THE 2014 EUROPEAN

TECH REPORT

A data-driven review of 2014s financing activity to VC-backed European Tech

companies.

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TABLE OF
CONTENTS
Highlights
Financing Trends
Germany Breakdown
UK Breakdown

4
6
18
25

2014 EU TECH HIGHLIGHTS

2014: $5.7B ON 855 DEALS - EU TECH
FUNDING UP 78% YOY

SEED DEAL SIZES HIT NEW HIGHS IN 14

HIGH-TECH GRUENDERFONDS IS MOST

ACTIVE EU TECH VC

ECOMMERCE COMPANIES RAKE IN VC

DOLLARS

UK & GERMANY LEAD EUROPEAN TECH

GERMAN TECH INVESTMENTS

SKYROCKET

Investment activity in VC-Backed European tech companies reached

a four-year high in both deals and dollars in 2014. Funding saw 78%
growth YoY, reaching $5.7B, while deals also slightly ticked up to
855.

Early-stage fund High-Tech Gruenderfonds was the most active VC in

EU Tech in 2014. Index Ventures and Accel Partners rounded out the
top 3. Both Index and Accel participated in BlaBlaCars $100M Series
C which was among the years largest European financings.

The UK tech scene continued to attract the highest number of deals

in Europe with deal activity growing 80% since 2011. Germany was
the only other country to break 100 deals in 2014, as Berlin continues
to be a budding tech hub in Europe.

IS ITALY THE NEXT EU TECH HUB?

DEALS GROW 208%

No other EU country has seen more growth in tech deals over the
past two years than Italy. During 2011 2012, Italy saw under 30
venture-backed deals, but this climbed to over 70 in the past two
years. Switzerland and Finland, which is home to Rovio
Entertainment, rounded out the top 3 in terms of growth with deals
climbing by nearly 170% in both countries.

Both the average and median seed deal size reached four-year highs
in 2014, as the median deals size grew 29% YoY while the average
deal size ticked up 10%. After a drop-off in 2012, deal sizes have
increased for two years straight as the seed investment bug takes
hold in Europe.

4 of the 7 most well-funded EU tech companies were in eCommerce.

German unicorn Delivery Hero is the most well-funded, having raised
$1.22B total including $523M across three rounds in 2014.

Investments into VC-backed German tech companies more than

doubled YoY as they totaled $1.28B in 2014 versus just $578M in
2013. Q314 reached an 18-quarter high for dollars invested at
$555M, driven largely by Delivery Heros $350M Series G.

UK TECH INVESTMENTS TOP $1.6B IN

2014

Investment into VC-backed UK Tech companies topped $1.6B in

2014, up 78% YoY. Despite two straight declining quarters for deal
activity at the end of the year, deals finished slightly up YoY at 225.
Q314 saw the most financing of any quarter in the past four years
behind a $170.7M investment into online retailer The Hut Group.

We track dealflow, understand valuation

multiples, analyze industry trends and
identify comparable companies. It is
great to see CB Insights innovating in the
venture capital data space.

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General Partner
RRE Ventures

We've found CBI to have the best data

for the most accurate market view.

Jack Leeney
Portfolio Manager
Telefonica Ventures

CB Insights' intuitive user interface,

analytical capabilities, and detailed
investment information create a very
powerful tool for our team's research
needs.

Nate DAnna
Corporate Development
Cisco

They have the best quality data in the

market for anyone looking to get an
inside look at private company
financings.
Ian Sigalow
Partner
Greycroft Partners

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investors access private company
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Investor
Sapphire Ventures

Designed by a VC insider who truly

knows the space and understands
end-user needs.
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Investments & Biz Dev
Comcast Ventures

2014 EU TECH
FINANCING TRENDS

2014: $5.7B ON 855 DEALS - EUROPEAN TECH

FUNDING UP 78% YOY

Investment activity in VC-Backed European tech companies reached a four-year high in both deals and dollars
in 2014. Funding saw 78% growth YoY, reaching $5.7B, while deals also slightly ticked up to 855. The increase
in mega-financings which weve observed globally also served to buoy Europes financing total.

2014 BREAKS THE $1B QUARTER BARRIER

VC-backed European Tech companies raised $1B+ in all four quarters in 2014, a level of funding not hit in the
three years prior. The increased funding activity was helped by at least one $100M+ deal per quarter. Q2 and
Q3 both topped $1.5B as food delivery startups Takeaway.com and Delivery Hero raised nine-figure
financings.

HIGH-TECH GRUENDERFONDS IS MOST ACTIVE EU

TECH VC

Early-stage fund High-Tech Gruenderfonds was the most active VC in EU Tech in 2014. Index Ventures and
Accel Partners rounded out the top 3. Both investors participated in BlaBlaCars $100M Series C.

Most Active Venture Capital Investors in EU Tech: 2014

Rank Investor

Rank Investor

High-Tech Gruenderfonds

10

Alven Capital

Index Ventures

10

Kima Ventures

Accel Partners

13

Point Nine Capital

German Startups Group

13

DN Capital

Octopus Ventures

13

Earlybird Venture Capital

Balderton Capital

16

Partech Ventures

Northzone Ventures

17

LVenture

Creandum

17

Caixa Capital Risc

Sunstone Capital

17

Beringea

10

Notion Capital

17

Holtzbrinck Ventures

UK & GERMANY LEAD EUROPEAN TECH

The UK tech scene continued to attract the highest number of deals in Europe, as deals have grown 80%
since 2011. Germany was the only other country to break 100 deals in 2014, as Berlin continues to be a
budding tech hub in Europe.

10

IS ITALY THE NEXT EU TECH HUB? DEALS GROW

208%

No other EU country has seen more growth in deal volume over the past two years than Italy, as the country
previously saw under 30 deals from 2011 2012 vs. over 70 in the past two years. Switzerland and Finland,
which is home to Rovio Entertainment, rounded out the top 3 with deal growth above 170%.

11

Where is all this data from?

The CB Insights platform has the details on each and
every deal in 2014. That includes all of the 2,821
financings in this report.

Some of our happy customers

12

GROWTH & PE DEAL SHARE DOUBLES IN 2014

While early-stage deals dominated the share of deals (as should be expected), there was increased interest at
the later stages as the percentage of growth equity and private equity rounds into VC-backed tech companies
doubled in 2014 accounting for 6% of all deals.

13

ABSENCE OF BILLION DOLLAR DEALS LEADS TO

EVEN DOLLAR SHARE

Unlike the US, which saw a massive increase in mega-deals, Europe was a bit more measured (although there
were still many mega-financings). This resulted in funding share to European tech companies being relatively
evenly spread in 2014. However, late-stage (Series D E+) deals did hit four-year highs behind Delivery Heros
financings.

14

SEED DEAL SIZES REACH HIGHS IN 2014

Both the average and median seed deal size reached four-year highs in 2014, as the median size grew 29%
YoY while the average deal size ticked up 10%. After a drop-off in 2012, deal sizes have increased for two
years straight.

15

SERIES A DEAL SIZES FOLLOW SEED TREND

Series A deal sizes followed a similar trend to the seed stage, as both median and average figures hit fouryear highs. The average Series A size jumped to $5.8M partially due to a pair of anomalies namely the $30M+
financings to WorldRemit and Blockchain.

16

ECOMMERCE COMPANIES RAKE IN VC CASH

4 of the 7 most well-funded EU tech companies were in eCommerce. German Unicorn Delivery Hero is the
most well-funded, having raised $1.22B total including $523M across three rounds in 2014. 2015 looks to
continue the trend as Both Delivery Hero closing on an additional $563M from Rocket Internet and Spotify
rumored to be raising $500M.

Most Well-Funded VC-Backed EU Tech Companies

Company

Headquarters

Focus

Delivery Hero

Germany

Internet eCommerce

Spotify

Sweden

Internet Software (Music)

Klarna

Sweden

Internet Payments

Ozon.ru

Russia

Internet eCommerce

Privalia

Spain

Internet eCommerce

Adyen

Netherlands

Internet Payments

Lamoda

Russia

Internet eCommerce

17

2014 COUNTRY
BREAKDOWN GERMANY
18

GERMAN TECH INVESTMENTS SKYROCKET

Investments into VC-backed German Tech companies more than doubled YoY as they totaled $1.28B in 2014
versus just $578M in 2013. Q314 reached an 18-quarter high for dollars invested at $555M, driven largely by
Delivery Heros $350M Series G. Deal activity also hit highs in Q4 amid a slew of early-stage investments.

19

DELIVERY HERO DOMINATES GERMAN TECH

Berlin dominated German Tech, with food delivery startup Delivery Hero accounting for 3 deals and $523M in
financing. Munich saw the second highest total for both deals and dollars behind home furnishing startup
Westwing Home & Livings $98.8M Series B. NETVACATION led Hamburg, raising a $24.9M Series C in
November.

Top German Tech Cities: 2014

City

Deals

Dollars ($M)

Berlin

91

$952.1

Munich

28

Hamburg

Top German Tech Deals: 2014

Company

Amount ($M)

Quarter

Round

Delivery Hero

$350.0

Q3'14

Series G

$195.0

Westwing Home & Living

$98.8

Q2'14

Series B

$25.6

Delivery Hero

$88.0

Q1'14

Series E

Karlsruhe

$12.2

Delivery Hero

$85.0

Q2'14

Series F

Hennigsdorf

$4.3

Foodpanda

$60.0

Q3'14

Series C

Darmstadt

$0.6

Soundcloud

$60.0

Q1'14

Series D

20

CRM SEES MOST ACTIVITY IN GERMAN TECH

While Delivery Hero and Foodpanda propped up Food & Grocery investment activity, CRM saw the most deals.
Quandoo saw the most funding of any German CRM company in 2014, raising a cumulative $33M across
Series B and C financings from Holtzbrinck Ventures and DN Capital.

Top German Tech Subindustries: 2014

Deals

Dollars ($M)

Customer Relationship Mgmt

12

$55.7

Marketplace

10

$35.5

Food & Grocery

$658.0

Advertising, Sales & Marketing

$6.8

Home Furnishings & Improvement

$105.0

Travel (internet)

$41.9

Education & Training

$16.4

BI, Analytics & Performance Mgmt

$12.7

Subindustry

21

MID-STAGE MATCHES PREVIOUS HIGHS

Mid-stage (Series B and C) financings accounted for 20% of all deals to VC-backed German Tech companies,
matching 2011s high. Early-stage activity fell slightly YoY to 69% of all deals in 2014.

22

DELIVERY HERO DOMINATES DOLLAR SHARE

Delivery Hero drove Series E+ deals to account for 41% of all dollars invested in VC-backed German Tech
companies in 2014. Early-stage dollar share (Seed & Series A) fell drastically to a four-year low of 12%.

23

HIGH-TECH GRUENDERFONDS IS BY FAR THE MOST

ACTIVE VC IN GERMAN TECH
Early-stage investor High-Tech Gruenderfonds had over 35 investments in German Tech companies in 2014.
German Startups Group was the second most active VC while Target Partners rounded out the top 3.

Most Active VC Investors in German Tech: 2014

Rank Investor

Rank Investor

High-Tech Gruenderfonds

Mangrove Capital Partners

German Startups Group

Iris Capital

Target Partners

11

T-Venture

Bayern Kapital

11

e.ventures

Point Nine Capital

11

Paua Ventures

IBB Beteiligungsgesellschaft

11

DN Capital

Earlybird Venture Capital

11

Hasso Plattner Ventures

Holtzbrinck Ventures

24

2014 COUNTRY
BREAKDOWN - UK

25

UK TECH INVESTMENTS TOP $1.6B IN 2014

Investment into VC-backed UK Tech companies topped $1.6B in 2014, up 78% YoY. Despite two straight
declining quarters for deal activity, deals finished slightly up YoY at 225. Q314 saw the most financing of any
quarter in the past four years behind a $170.7M investment into online retailer The Hut Group.

26

LONDON LEADS UK TECH

London dominated both in deals and dollars, accounting for 65% of all funding and 67% of all deals to VCbacked UK tech companies. Despite this, 2 of the 6 largest deals were in non-London based companies,
including The Hut Group (Northwich) and NewVoiceMedia (Hampshire).

Top UK Tech Cities: 2014

City

Deals

Dollars ($M)

150

$1,110.2

Cambridge

Bristol

London

Top UK Tech Deals: 2014

Company

Amount ($M) Quarter

Round

The Hut Group

$170.7

Q3'14

Private Equity

$25.5

Powa Technologies

$80.0

Q4'14

Series B

$40.2

FarFetch

$66.0

Q2'14

Series D

Wiltshire

$32.4

Funding Circle

$65.0

Q3'14

Series D

Cheshire

$13.5

Huddle

$51.0

Q4'14

Series D

Manchester

$7.3

NewVoiceMedia

$50.0

Q3'14

Series E

27

BI LEADS ALL SUBINDUSTRIES BY WIDE MARGIN

UK BI, Analytics & Performance Management companies raised 18 rounds of financing totaling $135.9M, the
largest of which was a $41M Series C to eCommera. Payments companies raised the highest amount of
funding, at $194.4M behind Powa Technologies $80M Series B.

Top UK Tech Subindustries: 2014

Subindustry

Deals

Dollars ($M)

BI, Analytics & Performance Mgmt

18

$135.9

Advertising, Sales & Marketing

10

$36.0

Marketplace

10

$184.8

Customer Relationship Mgmt

$59.7

Payments

$194.4

Asset & Financial Mgmt & Trading

$75.0

Accounting & Finance

$55.2

Apparel & Accessories

$55.2

HR & Workforce Management

$28.4

Music

$23.8

Real Estate

$20.1

Education & Training

$9.7

28

SEED FUNDING COOLS IN 2014

Seed deal share fell in 2014, as 36% of all deals to VC-backed UK Tech companies were done at the seed
stage versus 53% in 2013. Series A deals reached a four-year high at 30%, while the rest of stages remained
relatively range-bound.

29

SERIES A DOLLAR SHARE FOLLOWS DEALS

Series A investments took 23% of all funding dollars to VC-backed UK Tech companies in 2014, the highest
amount of the past four years. The increase in dollar share was driven by a pair of large financings to
WorldRemit ($40M) and Blockchain ($30.5M). Series C dollar share fell drastically to 9% after 2013 was
anchored by truphones $118M financing.

30

OCTOPUS VENTURES IS MOST ACTIVE

Octopus Ventures was the most active VC investing in UK Tech in 2014. Octopus investments included
Zynstra, Certivox, and Adbrain among others. Index Ventures was second, while Notion Capital, Accel
Partners, and Balderton Capital tied for third.

Top VC Investors in UK Tech: 2014

Rank

Investor

Rank

Investor

Rank

Investor

Octopus Ventures

Eden Ventures

13

Albion Ventures

Index Ventures

10

DN Capital

13

Dawn Capital

Notion Capital

10

Mercia Fund Management

13

Amadeus Capital Partners

Accel Partners

10

Kima Ventures

13

DFJ Esprit

Balderton Capital

13

Midven

13

Passion Capital

Beringea

13

Qualcomm Ventures

13

Episode 1 Partners

MMC Ventures

13

Oxford Capital Partners

SparkLabs Global Ventures

13

Connect Ventures

31

Where is all this data from?

The CB Insights platform has the details on each and
every deal in 2014. That includes all of the 2,821
financings in this report.

Some of our happy customers

32

We track dealflow, understand valuation

multiples, analyze industry trends and
identify comparable companies. It is
great to see CB Insights innovating in the
venture capital data space.

Will Porteous
General Partner
RRE Ventures

We've found CBI to have the best data

for the most accurate market view.

Jack Leeney
Portfolio Manager
Telefonica Ventures

CB Insights' intuitive user interface,

analytical capabilities, and detailed
investment information create a very
powerful tool for our team's research
needs.

Nate DAnna
Corporate Development
Cisco

They have the best quality data in the

market for anyone looking to get an
inside look at private company
financings.
Ian Sigalow
Partner
Greycroft Partners

CB Insights are changing the way

investors access private company
information.

Kevin Diestel
Investor
Sapphire Ventures

Designed by a VC insider who truly

knows the space and understands
end-user needs.
Greg Bae
Investments & Biz Dev
Comcast Ventures

33

METHODOLOGY WHATS INCLUDED? WHATS

NOT?

We encourage you to review the methodology and definitions employed by us to better understand the
numbers presented in this report. If you have any questions about our definitions or methodological
principles, we encourage you to reach out to us directly.

What is included?

Equity financings into Europe-based VC-backed companies.

Fundings of only private companies. Public companies of any kind on any
exchange (including Pink Sheets) are excluded from our numbers even if
they received investment by a venture firm(s)
Companies must be headquartered in Europe (including Russia). Our
geographic data is based on the country where the company receiving
investment is headquartered. If a company has a satellite office/presence in
multiple cities or was founded in a particular city but has moved its HQ, our
results reflect only this HQ address.
Only include the investment made in the quarter for tranched investments. If
a company does a second closing of its Series B round for $5M and
previously had closed $2M in a prior quarter, only the $5M is reflected in our
results.
Round #s reflect what has closed not what is intended. If a company
indicates the closing of $5M out of a desired raise of $15M, our numbers
reflect only the amount which has closed.
Only verifiable fundings are included. Fundings are verified via (1) various
federal & state regulatory filings (2) direct confirmation with firm or investor
or (3) press release.
Funding close date matters. Fundings are provided based on funding close
date and not on announcement date.

What is not?

No contingent funding. If a company receives a commitment for $20M subject to

hitting certain milestones but first gets $8M, only the $8M is included in our data.
No business development/R&D arrangements whether transferable into equity now,
later or never. If a company signs a $300M R&D partnership with a larger
corporation, this is not equity financing nor is it from venture capital firms. As a
result, it is not included.
Buyouts, Consolidations and Recapitalizations. All three of these of transaction
types are commonly employed by private equity firms and are tracked by CB
Insights. However, they are excluded for the purposes of this report.
Private placements. These investments also known as PIPEs (Private Investment in
Public Equities) even if made by a venture capital firm(s) are not included.
Debt/loans of any kind. Venture debt or any kind of debt/loan issued to emerging,
startup companies even if included as an additional part of an equity financing is
not included. If a company receives $3M with $2M from venture investors and $1M
in debt, only the $2M is included in these statistics.
Government funding. Grants, loans, equity financings by the federal government,
state agencies or public -private partnerships to emerging, startup companies are
not included.

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