Venture Transaction Multiples - France 2017 Edition

Venture Transaction Multiples – France 2017 Edition© 2017 Avolta Partners // www.avoltapartners.com
Venture Transaction Multiples
France 2017 Edition
How Much Is Your Startup Worth ?
#fintech
#delivery/logistics
#medtech/biotech

Venture Transaction Multiples – France 2017 Edition© 2017 Avolta Partners // www.avoltapartners.com 2
is the median EV/Sales multiple observed in French venture capital, based on all the fundraising transactions in the hexagon in 2014, 2015
and 2016. With 2.00x 1st quartile and 10.37x 3rd quartile.
Venture capital is a game of portfolio returns: each deal is unique and the only fair value is the price that investors are ready to pay for equity stakes. Yet, as
the French market is booming (it became the second behind the UK in Europe) and more specialised funds appear, competition for deals rises and the need
for rationality becomes crucial when it comes to valuation.
After screening 1,481 deals representing €5.2bn value and analysing their private structuration, we do believe there exist consistent EV/Sales ranges per
business model. Since VC investors value future FCFF in 5-10 years with an exit strategy, it is no surprise they better value €1 revenue based on
manufacturing models with high gross margin than €1 revenue based on ecommerce models (buy and resell) for example.
Last year, we published our first study on VC transaction multiples, based on FR 2015 deals analysis. The results were well-received by investors, advisors and
entrepreneurs: it gave more transparency to the market and outlined the premises of transaction financial comparables applied to startup investments.
We believe generalising the multiples approach in venture capital with comparable transactions EV/Sales contributes to a more efficient ecosystem,
assessing the risk and fairly distributing the value between entrepreneurs and investors.
In this edition, we deepened our approach per business model, per focus and over time. We decided to make the report public and free to make our best
efforts in correcting the existing market information asymmetry. It is time for some investors and entrepreneurs to better align to the valuation market.
In this edition, we also produced research notes per key focus and we observed premiums / discounts when analysing EV/Sales. The VC market anticipates
future trends in M&A so it is a cyclic and heterogeneous market by nature. For example, investments in artificial intelligence, delivery/logistics and mobility are
likely to be well-valued today since consolidation is expected in these markets within the next 5-10 years. Understanding these trends over time allows to
understand evolution and disparity in multiples with an analytic approach instead of adopting the unsatisfying tech-bubble speech.
Avolta Partners team, 9/26/2017
4.48x
Avolta Partners
Edito

Bpifrance Le Hub x PwC
Our supports
§ Given our position at the heart of the ecosystem and our strong experience and expertise
in venture capital at Bpifrance Le Hub, we aim at creating key partnerships and multiply
business opportunities in order to accelerate innovation and growth, particularly by
providing practical and useful tools to the diverse stakeholders involved in the ecosystem.
§ We work on best practices by bringing together startups, corporates and VCs in a task
force to share their insights on business experiences. We implement the gathered
information in practical and ready-to-use tools such as smart contracts or Corporate
Venture Capital term sheets, in order to smooth friction and improve collaboration
between startups and corporates.
§ In this spirit and with the profound ambition to conciliate the traditional economy with the
innovative French ecosystem, Bpifrance Le Hub teamed up with Avolta Partners in order
to promote data-driven knowledge on the venture capital market. A sector still cruelly
lacking transparency despite the importance of the startup valuation matter.
§ We are proud to make data accessible to all the ecosystem by distributing this study.
You will find here the results of Avolta Partners researches and analysis gathered in the
second edition of their study on “Venture Transaction Multiples”. We’re convinced that
those findings will participate in reducing the current asymmetry of information ruling the
venture capital market.
§ This document will help entrepreneurs get a better and fair idea of the valuation of their
organization, and corporates not to over-value or undervalue startups. We’re confident
that it will lead to a better mutual understanding between market players and therefore to
new business opportunities.
PwCBpifrance Le Hub
§ PwC strongly supports business competitiveness in France and buys into the belief that
innovation and entrepreneurship should be promoted and encouraged nationwide to
unveil tomorrow’s leaders.
§ Smart Up is a multidisciplinary PwC offering which aims at accompanying France-based
startups at each stage of their growth. The approach taken by our teams is aligned with
the specific culture, priorities and entrepreneurial vision that are unique to these new
players on the French business scene.
§ Our Smart Up teams accompany entrepreneurs throughout the development of their
business, from the drafting of their Articles of Association to their IPO, including the
establishment of shareholders’ agreements, pitch training, preparing the accounts,
auditing the financial statements or fundraising, for example. PwC also assists startups to
develop experiences specifically adapted to evolving user demand (connected objects,
interfaces, physical spaces, services, etc.) via design thinking and creative collaboration.
§ Smart Up’s credibility is strengthened by its positioning in two separate segments of the
ecosystem: at the early stage, thanks to its “DIVN” (pronounced “dive-in”) incubator, and
by boosting proven model startups (generally internationally) thanks to the
PwC Accelerator.
§ Smart Up has built a strong presence in the ecosystem by entering into partnerships,
sponsoring events and intellectual contributions. Our support to Avolta Partners study on
startup valuation is a perfect example of these actions, a research which will no doubt
provide valuable and useful insights to the ecosystem’s stakeholders.
premium sponsordistribution partner

9 business models
§ Subscription: SaaS or more traditional licensing recurring revenue
§ Commission: platform debiting a defined cut from its flows
§ Performance: built around usage from a recurring user community
§ eCommerce: buy and online resale of goods
§ Manufacturing: production and resale of goods
§ Retail: resale of goods through brick-and-mortar shops
§ Audience: traffic-based revenue
§ Service: margin between labour cost and service invoice price
§ Research: strong R&D focus to keep high barriers to entry
Building a platform for VC corporate finance
Avolta Partners was rated the most active M&A boutique and fundraising specialist
in Europe in the Tech Industry (Business Insider, Feb-17). With 45 deals closed in 4
years, we chose from the beginning to be pan-European and data-driven. So we
built Avolta Intelligence, a unique platform to automate processes and scale our
ability to help fast-growing tech companies in Europe.
Our platform concatenates European deals in the Tech Industry with information on
valuation, revenues and structuration. We source this private data from our network
of providers, business partners and investors, combining it with unique insights from
our team of analysts.
Avolta Intelligence is used by professional funds, specialised boutiques and startups
to gain knowledge on valuation, competitors investment thesis and deal
opportunities.
€5.2bn. 1,481 deals. 1,312 investors.
We monitored 1,481 deals in 2014, 2015 and 2016 in France. When adding a deal
to our platform, we categorize startups according to their business model and we
associate multiple tags with specific focuses. For each deal >€1m we then calculate
EV/TTM revenue transaction multiples.
Equity Value pre money (EV):
Calculated as PPS * NOSH with PPS the price per share voted for capital increase
(nominal + premium) and NOSH the number of outstanding shares before issuance.
Trailing Twelve Month (TTM) revenue:
Pro temporis revenue calculated as (12-M) * R(N-1) /12 + M * R(N) / 12, with M the
month of the shareholder’s Assembly voting capital increase, R(N) the revenue for
the year of fundraising and R(N-1) the revenue in preceding year.
Data. Data. Data.
Methodology
1,481 startup
fundraisings monitored
877 fundraisings > to €1m
718 startups with
legal information disclosed
454 transaction
multiples

Global Trends

157.2
336.7
213.6 218.6
338.9
455.6
624.7
385.7
549.0
463.1
696.4
774.0
0
20
40
60
80
100
120
140
160
180
200
0
100
200
300
400
500
600
700
800
900
2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4
6
French venture capital is booming
Global Trends
French tech startups booming activity
With more than €5.2bn raised in 1,481 transactions over the past three years, investments have more than doubled in 2016 compared to 2014 (39% CAGR in value). France has
risen to the second rank in Europe, before Gerrnany and behind the UK.
Amount (€m) No. of deals

The long journey of an entrepreneur
Global Trends
Startup lifetime and average waiting period at each stage of funding story
39 months is the average waiting period between creation date and the Series A. Once you have reached this point, the typical time-to-Series B is about 19 months. Beyond this
point, the access to capital becomes easier for the companies needing additional equity financing.
0
5
10
15
20
25
30
35
0
100
200
300
400
500
600
700
800
0 20 40 60 80 100 120
No. of months
No. of deals
Med. amount
raised (€m)
30 more and you
are on the road
to become a
unicorn
39-months « no
man’s land » before
finding your first
institutional VC
Just 19 more to
see the light at
the end of the
tunnel
Median time
to Series A
Median time
to Series B
Median time
to Series C
0.5 0.5 0.5
1.5
2.0 2.0
5.2 8.0 6.0
5.0
25.0
14.2
0
1
2
3
4
5
6
7
8
9
10
2014 2014 2015 2015 2016 2016 2017
No. of years since creation
2014 2015 2016
Median deal
size (€m)
Seed Series A Series B Series C+
No. of deals Amount (€m)

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
8
2016
2015
2014
Annual deals distribution by decreasing size
Invested amounts / annual investments
10% deals driving 60% investments
Global Trends
Volume (No.)
Value (€m)
Avg. new money distribution by deal (€m)
2014 2015 2016 Total
Seed 211 225 270 706
Series A 129 198 227 554
Series B 30 51 73 154
Series C 17 10 17 44
Series D+ 7 5 11 23
Total 394 489 598 1 481
Volume (No.)
2014 2015 2016 Total
Seed 149,5 146,9 196,1 492,5
Series A 325,3 558,4 700,1 1 583,7
Series B 177,9 488,2 899,2 1 565,4
Series C 164,3 327,3 281,1 772,7
Series D + 110,0 280,0 402,2 792,2
Total 927,0 1 800,9 2 478,7 5 206,5
Value (€m)
2014 2015 2016 Total
Seed 0,7 0,7 0,7 0,7
Series A 2,5 2,8 3,1 2,9
Series B 5,9 9,6 12,3 10,2
Series C 9,7 32,7 16,5 17,6
Series D + 15,7 56,0 36,6 34,4
Total 2,4 3,7 4,1 3,5
New money (€m) distribution by deal
Investments are concentrating. And it is good
news for VC returns.
There are an increasing number of articles in press
mentioning large rounds and several analysts
blogged about funds consolidation and increase in
Series A/B deal size.
Figures indeed support this hypothesis: the
proportion of large rounds is relatively more
important YoY.
Venture capital is structurally concentrated: 10%
top deals drive 60% investments. And despite the
booming in long tail deals, VCs tend to concentrate
investments in leader startups to optimise their
lion’s share.

Focus relative growth
Global Trends
50
100
150
200
250
300
2014 2015 2016
#B2B-SaaS
Hot tech!
We identified 11 trending tags with high
recurrence. We then indexed the number
of annual deals per focus on 2014 index
100. This chart highlights the hottest topics
in VC right now: artificial intelligence,
delivery/logistics, fintech, jobbing and
transportation/mobility.
No. of deals 2014 index 100

200
2000
1 2 3 4 5 6 7
10
Focus investment patterns
Global Trends
Trajectories
Number of deals
Average new money raised (€m)
#fintech
#AI
#ecommerce
#transportation
/mobility
#B2B-SaaS
#medtech
/bioTech
#delivery
/logistics
#cleantech
#jobbing
#adtech
2014
2015
2016
3.5
3800
#edtech
Average TTM revenue (€k)
Log scale
#ecommerce: work more, get less
The avg. TTM revenue has increased from €3.9m to
€10.2m, while the avg. new money has decreased
from €3.3m to €2.0m.
#adtech: towards consolidation
€4.6m, while the avg. new money has increased
#fintech: the boomerang effect
€2.5m, while the avg. new money has first
increased from €1.8m to €4.4m before decreasing
to €3.1m.
#delivery/logistics: chasing winners-take-all
#medtech/biotech: in R&D we trust
#jobbing: highly-fragmented offer
The avg. TTM revenue has decreased from €4.6m
to €0.7m, while the avg. new money has increased
Consolidate monopolyHedge the risk
All-inSpray & pray

% annual deals
No. of deals (relative)No. of deals (absolute)
Invested amount (absolute)Invested amount (absolute)
No. of deals
Invested amount (€m) % annual invested amount
242
294
331
128
146
240
0
50
100
150
200
250
300
350
2014 2015 2016
65% 67%
58%
35% 33%
42%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016
504.6
969.2
1 423.9
299.0
543.8
981.7
0
200
400
600
800
1 000
1 200
1 400
1 600
2014 2015 2016
63% 64% 59%
37% 36% 41%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016
B2B vs B2C
Global Trends
B2C rocks!
On average, over the last three years,
B2B startups accounted for 63% of
French deals and dragged 62% of
amounts raised.
While B2C is still lagging behind, 3-
years trends show it is now catching
up, with the B2B/B2C split trending to
50%/50%.
To date, considering the number of
deals, B2B has experienced a 17%
CAGR from 2014 to 2016. Meanwhile,
B2C increased at a steeper 37%
CAGR.
The observation also applies to
volume raised with B2B CAGR of 68%
being outranked by vigorous B2C
81% CAGR.
B2C momentum is definitely to be
studied in light of the maturation of
peer-to-peer, on-demand and sharing
economy-based models which
experienced a remarkable booming
and powered the thrive of B2C 3.0.
B2C
B2B

1,4%41
Bretagne
2,1%50
Pays de la Loire
1,6%60
Nouvelle-Aquitaine
8,7%91
Occitanie
2,1%101
Provence-Alpes-Côte d'Azur
0,1%4
Corse
8,4%143
Auvergne-Rhône-Alpes
0,1%6
Bourgogne-Franche-Comté
1,7%41
Grand Est
7,0%63
Hauts-de-France
0,5%18
Normandie
0,1%3
Réunion island
64,1%866
Île-de-France
0,1%5
Centre-Val de Loire
12
Global Trends
Regional hubs are building up
Since the FrenchTech initiative has been launched in 2013, regional startup ecosystems have
emerged in 14 different metropolis including Île-de-France.
Over the past 3 years, Paris area has kept holding its crushing leading position, concentrating
64.1% of the entire volume raised and 58.4% of total deals. Auvergne Rhône-Alpes, PACA, and
Occitanie stand out as very active challengers, with a 41.0% CAGR in regard to amounts raised
Frenchtech hubs
% of total amount raised (2014,2015,2016)
No. of deals (2014,2015,2016)
Overyear deal breakdown 2014 2015 2016
Auvergne-Rhône-Alpes 40 45 58
Bourgogne-Franche-Comté 1 1 4
Bretagne 12 17 12
Centre-Val de Loire 2 0 3
Corse 3 0 1
Grand Est 9 9 13
Hauts-de-France 17 23 23
Île-de-France 225 285 356
La Réunion 1 1 1
Normandie 4 7 7
Nouvelle-Aquitaine 16 23 21
Occitanie 22 33 36
Pays de la Loire 14 13 23
PACA 30 32 39
1st region Île-de-France Île-de-France Île-de-France
2nd region Auvergne-R.A. Auvergne-R.A. Auvergne-R.A.
3rd region PACA Occitanie PACA
4th region Occitanie PACA Occitanie
5th region Hauts-de-France Hauts-de-France Hauts-de-France
>50%
<1%
Volume distribution

Transaction Multiples

Yes! There is financial rationality behind venture
transactions
VC investors value the future FCFF in 5-10 years
with an exit strategy. The company business model
gives insights on gross margin levels, scalability and
predictability. It is then unsurprising to observe
correlation between BM and EV/TTM revenue.
€1 revenue from commission means €0.9 in gross
margin with scalable GMV.
€1 revenue from subscription means €0.8 in gross
margin with valuable LTV.
€1 revenue from manufacturing means €0.7 in
gross margin with promising price differentiation.
€1 revenue from service means €0.4 in gross
margin with un-scalable business.
€1 revenue from performance means €0.5 in gross
margin with both lucrative and hazardous user
community.
€1 revenue from ecommerce means €0.5 in gross
margin with costly repeat.
€1 revenue from audience means €0.9 in gross
margin with limited opportunity for growth and
diversification.
14
Tech valuation snapshot
Q1 Q3
Med.
EV/TTM revenue per business model
3.1x
2.7x
1.2x
4.4x
2.9x
3.3x
2.7x
2.2x
0.8x
1.8x
5.9x
15.8x
5.6x
6.6x
9.3x
14.8x
11.3x
7.6x
18.5x
4.0x
5.5x
18.9x
0.0x 5.0x 10.0x 15.0x 20.0x
#fintech
#transportation
/mobility
#B2B-SaaS
#delivery
/logistics
#cleantech
#adtech
#jobbing
#AI
#ecommerce
#edtech
#medtech
/biotech
4.3
1.1x
1.1x
2.0x
2.3x
0.7x
2.3x
3.4x
2.4x
5.9x
2.3x
15.4x
13.9x
2.6x
10.8x
15.3x
8.4x
0.0x 10.0x 20.0x 30.0x
Subscription
Commission
Performance
eCommerce
Manufacturing
Audience
Research
Retail
Service
43.5x
EV/TTM revenue per focus
4.5x
8.3x
4.6x
1.1x
4.9x
3.3x
1.7x
2.2x
15.7x Median

New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
15
36.8 110.7 98.2
20
25 32
0
5
10
15
20
25
30
35
0
20
40
60
80
100
120
140
2014 2015 2016
1.8
Sector median FR median
4.4 3.1
€3.2m
€7.8m
26%
€0.5m
10.4x
§ Investment dynamism in #fintech is contrasted: while the number of deals increased YoY,
both value (-11%) and average new money (-30%) notably decreased from 2015 to 2016
§ This may be – after 2015 peak – the sign of a relative temperance from investors in the
#fintech race, as new players are less likely to be successful in an increasingly-
consolidated market
§ Even if the median TTM revenue over the 3-years period stays low at €0.5m, the average
rose from €0.3m in 2014 to €2.5m in 2016, supporting the consolidation thesis
§ Nevertheless, the EV/TTM multiples analysis gives a 10.4x median multiple far superior to
the cross-sector 4.5x median, outlining the still-promising M&A opportunities
§ Subscription models in #fintech benefit from an outstanding valuation premium: they are
valued around 3 times more than overall subscription businesses
#fintech
Invested amount (€m) Avg. deal size (€m)
Investment trendResearch note
Median deal analysisVenture Transaction Multiples
#fintech
18.89x5.93x
Subscription
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Commission
Q1 Q3
Med.
BM
BM x Focus
Med.
Q1 Q3
25.75x10.37x
16.49x5.55x
# of deals
Most active investors

#AI
Invested amount (€m) Avg. deal size (€m)
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
9.7
65.6 68.3
10
25
28
0
5
10
15
20
25
30
35
0
10
20
30
40
50
60
70
2014 2015 2016
1.0
Sector median
2.6 2.4
€1.0m
€3.8m
27%€0.5m
3.5x
# of deals
8.0x6.0x4.0x2.0x0.0x
#AI
Subscription
5.50x1.77x
§ #AI is booming: investments value increased from €10m in 2014 to €68m in 2016 (fastest
growing sector) and already €115m (30+ deals) have been raised since Jan-17
§ Investors unsurprisingly occupied this field as unequaled scalability and countless new
business applications seem to pave the way for successful exits in the coming years
§ There is a high proportion of pre-revenue deals (48% vs overall 34% in 2016) and the
median TTM revenue is relatively low (€0.5m), highlighting the relative youth of deep tech
and the importance of IP valuation
§ Paradoxically, deals in #AI are valued on a median 3.5x EV/TTM revenue, slightly below
the cross-sector median multiple: investors are still cautious and need to acquire further
expertise for their due diligence
§ Subscription models valuations in #AI are consistent with overall subscription multiples
FR median
Q1 Q3
Med.
Med.
Q1 Q3
7.07x2.35x
BM
BM x Focus

2.0x0.0x 4.0x 6.0x 8.0x
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
17
142.4 112.8
133.9
43 42
66
0
10
20
30
40
50
60
70
80
0
20
40
60
80
100
120
140
2014 2015 2016
Invested amount (€m) # of dealsAvg. deal size (€m)
3.3
Sector median
#ecommerce
eCommerce
3.99x0.82x
2.7 2.0
€1.1m
€4.0m
24%
€2.0m
1.5x
#ecommerce
Commission
Manufacturing
§ #ecommerce is relatively steady in volume and value (€134m in 2016 for 66 deals), while
the average new money has been notably decreasing from €3.3m in 2014 to €2.0m
§ In the meantime, the €2.0m median TTM revenue is outstandingly high compared to
overall median and the average has been increasing from €3.9m to €10.2m
§ Investors commit smaller tickets for companies with higher TTM revenue: they typically
hedge the risk in this mature sector and focus on profitable businesses as M&A
opportunities drastically decreased
§ The median 1.5x EV/TTM revenue is very low compared to the cross-sector median
multiple as gross margins are relatively small with hard-to-scale revenue model and high
fixed costs related to logistics
§ All BM median multiples experience a heavy discount when applied to #ecommerce
FR median
2.17x0.74x
Q1 Q3
Med.
Med.
Q1 Q3
1.66x 5.90x
0.96x 8.12x
BM
BM x Focus

10.0x0.0x 20.0x 30.0x
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
18
132.2
297.4
212.4
34
36
51
0
10
20
30
40
50
60
0
50
100
150
200
250
300
2014 2015 2016
3.9
Sector median
8.3 4.2
€2.0m
€6.0m
26%
€1.1m
6.5x
#transportation/mobility
#transportation
/mobility
Subscription
18.45x2.24x
Commission
Manufacturing
§ #transportation/mobility is a trending topic: the number of deals rose from 34 in 2014 to
51 in 2016, reaching €212.4m in value (the €297m 2015 peak funding was due to
€197m Blablacar Series D)
§ The dynamics in mobility are fueled by the shift towards sharing usages, smart-cities
programs and the continuous technological improvements in real-time fleet management
§ The €1.1m median TTM revenue is relatively high and underlines the attractive
opportunities for rapid monetization in these businesses: specialised investors (Via-ID,
PSA, EMV) have accelerated their investment pace and are increasingly seduced by
platform models based on daily usage
§ Consequently, the 6.5x median EV/TTM revenue show a relatively well-valued sector,
with a strong premium for commission-based models
FR median
10.52x 32.43x
3.17x0.98x
Q1 Q3
Med.
Med.
Q1 Q3
3.13x 21.86x
BM
BM x Focus

8.0x6.0x4.0x2.0x0.0x
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
19
175.1
298.1
423.1
97
102 131
0
20
40
60
80
100
120
140
0
50
100
150
200
250
300
350
400
450
2014 2015 2016
1.8
Sector median
#B2B-SaaS
Subscription
7.58x2.66x
2.9 3.2
€1.5m
€4.1m
28%
€0.9m
4.7x
#B2B-SaaS
§ #B2B-SaaS is a steady growing sector with investments value reaching €423m in 2016
for 131 deals, while the average new money has doubled from 2014
§ The €0.9m median revenue follows the general observation with a slightly superior
median new money: investors are confident in committing high tickets on small
companies since B2B and recurring revenue reduce hazards (hypothesis supported by
low multiples dispersion)
§ The #B2B-SaaS EV/TTM revenue median is highly correlated with the subscription BM
even though a little higher and quartiles are less dispersed
§ #B2B-SaaS models are notably well-valued by specialised investors for their recurring
revenue, their easy-to-read key metrics and their scalability, combined with their
anticipated smoothed exit via M&A software integration
FR median
Q1 Q3
Med.
Med.
Q1 Q3
7.58x2.66x
BM
BM x Focus

New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
20
15.5
90.7
107.2
14
23
33
0
5
10
15
20
25
30
35
40
0
20
40
60
80
100
120
2014 2015 2016
1.1
3.9 3.2
€1.1m
€4.9m
29%
€0.7m
5.9x
§ #delivery/logistics is booming: investments value increased from €15m in 2014 to €107m
in 2016 (second fastest growing sector) with 91% CAGR in value, and the average new
money notably rose from €1.1m to €3.2m
§ Data points out an attempt of consolidation in a still-fragmented market, investors in
#delivery/logistics tending to make the bet on winners-take-all
§ The €0.9m median TTM revenue and the €1.1m median new money are in line with
general observations while the median EV/TTM revenue significantly exceeds the market
benchmark: in their chase for winners, investors agree to pay a higher price but 2017
should separate the wheat from the chaff
§ Interestingly, the sector was historically focused on B2B and is now shifting towards
B2C, fueled by the remarkable dynamism of on-demand and ultra-flexible offers
#delivery/logistics
#delivery/logistics
Subscription
11.25x3.27x
Commission
Manufacturing
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
1.91x 7.47x
4.18x 18.05x
34.38x5.94x
Q1 Q3
Med.
Med.
Q1 Q3
BM
BM x Focus

Research note
§ Investments in #cleantech are rebounding after a deceptive year in 2015, with €163m
invested in 55 deals in 2016, while the average new money has slightly evolved from
€2.1m to €3.0m in 2016
§ COP 21 major announcements and Mayor projects in smart-cities may have triggered a
second wind to the sector but investors remain cautious in their diversification
§ The median €0.5m TTM revenue shows a fragmented market with important needs for
equity funding before generating revenue
§ Manufacturing is with no surprise the predominant business model with multiples in line
with the overall sector figures
§ But the most valued companies in #cleantech are based on performance models (17.8x
EV/TTM revenue) with focus in eco-mobility and energy efficiency
#cleantech
Investment trend
Median deal analysis
121.1
102.3
162.9
57
41
55
0
10
20
30
40
50
60
70
80
0
20
40
60
80
100
120
140
160
180
2014 2015 2016
2.1
2.5 3.0
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
€1.3m
€4.2m
27%
€0.5m
5.1x
#cleantech
Manufacturing
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Performance
21.95x3.59x
14.77x2.96x
26.77x10.36x
Q1 Q3
Med.
Med.
Q1 Q3
BM
BM x Focus

#jobbing
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
34.8
76.7
67.514
25
22
0
5
10
15
20
25
30
0
10
20
30
40
50
60
70
80
90
2014 2015 2016
2.5
Sector median
3.1 3.1
€1.2m
€3.9m
28%
€0.9m
5.3x
§ Investments in #jobbing platforms rose from €35m in 2014 to €68m in 2016, while the
average new money remained steady around €3m
§ The median €0.9m TTM revenue shows the emergence of a crowded fragmented offer:
this analysis being supported by the observed average TTM revenue collapsing from
€4.6m in 2014 to €0.7m in 2016
§ Investors have been highly enthusiastic with the transition from brick-and-mortar
agencies to on-demand marketplaces with lean cost structure, and they now tend to
increase their risks by investing similar significant ticket in smaller companies
§ Whereas subscription-based models are valued in line with the general BM multiples
(4.9x median EV/TTM revenue), commission-based platforms can count on a significant
premium with median 10.7x multiple
15.0x12.0x6.0x0.0x 20.0x
#jobbing
Subscription
9.25x4.37x
Commission
FR median
21.84x7.78x
Q1 Q3
Med.
Med.
Q1 Q3
5.86x4.02x
BM
BM x Focus

#adtech
Median deal analysis
§ #adtech investments boomed in 2015 with the number of deals increasing from 19 to 40
before decreasing to 28 in 2016, while the average new money notably rose from €1.2m
to €4.4m over the 3-year period
§ By investing more money on less key players, VCs seem to draw the path towards sector
consolidation
§ The median TTM revenue follows a clear upward trend going from €0.4m in 2014 to
€2.0m in 2016, highlighting the emergence of leading actors
§ The median multiple collapses from a high 3.9x in 2014 to a low 1.7x in 2016 as the
market seems to be mature and offer fewer long-term M&A opportunities
§ #adtech businesses interestingly tend to have a better valuation when opting for
performance as business model (CPC/CPM/CPA)
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
22.7
109.7
123.2
19
40
28
0
5
10
15
20
25
30
35
40
45
50
0
20
40
60
80
100
120
2014 2015 2016
2.7 4.4
€1.3m
€4.9m
27%
€1.3m
3.3x
#adtech
Subscription
0.0x 2.0x 4.0x 6.0x 8.0x 10.0x
Performance
6.62x1.18x
4.59x1.47x
8.84x2.59x
Q1 Q3
Med.
Med.
Q1 Q3
1.2
BM
BM x Focus

#edtech
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
18.4 18.5
77.319
22
24
0
5
10
15
20
25
30
0
10
20
30
40
50
60
70
80
2014 2015 2016
1.0 0.8
3.2
€0.8m
€3.0m
29%
€0.8m
4.0x
§ #edtech is taking advantage of bullish trends with amounts raised going from steady
€18m levels in 2014 and 2015 to a four-fold €77m level in 2016, fueled by high series B
§ In the light of the US #edtech booming, French investors are trying to identify leaders-to-
be but still remain pretty skittish
§ The €0.8m median TTM revenue is slightly above the general observation while the
median new money is below general levels also at €0.8m: #edtech startups record higher
median revenues but close relatively smaller rounds
§ Despite comforting subscription models, investors tend to apply a discount to #edtech
multiples, particularly narrowed around the median 3.7x EV/TTM revenue
§ This low-valuation spiral could be broken thanks to successful M&A exits and the
emergence of disruptive business models
8.0x6.0x4.0x2.0x0.0x
#edtech
Subscription
5.56x2.68x
4.31x2.00x
Q1 Q3
Med.
Med.
Q1 Q3
BM
BM x Focus

#medtech/biotech
New
money
Pre
money
valuation
Dilution
TTM
revenue
EV/TMM
145.4
192.6
330.9
37
50
53
0
10
20
30
40
50
60
0
50
100
150
200
250
300
350
2014 2015 2016
€2.0m
€10.9m
33%
€69k
8.2x
§ #medtech/biotech startups are riding an upward trend: 2016 is a boom year with volume
raised 170% higher than in 2015 (explained by very large series B in Q2)
§ With seed investments slightly reduced in 2016 in comparison to 2015 (-20%) and series
B+ experiencing a tremendous increase (+252% in volume compared to 2015), investors
seem to focus on more mature companies
§ Research is logically the most frequent business model (54% in number of deals, 71% in
volume raised) and explains why the #medtech/biotech median TTM revenue is that low
compared to overall median levels at €0.07m
§ With very high median pre-money valuation and uncommonly low revenue figures, TTM
multiples are very diffuse around the 15x median level
§ When excluding research BM, dispersion is dramatically reduced around the 6.6x median
#medtech/biotech
Research
0.0x 10.0x 20.0x 30.0x 40.0x 50.0x
All but Research
3.9
6.2
3.9
11.70x2.64x
43.46x4.30x
Q1 Q3
Med.
Med.
Q1 Q3
BM
BM x Focus
15.82x3.08x

Avolta insights

Audience
Avolta insights
Median EV/TTM revenue multiples over time per BM
Commission eCommerce
Performance
Retail
Manufacturing Research
Service Subscription
10.76x
1.92x
3.68x
0
5
10
15
2014 2015 2016
4.92x
6.54x
9.85x
0
5
10
15
2014 2015 2016
1.10x 0.98x 1.41x
0
5
10
15
2014 2015 2016
6.61x 5.68x
3.90x
0
5
10
15
2014 2015 2016
9.97x
4.60x
5.64x
0
5
10
15
2014 2015 2016
27.48x
4.30x
35.66x
0
10
20
30
40
2014 2015 2016
1.08x 1.92x
0
5
10
15
2014 2015 2016
5.22x
2.13x
1.09x
0
5
10
15
2014 2015 2016
5.44x
4.22x 4.30x
0
5
10
15
2014 2015 2016
Median EV/TTM revenue multiple Median EV/TTM revenue multiple Median EV/TTM revenue multiple
Median EV/TTM revenue multipleMedian EV/TTM revenue multipleMedian EV/TTM revenue multiple
Median EV/TTM revenue multiple Median EV/TTM revenue multiple Median EV/TTM revenue multiple

§ Commission-based models are particularly well-valued with a 8.26x median multiple (vs
4.49x for subscription and 1.14x for ecommerce)
§ EV/TTM revenue multiples are driven up by P2P-focused startups, with an observed
median 17.79x multiple, as investors tend to value the scalable GMV generated by these
platforms with little cost structure for the company
§ Among the commission-based startups, #transportation/mobility and #on-demand raised
significantly higher amounts of new money for higher TTM revenue, on a higher 12.57x
median multiple
§ P2P, #transportation/mobility and #on-demand gather similar criteria to maximize the
potential value of revenue for investors: scalability, efficient user acquisition, large user
base and strong repeat business
Avolta insights
Focus on commission models
2
4
6
8
10
12
200 400 600 800 1000
fintech
x Commission
General
Commission
Median Multiple
Median TTM (€m)
Commission
On-demand
/sharing
15.28x3.38x
Transportation
/mobility
Transportation/mobility and on-demand snapshot
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x
ecommerce
x Commission
On-demand
x Commission
Mobility
x Commission
Median multiple per focusResearch note
Commission deal breakdown
4.39x 4.51x
17.79x
3.90x
8.19x
17.79x
0.0x
5.0x
10.0x
15.0x
20.0x
#B2B #B2C #P2P
Overall Commission
Median NM (€m)
Marketplace
x Commission
Median multiple
Q1 Q3
Med.
Focus
Commission x
Focus
Med.
Q1 Q3
32.43x10.52x
22.01x6.10x

y = 1.6638x + 2.1567
R² = 0.44428
0
2
4
6
8
10
12
14
16
18
0% 100% 200% 300% 400% 500% 600% 700%
y = 8.8212x
R² = 0.46595
-1 000
4 000
9 000
14 000
19 000
24 000
29 000
-200 300 800 1 300 1 800 2 300 2 800 3 300 3 800
29
Avolta insights
A closer look at valuation in #B2B-Saas
MRR x Actual new moneyEV/TTM revenue x annual growth
Actual new money (€k)
MRR at fundraising (€k)
Pre money valuation
EV/TTM revenue
Annual growth

The #adtech market is getting mature
After a first year of experimentation in
2014, the market went crazy about
#adtech in 2015. 40+ deals were made
and EV/TTM revenue multiples
skyrocketed to a high 21.42x. In 2016,
investments were slightly superior in value
(€123m) but concentrated on less
companies.
The clear decrease in valuation multiples
between 2014 and 2016, combined with
the average TTM revenue increase,
highlights the fact that excitement of the
beginning has given way to a mature
market shifting from fragmentation
towards consolidation.
Supporting this thesis, the number of
acquisitions in the sector has notably
accelerated.
6
8
10
0
2
4
6
8
10
2014 2015 2016
€1.2m
€2.7m
€4.4m
€0.8m
€3.9m
€4.6m
3.9x
3.4x
1.7x
0.0
1.0
2.0
3.0
4.0
5.0
2014 2014 2015 2015 2016 2016 2017
30
Towards consolidation in #adtech
Avolta insights
Avg. TTM revenue
Avg. new money
Med. EV/TTM
revenue No. of M&A deals in #adtech

0
20
40
60
80
100
Manufacturing
Research
Commission
#AI
We found 105 deals between 2014 and 2016 with > €1m new money and underlying
business generating < €100k revenue. These “pre revenue” deals can be classified into four
main categories:
Research: Unsurprisingly, investors are comfortable with committing high tickets into
research-based models – especially applied to #medtech/biotech – even after Series A, as IP
and patents promise high barriers to entry and profitable future business
Manufacturing: Companies in #industry, #cleantech, #medtech/biotech and #ecommerce
can succeed in raising money from investors to prototype their hardware or install their brand
(Series A) but need to generate revenue when going to the next equity round: so long time-
to-market prototyping better rely on solid IP
Commission: Some companies in #marketplace, #fintech and #on-demand/sharing can
raise significant Series A without revenue if demonstrating their need for critical size before
monetization
#AI: Around 50% deals in #AI are considered as “pre revenue”, outlining both the sector
early stage and strong investors’ appetite
31
Avolta insights
Series A Series B+
Research note Pre revenue fundraisings
Pre revenue deals in volume (index 100)
#ecommerce #cleantech #fintech #IA #impact #marketplace #adtech
#medtech
/biotech
#on-demand
/sharing
#transportation
/mobility
Audience 0 0 0 7 0 0 0 0 0 0
Commission 3 3 13 0 0 20 0 0 13 7
eCommerce 3 3 0 0 0 3 0 7 0 0
IoT 0 0 0 0 0 0 0 0 0 0
Manufacturing 10 43 0 7 3 0 0 27 0 3
Performance 0 0 3 0 0 7 0 0 3 7
Research 0 3 0 0 0 0 0 100 0 0
Retail 0 0 0 0 0 0 0 0 0 0
Service 0 0 0 0 0 0 0 0 0 3
Subscription 3 0 3 7 7 10 13 3 3 3
Amount raised through pre revenue deals (€m)
Seed
Pre revenue deals analysis

31%
10%
51%
35%
33%
45%
42%
16%
38%
14%
39%
0% 10% 20% 30% 40% 50% 60%
#fintech
#AI
#ecommerce
#transportation/mobility
#B2B-SaaS
#delivery/logistics
#cleantech
#jobbing
#adtech
#education
#medtech/biotech
(new money in press – actual new money) / (actual new money)
32
Avolta insights
New money bullshit gap
Little white lies are part of the game
We went through fundraising legal documentation
of startups and compared the actual equity raised
to the amount declared in the press. We then
computed the percentage of inflation observed,
and called it the “bullshit gap”.
Taking all our focuses into account, figures
communicated on public media are inflated by
32% on average.
Startups are not necessarily to be blamed for that.
Amounts communicated in the press do not stick
to the pure-equity view and often include non-
equity money such as subsidies or debt-like
instruments.
Alternatively, startups also tend to communicate
on full-round amounts even if the fundraising is
actually done tranche by tranche and that only a
part of it has been effectively secured.
32%

Avolta insights
Highest valuation per focus
#fintech
#edtech
#transportation/
mobility
#delivery/logistics
#cleantech
#medtech/
biotech
#adtech
#jobbing#B2B-SaaS
#AI

y = 3.6342x
R² = 0.51153
0
50
100
150
200
250
0 20 40 60 80
y = 4.8086x
R² = 0.63697
0
50
100
150
200
0 5 10 15 20 25 30
y = 6.98x
R² = -0.2269
0
20
40
60
80
100
0 2 4 6 8
y = 4.577x
R² = 0.55122
0
50
100
150
200
0 5 10 15 20 25 30
y = 1.326x
R² = 0.66469
0
5
10
15
20
25
30
0 5 10 15
y = 0.8898x
R² = 0.97497
0
5
10
15
0 5 10 15
y = 2.3969x
R² = 0.7198
0
5
10
15
0 1 2 3 4 5 6
Audience
Avolta insights
EV x TTM revenue linear correlations per BM
Commission eCommerce
Performance
Retail
Manufacturing Research
Service Subscription
y = 8.0846x
R² = 0.42588
0
20
40
60
80
100
120
0 2 4 6 8
y = 0.8944x
R² = 0.74013
0
10
20
30
40
50
0 10 20 30 40 50 60
Pre money valuation (€m)
TTM revenue (€m)
TTM revenue (€m)
TTM revenue (€m)
TTM revenue (€m)
TTM revenue (€m)
TTM revenue (€m)
TTM revenue (€m)
TTM revenue (€m)
TTM revenue (€m)

#B2B-SaaS
y = 4.3672x
R² = 0.61868
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0
TTM revenue (€m)
Avolta insights
EV x TTM revenue linear correlations per focus
#edtech
y = 3.986x
R² = 0.59865
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0
TTM revenue (€m)
#adtech
y = 1.2308x
R² = 0.21387
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0
TTM revenue (€m)
#jobbing
y = 4.8076x
R² = 0.94982
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
0.0 5.0 10.0 15.0 20.0 25.0 30.0
TTM revenue (€m)

Avolta insights
Research team
Romain Mombert
Junior Analyst
Lucas Plé
Junior Analyst
Evan Proux
Junior Analyst
Marianne Beaufils
Junior Analyst
Arthur Porré
Co-founder & Managing Partner
Pascal Farrugia
Associate
Claire Coste
Senior Analyst
Baptiste Jacob
Senior Analyst
Thomas Reygagne
Head of Data

Disclaimer
The information contained in this report has been produced by Avolta Partners, based on Diane+ data,
BODACC legal data and third party information. While Avolta Partners has made every effort to ensure the
reliability of the data included in this report, Avolta Partners cannot guarantee the accuracy of the information
collected and presented. Therefore, the Avolta Partners cannot accept responsibility for any decision made or
action taken based upon this report or the information provided herein.
This presentation is for the exclusive use of the people to whom it is addressed and is intended for general
information purposes only. It is not intended to constitute legal or other professional advice and should not be
treated as such.
Appropriate legal advice must be sought before making any decision, taking any action or refraining from
taking any action in reliance on the information contained in this presentation. does not assume any
responsibility for any person’s reliance upon the information contained herein.
© Copyright Avolta Partners September 2017
Avolta Partners
With 45 deals closed in 4 years, Avolta Partners has proven to be the most active M&A boutique in
Europe in the Tech Industry. As a result, our team has learned how to maximise the value of a deal –
both valuation and legal conditions – thanks to a proven methodology and hard-nosed negotiations.
for more information contact
corporate@avoltapartners.com
or visit
www.avoltapartners.com
Bpifrance Le Hub
Bpifrance Le Hub aims at boosting French innovation by multiplying deals between corporates and
startups (partnerships, investments or M&A) in the tech industry. Since our launch in Apr-15, we have
accelerated 64 startups, accompanied 60 corporates and intermediated 35+ commercial partnerships.
PwC
Smart Up is a multidisciplinary PwC offering which accompanies entrepreneurs throughout the
development of their business, from the drafting of their Articles of Association to their IPO, including
the establishment of shareholders’ agreements, preparing the accounts and financial auditing.

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Venture Transaction Multiples - France 2017 Edition