Innovation and Growth Financing in Europe and Germany · Source: PitchBook as of 09.02.2018, FCF...
Transcript of Innovation and Growth Financing in Europe and Germany · Source: PitchBook as of 09.02.2018, FCF...
March 22nd, 2018
Innovation and Growth Financing in Europe and GermanyStatus Quo: Achievements, Competitive View & Forward Strategy
Arno Fuchs, FCF Fox Corporate Finance GmbH
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European Deal Volume European Deal Count
Number and Volume of European Life Science Deals# of DealsEURm
Life Science Deals
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1000
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3000
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5000
6000
7000
8000
0
5,000
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45,000
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European Deal Volume European Deal Count
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3,000
3,500
4,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
European Deal Volume European Deal Count
Technology Deals
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
US Deal Volume US Deal Count
Number and Volume of US Technology Deals
Development of Venture Capital Financing in Tech and Life SciencesEurope
Source: PitchBook as of 20.03.2018, FCF Equity Research
Number and Volume of European Technology DealsEURm # of Deals
Development of Venture Capital Financing in TechnologyEurope vs. US
# of Deals
Technology Deals
3
0
200
400
600
800
1000
0
500
1,000
1,500
2,000
2,500
3,000
European Deal Volume European Deal Count
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200
400
600
800
1000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
European Deal Volume European Deal Count
Development of Venture Capital Financing in Life SciencesEurope
Source: PitchBook as of 09.02.2018, FCF Equity Research
Number and Volume of European Life Science DealsEURm # of Deals
vs. US
200
400
600
800
1,000
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
US Deal Volume US Deal Count
Number and Volume of US Life Science Deals# of Deals
Life Science Deals
4
0
50
100
150
200
250
300
350
0
500
1,000
1,500
2,000
2,500
3,000
European Deal Volume European Deal Count
Development of Venture Capital Financing in Life SciencesEurope
Source: PitchBook as of 20.03.2018, FCF Equity Research
Number and Volume of European Life Science DealsEURm
50
100
150
200
250
300
350
0
500
1,000
1,500
2,000
2,500
3,000
German Deal Volume German Deal Count
Number and Volume of German Life Science Deals
vs. Germany
# of Deals
5
280 267
182
101 85
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280 267 182 101 850
500100015002000250030003500
978 847 1,863
3,6051,108
0
5
10
15
20
25
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2013 2014 2015 2016 2017
Fund Size Number of Funds
978 847 1,8633,605 1,108
05101520253035404550
0
2,000
4,000
6,000
8,000
10,000
12,000
2013 2014 2015 2016 2017
Fund Size Number of Funds
Life Science Fund DevelopmentEurope
European VC Life Science Fund Launches (L5Y)EURm
Top 5 European Life Science Funds Launched in 2017*
Source: PitchBook as of 09.02.2018, FCF Equity Research* Results might change with appearance of new funds not tracked by PitchBook
LSP Health Economics Fund 2
MedicxiGrowth I
DFJ Esprit IV Seroba Life Sciences Fund III
Rewired Fund
EURm
3,222 3,7936,916
8,50011,146
05101520253035404550
0
2,000
4,000
6,000
8,000
10,000
12,000
2013 2014 2015 2016 2017
Fund Size Number of Funds
US VC Life Science Fund Launches (L5Y)# of Deals
Top 5 US Life Science Funds Launched in 2017*
2,941
790 695 561 424
New Enterprise Associates 16
Clarus IV Canaan XI Oak HC/FT Partners II
Venrock Associates VIII
vs. US
6
Most Active Investors in European Life Science Companies
Source: PitchBook as of 09.02.2018, FCF Equity ResearchNote: Proportional attribution of deal values to investors participating in a transaction (transaction volume / # investors by financing round)* Horizon 2020, the framework program of the European Commission, funds research, technological development and innovation
2017
EUR 31m
EUR 43m
EUR 34m
EUR 43m
EUR 43m
EUR 43m
EUR 43mWild Family Office
EUR 42m
EUR 42m
EUR 41m
4.
6.
10.
5.
3.
1.
2.
7.
8.
9.
2015
EUR 22m
EUR 28m
EUR 67m
EUR 67m
EUR 67m
EUR 67m
EUR 67m
EUR 55m
EUR 29m
EUR 28m
*
EUR 36m
EUR 50m
EUR 63m
EUR 148m
EUR 38m
EUR 90m
EUR 53m
EUR 42m
EUR 38m
EUR 37m
*
2016
100%60%30%Most Active EU Investors in European Life Science Companies Most Active EU post-Brexit Investors in European Life Science Companies
7
Top 10 VC-Backed European Life Science IPOs (L3Y)on European and US Stock Exchanges by Issuing Volume
Source: PitchBook as of 09.02.2018, FCF Equity Research, Biotechgate, S&P Capital IQ as of 27.02.2018
2017Age at IPO: 13 years
Indication: Orphan diseases
6.
7.
8.
9.
10.
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3.
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5.
1.
Issuing VolumeEUR 95m
2017Age at IPO: 10 years
Indication: Inflammatory diseases
Issuing VolumeEUR 100m
2017Age at IPO: 14 years
Indication: Neurology
Issuing VolumeEUR 87m
2
1
2017Age at IPO: 12 years
Indication: Oncology
Issuing VolumeEUR 100m
2015Euronext BrusselsAge at IPO: 8 years
Sector: Medical Technology
Issuing VolumeEUR 109m
2017Age at IPO: 15 years
Indication: Oncology
Issuing VolumeEUR 165m
2015Age at IPO: 13 years
Indication: Oncology
Issuing VolumeEUR 75m
2017Age at IPO: 5 years
Indication: Genitourinary
Issuing VolumeEUR 97m
1234562015Age at IPO: 7 years
Indication: Oncology
Issuing VolumeEUR 191m
7
2015Age at IPO: 8 years
Indication: Rare diseases
Issuing VolumeEUR 108m
Top 10 VC-Backed European Life Science IPOs (L3Y)on European Stock Exchanges by Issuing Volume
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Top 10 VC-Backed European Life Science Exits (L3Y)1)
by Deal Volume and International Acquirers
Source: PitchBook as of 09.02.2018, Biotechgate, FCF Equity Research1) Includes cash and stock considerations, milestone payments and other considerations
6.
7.
8.
9.
10.
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3.
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5.
1.
EURm464
acquired by:Deal Year: 2017
Found. Year: 2014Indication: Oncology
Marseille
Naarden
Sandwich
Deal Year: 2016Found. Year: 2012
Indication: Oncology
EURm3,604
acquired by:
EURm1,380
Deal Year: 2015Found. Year: 2012
Indication: Cardiovascular
acquired by:
EURm942
Deal Year: 2017Found. Year: 2012
Indication: Dermatology
acquired by:
EURm800
Deal Year: 2017Found. Year: 2012
Indication: Inflammatory
acquired by:
EURm1,282
Deal Year: 2016Found. Year: 2001
Indication: Oncology
acquired by:
acquired by:Deal Year: 2016
Found. Year: 2007Indication: Oncology
EURm715
EURm579
Deal Year: 2015Found. Year: 2010
Indication: Neurology
acquired by:
EUR m558
acquired by:Deal Year: 2017
Found. Year: 2001Sector: Services
Deal Year: 2015Found. Year: 1999
Indication: Musculoskeletal
EURm470
acquired by:
Munich
Gosselies
Cambridge
Copenhagen
Mainz
Oss
Top 10 VC-Backed European Life Science Exits (L3Y)1)
by Deal Volume and EU domiciled AcquirersTop 10 VC-Backed European Life Science Exits (L3Y)1)
by Deal Volume and EU post-Brexit domiciled Acquirers
9
383 558
118 26 240
500
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1,500
2,000
2,500
3,000
2013 2014 2015 2016 2017
10 1322
13 18
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European Venture Debt Volume*
Number of European Venture Debt Transactions*
EURm
Source: VentureSource as of 14.03.2018
Venture Debt Financing Transactions in Life Sciences (LY5)Europe
2,993
1,574
841
430546
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500
1,000
1,500
2,000
2,500
3,000
2013 2014 2015 2016 2017
US Venture Debt Volume*
Number of US Venture Debt Transactions*
EURm
146138
121 119 115
0
50
100
150
2013 2014 2015 2016 2017
1013
22
13
18
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15
30
2013 2014 2015 2016 2017
383
558
118
26 240
250
500
750
2013 2014 2015 2016 2017
vs. US
10
Funding Gap521m
Life Science Funding Gaps between Europe and the US
15,484
2017
1,971
2017
Life ScienceVenture Capital
Volumes
679m
Current
2,148
Current
Life Science AuM
Volumes
546m
201725m2017
Life ScienceVenture Debt
Volumes
Life Science Market
Capitalization
1,411
Current
2,491
Current
EURbn EURbn EURm EURm
2x 3x 8x 23x
Funding Gap
1,080bnFunding Gap
Funding Gap1,469bn
13,513m
Funding Gap56m
1x
465m
bn
bn
bn
m
bn