Venture capital investment in Europe and Israel increased in the fourth quarter of 2014 compared to the third quarter. The number of deals rose from 122 to 204 and the total investment amount grew from $1.7 billion to $1.9 billion. Israel saw the largest total investment volume while Germany surpassed the UK to become the second largest destination. Four mega-rounds skewed the totals, with companies like BlaBlaCar and DeliveryHero raising large funds. Seed and early stage investment remained strong across the region.

1. Venture Capital in Europe & Israel
Venture Investment Data: Fourth Quarter, 2014
Prepared by Gil Dibner @gdibner
blog: yankeesabralimeyCabo da Roca, Westernmost point in mainland Europe

2. The data
• Back in June, I decided I wasn’t happy with available data sources on VC rounds in
Europe & Israel, and that I’d need to build my own
• 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 excluded from this analysis
• The analysis is limited to ICT categories and excludes life sciences
• The analysis excludes Turkey and FSU countries
@gdibner
blog: yankeesabralimey
2

3. Monthly pace of venture investment
• During the seven months
ended December, 2014,
there were 371 reported
venture investments across
Europe & Israel
• A total of $4.138B was
invested in Europe & Israel
during this period, an
average of $591M per
month
• Average pace seems to be
just over 50 investments per
month
• There was a summer
slowdown in August in the
number of transactions, but
a significant rebound in 4Q
@gdibner
blog: yankeesabralimey 3
519 491
565
644 626
567
727
45
42
30
50
79
73
52
0
100
200
300
400
500
600
700
800
900
1,000
0
10
20
30
40
50
60
70
80
90
Jun Jul Aug Sep Oct Nov Dec
Amountinvested(US$M)
Numberofinvestments
VC Investments in Europe & Israel, June-December 2014
Invested amount (US $M) Number of investments

4. Quarterly pace of venture investment
• The fourth quarter saw
more VC activity in Europe
and Israel than the third
quarter
• The number of VC rounds
rose from 122 to 204
• The amount of VC
investment rose from $1.7B
to $1.9 billion
@gdibner
blog: yankeesabralimey 4
1,700
1,919
122
204
0
500
1,000
1,500
2,000
2,500
0
50
100
150
200
250
Qtr3 Qtr4
Amountinvested(US$M)
Numberofinvestments
VC Investments in Europe & Israel, 2nd half of 2014
Invested amount (US $M) Number of investments

5. Four 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 in the past four
months:
• French ride-sharing marketplace
BlaBlaCar raised $100M
• Spanish voting software
company Scytl raised $104M
• German food delivery company
DeliveryHero raised $350M
• Dutch payments processor
Adyen raised $250M
• Adjusting for mega-rounds,
September was the lowest
volume month in 3Q and
December was the lowest
volume month in 4Q
@gdibner
blog: yankeesabralimey 5
70 97
57
92
121 121
103
108
117
60
168
109 76 108
332
171 342 26
366
343
249
0
100
200
300
400
500
600
700
800
Jun Jul Aug Sep Oct Nov Dec
Qtr2 Qtr3 Qtr4
AmountInvested(US$M)
Pace of VC Investment in Europe and Israel, Jun-Dec 2014
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (.5-2)

6. Number of investments, by bracket
• On this slide, Europe’s
summer & Christmas
holiday effect comes into
sharpest relief
• Angel and venture
investments, which take the
least time to close, were at
their lowest in August &
December
• Deal volume peaked in
October, with 79
investments
• Fourth quarter activity
consistently surpassed third
quarter activity
@gdibner
blog: yankeesabralimey 6
9 6 3 7
28 26
15
17 21
14
25
31
29
22
10 9
5
16
10
6
99 5
7
1
10
12
5
0
10
20
30
40
50
60
70
80
90
Jun Jul Aug Sep Oct Nov Dec
NumberofVCinvestments
Number of investments in Europe and Israel by bracket, Jun-Dec 2014
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

7. Average round size, by bracket
• Within each bracket, round
sizes have remained
relatively stable
@gdibner
blog: yankeesabralimey 7
4.1 4.6 4.1 3.7 3.9 4.2 4.7
10.8
13.0 11.9
10.5 10.9
12.7 12.0
36.9
34.2
48.9
26.0
36.6
28.5
49.9
0
10
20
30
40
50
60
Jun Jul Aug Sep Oct Nov Dec
AmountInvested(US$M)
Average investment size in Europe and Israel by bracket, Jun-Dec 2014
Seed (<2) Early Venture (2-8)
Venture (8-20) Growth (20-100)

8. Total venture investment by country, 2H 2014
• Israel led Europe with the
total amount of venture
dollars invested in the
second half of 2014
US $M
@gdibner
blog: yankeesabralimey 8
882.6
816.2
631.5
306.4
294.8
217.4
198.7
82.0
57.0
35.0
30.0
20.3
12.0
10.4
6.6
6.4
6.0
1.8
1.7
1.3
0.6
0.5
Israel
Germany
UK
Netherlands
France
Spain
Sweden
Finland
Hungary
Norway
Ireland
Denmark
Poland
Belgium
Switzerland
Portugal
Iceland
Estonia
Greece
Austria
Latvia
Italy
0 100 200 300 400 500 600 700 800 900 1,000
Total VC investment volume by country, 2H 2014 (US $M)

9. Total venture investment by country, 3Q & 4Q 2014
• Investment volume in Israel
nearly doubled in 4Q
catapulting Israel to first
place
• Investment volume in
Germany increased by
almost 50%, vaulting
Germany over the UK to
second place
• France & Sweden also saw
meaningful increases
• Prezi’s $57M growth round
put Hungary on the map in
sixth place
@gdibner
blog: yankeesabralimey 9
Israel, 315.2
Israel, 567.5
UK, 368.2
UK, 263.4
Germany, 180.2
Germany, 286.0
Sweden, 74.4 Sweden, 124.3
France, 29.1
France, 165.7
Spain, 61.7
Spain, 51.7Finland, 35.7
Finland, 46.3
Hungary, 57.0
Netherlands, 31.6
Netherlands, 24.8
Norway, 35.0Ireland, 30.0
Qtr3 Qtr4
0
100
200
300
400
500
600
TotalVCinvestment(US$M)
Total VC investment, 3Q & 4Q (excluding mega-rounds)

10. Average venture round sizes, by country
• Looking across all VC deals
in the second half of 2014,
it’s possible to draw some
conclusions about the
funding environments in
various countries
• Across all stages, French
companies seem to raise
rounds of the smallest size
in each bracket
• In the UK & Ireland venture
rounds tend to be smaller,
but growth rounds are, on
average, the largest in
Europe
@gdibner
blog: yankeesabralimey 10
Benelux, 4.0
Benelux, 11.9
DACH, 4.1
DACH, 11.9
DACH, 37.3
France, 3.7
France, 9.2
France, 24.2
Iberia, 4.5
Iberia, 13.8
Iberia, 30.0
Israel, 4.4
Israel, 12.8
Israel, 38.9
Nordic, 4.4
Nordic, 11.2
Nordic, 33.1
UK & Ireland, 4.1
UK & Ireland, 10.2
UK & Ireland, 40.4
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
Early Venture (2-8) Venture (8-20) Growth (20-100)
Averageroundsize(US$M)
Average investment size in Europe and Israel by bracket, 2H 2014

11. Total venture investment by region, June-September 2014
• When VC investments
across Europe are
aggregated into regions,
Israel, DACH, UK & Ireland,
the Nordics, and France are
the clear and consistent
leaders
• Benelux, Iberia, Southern
Europe, and Eastern Europe
do produce meaningful VC
investments (Adyen, Prezi,
and many others), but the
volumes are still low
• Taken as a group, the
Nordics (which includes the
Baltics) saw a significant
increase in 4Q over 3Q
@gdibner
blog: yankeesabralimey 11
Israel, 315.2
Israel, 567.5
DACH, 532.2
DACH, 291.9
UK & Ireland, 398.2
UK & Ireland, 263.4
Nordic, 123.4
Nordic, 221.1
Benelux, 285.2France, 129.1
France, 165.7
Iberia, 167.2
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Qtr3 Qtr4
TotalVCinvestment(US$M)
Total VC investment by region, Q3 & Q4 2014
Israel DACH UK & Ireland Nordic Benelux
France Iberia East. Eur. South. Eur.

12. Rounds by bracket & country
• Israel led in the total
number of VC deals,
including an impressive 10
growth rounds
• Excluding growth and mega-
rounds, the UK & Ireland
saw the highest number of
seed, early venture and
venture investments
• DACH slipped from fourth
place in 3Q to fifth place in
4Q
@gdibner
blog: yankeesabralimey 12
9
14 12 12
6 8 6
2
16
23
12 11
10 5
5
9
2
2 4
4
2
10
4
4 3
5
0
5
10
15
20
25
30
35
40
45
50
Israel UK &
Ireland
Nordic France DACH Iberia Benelux East. Eur. South. Eur.
Numberofinvestments
Number of investments in Europe and Israel by bracket, 4Q 2014
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<.5-2)

13. Investment by region, by bracket
• In 4Q, Israel led in terms of
total VC dollars invested,
even with mega-rounds
included
• DACH was in second place
• When growth and mega-
rounds are excluded, UK &
Ireland would come in
second
• Note the impact of Adyen
on Benelux and the impact
of Prezi on Eastern Europe
@gdibner
blog: yankeesabralimey 13
2
70
40
99
51 42
23 20
121
45
20
25 37
28
366
199 132
132
72
57
250
0
100
200
300
400
500
600
Israel DACH UK &
Ireland
Nordic France East. Eur. Iberia Benelux South. Eur.
Totalamountinvested(US$M)
Investment in Europe and Israel by bracket by region, 4Q 2014
(ranked excluding mega-rounds)
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

14. Participation rate of US VC firms, by bracket
• US VC firms are increasingly
active in the European and
Israeli VC markets
• US VC firms participated in
17.4% of the rounds that
took place in the fourth
quarter
• US VCs participated in only
3% of seed rounds, and 20%
of early venture and
venture rounds
• US VCs get far more active
in the later stages: almost
half of growth rounds had
US investors, as did Adyen’s
mega-round
@gdibner
blog: yankeesabralimey 14
94% 97%
92%
80% 80% 80%
54% 52%
33%
6% 3%
8%
20% 20% 20%
46% 48%
67%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr3 Qtr4 Qtr3 Qtr4 Qtr3 Qtr4 Qtr3 Qtr4
Seed (.5-2) Early Venture (2-8) Venture (8-20) Growth (20-100) Mega (>100)
Totalamountinvested(US$M)
Did US VC firms participate in European & Israeli VC rounds?
Yes No

15. Participation of US VC firms by country
• In 4Q, US VCs firms were
active in 12 different
European countries, up
from 10 in 3Q
• US VC firms were most
active in Israel, where they
participated in 14
investment rounds
@gdibner
blog: yankeesabralimey 15
14
5 3 3 3 2 2
30
38
19
7 5
28
11 13
4
2 3 2 20
5
10
15
20
25
30
35
40
45
50
Israel
UK
Germany
Netherlands
Sweden
France
Finland
Spain
Denmark
Portugal
Poland
Hungary
Norway
Belgium
Switzerland
Greece
Austria
Latvia
Estonia
NumberofVCinvestments
In which countries are US VCs most active?
4Q, 2014
No US VC involved US VC involved

16. Participation of US VC firms by country
• Relative to the number of
VC rounds, the UK, Spain,
and France remain
surprisingly under-
penetrated by US VC firms
• Hungary, Portugal, and
Poland saw one VC
investment each during 4Q,
with US VC firms
participating in each of
them
@gdibner
blog: yankeesabralimey 16
38%
32% 30%
20% 15% 14% 12% 7% 7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Hungary
Portugal
Poland
Sweden
Israel
Netherlands
Denmark
Finland
Germany
UK
Spain
France
PercentofinvestmentroundswithUSVCparticiation
Which countries are the most penetrated by US VCs?
No Yes

17. As a reminder, I am using a three-dimensional approach
to sector mapping
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?
Combined segment descriptor Consumer + Travel + Marketplace
AirBnB has built a travel-related
marketplace for consumers 17

18. What target markets are attracting the most VC
investment in Europe & Israel?
• All target markets saw an
increase in investment
activity across Europe &
Israel in 4Q compared to 3Q
@gdibner
blog: yankeesabralimey 18
474
599
493
79678
133
77
114
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Qtr3 Qtr4
TotalVCinvestments(US$M)
European & Israeli venture financing by target market
3Q & 4Q, 2014 (in US $M)
Government
Telecom
OEM
SMB
Enterprise
Consumer

19. What target markets are attracting the most VC
investment in Europe & Israel?
• In terms of dollars invested,
consumer-oriented
companies accounted for
just over a third of VC
investment in the 4Q, down
slightly from previous
months
• In December, over 57% of
VC dollars invested went to
enterprise-oriented
companies
@gdibner
blog: yankeesabralimey 19
45%
28%
53%
42%
34% 39% 34%
46%
45%
40%
45%
47% 40%
57%
7%
18% 6%
17%
9% 5%
6% 12% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun Jul Aug Sep Oct Nov Dec
TotalVCinvestments(US$M)
European & Israeli venture financing by target market
3Q & 4Q, 2014 (in US $M)
Government Telecom OEM SMB Enterprise Consumer

20. Breakdown by region & target market
• Interesting (and as
suggested by last quarter’s
report), the DACH region
saw a shift in investment
focus in 4Q from consumer
to enterprise
• The Israeli VC landscape
continued to be dominated
by non-consumer
companies
• Other European markets
such as the UK, the Nordics,
and France were heavily
weighted towards
consumer investments in
4Q
@gdibner
blog: yankeesabralimey 20
116 88
136 129
89
17
393
171
270
110
54
30
17
18
27
57 18
56
23
35
20
0
100
200
300
400
500
600
Israel DACH Benelux UK &
Ireland
Nordic France East. Eur. Iberia South.
Eur.
Totalamountinvested(US$M)
Investment in Europe and Israel by target market by country
4Q, 2014 (US $M)
Government Telecom OEM SMB Enterprise Consumer

21. Distribution of investment rounds by country
• Across Europe & Israel, 41%
of VC investment rounds
were in consumer
companies in 4Q, roughly
the same as 3Q
• In the DACH region,
consumer companies took a
back seat in 4Q, in a marked
difference from 3Q
• The Nordic region saw the
most emphasis on
consumer investments
• Israel was heavily weighted
towards enterprise
investments, even more so
than in 3Q
@gdibner
blog: yankeesabralimey 21
60%
50%
50%
50%
44%
40%
38%
36%
23%
27%
37%
50%
40%
33%
62%
56%
66%
3%
50%
10%
16%
20%
4%
5%
7%
0%
4%
7%
3%
3%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Nordic
East. Eur.
France
South. Eur.
UK & Ireland
Iberia
Benelux
DACH
Israel
Investment in Europe and Israel by target market by country
4Q 2014 (Number of investments)
Consumer Enterprise SMB OEM Telecom Government

22. Is Europe’s “consumer exuberance” over?
• The majority of rounds
across all stages were in
non-consumer oriented
companies, a contrast from
the 3rd quarter
• Interestingly, this was true
for seed investments as
well, which seem to be
roughly balanced with later
stages in terms
• Over half of early venture
rounds in Europe were in
enterprise-oriented
companies
• These findings are made
more significant by the
exclusion of Israel, which
has long had an enterprise
focus.
@gdibner
blog: yankeesabralimey 22
47%
55%
39%
40%
44%
36%
39%
36%
9%
6%
15%
14%
7%
8% 3%
3%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Seed (<2)
Early Venture (2-8)
Venture (8-20)
Growth (20-100)
Investment in Europe (excluding Israel) by target market by stage bracket
4Q 2014 (Number of investments)
Consumer Enterprise SMB

23. DACH moves toward the enterprise
• DACH is clearly a region
with a record of strong
consumer-oriented
investment
• In 4Q this began to change
• It’s too early to tell if this
will turn into a long-term
trend, but I expect that
Berlin will – like London –
emerge as a key hub for a
wide variety of startups
@gdibner
blog: yankeesabralimey 23
100% 100%
94%
56%
13%
64%
34%
2%
35%
57%
36%
66%
9%
9%
5%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun Jul Aug Sep Oct Nov Dec
Investment in DACH by target market by stage bracket
4Q 2014 (Number of investments)
OEM SMB Enterprise Consumer

24. Investment rounds by vertical
• Financial (“fintech”)
startups drove the highest
number of VC rounds,
followed by marketing, and
infrastructure
• Deep diversity across
Europe
@gdibner
blog: yankeesabralimey 24
Financial, 17
Marketing, 15
Infrastructure, 15 Lifestyle, 13
Adtech, 11
Data, 10
Health, 9
Productivity, 8
Education, 8
Employment, 8
Payments, 8
Travel, 7
Logistics, 7
Communications, 7
Gaming, 7Electronics, 7Development, 7
Fashion, 6
Media, 6
European & Israeli venture financing by target market
4Q 2014 (number of investments)

25. Which verticals for which markets?
• Financial companies saw
the most investment
activity in 4Q, split between
enterprise, SMB, and
consumer companies
• In 4Q, SMB-focused
companies were funded
across many verticals,
compared to only two
verticals in 3Q
• Many verticals saw
investment into both
consumer- and enterprise-
oriented businesses
@gdibner
blog: yankeesabralimey 25
Industrial
SCM
Informatics
Sports
Storage
Agtech
Real Estate
Food
Social
Durables
ERP
Security
Energy
Fashion
Media
Development
Electronics
Logistics
Communications
Gaming
Travel
Employment
Payments
Education
Productivity
Health
Data
Adtech
Lifestyle
Infrastructure
Marketing
Financial
0 2 4 6 8 10 12 14 16 18
European & Israeli venture financing by target market
4Q, 2014 (number of investments)
Consumer
Enterprise
SMB
OEM
Telecom
Government

26. Software & SaaS models led the pack in 4Q
• In terms of dollars invested
during 4Q, software (26%)
and SaaS (23%) were the
leaders
• Services came in third, with
16% (this excludes Adyen, a
services company)
• Marketplace business
models took fourth place,
with 10% of invested capital
• Physical products (systems,
components, and
semiconductors) accounted
for only 14% of total
investment combined
@gdibner
blog: yankeesabralimey 26
Software, 443, 26%
SaaS, 389, 23%
Services, 264, 16%
Marketplace, 169, 10%
Commerce, 149, 9%
Systems, 149, 9%
Components, 46, 3%
Semiconductors, 34, 2%
Media, 26, 2%
European & Israeli venture financing by target market
4Q, 2014 (in US $M) (excluding mega-rounds)

27. More software, SaaS, & services in 4Q
• As a percentage of VC
investment, software, SaaS,
and services all increased in
4Q relative to 3Q
• Marketplaces and
commerce models declined
in terms of relative share,
from 38% of VC investment
to only 19% in 4Q
@gdibner
blog: yankeesabralimey 27
19%
27%
19%
23%
11%
16%23%
10%
15% 9%
9% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4
European & Israeli venture financing by business model
3Q vs 4Q, 2014 (in US $M)
Media Systems Components Semiconductors Commerce
Marketplace Services SaaS Software

28. US VC interest is concentrated in specific business
models
• US VC firms investing in
Europe & Israel continued
to focus mainly on SaaS,
software, and services
• While commerce companies
continued to attract
attention from local
investors, no US VC firms
participated in a commerce
investment during 4Q
• Components, and
semiconductors attracted
little interest from local VCs,
and no interest at all from
US VCs
@gdibner
blog: yankeesabralimey 28
14
10 7
3 2
44
33
30
27
11
2
15
3 20
10
20
30
40
50
60
70
SaaS Software Services Marketplace Systems Media Commerce Semiconductors Components
VC Investments in Europe & Israel
4Q, 2014
No US VC involved US VC involved

29. The most popular segments in Europe
• During 4Q the 204
investments in Europe &
Israel fell into 110 distinct
segments
• Of these, 98 fell into 23
segments of 3 or more
companies
• The Nordics dominated
gaming software and
consumer communications
services
• The UK was particularly
strong in consumer financial
services, consumer financial
marketplaces, and enterprise
adtech software
• Israel was particularly strong
in enterprise marketing SaaS,
enterprise infrastructure
software, enterprise
payments services, and
enterprise security software
@gdibner
blog: yankeesabralimey 29
0 1 2 3 4 5 6 7 8 9 10
Enterprise Data Software
Consumer Media SaaS
Enterprise Development SaaS
Enterprise Adtech Services
Enterprise Development Software
Consumer Financial Marketplace
SMB Financial Marketplace
Consumer Communications Services
SMB Marketing SaaS
Enterprise Adtech Software
Enterprise Productivity SaaS
Consumer Education Services
Enterprise Security Software
Consumer Financial Services
Consumer Lifestyle Commerce
Enterprise Payments Services
Consumer Electronics Systems
Consumer Fashion Commerce
Consumer Gaming Software
Enterprise Data SaaS
Enterprise Infrastructure Software
Consumer Lifestyle Marketplace
Enterprise Marketing SaaS
Investment in Europe & Israel by segment by country
4Q 2014 (segments with 3 or more investments)
UK & Ireland
Nordic
Israel
France
DACH
Iberia
Benelux
South. Eur.
East. Eur.

30. The most popular segments in Europe & Israel for
US VC firms
• Across Europe & Israel, US
VC firms invested in 21
enterprise companies, 12
consumer companies, 2
SMB companies, 1 OEM,
and 1 government-oriented
company
@gdibner
blog: yankeesabralimey 30
0 2 4 6 8 10 12
Systems
Services
SaaS
Media
SaaS
Marketplace
Services
Software
Systems
Marketplace
Services
Software
SaaS
OEMGovtSMBConsumerEnterprise
US VC Investments in Europe and Israel by end market, business model, country,
4Q 2014
Israel
Nordic
UK & Ireland
DACH
Benelux
Iberia
East. Eur.
France

31. Average investment size by target market
• Growth rounds involving US
firms are significantly larger
than rounds that do not
• This effect was especially
pronounced for enterprise
companies
• Enterprise companies seem
to raise larger growth
rounds than consumer
comapnies
• At the early venture and
venture stages, the
involvement of US firms
does not imply a larger
round
@gdibner
blog: yankeesabralimey 31
8
12
37
53
57
11 12
8
14 13
15
29 29
26
44
20
0
10
20
30
40
50
60
Consumer
Enterprise
Government
OEM
SMB
Telecom
Consumer
Enterprise
OEM
SMB
Telecom
Venture (8-20) Growth (20-100)
Average round size by target market during 2H 2014, (US $M)
US VC involved No US VC involved

32. Average investment size by business model
• Growth rounds involving US
VC firms were larger across
the board
• This was especially true for
services, software, and
systems companies
• Commerce companies were
the exception: commerce
companies with US backers
tended to raise slightly
smaller growth rounds
• US participation didn’t
impact round size for
venture investments
@gdibner
blog: yankeesabralimey 32
8
12
9
12
8
26
46
20
46
53 53 53
12 12 12
15
9 10
13
32
23
37
31
26 26 27
32
0
10
20
30
40
50
60
Commerce
Marketplace
SaaS
Semiconductors
Services
Software
Systems
Commerce
Components
Marketplace
Media
SaaS
Semiconductors
Services
Software
Systems
Venture (8-20) Growth (20-100)
Average round size during 2H 2014, (US $M)
US VC involved No US VC involved

33. Focus on fintech: investment volume
• $135M was invested across
Europe & Israel into 17
fintech companies
• The UK was far and away
the leader in terms of
dollars invested in fintech
startups
• Other regions, however, are
attracting similar levels of
investment in early venture
and venture stages
@gdibner
blog: yankeesabralimey 33
27
3 5 3
9
15
17
31
23
0
10
20
30
40
50
60
70
UK France Israel Spain Germany Sweden
Totalamountinvested(US$M)
Fintech VC investment in Europe and Israel by bracket by country,
4Q 2014
Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

34. Focus on fintech: target markets
• The UK lead in terms of the
number of fintech
companies raising finance
• Overall fintech investment
activity was down in 4Q
compared to 3Q, with
handful of investments
scattered across France,
Israel, Spain, Germany and
Sweden
@gdibner
blog: yankeesabralimey 34
5
1 1 1
2
1
2
1
2
1
0
1
2
3
4
5
6
7
8
9
UK France Israel Spain Germany Sweden
Numberofinvestments
Fintech VC investment in Europe and Israel by bracket by country,
4Q 2014
SMB Enterprise Consumer

35. Focus on enterprise SaaS: investment volume
• 39 enterprise SaaS
companies raised $264M
during 4Q
• The biggest investment
volume was in Israel,
followed by the UK
• Growth investments were
limited to the UK and Israel
@gdibner
blog: yankeesabralimey 35
13
6 10 9
8 7
73
8
8
11 9
35
51
0
20
40
60
80
100
120
140
Israel UK France Germany Spain Belgium Netherlands Finland Austria Switzerland Greece
Totalamountinvested(US$M)
Enterprise SaaS VC investment in Europe and Israel
by bracket by country 4Q 2014
Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

36. Focus on enterprise SaaS: verticals by country
• Little change from 3Q, with
Marketing and Data
remaining the two most
popular vertical segments
within enterprise SaaS
• Developer tooling saw three
investments, two of which
was based in the
Netherlands
• Nine verticals saw one
investment each,
demonstrating the broad
applicability of enterprise
SaaS
@gdibner
blog: yankeesabralimey 36
0 2 4 6 8 10
Financial
Health
Infrastructure
Energy
Logistics
SCM
Payments
Communications
Agtech
Adtech
Employment
ERP
Education
Development
Productivity
Data
Marketing
Enterprise SaaS VC investment in Europe and Israel by vertical by
country, 4Q 2014 (number of investments)
Israel Germany
France Netherlands
UK Belgium
Greece Switzerland
Finland Spain
Austria

37. Focus on enterprise SaaS: verticals 3Q vs 4Q
• The volume of enterprise
SaaS VC investment
increased in 4Q compared
to 3Q
• Marketing and productivity,
the two most active
verticals, saw an increase in
4Q
@gdibner
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0
50
100
150
200
250
300
Qtr3 Qtr4
Amountinvested(US$M)
Enterprise SaaS VC investment volume by vertical
3Q & 4Q (US $M)
Health
Logistics
Communications
Energy
SCM
Agtech
Media
ERP
Education
Payments
Financial
Development
Adtech
Employment
Infrastructure
Data
Marketing
Productivity

38. About the author
Partner at based in
Previously helped run European seed program for
Worked seven years as a VC in
Investments include
If you found this useful, I hope you’ll subscribe to my blog.
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