europe & israel: venture capital data 2017

Venture Capital in Europe & IsraelVenture Investment Data: 2017

Prepared by Gil Dibner

Rothschild Boulevard, Tel Aviv. Part of the original city plan dating to 1910 and named for the Baron Edmund de Rothschild (1845-1934), a French financier. blog

https://twitter.com/gdibner

http://www.angel.co/gdibner/syndicate

https://www.linkedin.com/in/gildibner

https://medium.com/yankeesabralimey

Notes & Promos

• The data in this report consists entirely of data I’ve gathered manually based on publicly available, free sources

• No paid data sources or API calls were harmed in the making of this dataset, every investment was manually classified

• This allows analysis of some aspects of the data I consider important – aspects that don’t appear in other data sources. More importantly, it allows me to exclude deals that are really not “venture capital” rounds but tend to get included by others

• Seed investment is under-reported and adds a lot of noise to the data set, so I exclude deals under $500K

• The analysis is limited to ICT categories and excludes life sciences• The analysis excludes Turkey and FSU countries• All currencies converted into USD using monthly average exchange

rates• ICOs included on a selective basis; crypto companies are classified

into verticals by their end value proposition

Prepared by Gil Dibner follow me on (@gdibner), connect with me on , subscribe to my , or invest with me onblog 2

About this data: If you like this and want more:

Click here to follow my blog on

Click here to subscribe to myWeekly EU+IL Enterprise Tech

Newsletter





https://medium.com/yankeesabralimey/


https://mailchi.mp/bf7b349620b4/yankee-sabra-limey-weekly

Top 10 deals by region in 2017 (US $M)

France & Benelux IsraelIberia

UK & Ireland DACH Nordic

Prepared by Gil Dibner follow me on (@gdibner), connect with me on , subscribe to my , or invest with me on 3

75

75

76

84

85

95

100

100

120

150

250

Kaminario

WalkMe

Vroom

Trax

Valens

InfiniDat

CyberReason

Sirin Labs

Lemonade

Skybox Security

Via

0 100 200 300

57

60

62

62

69

69

72

75

107

173

Shadow

MessageBird

Vestiaire Collective

Tinubu Square

Doctolib

Oodrive

Manomano

Actility

Picnic

Showroomprivee

0 50 100 150 200

16

20

22

28

34

35

46

50

100

275

Spotahome

Verse

CornerJob

Fintronic

Glovo

TypeForm

Logtrust

FeedZai

Cabify

LetGo

0 50 100 150 200 250 300

30

30

34

35

50

54

88

111

114

120

481

Natural Cycles

Yubico

Automile

Lendify

Collibra

MariaDB

ForgeRock

iZettle

Bima

Snow Software

Klarna

0 200 400 600

50

53

70

75

90

120

128

165

404

423

NewStore

ResearchGate

SoundCloud

Get Your Guide

Lilium

Kreditech

Lampenwelt.de

Tricentis

Auto1

Delivery Hero

0 100 200 300 400 500

89

100

102

111

118

190

280

397

480

502

Kobalt

Funding Circle

Atom Bank

Secret Escapes

Monzo

Neyber

Transferwise

FarFetch

Deliveroo

Improbable

0 200 400 600

blog





Top 10 deals by type in 2017 (US $M)

Systems SaaSEnterprise

Consumer Financial Commerce


120

120

128

173

250

275

280

397

404

423

480

Lemonade

Kreditech

Lampenwelt.de

Showroomprivee

Via

LetGo

Transferwise

FarFetch

Auto1

Delivery Hero

Deliveroo

0 200 400 600

62

66

100

102

114

118

120

120

190

280

Tinubu Square

Revolut

Funding Circle

Atom Bank

Bima

Monzo

Lemonade

Kreditech

Neyber

Transferwise

0 100 200 300

53

62

75

76

107

111

128

173

397

480

Simba

Vestiaire Collective

Get Your Guide

Vroom

Picnic

Secret Escapes

Lampenwelt.de

Showroomprivee

FarFetch

Deliveroo

0 200 400 600

88

95

97

100

120

150

165

190

481

502

ForgeRock

InfiniDat

Collibra

CyberReason

Snow Software

Skybox Security

Tricentis

Neyber

Klarna

Improbable

0 200 400 600

33

34

35

50

53

64

75

90

95

100

Airobotics

Automile

Volocopter

Rimac

Arralis

iZettle

Kaminario

Lilium

InfiniDat

Sirin Labs

0 50 100 150

51

53

53

69

75

75

97

120

165

481

Yotpo

Salary Finance

Algolia

Oodrive

Kobalt

WalkMe

Collibra

Snow Software

Tricentis

Klarna

0 100 200 300 400 500 600

blog





A record year

• 2017 was a record-setting year for European & Israel venture investing

• Over $20.3 billion was invested across 1,941 transactions

• Dollar investment volume was up 40%, but the number of investments rose by only 8%

• These numbers, and the rest of this deck, do not reflect the $1B in debt raised by Spotify in March, 2017


12,121 14,486 20,354

1,186

1,7961,941

0

500

1,000

1,500

2,000

2,500

0

5,000

10,000

15,000

20,000

25,000

2015 2016 2017

Num

ber o

f Inv

estm

ents

Amou

nt in

vest

ed (U

S $M

)

VC Investments in Europe & Israel

Invested amount (US $M) Number of investments

blog

http://www.wsj.com/articles/spotify-raises-1-billion-in-debt-financing-1459284467





In 4Q, dollars were down but deals were up

• In 4Q17, Europe & Israel saw $4.9 billion flowing into 484 venture transactions

• 2Q17 was a record-setting quarter in terms of the amount invested, and 1Q17 was a record-setting quarter in terms of the number deals


1,703

1,916

2,873

3,139

3,252

2,857

3,730

4,114

3,122

3,520

4,072

5,763

5,609

4,910

0

100

200

300

400

500

600

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4

2014 2015 2016 2017

Amou

nt in

vest

ed (U

S $M

)

VC Investments in Europe & Israel


blog





Monthly pace of venture investment

• Looked at on a monthly basis, the strength of 2Q17 and 3Q17 are even more pronounced

• May 2017 was a record-setting month in terms of investment volume

• September 2017 was a record-setting month in terms of the number of deals

• The impact of summer and winter holidays on deal volume is easy to spot


905971997791787

1,5611,518

5711,1641,0841,059

7151,6571,0511,0211,4011,4521,261

7251,1011,2961,4581,170

8931,671

9431,458

8613,0141,8882,013

7572,8401,9261,5431,442

0

50

100

150

200

250

0

500

1,000

1,500

2,000

2,500

3,000

3,500

JanFebM

arAprM

ayJunJulAugSepO

ctN

ovDecJanFebM

arAprM

ayJunJulAugSepO

ctN

ovDecJanFebM

arAprM

ayJunJulAugSepO

ctN

ovDec

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4

2015 2016 2017

Amou

nt in

vest

ed (U

S $M

)

VC Investments in Europe & Israel(January 2015 - December 2017)


blog





Mega-rounds skew the investment totals• This analysis breaks down VC

investments into brackets by size:

• Seed (less than $2M)• Early venture ($2-8M)• Venture ($8-20M)• Growth ($20-100M)• Mega ($100M+)

• 6 mega-rounds took place in Europe in 4Q17

• Transferwise ($280M, UK)• Lemonade ($120M, Israel)• Skybox Security ($150M, Israel)• Secret Escapes ($111M, UK)• Sirin Labs ($100M, Israel)• Letgo ($100M, Spain)

• Adjusting for mega-rounds, 4Q17 was down slightly from 3Q


708 759 733 710 730

650921 950 873 1,010

1,1961,395 1,567

2,507 2,126

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Qtr4 Qtr1 Qtr2 Qtr3 Qtr4

2016 2017

Amou

nt In

vest

ed (U

S $M

)

Pace of VC Investment in Europe and Israel

Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (.5-2)

blog





Strong year-over-year growth in all brackets

• All size brackets saw YoY increased from 2016 to 2017


726 738

2,538 2,931

2,8283,755

5,860

7,594

2,534

5,336

0

5,000

10,000

15,000

20,000

2016 2017

Tota

l VC

inve

stm

ent (

US $

M)

VC investment volume in Europe and Israel by bracket(2017 vs 2016)

Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

blog





Number of investments, by bracket

• Excluding seed deals, the total number of VC investments per quarter was very constant for the past four quarters: 318 in 1Q, 315 in 2Q, 317 in 3Q, and 327 in 4Q

• 4Q saw a slight uptick in the number of earlier-stage rounds


77 85 94140 153 157 144

182 195 185 171 1804262 44

4661 57 64

5377 77

7584

3326 38

35

44 5240

35

40 44 6657

66 4

3

4 41

6

6 9 5 6

0

50

100

150

200

250

300

350


2015 2016 2017

Num

ber o

f VC

inve

stm

ents

VC investment volume in Europe and Israel by bracket

Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)

blog





No impact of Brexit on deal volume…

• Looking just at UK VC deal volume, there’s so far no evidence that Brexit caused any slowdown whatsoever in VC activity

• There were an average of 45 VC deals per quarter in the 18 months before the referendum

• There were an average of 69 VC deals per quarter since the referendum


0

10

20

30

40

50

60

70

80

90

Qtr1

Qtr2

Qtr3

Qtr4

Qtr1

Qtr2

Qtr3

Qtr4

Qtr1

Qtr2

Qtr3

Qtr4

2015 2016 2017

Num

ber o

f VC

inve

stm

ents

VC investment volume in the UK by bracket


Pre-Brexit

avg = 45

Post-Brexit avg = 69

blog





…and no impact on dollars invested in the UK

• An average of $819M per quarter was invested in the UK in the 18 months before the referendum

• An average of $1,145M per quarter was invested in the UK since the referendum


74 70 98 79 136 108 133 150 189 162 180 151165 166 96 128

172 148 181 113 159 247 224 184

459180

405209

532

273 202 191149

514755

586

210

150

275478

192

110275 202

899633

391

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000


2015 2016 2017

Num

ber o

f VC

inve

stm

ents

VC investment volume in the UK by bracket


Pre-Brexit avg = $819M

Post-Brexit avg = $1,145M

blog





Corporate VC activity, by bracket

• Excluding seed deals, the total number of corporate VC investments rose to 63 in 4Q17, a new record

• Corporate VC investments continue to trend towards later stage


6 4 516

7

22 19 23 1927 25 26 23 25

43

9

12

7

12

6

1619 5

17 1718

20

44

7

8

7

720

18

69

12 11 1818

3

13

3

3

2 31

0

10

20

30

40

50

60

70

Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4

2014 2015 2016 2017

Num

ber o

f VC

inve

stm

ents

Corporate VC investment volume in Europe and Israel by bracket


blog





Corporate VC activity, by country

• During 2017, Israel saw the highest number of corporate VC investments, with 65

• The UK saw 54 corporate VC investments, followed by Germany with 35


19 20 20

8 7

2416

7

7 6

21

16

7

5

0

10

20

30

40

50

60

70

Isra

el UK

Ger

man

y

Fran

ce

Swed

en

Net

herla

nds

Switz

erla

nd

Spai

n

Finl

and

Belg

ium

Irela

nd

Nor

way

Pola

nd

Esto

nia

Denm

ark

Lith

uani

a

Croa

tia

Mal

ta

Aust

ria

Italy

Num

ber o

f inv

estm

ents

Number of corporate VC investments in Europe and Israel by bracket(2017)


blog





Average round size• This average excludes seed

rounds and mega rounds, so it reflects all rounds done in Europe & Israel between $2M and $100M

• With very few exceptions, most months saw average round sizes of $10-12M and there is seems to be little pattern other than mean reversion

• Early 2015 saw higher-than-average deal sizes

• Late 2016 and early 2017 saw lower-than-average deal sizes

• Late 2017 seemed to be characterized by higher-than average deal sizes


4

6

8

10

12

14

16


2014 2015 2016 2017

Amou

nt In

vest

ed (U

S $M

)

Average investment size in Europe and Israel(Round sizes of 2-100M, and 6-month trailing average)

blog





Total venture investment by country, 2017

• The UK saw the most VC investment in 2017, with $5.78B raised

• Israel came in second place, with $3.93B raised

• Germany saw the third-highest amount of venture investment, with $2.88B

• France was a close fourth, with $2.44B


5,7803,932

2,8772,442

1,744790

557312302

254214210

183177

104100

62585750383617151277643321

UKIsrael

GermanyFrance

SwedenSpain

NetherlandsIrelandFinland

SwitzerlandAustria

BelgiumNorway

DenmarkPoland

ItalyPortugal

LuxembourgEstoniaCroatiaCyprus

RomaniaIceland

HungaryCzechMalta

SlovakiaGreece

BulgariaSlovenia

SerbiaLithuania

Latvia

Total VC investment volume by country, 2017 (US $M)

blog





Venture dollars per capita

Prepared by Gil Dibner follow me on (@gdibner), connect with me on , subscribe to my , or invest with me on 17blog

$0.35$0.46$0.51$0.57$0.84$1.16$1.21$1.40$1.51$1.66$1.84$2.70$6.02$12.04$15.57$16.97$18.44$24.31$29.99$30.58$32.42$34.57$34.75$36.34$42.06$44.90$49.02$54.82

$65.02$88.04

$98.55$172.59

$447.17

SerbiaLatvia

GreeceBulgaria

LithuaniaCzech

SlovakiaSloveniaHungary

ItalyRomania

PolandPortugal

CroatiaMaltaSpain

BelgiumAustria

SwitzerlandDenmark

NetherlandsNorway

GermanyFrance

EstoniaCyprusIcelandFinlandIreland

UKLuxembourg

SwedenIsrael

VC dollars per capita in 2017(US$)

USA

(201

6)=

$213

.96

$1.00

$10.00

$100.00

$1,000.00

0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000

VC D

olla

rs p

er C

apita

(Log

Sca

le)

Population

Venture Capital Investment per Capita(bubble size indicates total VC investment)

Israel

Sweden

UK

France GermanyHolland

Italy

SpainBelgium

Switz.

Ireland

Finland

Lux.

EstoniaNorway

CyprusIceland

Denmark

Croatia

Portugal

RomaniaHungarySlovenia

Slovakia

Poland

Czech

Austria

Malta





Venture dollars as a percentage of GDP


• This graph shows 2017 venture dollars invested as a percentage of GDP

• Israel leads at 1.16% of GDP followed by Sweden at 0.34%, Estonia at 0.24%, and the UK at 0.23%

• All of the other countries at below 0.20%

• Latvia and Greece are the lowest, with VC at 0.003% of GDP

• In US, by comparison, VC was 0.37% of GDP in 2016, slightly higher than Sweden

Serbia

LatviaGreece

Bulgaria

Lithuania

Czech

Slovakia

SloveniaHungary

Italy

Romania

PolandPortugal

Croatia

Malta

Spain

BelgiumAustria

SwitzerlandDenmark

Netherlands NorwayGermany

France

Estonia

Cyprus

Iceland

FinlandIreland

UK

Luxembourg

SwedenUS 2016

Israel

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

0 20,000 40,000 60,000 80,000 100,000 120,000

VC a

s a p

erce

ntag

e of

GDP

GDP per Capita





Rule Britannia!Total venture investment by country, 4Q15 to 4Q17

• To get a better sense of VC volumes in various countries, this analysis excludes mega-rounds

• With this filter, volumes and rankings are more consistent

• The UK overtook Israel in 2Q17 and has maintained the lead since

• French VC volume finally slowed down, enough to allow Germany to leap into third place

• Swedish VC investment volume grew dramatically in 4Q, but it remained in fifth place


Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4

2015 2016 2017

0

200

400

600

800

1000

1200

1400

Tota

l VC

inve

stm

ent (

US $

M)

Total VC investment, 4Q15 - 4Q17 (top 5 countries, excluding mega-rounds)

Israel UKFrance GermanySweden

blog





Total venture investment by country, 4Q15 to 4Q17

• To get a better sense of VC volumes in various countries, this analysis excludes mega-rounds

• The “second five” countries for VC investment in 2016 were Spain, Ireland, the Netherlands, Finland, and Switzerland

• Ireland ranked sixth and set a record in 3Q17, but collapsed to tenth place in 4Q17

• Both the Netherlands and Spain hit record levels in 4Q17



2015 2016 2017

0

50

100

150

200

250

Tota

l VC

inve

stm

ent (

US $

M)

Total VC investment, 4Q15 - 4Q17(countries ranked 6-10, excluding mega-rounds)

Spain IrelandNetherlands SwitzerlandFinland

blog





Total venture investment by region

• When VC investments across Europe are aggregated into regions, UK & Ireland, Israel, the Nordics, France, and DACH are the clear and consistent leaders

• The UK and Ireland account for 30% of total investment volume, Israel 19%, Germany 17%, and the Nordics and France 12% each

• Other regions do produce meaningful VC investments, but the volumes are still low


UK & Ireland, 6,091.1, 30%

Israel, 3,931.9, 19%

DACH, 3,345.4, 17%

Nordic, 2,482.7, 12%France, 2,441.6, 12%

Iberia, 852.2, 4%

Benelux, 825.3, 4%

South. Eur., 206.5, 1%

East. Eur., 177.7, 1%

Total VC investment by region, 2017(US $M, includes megarounds)

blog





Rounds by bracket & region

• Including seed deals, the UK and Ireland saw 457 venture deals in 2017

• France came in second with 393

• The Nordics were third with 342


136176 162

5716 33 41 32 11

179145

113

104

82 40 37

21

73 48

42

53

65

16

61

23

22

27

55

0

50

100

150

200

250

300

350

400

450

500

UK & Ireland France Nordic DACH Israel Benelux Iberia South. Eur. East. Eur.

Num

ber o

f inv

estm

ents

Number of investments in Europe and Israel by bracket, 2017

Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<.5-2)

blog





Participation rate of US VC firms, by bracket

• During 2017, US VCs participated in 9% of the VC financing rounds in EU and Israel

• As usual, US VCs are much more likely to participate in later rounds


2% 5% 15%

33% 35%

98% 95%85%

67% 65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Seed (.5-2) Early Venture (2-8) Venture (8-20) Growth (20-100) Mega (>100)

Perc

enta

ge o

f rou

nds

Did US VC firms participate in European VC rounds? (2017)

No Yes

blog





US VC firm participation rate was lower in 2017

• For most of 2017, US VC firms participated in 8-9% of European & Israeli VC deals

• In 4Q17, this rose to 10%


15% 17% 13% 17% 16% 11% 9% 11% 14%8% 8% 8% 9% 10%

85% 83% 87% 83% 84% 89% 91% 89% 86%92% 92% 92% 91% 90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2014 2015 2016 2017

Perc

enta

ge o

f Rou

nds

Did US VC firms participate in European VC rounds?(3Q14-4Q17)

No Yes

blog





Participation of US VC firms by country

• In 2017, US VCs firms were active in 19 different European countries

• US VC firms were most active in Israel, where they participated in 62 investment rounds

• The UK saw 41 US investments

• US VCs invested in 17 German companies and 10 French companies


62

41

1710 7 7 6 4 3 30

10

20

30

40

50

60

70

Isra

el UK

Ger

man

y

Fran

ce

Swed

en

Spai

n

Finl

and

Irela

nd

Net

herla

nds

Denm

ark

Pola

nd

Belg

ium

Esto

nia

Switz

erla

nd

Italy

Port

ugal

Aust

ria

Icel

and

Nor

way

Num

ber o

f VC

inve

stm

ents

Rounds with a US VC involved(2017)

blog





Participation of US VC firms by country

• This chart shows US VC activity within Europe

• The overwhelming bulk of US VC activity is generally in Israel, the UK & Ireland, DACH, and the Nordics


0

10

20

30

40

50

60


2015 2016 2017

Num

ber o

f VC

inve

stm

ents

Investments with US VC participation

Israel UK & Ireland DACH Nordic France Iberia Benelux East. Eur. South. Eur.

blog





Dimension Categories Explanation/Example

1. Target market Consumer, SMB, Enterprise, Government, Telecom, OEM

What sort of customer does the company target?

2. Vertical marketAdtech, Communications, Data, Development, Durables, Education, Electronics, Employment, Energy, Fashion, Financial, Food, Gaming, Health, HMI, Industrial, Infrastructure, Lifestyle, Logistics, Marketing, Media, Productivity, Real Estate, Security, Sports, Storage, Transportation, Travel, Water

What type of problem does the company solve?

3. Business modelCommerce, Components, Content, Marketplace, SaaS, Semiconductors, Services, Software, Systems,

How does the company makemoney? How is value delivered to customers? What are customers paying for?

For example: Consumer + Travel + Marketplace AirBnB is a travel-related marketplace for consumers

Three-dimensional approach to sector mapping






• Excluding mega-rounds, investment activity in 4Q17 was consistent was 3Q17 across target markets

What target markets are attracting the most VC investment in Europe & Israel?


931 1,076 1,244 1,097 1,002 1,0561,369 1,551 1,492

1,110

1,6541,640

1,269962

1,6501,345

1,820 1,879

224

270

283 220

264 377

150

163 187

219447

255 406

545 241

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500


2015 2016 2017

Tota

l VC

inve

stm

ents

(US $

M)

European & Israeli venture financing by target market4Q15 to 4Q17 (excluding mega-rounds, US $M)

Agriculture

Government

Telecom

OEM

SMB

Enterprise

Consumer

blog





• When Israel is excluded from the sample, 51% of all VC dollars in Europe went to consumer-oriented companies in 4Q17

The enterprise/consumer tug-of-war continues


36%

56% 63% 62% 57% 53% 58% 53%45% 46%

58%

42%51%

48%

34% 22% 24% 31% 36%33%

32%

29%36%

32%

44%37%

10% 4% 12% 8% 6% 5% 3%7%

8%

12%3%

6% 8%4% 2% 4% 5% 6% 5% 8%

10%

5% 5% 7% 4%6% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4

2014 2015 2016 2017

European venture financing by target market4Q14 to 4Q17 (excluding Israel, percent of US $M)

Agriculture Government Telecom OEM SMB Enterprise Consumer

blog





Breakdown by region & target market

• Regional differences are apparent when VC investment are categorized by target market


3,037

849

2,076

823 1,167580

2,340

2,299882

1,307 796

394

381305

595

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

UK &Ireland

Israel DACH Nordic France Iberia Benelux South.Eur.

East. Eur.

Tota

l am

ount

inve

sted

(US $

M)

Investment in Europe and Israel by target market by region2017 (US $M)


blog





Distribution of investment rounds by country

• Across Europe & Israel, 44% of VC investment rounds were in consumer companies in 2017

• Nearly two-thirds of Israeli venture investments were into enterprise companies

• The Nordics, DACH, and France were 50% consumer


16%

35%

43%

49%

50%

50%

58%

63%

62%

40%

40%

32%

30%

32%

28%

24%

11%

10%

13%

13%

9%

8%

8%

15%

7%

6%

4%

7%

7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Israel

Benelux

UK & Ireland

France

DACH

Nordic

Iberia

South. Eur.

Investment in Europe and Israel by target market by country2017 (Number of investments)

Consumer Enterprise SMB OEM Telecom Government Agriculture

blog





Growth rounds by target market

• Enterprise companies accounted for over half of the later-stage market in Europe & Israel in 4Q17


56%

37%46%

56%43% 39% 38% 43% 44%

34% 37%45%

32% 35%

25%

41%

46% 25%38% 50% 50%

50% 44%

32%

50% 36%48%

56%

6% 7%

5%

9% 12%6% 5%

12%

7%4% 6%

6%6% 11% 6% 7% 5% 6% 5% 5%20%

7%13% 14%

6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2014 2015 2016 2017

Investment in Europe and Israel by target market(Rounds over $20M, number of investments)


blog





• Fintech was the most popular vertical across Europe & Israel, with 223 investments in the category in 2017

• Lifestyle (a catch-all category for consumer commerce) was second, with 119

• Electronics (109) and marketing tech (107) took third and fourth

Finance still leads, electronics are strong


2224

26282930

3339

4143

474747

515354

5858

6161

6869

7685

9298

107109

119223

AgtechCommunications

ERPSocialCRMLegal

ProductivityDevelopment

AdtechGamingFashionEnergy

FoodPayments

EntertainmentEducation

Real EstateTravel

IndustrialAutomotive

LogisticsData

SecurityInfrastructureEmployment

HealthMarketingElectronics

LifestyleFinancial

European & Israeli venture financing by target market2017 (top 30 categories, number of investments)

blog





• This graph shows the change in the number of investments by vertical from 2016 to 2017

• Automotive, health, and real estate saw the biggest increases in funding frequency

• Adtech, food, and travel saw the biggest decreases

Growth rates by vertical


Adtech, -36%Food, -11%

Travel, -11%Security, -6%

Industrial, -5%Fashion, -2%

Marketing, -2%Logistics, 5%Infrastructure, 5%

Lifestyle, 20%Entertainment, 20%

Data, 23%Payments, 24%Financial, 25%Education, 26%

Electronics, 28%Employment, 31%

Real Estate, 45%Health, 56%

Automotive, 144%

-60% -40% -20% 0% 20% 40% 60% 80% 100% 120% 140% 160%

Change in the number of venture investments(2017 vs 2016, 20 most popular categories)

blog





• Consumer finance was once again the most frequently funded vertical, with 120 investments

• A close second was consumer lifestyle with 119 investments

• Enterprise marketing, with 90 investments, was third

Which verticals for which segments?


Logistics

Data

Security

Infrastructure

Employment

Health

Marketing

Electronics

Lifestyle

Financial

0 50 100 150 200 250

European & Israeli venture financing by target market2017 (number of investments, top 10 verticals)

Consumer

Enterprise

SMB

OEM

Telecom

Government

Agriculture

blog





• This chart shows the ten most commonly funded verticals across Europe & Israel by quarter

The most popular verticals in the past 3 years



2015 2016 2017

0

50

100

150

200

250

300

350

European & Israeli venture financing by vertical market(number of investments, top 10 verticals)

Data

Health

Logistics

Electronics

Lifestyle

Employment

Security

Infrastructure

Marketing

Financial

blog





• Investors continue to favor consumer fintech, lifestyle, and consumer electronics

• From 2016 to 2017, most segments stayed consistent, with the majority of growth concentrated in financial, lifestyle, health, and electronics

Consumer VC investment trends



2015 2016 2017

0

20

40

60

80

100

120

140

160

180

European & Israeli venture financing by consumer verticals(number of investments, top 10 verticals)

EntertainmentTravelHealthFashionFoodElectronicsLogisticsGamingLifestyleFinancial

blog





• Marketing and security showed continued strength

• Most of the growth from 2016 to 2017 was in infrastructure, fintech, and data

• CRM and Adtech declined from 2016 to 2017

Enterprise VC investment trends



2015 2016 2017

0

20

40

60

80

100

120

140

160

180

European & Israeli venture financing by enterprise verticals(number of investments, top 10 verticals)

CRM

Financial

Industrial

Employment

Development

Data

Infrastructure

Adtech

Security

Marketing

blog





• Services displaced SaaS as the most funded business model in 2017, representing 29% of all VC dollars

• SaaS took 27% of the venture dollars invested in Europe & Israel

• Systems – complete physical products – took fourth place at 8% of all venture dollars

Services displace SaaS


Services, 4,309, 29%

SaaS, 4,023, 27%

Software, 1,988, 13%

Systems, 1,233, 8%Commerce, 1,051, 7%

Marketplace, 977, 6%

Components, 542, 4%

Media, 459, 3%

Semiconductors, 342, 2%

Materials, 90, 1%

Data, 3, 0%

European & Israeli venture financing by target market2017 (in US $M) (excluding mega-rounds)

blog





• Services and SaaS remained the top two business models by funding volume

• Systems rose to third place in 4Q, as software collapsed

• Commerce investment levels seem to have stabilized

Services and SaaS are dominant


0

200

400

600

800

1000

1200

1400

1600


2015 2016 2017

European & Israeli venture financing by business model(top seven, in US $M, excluding mega-rounds)

Services

SaaS

Software

Commerce

Marketplace

Systems

Media

blog





• This graph provides a quick overview of the ten most commonly funded segments across the top ten countries for those segments

• In a nutshell:• Consumer financial services

(Everywhere, but especially in the UK, Sweden, and Germany)

• Marketing SaaS in the UK, France, and Israel

• Consumer lifestyle commerce in the UK, France, and Sweden

• Israeli enterprise security software

• French and Swedish consumer electronics

• German SMB fintech• French, British, and Swedish

fashion• Swedish, Finnish, and UK

gaming• And some other stuff….

EU+IL VC Cheat Sheet (2017)


0 20 40 60 80 100 120

Consumer Gaming Services

Enterprise Employment SaaS

Consumer Fashion Commerce

Enterprise Infrastructure SaaS

SMB Financial Services

Enterprise Data SaaS

Consumer Electronics Systems

Enterprise Security Software

Consumer Lifestyle Commerce

Enterprise Marketing SaaS

Consumer Financial Services

Number of VC investments

Investment in Europe & Israel by segment by country2017 (top 10 segments, top 10 countries*)

UK FranceSweden IsraelGermany FinlandSpain NetherlandsItaly DenmarkPoland

*Denmark and Poland were tied for tenth place with 8 investments each across the top segments.*Enterprise Employment SaaS and Consumer Gaming Services were tied for tenth place with 33 investments each.

blog





• Finance was the most commonly funded category in the UK, with 70 investments in 2017

• Real estate, marketing, and lifestyle were next

A closer look at UK venture in 2017


Payments

Education

Health

Employment

Data

Infrastructure

Lifestyle

Marketing

Real Estate

Financial

0 10 20 30 40 50 60 70 80

UK venture financing by target market2017 YTD (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

Telecom

Government

blog





• Security was the most commonly funded category in Israel, with 37 investments in 2017

• Automotive jumped to third place, just behind marketing

• Electronics made a strong showing, including consumer

A closer look at Israeli venture in 2017


Logistics

Development

Financial

Health

Infrastructure

Data

Electronics

Automotive

Marketing

Security

0 5 10 15 20 25 30 35 40

Israeli venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

Government

Agriculture

blog





• Finance was the by far most commonly funded category in Germany, with 15 consumer investments and 15 SMB investments in 2017

• Consumer lifestyle was next, also with 15 investments

• Health, food, and travel rounded out the top five

A closer look at German venture in 2017


Employment

Industrial

Automotive

Electronics

Infrastructure

Food

Travel

Health

Lifestyle

Financial

0 5 10 15 20 25 30 35

German venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

blog





• Lifestyle was the most commonly funded category in France, with 34 investments in 2017

• Finance and electronics were next

• Interestingly, adtech cracked the top ten

A closer look at French venture in 2017


Infrastructure

Adtech

Food

Logistics

Health

Marketing

Employment

Electronics

Financial

Lifestyle

0 5 10 15 20 25 30 35 40

French venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

Telecom

blog





• Fintech was the most commonly funded category in Sweden, with 32 investments in 2017

• Electronics and entertainment were next

• Gaming and lifestyle were also significant areas of investment

A closer look at Swedish venture in 2017


Employment

Payments

Marketing

Health

Industrial

Lifestyle

Gaming

Entertainment

Electronics

Financial

0 5 10 15 20 25 30 35

Swedish venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

blog





• Consumer lifestyle was the most commonly funded category in Spain, with 12 investments in 2017

• Financial was second, with 10

A closer look at Spanish venture in 2017


Education

Social

Marketing

Infrastructure

Employment

Health

Travel

Logistics

Financial

Lifestyle

0 1 2 3 4 5 6 7 8 9 10 11 12 13

Spanish venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

Telecom

Government

blog





• Fintech was the most commonly funded category in The Netherlands, with 6 investments in 2017

• Logistics, employment, travel, and lifestyle tied for second

A closer look at Dutch venture in 2017


Health

Development

Electronics

Food

Security

Automotive

Entertainment

Lifestyle

Travel

Employment

Logistics

Financial

0 1 2 3 4 5 6 7

Dutch venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

Government

blog





• Education was the most commonly funded category in Ireland, with 3 investments in 2017

A closer look at Irish venture in 2017


Financial

Communications

Health

Development

Infrastructure

Employment

Logistics

Data

Payments

Marketing

Education

0 1 2 3 4

Irish venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

blog





• Electronics tied with gaming as the most commonly funded category in Finland, with 9 investments each in 2017

• Industrial took third with 6

Funnily, Finns fully failed to finance fintech


Energy

HMI

Fashion

Entertainment

Data

Education

Marketing

Health

Industrial

Gaming

Electronics

0 1 2 3 4 5 6 7 8 9 10

Finnish venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

blog





• Financial was by far the most commonly funded category in Switzerland, with 7 investments in 2017

• Data and Electronics tied for second with 3 investments each

• Interestingly, there were two space-related investments in Switzerland

A closer look at Swiss venture in 2017


CommunicationsLifestyle

EmploymentReal Estate

FoodAgtech

POSSCM

IndustrialLegal

ERPCRM

InfrastructureAutomotive

HealthSpace

PaymentsElectronics

DataFinancial

0 1 2 3 4 5 6 7 8

Swiss venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

Agriculture

blog





• Like elsewhere in Europe, the Nordics were focused on fintech

• Electronics and gaming have always been strong in the Nordics, and this was true in 2017 as well

• Entertainment took fourth place with 18 investments

The Nordic VC market in 2017


Fashion

Energy

Lifestyle

Employment

Health

Marketing

Industrial

Entertainment

Gaming

Electronics

Financial

0 5 10 15 20 25 30 35 40

Nordic venture financing by target market2017 (number of investments, top verticals)

Consumer

Enterprise

SMB

OEM

blog





• Not surprisingly, Sweden saw the most actively among Nordic nations across most verticals – with particular strength in financial, electronics, gaming, and entertainment

• Finland was notably absent from the fintech boom, but was very active in electronics, gaming, and industrial

• Norway showed strength in electronics and energy

The Nordic VC market by country


Fashion

Energy

Lifestyle

Employment

Health

Marketing

Industrial

Entertainment

Gaming

Electronics

Financial

0 5 10 15 20 25 30 35 40

Nordic venture financing by target market2017 (number of investments, top verticals)

Sweden FinlandDenmark NorwayEstonia IcelandLithuania Latvia

blog





• Fintech was the most financed vertical in Southern and Eastern Europe

• Italy showed strength across a range of consumer categories (food, fashion, lifestyle, education, travel)

• Both Italy and Poland showed strength in marketing and fintech

Venture capital in Southern & Eastern Europe in 2017


CRM

Automotive

Productivity

Gaming

Fashion

Development

Employment

Health

Food

Infrastructure

Travel

Payments

Education

Marketing

Lifestyle

Financial

0 2 4 6 8 10 12 14 16

Venture financing by target market (S. Eur & E. Eur)2017 (number of investments, top verticals)

Italy Poland

Hungary Malta

Czech Cyprus

Bulgaria Romania

Slovakia Slovenia

Serbia Croatia

Greece

blog





Focus on Services

• The lion’s share of the services investment landscape is financial services

• There are, however, many more verticals were “services” companies are emerging


0 20 40 60 80 100 120 140 160 180

Entertainment

Lifestyle

Real Estate

Adtech

Payments

Health

Logistics

Education

Gaming

Financial

Services VC investment in Europe and Israelby vertical and target market, 2017 (top 10 verticals)

Consumer Enterprise SMB

blog





Focus on SaaS

• Marketing was the most frequently funded SaaS vertical in 2017, with 83 investments

• Data was second with 46• Infrastructure (IT) and

employment (HR) were tied for third place, with 42 investments each


0 10 20 30 40 50 60 70 80 90

Productivity

ERP

Health

CRM

Development

Financial

Infrastructure

Employment

Data

Marketing

SaaS VC investment in Europe and Israelby vertical and target market, 2017 (top 10 verticals)

Consumer Enterprise Government SMB

blog





Focus on Marketplaces

• The most frequently funded marketplace category in 2017 was employment marketplaces, mostly aimed at the consumer (i.e. employee) or the SMB employer

• Lifestyle, real estate, and travel were also important marketplace categories


0 10 20 30 40 50

Education

Automotive

Adtech

Fashion

Health

Financial

Logistics

Travel

Real Estate

Lifestyle

Employment

MarketplacesVC investment in Europe and Israelby vertical and target market, 2017 (top 10 verticals)

Consumer Enterprise SMB





Focus on Systems

• The vast majority of “systems” investments in Europe & Israel were into consumer electronics

• The second-most funded category was automotive systems (which includes land vehicles as well as aircraft such as Lillium and watercraft such as SeaBubbles).

• Industrial systems, energy systems, and health systems were also important areas of investment


0 10 20 30 40 50 60 70

Entertainment

HMI

Communications

Storage

Space

Payments

Food

Security

Health

Energy

Agtech

Industrial

Automotive

Electronics

Systems VC investment in Europe and Israelby vertical and target market, 2017 (top 10 verticals)

Consumer Enterprise Government OEM SMB Agriculture

blog





Focus on Components

• Across Europe & Israel, components investments were focused on general electronics, automotive, energy, and industrial


0 5 10 15 20 25 30

Health

HMI

Imaging

Storage

Security

Communications

Industrial

Energy

Automotive

Electronics

Components VC investment in Europe and Israelby vertical market, 2017 (top 10 verticals)

blog





Focus on Fintech

• In 4Q17, over $1.1B was invested into fintech

• In 2017, over $3B was invested into the space, nearly double the $1.6B invested in 2016 and the $1.4B invested in 2015


0

200

400

600

800

1,000

1,200


2015 2016 2017

Fintech - VC investment in Europe and Israel(US $M)

SMB Enterprise Consumer

blog





Focus on Fintech

• Fintech investment pace has accelerated across all brackets

• Mega-rounds accounted for most of the dramatic increase in 4Q17, but “venture” rounds also doubled from 3Q to 4Q


0

200

400

600

800

1,000

1,200


2015 2016 2017

Fintech - VC investment in Europe and Israel(US $M)

Mega Growth Venture Early Venture Seed

blog





Focus on Automotive

• 12 countries saw investments into the automotive tech space in 2016-2017

• Israel led with 22• France and the UK each saw

17


0

5

10

15

20

25

Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4

2016 2017

Num

nber

of i

nves

tmen

ts

Automotive - VC investment in Europe and Israel

Italy CroatiaEstonia IrelandFinland SlovakiaSpain SwitzerlandNetherlands SwedenGermany UK

blog





Focus on Marketing

• VCs invested $844M into marketing tech in Europe & Israel in 2017, up dramatically form $196M in 2016


0

5

10

15

20

25

0

100

200

300

400

500

600


2015 2016 2017

Num

ber of investmentsAm

ount

inve

sted

(US $

M)

Marketing tech - VC investment in Europe and Israel

Amount

Number

blog





Focus on Employment

• In 2017, there were 92 investments into employment (HR) companies, totaling $559M

• This is up dramatically from 2016, which saw only $330M invested across 70 investments in the space


0

5

10

15

20

25

30

0

50

100

150

200

250


2015 2016 2017

Num


ount

inve

sted

(US $

M)

Employment (HR) tech - VC investment in Europe and Israel

Amount

Number

blog





Focus on Health (1 of 3)

• The UK led in the digital health space, with 29 investments

• France was next, with 27• Sweden took third, with 21,

just ahead of Israel with 20


0

5

10

15

20

25

30

35


2016 2017

Num

nber

of i

nves

tmen

ts

Health - VC investment in Europe and IsraelIceland Malta SerbiaSlovenia Denmark NorwayAustria Poland ItalyIreland Belgium SwitzerlandNetherlands Finland SpainGermany Israel SwedenFrance UK

blog






• The most frequently funded category in health tech was consumer health services

• Enterprise SaaS was second, followed by enterprise software

• Consumer health systems (devices) and consumer health marketplaces were also significant


0 5 10 15 20 25 30 35 40

Materials

Components

Data

Commerce

Media

Marketplace

Systems

Software

SaaS

Services

Number of investments

Healthtech VC investment in Europe and Israelby business model and target market, 2017

Enterprise OEM Consumer

blog






• In 2017, over $850M was invested across 98 rounds into digital health companies, up significantly from 2016


0

5

10

15

20

25

30

35

0

50

100

150

200

250

300

350


2015 2016 2017

Num


ount

inve

sted

(US $

M)

Health tech - VC investment in Europe and Israel

Amount

Number

blog





Focus on Real Estate (“proptech”)

• Proptech investment appears to be largely a British and French phenomenon


0

2

4

6

8

10

12

14

16

18


2016 2017

Num

nber

of i

nves

tmen

ts

Proptech - VC investment in Europe and Israel

Belgium LuxembourgIreland SerbiaNetherlands NorwaySwitzerland IsraelSpain SwedenGermany FranceUK

blog





Focus on Electronics (components, systems, & semis)

• The majority of “electronics” investments are into consumer systems companies

• OEM suppliers for components and semis are also significant


0 10 20 30 40 50 60 70

Marketplace

Software

Commerce

Services

Semiconductors

Components

Systems

Number of investments

Electronics VC investment in Europe and Israelby business model and target market, 2017

Agriculture Enterprise SMB OEM Consumer

blog





Focus on Developer Tools

• The developer tools investment landscape is highly fragmented, but the pace appears to be slowing


0

2

4

6

8

10

12

14

16


2016 2017

Num

nber

of i

nves

tmen

ts

Developer tools - VC investment in Europe and Israel

Portugal Belgium Poland Switzerland FinlandEstonia Ireland Hungary Austria DenmarkNorway Sweden Netherlands Germany FranceUK Israel

blog





Focus on Infrastructure

• There were 85 investments into infrastructure companies in 2017

• 40 of these were in Israel, 36 in the UK, and 27 in France


0

5

10

15

20

25

30

35


2016 2017

Num

nber

of i

nves

tmen

ts

Infrastructure - VC investment in Europe and IsraelItaly Romania PortugalDenmark Poland IcelandLuxembourg Czech BelgiumIreland Switzerland NorwayNetherlands Finland SpainSweden Germany FranceUK Israel

blog





Focus on Data

• Data-oriented investments have been increasing through 2016 and 2017

• Just over $700M was invested across 69 funding rounds into data-oriented companies in 2017

• The “data” category captures companies whose primary value proposition revives around (big) data, AI/ML/BI tooling, databases, and/or analytics


0

5

10

15

20

25

30

0

50

100

150

200

250

300


2015 2016 2017

Num


ount

inve

sted

(US $

M)

Data - VC investment in Europe and Israel

Amount

Number

blog





Based in , I was previously a partner at . Before that, I helped run the

European seed program for . I moved to London after seven years in

during which I worked as a VC with and . I’m originally from .

My VC investments include and . Angel investments include and many more.

If you found this useful, I hope you’ll follow my blog and/or subscribe to my weekly email.73

Gil Dibner

To invest in the best European & Israeli enterprise startups,

consider backing me on here. Lots of exciting stuff in thepipeline – and you’ll be in pretty good company.

https://twitter.com/gdibner/lists/announced-portfolio/members


https://mailchi.mp/86055f13176f/yankee-sabra-limey-weekly


Thank youblog




http://yankeesabralimey.tumblr.com/

europe & israel: venture capital data 2017

Technology