion-dollar startups have an immigrant founder (Forbes)

Could these founders have become as successful anywhere else than the USA?

If Europe can create several decacorns, it can create $100B+ companies too

Most valuable U.S. tech companies founded by immigrants

Source: UK BEIS report on International Comparison of the UK Research Base, 2019; Scopus, via Rani Saad. Note: field-weighted citation impact (FWCI) is a measure of how much impact a set of publications have had. It compares the total citations received by a researcher’s publications to the average number of citations received by all other similar publications from the same research field in the same year.

EuropeanStartups.co

HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

Europe is a global powerhouse in frontier tech.

Research impact: quality & influence measured as field-weighted citation impact

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HOW CAN EUROPE STEP UP TO GLOBAL TECH LEADERSHIP?

Panel: how can Europe step up to global tech leadership?

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Friday 19TH June 12pm CEST / 11am BST

Introduction by Yoram Wijngaarde, Dealroom.coModerated by Michael Stothard, Sifted.eu

Roxanne VarzaDirector

Saul KleinCo-founder

Klaus HommelsFounder

Megumi IkedaPartner

Gerard de GraafDirector

Peteris ZilgalvisHead of Unit