State Of European Venture Capital Reshma Sohoni@rsohoni

Seedcamp is a founder’s first round fund. We invest smart capital into pre-seed

and seed stage startups, providing up to €500k and a lifelong platform of Learning, Network and Capital

to support the most ambitious Founders.

“

”

The access to capital

$450MTotal FundingRaised by companies since 2007

19%

81%

of Seedcamp backed companies raise follow-on funding

84%500 Total

investors

120 US investors

Some of the top VCs our companies are raising from

Seedcamp’s Baltic portfolio

The Early Stage

The generational effect

1990s

pre-‘90s2000s

2010s

1st generation 3rd generation

2nd generation 4th generationSupernova

Silicon Valley Pre 90’s 90’s 00’s 10’s

90’s 00’s nowadays2rd generation

In EU

Angels - exited experience

Barry SmithSkyscanner

Errol DamelinWonga

Ed Wray Betfair

Will NealeGrabyo

Jeremy YapCitymapper

The emergence of seed VCs

Source: The Micro-VC crunch, pevcbanker.com, May 2016

Crowdfunding

• Customers as Shareholders • Product validation • Creates Brand Advocates

Bringing together public & private capital

£25m to support London tech startups

£200m invested in 169 fast growing UK startups

Enterprise Capital Fund

behind…+

Tax benefits - unlike anywhere

Source: Commentary EIS SEIS Official Statistics, HMRC, January 2016

+58% Angel Investments 2013 vs 2012

Rapid growth

0

200

400

600

800

2011 2012-13 2013-14 2014-15

783

692

457

342

Amount Invested (million £)

+34%

+51%

+13%

Average fundraise increased to £535,615

•income tax relief •no capital gains •tax offset loss

EIS/SEIS 1994 - 2012

European grant funding

Programme Annual budget Description

HORIZON 2020 €2.8 billion For entrepreneurs, startups and SMEs

EUREJA €0.27million European network developing cooperation between SMEs, research centres and universities for industrial innovation

CREATIVE EUROPE €2.6 million Grants to support productions companies interested in developing a video game concept or project.

MARCO POLO II €60 million Grants for commercial projects that stimulate competitiveness of combined transport as against exclusively road transport

Baltic startup scene

Source: TechChill Baltics Conference 2016

Ease of doing business in Estonia Source: Worldbank

Tallinn on the Index

The Later Stage

Late stage capital drop

Source: European Private Equity Activity, investeurope.com, 2015

Number of funds that reached first, intermediate or final closing during the year

0

50

100

150

200

2007 2008 2009 2010 2011 2012 2013 2014 2015

35

394646

5857

6066

69

610

91120

1718

17

27

5780

586074

6070

82100

Early-stage Later-stage Balanced

196

165148

134152

117 113129

58

The State of European Tech, Slush & Atomico, November 2015

Hubs are dominant

Value add VCs

Ongoing involvement

Talent

Marketing

Sales

Partnerships

Operations

Networking

Hands-on approach

The Americans

Source:The State of European Tech, SLUSH & ATOMICO, Nov 2015

(SWE)

(GER)

(SWE)

(GER)

(SWE)

(GER)

(GER)

(UK)

(SWE) (UK)

(SWE)

(UK)

(UK)

VC Selected investment in Europe

(UK)

(UK)

UNHWs, family office and corporates

Non-VC participation in mid & late stage startups

12.5%

25%

37.5%

50%

2009 2010 2011 2012 2013 2014 2015

44%

35%35%31%

28%28%25%

27%

20%17%

11%13%

8%9%

Asst Mgmt / Family Office / Hedge Fund / Mutual FundCorporate / Corporate VC

CAGR 09’-14’

18%7%

Source: VC-backed, US startups that have raised $15M+ total, ex. life sciences, CBInsights, 1/1/09-4/20/15

Venture debt

Direct lending fundraising: North America vs. Europe-focused funds, 2006 - 2016 YTD

0

5

10

15

20

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 YTD0.9

18.8

13.2

8.5

3.51.1

2.90.61.20.40.3 1.7

17.1

19.8

14.5

7

3.33.91.1

17.4

7.7

1.8

North America-Focused Funds Europe-Focused Funds Source: Private Debt Spotlight, Preqin Ltd, May 2016

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Takeaways

Not every great company gets funded

Capital is kingHubs dominate

Mix-Match is the name of the game

The right capital partners matter

We need our GOOG, FB, Alibaba

VC is better than ever - not perfect