The document provides an analysis of venture capital investment data in Europe and Israel for the second quarter of 2016. Some key points:
- Europe and Israel saw $4 billion invested in 470 venture deals in Q2 2016, setting new records.
- Israel had the highest total investment volume of any country at over $1.3 billion, followed by Germany and the UK.
- Average round sizes increased slightly and were around $12 million.
- Excluding seed deals, Israel had the most announced deals at 73, followed by the UK with 50 and DACH region with 40.
- Corporate venture capital activity increased, with Israel seeing the most corporate deals at 25 and the UK seeing 10.
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Europe & Israel 2Q16 - VC Deal Done
1. Venture Capital in Europe & Israel
Venture Investment Data: Second Quarter, 2016
Prepared by Gil Dibner
Skyline of Rome, home of over 900 churches
blog
2. The data
• The data in this report consists entirely of data I’ve gathered manually based on
publically 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
• Seed investment is still under-reported, but I got a bit better at capturing it in the
fourth quarter. Rounds smaller than $500K are generally excluded from this
analysis
• The analysis is limited to ICT categories and excludes life sciences
• The analysis excludes Turkey and FSU countries
• I’m converting all currencies into USD using monthly average exchange rates
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3. Quarterly pace of venture investment
• In 1Q16, Europe & Israel saw
$4.0 billion flowing into 470
venture transactions
• This set a new quarterly
record for both numbers
• These numbers, and the rest
of this deck, do not reflect
the $1B in debt raised by
Spotify in March
3
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1,703 1,916 2,873 3,139 3,248 2,856 3,751 4,001
122
204
270 271
286
357
463 470
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
0
50
100
150
200
250
300
350
400
450
500
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
Amountinvested(US$M)
Numberofinvestments
VC Investments in Europe & Israel
Invested amount (US $M) Number of investments
4. Monthly pace of venture investment
• All three months of the
second quarter were strong,
with particular strength in
April and May
@gdibner
blog: yankeesabralimey 4Syndicate for European & Israeli Enterprise Companies
905
971
997
791
787
1,561
1,517
568
1,164
1,083
1,059
714
1,661
1,052
1,038
1,367
1,450
1,185
92 75 103 78 95 98 119
65 102 111 124 122 164 149 150 149 159 162
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2015 2016
Numberofinvestments
VC Investments in Europe & Israel, January 2015 - June 2016
Invested amount (US $M) Number of investments
5. 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+)
• Four mega-rounds took place in
Europe this quarter – all of them
consumer-oriented businesses:
• Cabify, Spanish on-demand taxi app,,
raised $120M in April
• Global Fashion Group, a German
online fashion retailer, raised $340M
in April
• Farfetch, a British online fashion
retailer, raised $110M in May
• Gett, an Israeli on-demand taxi app,
raised $300M in May
• Adjusting for mega-rounds, 2Q16
was slightly below 1Q16
5
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285 354 368 507 602 609
556
716 567
559
731 686
1,154 813
1,513 1,187
1,669 1,643
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2015 2016
AmountInvested(US$M)
Pace of VC Investment in Europe and Israel
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (.5-2)
6. Strong year-over-year growth
• 1H16 total investment volume
in Europe & Israel was up
27% over 1H16 (excluding
seed deals, where data is
more spotty)
• Early venture volume grew by
90% - almost doubling
• Venture volume grew by 11%
• Growth volume grew by 68%
• Mega round volume dropped
by 26%
6
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
639
1,211
1,272
1,417
1,968
3,311
1,937
1,442
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2015 2016
TotalVCinvestment(US$M)
VC investment volume in Europe and Israelby bracket
(1H16 vs 1H15)
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)
7. Number of investments, by bracket
• Excluding seed deals, the
total number of VC
investments per quarter was
260 in 2Q16, just about the
same as the 263 in 1Q16
7
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
60
83 77 85 93
139 153 14930
26 42
62 44
46
61 56
13
26
33
26 38
35
45 51
3
1
6
6 4
3
4 4
0
50
100
150
200
250
300
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
NumberofVCinvestments
VC investment volume in Europe and Israelby bracket
Mega (>100) Growth (20-100)
Venture (8-20) Early Venture (2-8)
8. Corporate VC activity, by bracket
• Excluding seed deals, the
total number of corporate VC
investments jumped to 57 in
2Q16
• Once again, corporate VC
activity in Europe & Israel hit
the highest level since this
data set was started
8
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
6 4 5
16
7
22
19 21
4
3
9
12
7
12
6
15
4
4
7
8
7
7
20
18
3
1
3
3
0
10
20
30
40
50
60
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
NumberofVCinvestments
Corporate VC investment volume in Europe and Israel by bracket
Mega (>100) Growth (20-100)
Venture (8-20) Early Venture (2-8)
9. Corporate VC activity, by country
• During the second quarter of
2016, Israel again saw the
highest number of corporate
VC investments, with 25
• The UK saw 10 corporate VC
investments during that
period
• Nine other countries saw
corporate VC activity across
Europe, but at much lower
levels
• Corporate VCs participated in
three mega rounds
9
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
7 6
3 2 1 2
8
3
1
1
1
1
9
1
3
3
1 1
1
1
10
5
10
15
20
25
30
Israel
UK
Germany
France
Sweden
Switzerland
Italy
Spain
Poland
Belgium
Netherlands
Numberofinvestments
Number of corporate VC investments in Europe and Israelby bracket
(2Q16)
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)
10. Average round size
• Previously, I presented this broken
down by bracket, but I think the data
is more meaningful when taken in
aggregate.
• This average excludes seed rounds
and mega rounds, so it reflects all
rounds done in Europe & Israel
between $2M and $100M
• From February to June 2015, average
round sizes across all venture rounds
were hovering between $10M and
$12M
• The third quarter saw consistently
higher average round sizes – between
$13M and $14.5M on average
• In the fourth quarter, however, the
trend reversed itself, with average
round sizes dropping to $11M in
October, $10.5M in November, and
$9.2M in December
• 1Q16 was mixed: January saw a return
to the large average round sizes of
3Q15, but February & March saw a
return to the recent trend
• In 2Q16, round sizes started to creep
up towards the $12M level
10
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
11.1
17.6
6.8
11.7
11.3
12.7
15.8
11.2
11.9
11.1
10.1
11.4
13.9
13.2
14.6
11.1
10.5
9.2
13.4
11.1
9.9
11.1
11.611.7
4
6
8
10
12
14
16
18
20
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
AmountInvested(US$M)
Average investment size in Europe and Israel
(Round sizes of 2-100M)
11. Total venture investment by country, 2Q 2016
• Israel leapt ahead of the UK
and Germany to take the top
spot in 2Q16 fundraising, with
over $1.3B raised
• Germany was second, with
$728M, ahead of the UK
11
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1,364
728
653
355
211
153
113
108
62
56
42
40
38
27
18
9
8
7
2
2
1
1
1
Israel
Germany
UK
France
Spain
Netherlands
Sweden
Belgium
Finland
Ireland
Switzerland
Italy
Poland
Norway
Austria
Portugal
Denmark
Estonia
Serbia
Czech
Luxembourg
Greece
Slovakia
0 200 400 600 800 1,000 1,200 1,400 1,600
Total VCinvestmentvolume by country, 2Q16 (US $M)
12. Total venture investment by country, 3Q14 to 2Q16
• To get a better sense of VC
volumes in various countries,
this analysis excludes mega-
rounds
• With this filter, volumes and
rankings are more consistent
• Israel has shown continued
growth for the past four
quarters
• The UK saw a distinct
downturn in investment
volume, but only compared
to 1Q
• Germany has been
consistently third, followed by
France and Sweden
12
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315
567
543
475
628
699
963
1,064
369
267
719
437
621
444
892
543
180
284
389
209
379
339 333
388
29
163
118
232 279
225 281
355
74
123
89 112
140
84
140
113
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
0
200
400
600
800
1000
1200
TotalVCinvestment(US$M)
Total VC investment, 3Q14 - 2Q16 (top 5 countries, excluding mega-rounds)
Israel
UK
Germany
France
Sweden
13. Total venture investment by country, 3Q14 to 2Q16
• To get a better sense of VC
volumes in various countries,
this analysis excludes mega-
rounds
• The “second five” countries
for VC investment were
Finland, Denmark, Spain,
Ireland, and the Netherlands
• Note that in recent quarters,
investment trends across
these countries have been
whipsawing intensely
• In 2Q16, the Netherlands and
Spain saw strong increases in
volume
13
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Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
0
20
40
60
80
100
120
140
160
180
TotalVCinvestment(US$M)
Total VC investment, 3Q14 - 2Q16
(countries ranked 6-10, excluding mega-rounds)
Spain
Netherlands
Finland
Ireland
Denmark
14. Average venture round sizes, by region
• Until this quarter, the data
had been generally
supporting the idea that
average round sizes across
Europe were converging
• Data from 2Q (like data from
1Q) does not support this
conclusion
14
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Benelux, 4.5
Benelux, 18.9
DACH, 12.5
DACH, 11.1
France, 9.2 France, 8.9
Iberia, 9.4
Iberia, 12.0
Israel, 11.5
Israel, 14.6
Nordic, 8.0
Nordic, 5.5
UK & Ireland, 11.2
UK & Ireland, 11.6
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Qtr4 Qtr2
2015 2016
Averageroundsize(US$M)
Average investment size in Europe and Israel(rounds of $2-100M)
15. Total venture investment by region, 2Q16
• When VC investments across
Europe are aggregated into
regions, UK & Ireland, Israel,
DACH, France, and the
Nordics are the clear and
consistent leaders
• Benelux, Iberia, Southern
Europe, and Eastern Europe
do produce meaningful VC
investments, but the volumes
are still low
15
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Israel, 1,363.8, 34%
DACH, 787.5, 20%
UK & Ireland, 709.6,
18%
France, 355.1, 9%
Benelux, 262.9, 7%
Iberia, 220.8, 5%
Nordic, 217.5, 5%
South. Eur., 43.2, 1% East. Eur., 40.5, 1%
Total VC investment by region, 2Q16
16. Rounds by bracket & region
• To get a better sense of deal
volume, this analysis excludes
seed deals which are often
poorly reported
• Excluding seed deals, Israel
led in the number of
announced deals, with 73
investments announced
• The UK came in second with
50, and DACH came in third
with 40
16
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
31 28
24 23 26
7 5 5
20
11
7 6
7
2
1 1
21
10
8
6
4
1
1
1
1
1
0
10
20
30
40
50
60
70
80
Israel UK &
Ireland
DACH France Nordic Benelux Iberia South. Eur. East. Eur.
Numberofinvestments
Number of investments in Europe and Israelby bracket, 2Q 2016
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)
17. Participation rate of US VC firms, by bracket
• Year to date, US VC firms
participated in 11% of the
venture rounds in Europe
• US VCs participated in none
of the European rounds, 10%
of early venture rounds, 33%
of venture rounds, and 39%
of growth rounds
• As in the first quarter, US VCs
did not participate in any of
Europe’s four mega-rounds in
2Q16
17
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0%
10%
34%
39%
100%
90%
66%
61%
100%
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)
Percentageofrounds
Did US VC firms participate in European VC rounds? (2Q16)
No Yes
18. US VC firm participation hits a new low
• Excluding seed rounds, US VC
firm participation in European
& Israeli venture rounds rose
in 2Q16 to 21%
18
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16%
24% 20% 22% 21% 17% 16%
21%
84%
76% 80% 78% 79% 83% 84%
79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
PercentageofRounds
Did US VC firms participate in European VC rounds?
(3Q14-2Q16)
No Yes
19. Participation of US VC firms by country
• In 2Q16, US VCs firms were
active in 12 different
European countries
• US VC firms were most active
in Israel, where they
participated in 27 investment
rounds out of 83 (33%)
• The UK saw 9 investments
with US VC participation out
of 74 total rounds (12%)
19
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27
9 7 2 2 1 1 1 1 1 1 10
10
20
30
40
50
60
70
80
90
100
Israel
UK
Germany
France
Netherlands
Spain
Italy
Belgium
Switzerland
Ireland
Poland
Estonia
NumberofVCinvestments
In which countries are US VCs most active?
2Q, 2016
No US VC involved US VC involved
20. Participation of US VC firms by country
• This chart shows US VC
activity within Europe
throughout 2015 and 1H16
• The overwhelming bulk of US
VC activity is in Israel, the UK
& Ireland, DACH, and the
Nordics
20
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Israel, 12 Israel, 14 Israel, 14 Israel, 14 Israel, 16
Israel, 27
UK & Ireland,10
UK & Ireland,13
UK & Ireland,9 UK & Ireland,8
UK & Ireland,12
UK & Ireland,10
DACH, 8
DACH, 6
DACH, 4
DACH, 9
DACH, 6
DACH, 8
Nordic, 2
Nordic, 3
Nordic, 5
Nordic, 5
Nordic, 5
Nordic, 1
Benelux
Benelux
Benelux
Benelux
Benelux
0
10
20
30
40
50
60
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2015 2016
NumberofVCinvestments
Investments with US VC participation
Israel UK & Ireland DACH Nordic Iberia Benelux France East. Eur. South. Eur.
21. Dimension Categories Explanation/Example
1. Target market
Consumer, SMB, Enterprise, Government,
Telecom, OEM
What sort of customer does the
company target?
2. Vertical market
Adtech, 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 model
Commerce, Components, Content,
Marketplace, SaaS, Semiconductors,
Services, Software, Systems,
How does the company make
money? What are customers paying
for?
Segment descriptor Consumer + Travel + Marketplace
AirBnB has built a travel-related
marketplace for consumers
Three-dimensional approach to sector mapping
22. • Excluding mega-rounds,
investment activity increased
in consumer and decreased
in enterprise enterprise in 2Q
compared with 1Q
22
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What target markets are attracting the most VC
investment in Europe & Israel?
Syndicate for European & Israeli Enterprise Companies
475 595
980 850
1,177
930 1,078 1,229
494
798
953
814
907
1,112
1,678
1,580
78
133
121
153
275
135
224 91
78
114
47
106
182
150
166 186
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
TotalVCinvestments(US$M)
European & Israeliventure financing by target market
3Q14 to 2Q16 (excluding mega-rounds, US $M)
Government
Telecom
OEM
SMB
Enterprise
Consumer
23. • When Israel is excluded from
the sample, 59% of all VC
dollars in Europe went to
consumer-oriented
companies
• OEM-oriented companies
continued to show surprising
strength, accounting for 5%
of all VC dollars in Europe
23
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Consumer investment leads Europe
Syndicate for European & Israeli Enterprise Companies
62%
36%
56%
63% 62% 57% 53% 59%
18%
49%
34% 22% 24% 31% 35%
32%
6%
10%
4% 12% 8% 6% 5% 3%
5%
4% 2% 4% 5% 6% 5%6%8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
European venture financing by target market
3Q14 to 2Q16 (excluding Israel, percent of US $M)
Government Telecom OEM SMB Enterprise Consumer
24. • When the sample set is
limited to rounds under
$20M, the ratio of consumer
to enterprise investments
shifted back to where it has
been in the past
• Consumer investments as a
percentage of rounds
accounted for 47% of early
rounds
24
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Early-stage consumer deals come back
Syndicate for European & Israeli Enterprise Companies
39%
50% 46% 41% 46% 50%
38%
47%
41%
37% 50%
47% 39% 36%
47%
40%
3%
9%
2%
7% 9% 6% 9% 6%11%
2% 2% 2% 3% 7% 5% 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
European venture financing by target market
3Q14 to 2Q16 (excluding Israel, rounds up to $20M, percent of US $M)
Government Telecom OEM SMB Enterprise Consumer
25. Breakdown by region & target market
• Once again, almost all
regions except Israel saw
more consumer investment
than enterprise/SMB
investment
• Benelux also saw more
enterprise investments than
consumer
25
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
553
645
337
204
48
153 104
734
111
299
94
188
66
61
0
200
400
600
800
1,000
1,200
1,400
1,600
Israel DACH UK & Ireland France Benelux Iberia Nordic
Totalamountinvested(US$M)
Investment in Europe and Israel by target market by region
2Q, 2016 (US $M)
Government Telecom OEM SMB Enterprise Consumer
26. Distribution of investment rounds by country
• Across Europe & Israel, 46%
of VC investment rounds
were in consumer companies
in 2Q16
26
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
62%
57%
55%
56%
51%
46%
34%
23%
38%
26%
36%
37%
28%
40%
41%
65%
0%
13%
7%
7%
13%
6%
19%
4%
0%
3%
0%
7%
6%
6%
6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
South. Eur.
France
DACH
Iberia
Nordic
UK & Ireland
Benelux
Israel
Investment in Europe and Israel by target market by country
2Q16 (Number of investments)
Consumer Enterprise SMB OEM Telecom Government
27. Growth rounds by target market
• From 4Q14 to 2Q15, there
was an upward trend towards
consumer-oriented
companies in growth
investing, but this trend
reversed itself in 3Q15 and
continued into 1Q16
• In 2Q, this trend reserved
itself for the first time in four
quarters
27
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blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
56%
37%
46%
56%
43% 39% 37%
44%
25%
41%
46% 25%
38%
50% 51%
49%
6%
7%
5%
9% 12%
3% 6%
2%
6% 11%
6%
7% 5% 6% 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
Investment in Europe and Israel by target market
(Rounds over $20M, number of investments)
Government Telecom OEM SMB Enterprise Consumer
28. • Fintech was yet again the
most popular vertical across
Europe & Israel, with 40
investments in the category
• Electronics (which includes
consumer devices) was
second, with 28
• Marketing dropped to third,
with 26
• Security was fourth, with 23
28
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blog: yankeesabralimey
Finance returned to being the top vertical
Syndicate for European & Israeli Enterprise Companies
Financial,40
Electronics,28
Marketing, 26
Security, 23
Lifestyle, 22
Employment, 22
Travel, 22
Adtech, 20
Infrastructure,20
Communications,17
Real Estate, 16
Productivity,16
Health, 16
Education,15
Industrial,15
Entertainment, 14
Fashion,14
Logistics,14
Food, 13
Energy, 12
Data, 11
CRM, 9
Development, 8
Social,8
Gaming, 8
Payments, 7
ERP, 6
European & Israeliventure financing by target market
2Q 2016 (number of investments)
29. • This graph shows number of
investments in the top 10
verticals across 2Q15 and
2Q16
• All of the top ten verticals
increased in frequency
29
@gdibner
blog: yankeesabralimey
How have the most popular verticals grown?
Syndicate for European & Israeli Enterprise Companies
Financial, 24
Financial, 40
Marketing, 22
Marketing, 26Electronics, 8
Electronics, 28
Lifestyle, 12
Lifestyle, 22
Security, 10
Security, 23
Travel, 11
Travel, 22
Adtech, 12
Adtech, 20
Health, 16
Health, 16
Employment, 6
Employment, 22
Infrastructure, 6
Infrastructure, 20
0
50
100
150
200
250
300
Qtr2 Qtr2
2015 2016
European & Israeliventurefinancing by vertical market
(top 10 verticals, number of investments)
30. • Finance was the most
frequently funded vertical,
with over half of the
investments aimed at
consumer finance
• Electronics leapt to second
place, with an emphasis on
consumer electronics
(connected devices)
• Marketing was the third most
frequently funded vertical,
with enterprise-oriented
marketing taking the lion’s
share within that category
• Security took fourth place
with a heavy emphasis on
enterprise security
30
@gdibner
blog: yankeesabralimey
Which verticals for which segments?
Syndicate for European & Israeli Enterprise Companies
Communications
Adtech
Infrastructure
Employment
Lifestyle
Travel
Security
Marketing
Electronics
Financial
0 5 10 15 20 25 30 35 40 45
European & Israeliventure financing by target market
2Q, 2016 (number of investments, top 10 verticals)
Consumer
Enterprise
SMB
OEM
Telecom
31. • This chart shows the ten most
commonly funded verticals
across Europe & Israel by
quarter
• Electronics has shown
consistent growth
31
@gdibner
blog: yankeesabralimey
The most popular verticals in the past 2 years
Syndicate for European & Israeli Enterprise Companies
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
0
50
100
150
200
250
300
European & Israeliventure financing by vertical market
(number of investments, top 10 verticals)
Adtech
Health
Logistics
Electronics
Lifestyle
Employment
Security
Infrastructure
Marketing
Financial
32. • Lifestyle, which is admittedly a
bit of a catch-all general
consumer category,
continues to show
tremendous strength in terms
of VC volume
• Finance was the second-most
funded consumer category
• Travel and electronics are
showing recent strength
• Gaming declined in 2Q
32
@gdibner
blog: yankeesabralimey
Consumer VC investment trends
Syndicate for European & Israeli Enterprise Companies
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
0
20
40
60
80
100
120
140
160
European & Israeliventure financing by consumer verticals
(number of investments, top 10 verticals)
Social
Travel
Health
Fashion
Food
Electronics
Logistics
Gaming
Lifestyle
Financial
33. • Enterprise marketing seems
to have levelled off as an area
for VC investment
• Security and adtech also
remain stable but significant
• Enterprise infrastructure
investments declined in 2Q
• Industrial-oriented startups
and employment related (HR)
startups seem to be
consistently increasing as an
area of focus
33
@gdibner
blog: yankeesabralimey
Enterprise VC investment trends
Syndicate for European & Israeli Enterprise Companies
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
0
20
40
60
80
100
120
140
160
180
European & Israeliventure financing by enterprise verticals
(number of investments, top 10 verticals)
CRM
Financial
Industrial
Employment
Development
Data
Infrastructure
Adtech
Security
Marketing
34. • Security retained the top spot
in Israel, with 11 investments
• Marketing, infrastructure, and
adtech were next
34
@gdibner
blog: yankeesabralimey
A closer look at Israeli venture in 2Q16:
CyberNation
Syndicate for European & Israeli Enterprise Companies
Logistics
CRM
Productivity
Health
Financial
Employment
Electronics
Communications
Adtech
Infrastructure
Marketing
Security
0 2 4 6 8 10 12
Israeli venture financing by target market
2Q, 2016 (number of investments, top 10 verticals)
Consumer
Enterprise
SMB
OEM
Telecom
35. • For the first time in six
quarters, fintech not the
number one category in the
UK
• Enterprise employment (HR)
startups took the top spot
• Adtech, which was third in 1Q,
disappeared from the top ten
in 2Q
35
@gdibner
blog: yankeesabralimey
Closer look at UK VC:
Fintech fatigue?
Syndicate for European & Israeli Enterprise Companies
Food
Fashion
Marketing
Travel
Real Estate
Education
Energy
Electronics
Productivity
Infrastructure
Lifestyle
Financial
Employment
0 2 4 6 8 10 12
UK venture financing by target market
2Q, 2016 (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM
Government
36. • Fintech and industrial tied for
the most popular categories
in Germany, with five
investments each
• Real estate and edtech took
the third and fourth spots
36
@gdibner
blog: yankeesabralimey
The German VC market in 2Q16
Syndicate for European & Israeli Enterprise Companies
Adtech
Infrastructure
Communications
Gaming
CRM
Electronics
Data
Fashion
Logistics
Employment
Sports
Social
Payments
Lifestyle
Travel
Security
Entertainment
Development
Education
Real Estate
Industrial
Financial
0 1 2 3 4 5 6
German venture financing by target market
2Q, 2016 (number of investments, top 10 verticals)
Consumer
Enterprise
SMB
37. • Fintech was the most
commonly funded vertical in
the Nordics, with 11
investments
• Electronics was next, with 8
investments split between
consumer and OEM
companies
37
@gdibner
blog: yankeesabralimey
As usual, Nordic VC was unconventional
Syndicate for European & Israeli Enterprise Companies
Food
Infrastructure
Entertainment
Marketing
Gaming
Industrial
Education
Productivity
Adtech
Energy
Health
Electronics
Financial
0 1 2 3 4 5 6 7 8 9 10 11 12
Nordic venture financing by target market
2Q, 2016 (number of investments, top 10 verticals)
Consumer
Enterprise
SMB
OEM
Government
38. • SaaS was the most funded
business model in 2Q16
• As software eats the world,
services are becoming an
increasingly important
business model for venture-
backed startups
• This continued into 2016, with
services taking 22% of the
venture dollars invested in
Europe & Israel in 1Q16
• Marketplaces – businesses
that serve a price discovery
function – were just 9%
• Commerce accounted for just
8% of the dollars invested
38
@gdibner
blog: yankeesabralimey
SaaS above all
Syndicate for European & Israeli Enterprise Companies
SaaS,992, 32%
Services,691, 22%
Software, 420, 13%
Systems, 294,9%Marketplace, 281,9%
Commerce, 239, 8%
Components, 117, 4%
Media, 60, 2%
Semiconductor, 35, 1%
Materials,1,0%
European & Israeliventurefinancing by target market
2Q16 (in US $M) (excluding mega-rounds)
39. • Reversing last quarter’s trend,
SaaS jump ahead of services,
but both categories show
continued strength
• Commerce seems to have
bottomed out and showed a
bit of renewed strength in 2Q
• Marketplace investment
continued to show gradual
gains
39
@gdibner
blog: yankeesabralimey
In 2Q, SaaS set a record
Syndicate for European & Israeli Enterprise Companies
0
200
400
600
800
1000
1200
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016
European & Israeliventure financing by business model
(top five, in US $M, excluding mega-rounds)
Services
SaaS
Software
Commerce
Marketplace
40. • Enterprise marketing SaaS
was again the most popular
segment for VC investment in
2Q16 with 22 investments
across the region
• Consumer financial services
were next, with 21
investments
• In a first, consumer
electronics systems were the
third most popular category
with 18 investments
40
@gdibner
blog: yankeesabralimey
Enterprise marketing & consumer fintech
Syndicate for European & Israeli Enterprise Companies
0 5 10 15 20 25
Consumer Lifestyle Commerce
Consumer Education Services
Enterprise Employment SaaS
SMB Financial Services
Enterprise Security Software
Consumer Travel Commerce
Consumer Fashion Commerce
Consumer Electronics Systems
Consumer Financial Services
Enterprise Marketing SaaS
Number of VC investments
Investmentin Europe& Israelby segmentby country
2Q16 (top 10 segments)
UK & Ireland France
Nordic Israel
DACH South. Eur.
Benelux Iberia
East. Eur.
41. • Across Europe & Israel, US
VC firms invested in 37
enterprise companies, 15
consumer companies, 1 OEM
company, and 1 telecom-
oriented company
• Enterprise SaaS & Software
attracted by far more US VC
interest than any other space
• Consumer services were,
again, the third-most often
backed sector by US VC firms
41
@gdibner
blog: yankeesabralimey
What business models attract US VC investments?
Syndicate for European & Israeli Enterprise Companies
0 2 4 6 8 10 12 14 16 18 20
Components
Media
Marketplace
SaaS
Systems
Commerce
Services
Marketplace
Systems
Services
Software
SaaS
OE
M
Tele
comConsumerEnterprise
US VC Investments in Europe and Israelby end market,
business model, & country, 2Q16 (excludes seed & mega-rounds)
Israel
UK & Ireland
DACH
Benelux
France
East. Eur.
South. Eur.
Nordic
Iberia
42. Show me the SaaS
• As usual, the most popular
vertical by far for SaaS
investments across the
geography was marketing
• Employment (HR) SaaS was in
second place
• Productivity SaaS
applications, data analytics,
and infrastructure SaaS were
tied for third place
• CRM SaaS dropped to eighth
place
• Development tools dropped
to tenth place
42
@gdibner
blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
0 5 10 15 20 25 30
Development
Communications
CRM
Security
Adtech
Infrastructure
Data
Productivity
Employment
Marketing
SaaS VC investment in Europe and Israel
by vertical and target market, 2Q16 (top 10 verticals)
Consumer Enterprise Government SMB Telecom
43. Services investing in 2Q16
• This graph shows the top ten
verticals within the services
category in 2Q16 across
Europe & Israel
• Financial services were far
and away the most frequently
funded vertical – mostly for
consumers and SMBs
• Education services (edtech)
was the second most funded
services category
• Gaming services dropped
from second to sixth
43
@gdibner
blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies
0 5 10 15 20 25 30 35 40
Food
Lifestyle
Real Estate
Entertainment
Health
Gaming
Communications
Payments
Logistics
Adtech
Education
Financial
Services VC investment in Europe and Israel
by vertical and target market, 2Q16 (top 10 verticals)
Consumer Enterprise SMB
44. 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 subscribe to my blog.
44
Gil Dibner
To invest in the best European & Israeli enterprise startups,
consider backing me on here. Lots of exciting stuff in the
pipeline – and you’ll be in pretty good company.