In this report we show the state of the tech ecosystem in Europe.The next goal for the European VC market is to incorporate more institutional investors as LPs. The current state of European tech ecosystem and the scale and track record obtained by European VCs will allow the industry to incorporate them as active investor in the asset class.

1. Excellence in Business
The Case for VC and the
Opportunity in Europe
2018

2. European Tech Ecosystem1
2

3. 722
592
386 379
204
176
132
108 104
508
3
European Tech funding is showing an exponential growth
pattern
 Tech Funding in Europe reached €25bn in 2017, an implied 42% CAGR since 2012, with UK leading in
terms of funding and France in terms of number of deals
Source: TechEU Report.
(1) Rest of Europe (including Turkey).
Tech Funding by Year
(€bn, # Deals)
Tech Funding by Country, 2017
(€bn)
Tech Funding by Country, 2017
(# Deals)
4,3
5,5
10,1
14,6
16,4
25,0
1.309
1.874
2.213
2.647
3.456
3.397
2012 2013 2014 2015 2016 2017
Amount Number of Deals
7,1
4,0
3,1
2,9
1,8
1,5
0,9
0,6
0,4
2,2
CAGR
2012-17
(1)
21%
(1)
42%
• The number of deals having grown at a 21% CAGR 2012-2017 vs. 42% of the funding implies an increase in terms of average
deal size from €3,3m in 2012 to €7,3m in 2017.
3,3 2,9 4,6 5,5 4,7 7,3
Average Deal Size (€m)
18%

4. 4
Round sizes in Europe are increasing as startups are growing
bigger, faster and becoming global leaders in their markets
 Number of Deals in Europe have been growing at a 15% CAGR (2012-2017), with bigger rounds (€20-
100m, >€100m) showing the highest growth. Although UK remains number one in terms of deal sizes,
France has taken first place in terms of number of Deals, having grown at 59% CAGR
Source: TechEU Report.
Round Sizes in Europe
(# Deals)
Round Sizes in UK
(# Deals)
Round Sizes in France
(# Deals)
1.331 1.456
524
1.073273
590
99
234
9
26
2014 2017
€0-1m €1-5m €5-20m
€20-100m >€100m
CAGR
2014-17
33%
29%
42%
27%
3%
395
145
141
227
78
132
30
74
4
9
2014 2017
€0-1m €1-5m €5-20m
€20-100m >€100m
3.379 15%
2.236
CAGR
2014-17
35%
19%
31%
17%
(28%)
587 (3%)
648
75
329
73
260
22
102
9
28
1
€0-1m €1-5m €5-20m
€20-100m >€100m
CAGR
2014-17
46%
67%
n.a.
53%
64%
720 59%
179
20172014

5. FinTech continues to be the most dynamic vertical in Europe
 FinTech continues to be the top vertical in terms of number of deals and volume, followed by Healthcare
and Food
5
4,1
3,1
1,9
1,6
2,0
0,9 0,9 0,8
383
336
105
141
98
34
137
62
FinTech Medical /
Healthcare
Food Transportation Security Telecom Analytics Fasion
Funding # Deals
Funding by Vertical in 2017
(€bn, # Deals)
10,6 9,1 18,1 11,2 20,1 13,4
Average Deal Size (€m)
27,6 6,7
• Fintech is expected to
remain strong in the
coming years as we are still
in the earlies stages of
innovation for financial
services (specially in B2B)
• Europe has a strong track
record in both med and
health tech. The largest deal
in this sector was Roivant
Sciences which raised a
round of over €1bn
Source: TechEU Report.

6. 6
Government-backed vehicles continue to be among the most
dynamic investors in Europe in terms of number of deals
 However, in terms of amount invested, funds such as Index or SoftBank have invested significantly more.
For example, Swiss biotech company Roivant raised over €1bn from SoftBank Vision Fund
Source: TechEU Report.
Top Investors by Number of Deals, 2017
(# Deals)
Top Startups by Funding, 2017
(€m)
86
32
31
30
27
24
21
20
20
18
BPI France
HTGF
Kima Ventures
Partech Ventures
Idinvest Partners
Balderton Capital
Almi Invest
Global Founders Capital
Index Ventures
Creandum
1.093
1.001
455
440
384
361
360
286
273
255
Delivery Hero
Roivant Sciences
Improbable
Deliveroo
Com Hem
Farfetch
Auto1 Group
Truphone
OakNorth
TransferWise

7. 36
16
3
Acquisitions
IPOs
Mergers
Buyouts
7
The European exit landscape
 VC represents an almost half of the total volume of exits in year 2017. VC-backed exits have registered
record successes with cases such as Mobileye and Delivery Hero
Source: TechEU Report.
Exits in 2017
(# Deals)
Exits by Type in 2017
(# Deals)
Top VC-backed Exits in 2017
Capital Involved in Exits in 2017
(€bn)
Top Countries by Number of Exits
in 2017
(# Deals)
Other
Deals
64%
VC-
backed
Exits
36%
Rest of
Capital
52%
Capital
involve
d in VC
exits
48%
555
Total:
€61bn
Total:
610 Deals
121
112
77
47
45
Sweden
Germany
UK
France
Israel
Company Country Exit
Price /
Market Cap
€13.4bn
€4.5bn
€1.8bn
€1.7bn
€1.5bn
Frankfurt Stock
Exchange
Frankfurt Stock
Exchange

8. 8
Most notables exits and IPOs in Europe in year 2017
 IPOs supported some of the largest exits in year 2017, being the VC-backed German food delivery
unicorn Delivery Hero the most important with a market cap of €4.5bn
Source: TechEU Report.
Top Exits of 2017
(€bn)
Top IPOs of 2017
(€bn)
13,4
9,5
8,5
4,8
4,5
1,8
1,7
1,5
Mobileye
WorldPay
Drillish
Gemalto
Delivery Hero
Allfunds Bank
HelloFresh
Bambora
4,5
1,7
1,0
1,0
0,8
0,4
0,2
0,2
Delivery Hero
HelloFresh
Play Communications
Alfa Financial Software
Rovio Entertainment
Boozt Fashion
Prodways
Zur Rose
Country Country

9. The VC Opportunity Is in Europe2
9

10. 10
European society has shifted towards Entrepreneurship
 Europe has acquired a strong Entrepreneurial Mindset with a great acceptance of entrepreneurship as a
career path and a high rate of repeat founders with a greater acquired experience.
Evolution of Entrepreneurs by Geography
(Percentage of Entrepreneurs over Working Age Population)
Sources: Atomico Survey.
(1) Total Entrepreneurial Activity –Global Entrepreneurship Monitor 2002 - 2016
of Students think that Entrepreneurship is a valid
career path
79%
85%
of Students are optimistic or think that European
Tech Ecosystem is going to remain about the same
82%
Entrepreneurship is Taught in the Best Universities
5%
7%
10%
6% 6%
7%
5%
6% 6%
5%
5%
8%
2002 2009 2016
Eastern Nordic Southern Western
Acceptance Rate between women, 2% more than in
men
Average 5% 6% 8%
• European Entrepreneurship has almost multiplied by 2x in
the last years, reaching about 8% of working age population

11. 1,1
9,7
0,5
4,5
Graduates Per Annum Graduates Last 10 Years
There is an unparalleled engineering and science talent pool in
Europe
 Europe has an unprecedented ecosystem of talent that has been backed by world-class academic
institutions, which are currently producing significantly more talented professionals, focused on the tech
industry, than the US.
11
5 of World’s Top 10 Computer Science Institutions
are European
c. 5m
Source: Atomico, Eurostat.
Developers By Hub
71.497
9.990
27.333
40.538
15.915
9.586
11.346
22.944
83.262
London
Lisbon
Madrid
Paris
Berlin
Oslo
Stockholm
Istanbul
San Francisco
Science, Technology, Engineering and Mathematics
(“STEM”) Graduates
c.
0.5m
Global Rank Institution Location
1 ETH Zurich
3 Oxford Oxford
7 Imperial College London
8 EPF Lausanne
9 TU Munich Munich208.429

12. 17
19
1
2
12
Europe is the largest developed and integrated market
 Europe is the largest developed and integrated market and the best positioned for technology
development due to its impressive size in terms of GDP, Internet Users and Smartphone Users.
321
510
1
2
Population
(Millions of people)
176
228
1
2
Smartphone Users
(Millions of people)
GDP
(PPP, $tr)
Internet users
(Millions of people)
279
405
1
2
Europe is the Largest Developed Market(1)
Source: World Bank, Atomico.
(1) Europe includes EU, Switzerland and Israel.
Benefits of an Integrated Market
Free Capital Movement
Unrestricted Commerce
Unique Regulatory
Environment
Strong Investor Protection
Pan-European Financial
Institutions
Cost-Effective Advantages
1
2
3
4
5
6

13. European VC industry has been built over the past 20 years,
with stable teams capable of exploiting the opportunity
 VC teams in Europe have developed a solid experience of c. 10 years proving their ability to select the
best investment opportunities given that they have been through several economic cycles and
understand the challenges involved in the sourcing and selection of the best alternatives.
13
Currently Active European VC Firms by Founding Period
European VC Funds with +10 Years of Experience(1)
5%
16%
25%
31%
22%
1990 - 1994 1995 - 1990 2000 - 2004 2005 - 2009 2010 - 2015
c. 80% of the European VC industry already
has more than 10 years of experience
Source: Invest Europe.
(1) Non-exhaustive list.
Founding Period

14. Results
1.311
308
265
240
229
179
134
118
78
GreenTech & Transport
Energy Efficiency
Education & Support
Agriculture & Food
HealthTech
ICT
DeepTech
General Innovation
Security & Public Services
And public institutions will continue supporting Entrepreneurship
14
 European Union Programs represent only c. 10% of Public Investment in Europe. The Union will keep
supporting entrepreneurship in Europe, as it has done historically, fuelling many successful businesses.
Source: European Commission
Europe 2020 Initiative is Fuelling Entrepreneurship Post-2020 Europe Investment Plan
Total 2016
Allocation to SMEs
through innovation
programmes
€2.9bn
2020 2027
Horizon 2020 Funding by Topic in 2016
(In €m) High Quality
Proposals Funded
Expected Impact in
the European
Economy
Research &
Innovation
Investment Long-
Term Objective
€80bn of Public Investments €120bn in Public Investments2014
• Focused on Entrepreneurship and Innovation, Horizon 2020 is
“Europe 2020 Initiative” flagship program to support SMEs
Exemplary Program within “Europe 2020”
Achieve a 33% of proposals
funded
(vs. current 20%)
€400bn by 2030
3% of the EU’s GDP,
compared to the current 2%

15. 1
• Mobile, Telecom,
Healthcare and Software
Not surprisingly, Europe is already one of the largest global Tech
Hubs…
 Europe has been able to develop some of the most powerful tech hubs globally.
(1) Also includes Rhein-Main-Neckar.
(2) Taking into account Cambridge Area too.
Amsterdam & Eindhoven
The Netherlands
• Amsterdam: ICT / Life
Sciences
• Eindhoven: Green Tech and
software
Antwerp & Burssels
Belgium
• Life Sciences
Zurich
Switzerland
• Medtech and pharma / life
sciences
Paris
France
• Media, advertising, e-
commerce, sharing
economy, AI
London & Dublin(2)
UK and Ireland
• Cambridge: Biotech,
wireless
• Dublin: Medtech, hardware
• London: Consumer, finance
Stockholm
Sweden
• Telecoms, Peer to Peer,
Software
Helsinki
Finland
• Mobile telecoms, gaming,
open source
Copenhagen
Denmark
• Life sciences
15
Berlin & Munich(1)
Germany
• Berlin: ICT / Life Sciences
• Munich: Hardaware,
software
• Rhein: IT
Tel Aviv
Israel
Barcelona
Spain
• Mobile Telecom, E-
Comerce, Gaming and
Software
10
11
9
1 2 3 4 5
6
7
8
2
3
4
5
6
7
9
8
10
11

16. …with a large Deep Tech Startup ecosystem
16
 Europe is thriving with deep tech companies, closing the gap between the continental and American
startup ecosystems. However, European deep tech startups lack the funding levels strengthening US
companies.
Deep Tech Startups Founded since 2011
(Cumulative number of companies)
490
950
687
1252
2011-2013 2014-2016
Europe US
94% increase
• Between these two periods European deep tech startups have
increased at a 94% rate compared to an 82% increase in US
deep tech startups
Source: The State of European Tech 2016 – Atomico.
(1) Data for 9 months only during 2016.
Deep Tech Investment and Exits in Europe(1)
($m Capital Invested and Number of Deals)
• $2.3bn has been invested in Deep Tech since the start of
2015, a 4x increase since 2011
289
244
470
718
1.328
935
2011 2012 2013 2014 2015 2016F
82
55
160
218
296
282
Capital Invested ($m) Number of Deals

17. 17
Able to build extremely successful precedents
 Some of the most successful startups globally have been developed within the European VC landscape
and each year a greater number of European companies achieve this condition, continuing a clear growth
trend.
Source: CB Insights, Crunchbase and GP Bullhound Research.
European Extremely Successful Cases Evolution up to 2018
(Number of companies with a valuation over $1bn)
7
37
70
Up to 2010 Up to 2014 Up to 2018
mobli
+30
+33

18. …And a proven VC track record
18
 Venture Capital Teams in Europe have developed a solid experience and have proven to give consistent
and increasing double-digit returns.
(1) Source: The Acceleration Point - Invest Europe. Data as of end of 2015.
(2) Non-exhaustive list.
1,8
4,9
5,3
4
10,2
11,6
14,9
13,3
181
273
312
363
383
529
539
418
2009 2010 2011 2012 2013 2014 2015 2016
Exit Value # of Exits
European VC-Backed Exits
(€bn and Number of Exits)
CAGR 33%
10 18 17 11 27 22 28 32
Average Exit Value (€m/exits)
Double-Digit Net Fund Returns in EIF’s VC Portfolio
(Net Fund IRR since 2007)
33%
23%
16%
66%66%66%
46%
32%
27%
Top 10 FundsTop 20 FundsTop 30 Funds
IRR Boundary Median

19. 3,8 3,8
5,1
5,5
6,4
2012 2013 2014 2015 2016
This attractiveness is already being perceived by investors
19
 Larger European VC Funds and increased fundraising are finally giving the industry enough scale to
commit Pan-European investments and achieve higher returns.
Source: Invest Europe, EDC, Atomico, Pitchbook 1Q 2017 European Venture Report.
• Europe’s VC industry is coming off two record fundraising years
in which more than €17bn was raised. Before 2015, only in one
year (2008) fundraising had surpassed €6,5bn
• During Q1 2017 the industry raised €2.1bn setting the pace for a
>€8bn fundraising for the third consecutive year
48
66 64
108
127
2012 2013 2014 2015 2016
CAGR 14% CAGR 28%
• European VC Funds are now able to push for the winners
in later funding rounds and support the companies in
turnaround situations
Incremental Fundraising by European VC Funds
(€bn)
Mean Fund Size Evolution
(€m)

20. 1.10x
0.78x
1.58x
1.89x
2005-2010 2011-2015
European VC’s potential is being untapped
20
 European VC Ecosystem offers significant room for growth and represents an attractive alternative
to the US VC market, being the improvement in performance of European VCs a proof of it.
Sources: “Global Private Equity and Venture Capital” 2016, Preqin; NVCA; EVCA; Northzone Ventures and IMF.
United States Europe
20,2 19,7
77
20
United States EuropeSize of the Economy (GDP in $tr)
VC Investments during 2017 (in $bn)
Roomfor
growth
2005-2010 2005-2010 2011-20152011-2015
Economy Size
Vs. Amount of
VC Investments
Venture Fund
Exit Value /
Capital
Commitments
• The economies of the US and Europe are
similar in size but VC investment differs
greatly
• There is significant room for growth in VC
investment in Europe
• From 2011 to 2015 Europe has been able
to deliver more returns on capital
commitments than the US

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