European investments October 2016
1. Investment data with a focus on Europe and France 2
Funding stages in a nutshell INCEPTION PROTOTYPE GROWTH EXPANSION MATURITY LARGE VENTURE PUBLIC PRIVATE EQUITY MBO/LBO beyond 10-15 M (*) Development stages Company financing needs EARLY & LATE VENTURE 3-20 M (*) SEED & EARLY VENTURE 0.5-5 M (*) BUSINESS ANGELS 0.1 1 M (*) INCUBATORS 50-200 K (*) VENTURE CAPITAL Timeline GRANTS, LOVE MONEY (*) Range of financial needs PRIVATE EQUITY 3
Venture Capital Firms Worldwide fundraising in 2015 Aggregate Capital Raised by Venture Capital Funds by GP Location (in bn ) 5.3 Europe North America 30.9 bn 4.6 4.9 5.3 bn Asia 8.4 bn 8.2 8.4 2.7 25.9 30.9 2013 2014 2015 Restof the Wolrd 2013 2014 2015 17.2 1.9 bn 1.9 2013 2014 2015 1.0 0.8 2013 2014 2015 Note: Accordingto InvestEurope, amountraisedby VC in Europe was 4 947 M in 2014 vs 5 330 M in 2015 (historical annualmeancurrencyrate: 1US$=0.7336 in 2013 vs 0.7856 in 2014 vs 0.9168 in 2015) Sources: Invest Europe / PEREP Analytics( 2015 European Private Equity Activity Report ) ; Preqin Private Equity Online database - Funds in Market ( Private Equity Spotlight - March 2016); Oanda website 4
Investments in Europe Total investments in Europe in 2007 = 69,841 M in 2015 = 47,439 M CAGR 2007/2015 = -4.7% In Europe, median venture investments between 2007-2015 compared to total investments are 8.7% 100 90 % of amounts of total investments in european comp panies 80 70 60 50 40 30 91.4 88.2 84.3 91.3 91.8 91.3 90.6 91.3 92.0 20 10 0 8.6 11.8 15.7 8.7 8.2 8.7 9.4 8.7 8.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Venture Total Rest of Private Equity 5
Venture Capital Investments in Europe (by stage focus) Total venture investments in Europe in 2007 = 6,011 M in 2015 = 3,805 M CAGR 2007/2015 = -5.6% Strong weakness of seed stage investments since 2007 in comparison to other venture stages Total venture investments in euro opean companies ( billion) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3.63 3.49 2.41 2.32 1.88 1.85 1.93 2.01 1.81 1.83 1.77 1.82 1.68 1.70 1.68 1.60 1.47 1.32 0.20 0.27 0.14 0.13 0.16 0.12 0.12 0.99 0.12 2007 2008 2009 2010 2011 2012 2013 2014 2015 Seed Start-up Later stage venture 6
Venture Capital Geographical investment flows in 2015 313 M Non-European private equityfirms investingin european companies 994 M 495 M European private equity firmsinvestingin companies outside Europe 2 499 M Domesticinvestmentsin European countries Cross-border investments within Europe 7
Venture Capital Investments in Europe (by country of portfolio company) 35% 30% Total venture investments in Europe by region in 2015 0.08 bn 2.2% 25% 20% 15% 0.40 bn 10.6% 0.26 bn 6.9% 0.93 bn 24.5% 10% 5% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 UK & Ireland France & Benelux DACH Nordics Southern Europe CEE 1.21 bn 31.8% 0.91 bn 24.0% UK & Ireland France & Benelux DACH Nordics Southern Europe CEE Note: DACH: Austria, Germany, Switzerland/ SouthernEurope: Greece, Italy, Portugal, Spain / Nordics: Denmark, Finland, Norway, Sweden/ CEE: Central EasternEurope / Benelux: Belgium, Luxembourg, Netherlands 8
Investments in France Total investments in France in 2007 = 12,149 M in 2015 = 8,215 M CAGR 2007/2015 = -4.8% (versus -4.7% in Europe) Median venture investments compared to total investments between 2007-2015 in France are 10.6% (vs 8.7% in Europe) 100 90 % of amounts of total in nvestments in french compan nies 80 70 60 50 40 30 91.6 87.8 73.2 88.7 93.4 89.3 89.4 92.5 91.7 20 10 0 26.8 8.4 12.2 11.3 6.6 10.7 10.6 7.5 8.3 2007 2008 2009 2010 2011 2012 2013 2014 2015 Total Venture Total Rest of Private Equity 9
Venture Capital Investments in France (by stage focus) Total venture investments in France in 2007 = 1,025 M in 2015 = 683 M CAGR 2007/2015 = -4.9% (versus -5.6% in Europe) Strong decrease of investments in seed and later stages (since 2007), while an increase on start-ups (since 2011) 700 663.14 643.51 Total venture investments in french companies ( million) 600 500 400 300 200 346.34 410.51 542.02 437.26 400.50 371.80 298.10 295.10 281.19 264.92 271.66 244.85 289.23 342.06 324.77 333.70 100 0 38.03 20.39 15.75 16.10 14.98 6.39 10.04 6.84 7.57 2007 2008 2009 2010 2011 2012 2013 2014 2015 Seed Start-up Later stage venture 10
All private Equity Geographical investment flows in 2014 865 M Foreign private equity firms investing in France 2,101 M French private equity firmsinvestingin companies outside France 9,451 M Investmentsby local private equity firms 11
Total venture investments in Europe (by sector) Construction Real estate Total venture investmentsin Europe in 2015 = 3,805 M Median life sciences investments are 29.7% (2007-2015) Agriculture Unclassified Transportation Chemicals & materials Business & industrial services Financial services Business & industrial products Energy & environment Consumer services Consumer goods & retail Communications Computer & consumer electronics Life sciences In 2008 : 22.2% In 2013 : 36.5% In 2015 : 33.9% 2015 2014 2013 2012 2011 2010 2009 2008 2007 0 5 10 15 20 25 30 35 40 % of amounts of total venture investments in european companies 12
Total venture investments in France (by sector) Real estate Construction Unclassified Total venture investmentsin France in 2015 = 683 M Medianlife sciences investmentsare 23.3% (2007-2015) Agriculture Chemicals & materials Business & industrial services Transportation Financial services Consumer services Energy & environment Business & industrial products Consumer goods & retail Communications Computer & consumer electronics Life sciences In 2009 : 17.2% In 2015 : 25.5% In 2010 : 30.8% 2015 2014 2013 2012 2011 2010 2009 2008 2007 0 5 10 15 20 25 30 35 % of amounts of total venture investments in french companies 13
Research methodology About PEREP Analytics and Invest Europe Research 14