www.pwcaccelerator.

com

SME Equity
Financing Atlas
A new investment boom phase
driven by startups and tech

First edition
March 2017
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will continue to be accurate in the future. The reader must be aware that the information to which he/she has access in this document is provided
as is without any express or implied guarantee by PwCs Accelerator and does not constitute the giving of an investment advice.
PwCs Accelerator cannot be held liable for mistakes, omissions, or for the possible effects, results or outcome obtained further to the use of
this publication or for any loss which may arise from reliance on materials contained in it, which is issued for informative purposes only. No
reader should act on or refrain from acting on the basis of any matter contained in this publication without considering and, if necessary, taking
appropriate advice in respect of his/her own particular circumstances.

2 PwCs Accelerator
Table of content
Foreword2
Global perspective 4
Boom in equity investments in SMEs: deals +108% and capital invested +122% in 5 years 6
Ticket sizes have increased at all stages of investment... 8
...with +159% in pre-money valuations in later stage deals 9
Investor activity: accelerators and incubators on the rise 10
Investments in IT count for over a third of the total capital invested in 2015 12
Europe picking up the pace, but still far behind the US 14
Deals per 100,000 inhabitants (per capita) in 2015 15
Industry focus by country 16
Series A investors take biggest equity stakes (on average) 18
Follow-up financing after seed-round - 52% make it to a Series A round 19
A journey of equity financed SMEs over a 10 year period (part 1) 20
A journey of equity financed SMEs over a 10 year period (part 2) 21

Regional perspective 22
USA still globally dominant in terms of deals and volumes 24
As a North American SME, where do I look for the highest density
of investor(s) according to my industry and my financing need? 26
Slowdown in deals in European SMEs in 2015 28
As a European SME, where do I look for highest density of investor(s)
according to my industry and my financing need? 30
China and India are the dominating hubs in Asia 32
As an Asian or Middle East SME, where do I look for the highest density of
investor(s) according to my industry and my financing need? 34

Countries in the spotlight 36

German equity investment market in SMEs 38
Slowdown in deals and increase in capital invested 39
Top three most active investors investing in German SMEs by ticket size and
industry (within last two years) 40
French equity investment market in SMEs 41
Slowdown in deals and volatile capital invested 42
Top three most active investors investing in French SMEs by ticket size
and industry (within last two years) 43

Industry in the spotlight 44

Significant growth of investments in Big Data focused SMEs 46
Location of equity investor backed Big Data SMEs worldwide (last five years) 48
Example of innovative Big Data SMEs receiving equity in last two years  49
Most active investors in Big Data SMEs by deals size (last two years) 50


SME Equity Financing Atlas 2016 1

 SME Equity Financing
Atlas
A new investment boom
phase driven by startups
and tech

Why?
Our objective was to evaluate the equity financing market for SMEs, identify
barriers and enablers at a global, cross-border and regional level.

How?
We analysed equity investments in SMEs from 2010-2015 (based on Pitchbook
Laurent Probst and World Bank data), covering:
PwCs Accelerator 52,614 companies that employ less than 250 persons;
Global Leader
81,141 deals with a known deal size under EUR 500m
33,490 equity investors
including VC deals and PE growth and expansion deals from all investor
types (angels, venture capital funds, family offices, etc.);
excluding secondary market transactions (buy-outs, buy-ins, M&As).

Cyrille Foillard For whom?

PwCs Accelerator
Our Atlas is both addressing CEOs of SMEs looking for equity financing with an
Managing Director
overview of key aspects in current equity financing relevant to them, as well as
equity investors wanting to gain an overview of the current market situation.
We also give policy makers a panorama of the equity financing ecosystem to help
them address relevant questions.

2 PwCs Accelerator
Key insights
1. Boom in equity investment in SMEs - deals up by 108% and capital invested by 122% in five
years, resulting in 18,186 deals and nearly EUR 150bn in capital invested in 2015.
2. Significant increases in pre-money valuation of young companies (especially in
later-stage investments) puts pressure on CEOs to deliver on expectations.
3. Accelerator and incubators on the rise and investing in young companies, as shown by the
growth of 578% in number of deals in five years (from 547 to 3,709).
4. More and more corporates are creating their own venture capital funds to source and
invest in young innovative SMEs with > EUR 20bn capital invested in 2015.
5. SMEs operating in booming industry verticals such as FinTech, Big Data, Mobile or
Cybersecurity are increasingly attracting equity investors.
6. Europe picking up with 21% of deals done with European ventures, but still far behind
the US. More and more cross-border deals show foreign investors interest in local ventures.
7. Of the 1,182 equity-backed companies weve followed over a period of 10 years, only 5%
are able to exit via IPO, with the vast majority being US companies (75%).

52,614
SMEs
33,490
equity
86,141 investors
deals

Key questions for government and policy makers to muscle the ecosystem!
1. Staying or leaving?
Are the capital gains and exit through equity investment in SMEs reinjected into the local ecosystem? Are
successful entrepreneurs re-investing or leaving the territory?
2. Is your local ecosystem attractive enough for equity investments in SMEs?
Are SMEs or your ecosystem attracting external financing in the form of equity financing or do they have to
go abroad for financing?
3. Are your local incubators and accelerators strong enough to support SMEs in your
ecosystem?
Do your local incubators and accelerators provide strong enough assistance to SMEs to grow fast in
domestic and international markets?
4. Growing or selling your SMEs?
What are the entrepreneurs of your ecosystem likely to do: grow or sell their SMEs? How many IPOs
relative to M&As happen in your ecosystem? What are the true remaining barriers for SMEs growth in your
ecosystem?
5. Enough engagement of corporates?
How can you boost corporate investments into SMEs? How active are corporates in investing in SMEs?
6. Enough entrepreneurs?
Do you have enough good entrepreneurs in your ecosystem?

SME Equity Financing Atlas 2016

2017 3
 Part 1

4 PwCs Accelerator
Global perspective

SME Equity Financing Atlas 2016 5

 Boom in equity investments in SMEs:
deals +108% and capital invested +122% in 5 years

Equity investments in SMEs have been
growing steadily over the last years. The
main drivers are the accumulation of capital
in investors hands, new technologies and
the low-interest rates. Since some asset
classes (e.g. debt asset classes, like bonds)
cant yield good returns anymore, some Nevertheless, SMEs and their often
investors turn towards riskier asset classes, disruptive and innovative solutions can offer
like equity for start-ups. Its difficult to significant returns for investors.
estimate how this growing trend will look in
the future, as new macroeconomic factors
(e.g. Brexit) might have a role to play.

Equity investments in SMEs worldwide

Number of deals closed Capital invested in EUR bn

5,000 50.00

4,500 45.00

4,000 40.00

3,500 35.00

3,000 30.00

2,500 25.00

2,000 20.00

1,500 15.00
1,000
10.00
500
5.00
0
0.00
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4
10

10

10

10

11

11

11

11

12

12

12

12

13

13

13

13

14

14

14

14

15

15

15

15
20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

20

Total capital invested (in EUR bn) Number of deals (#)

6 PwCs Accelerator
Year to year perspective

Number of deals closed Capital invested in EUR bn

200.00
20,000 18,686 18,186
16,426

15,000 150.00
13,017

10,453

10,000 8,723 100.00

5,000 50.00

0 0.00
2010 2011 2012 2013 2014 2015

Key
information Strong growth in deals and capital
invested over the last five years.
First signs in the first half of
2016 that these evolutions will
Significant slowdown in deals in continue.
2015 (mainly in Europe).
Growth in deals for 2010-2015
(+108%) is slightly lower than
for capital invested (+122%).
Significant growth in capital
invested in the last three years
(+70%).

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 7

 Ticket sizes have increased at all
stages of investment...
Since 2013, ticket sizes have increased at
all stages of investment, mainly due to an
increase in capital inflows. Moreover, in
recent years the Unicorn Club (private
companies that exceed USD 1bn pre-
money valuation mark) had become
increasingly crowded, with prominent
companies like AirBnB, Dropbox or Uber.
Nevertheless, increasing valuations raise misalignment. From the investors
the bar for young companies' future perspective, mainly the later-stage ones
performance. These valuations can put are currently affected by the increase of
pressure on the firm to deliver on the valuations.
expectations - this requires strong
partners helping to meet expectations. Not
meeting expectations in the form of
down-rounds can lead to dilution and

Average ticket size per series

in EUR m

40.00
37.50
35.00
32.50
30.00
27.50
25.00
22.50
20.00
17.50
15.00
12.50
10.00
7.50
5.00
2.50
0.00
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Seed Series A Series B Series C

8 PwCs Accelerator
 ...with +159% in pre-money
valuations in later stage deals
Pre-money valuation median by ticket size

2010 1.15
0 - 499k
2015 1.46
+27.5%
2010 2.54
500k - 0.9m
2015 3.90
+53.5%
2010 6.49
1m - 4.9m
2015 8.25
+27.2%
2010 17.35
5m - 9.9m
2015 19.98
+15.2%
2010 37.96
10m - 24.9m
2015 47.58
+25.3%
2010 76.13
> 25m
2015 215.88
+159.9%

Key
information
Significant growth in average ticket size per series since 2015,
reaching new heights for the last years.
Pre-money valuation, across all series, reaching new heights.
Very large sized tickets (> 25m) show largest growth in pre-money
valuation.
High pre-money valuations are mainly seen with SMEs in the
information technology sector, but also in areas such as Life
Science or CleanTech.
Superior growth in ticket size over pre-money valuation has also
led to an increased dilution for investors.

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 9

 Investor activity:
accelerators and incubators on the rise
Following the big success of projects
initially funded through incubators or
accelerators (e.g. AirBnB, Dropbox), more
and more similar projects are rolled-out
globally. However, venture capital
remains the main source of funding for
early-stage companies.
This is firstly due to the historic appetite of
venture capital investors for risky business
ideas (start-ups) and secondly, because
they provide management assistance,
client introduction and expertise, which
are key for the critical stages of a start-up.
Nevertheless, private equity funds and
venture capital investors remain the
dominant players in terms of capital
invested, as they nearly account for 2/3 of
all invested capital.

Median deal size by type of investor

in EUR m
15
Angel (group & individual) & family office Accelerators & incubators
Venture capital firm Corporate VC
12.5
PF growth/expansion or mezzanine fund 3%Government
1% or universities
9%
10

7.5 10%

5
41%

2.5

0
2010 2011 2012 2013 2014 2015

Share of capital invested by investor type over the period

36% 2010-2015

3% 1%
9%
PE growth/expansion or mezzanine fund
Venture capital firms
Angel (group & individual) & family office
10% Corporate VC
Accelerators & incubators
Government or universities
41%

36%

10 PwCs Accelerator
PE growth/expansion or mezzanine fund
Venture capital firms
 Growth in deals by investor type (2010 - 2015)

Accelerators &
incubators

578%
PE expansion
or mezzanine
fund
Deals 2015: 3,709
Deals 2010: 547 Corporate VCs
Venture 22%
152% capital firms Deals 2015: 3,709
Deals 2010: 547

125%
Angels & Government
Deals 2015: 1,186
family offices & universities

150%
Deals 2010: 471

150%
Deals 2015: 8,362
Deals 2010: 3,718

Deals 2015: 1,601 Deals 2015: 645

Deals 2010: 4,009 Deals 2010: 258

Key
information Venture capital investors remain
the biggest investors with the majority
of all deals done.
Governmental investors remain the
smallest investor accounting only for
3% of all deals.
Accelerators and incubators show
the biggest growth (+578% from 2010
to 2015) in terms of deals (now the
3rd largest investor after VCs and
angels/family offices).
Rise of deals from angels and
family office investors, particular in
small ticket sizes (< 5m).
Venture capital and PE investors
remain dominant in terms of capital
invested, accounting for 2/3 of all
capital invested.

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 11

 Investments in IT count for over a third
of the total capital invested in 2015

Capital invested by industry sector

100%

75%

50%

25%

0%

Deals by Industry Sector

100%

75%

50%

25%

0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Materials & Information Healthcare Financial Services Energy Consumer Products Business Products
Resources Technology & Services & Services

Source: PitchBook Inc.

12 PwCs Accelerator
 SaaS

3,522
Deals 2010: 1,325

Mobile
Hot industry verticals (number of deals 2015)

Deals 2015: 18,186

2,967
Deals 2010: 8,723 Deals 2010: 931
E-Commerce
Manufacturing
Big Data
1,257 Life
722 Sciences
1,503
FinTech
Deals 2010: 399

CleanTech
Deals 2010:
140
750 1,308 Deals 2010: 941

603
Deals 2010:
175 Deals 2010: 1,072

Deals 2010:
641
HealthTech

541 3D Printing
Deals 2010:
132 IoT
106
EdTech 401 Wearables Deals 2010: Robotics &
Drones
229
6
425 Marketing
Deals 2010:
87 AdTech
209
298
Tech Deals 2010:
Deals 2010:
405 14 Deals 2010:
92 32
Deals 2010:
Deals 2010: 211
185

Key
information
The majority of deals are done with Emerging SMEs in the area of 3D
SMEs in the information technology Printing (+1667% from 2010 to
sector (42% in 2015). 2015) and Wearables/Quantified
Since 2010, information technology Self (+1536%) show significant
deals have gained market share, both growth in terms of deals, but remain
in terms of number of deals and capital minor in terms of absolute number of
invested. deals.
Median pre-money valuations are
above average (> 15m) in the sectors
SaaS, Big Data, FinTech, Life Sciences
and Mobile.

Source: PitchBook Inc. and World Bank Data

SME Equity Financing Atlas 2017 13

 Europe picking up the pace,
but still far behind the US

Theres a historical link between a countrys size of the economy and the capital available
for young companies. Countries with more developed economies are able to supply
young companies with more capital and foster innovation. However, what weve seen in
terms of number of deals per 100,000 inhabitants is that although some countries are
small, they manage to do more deals than larger states.

Europe
3,862
EUR 23bn
Asia
1,755
EUR 29bn
North America
12,186
EUR 90bn

Africa Oceania
73 189
South America EUR 0.5bn EUR 0.3bn
208
EUR 2bn

>5 or 0 deals 99 5 deals 199 100 deals 499 200 deals 999 500 deals >1000 deals

14 PwCs Accelerator
 Deals per 100,000 inhabitants
(per capita) in 2015

1st
United States <0.01 0.09 0.01 0.24 0.1 0.49 0.25 0.99 0.5 >1

2nd
Israel 3rd 8th
4th 5 th 7th
Estonia 6 th United Kingdom
Ireland Luxembourg
Iceland Singapore

Relatively small economies that have attracted

significant capital investments in SMEs

Large mature equity markets

with high volume of capital

SME Equity Financing Atlas 2017 15

 Industry focus by country

No. 1 industry by global region in terms of capital invested in 2015

Business Consumer Energy Financial Healthcare Information Resources &

products & products & services technology materials
services services

16 PwCs Accelerator
Evolution of deals by global regions
(by number of deals) 100%
3%
9%

14%
80%
100% 21%

3%
9%
60%
14%
80%
21% 40%
76% 62%

60% 20%

0%
40% 2005 2011 2012 2013 2014 2015

76% 62% Oceania Middle East

20% Africa Asia
South & Central America Europe
Canada United States
0%
2005 2011 2012 2013 2014 2015

Oceania Middle East

Africa Key Asia
South & Central America information
Europe
Canada United
The most important industry
States
varies significantly across
countries. In most of the
northern economies, the IT
industry dominates.
The US remain dominant in
deals and volume, but Europe
and Asia are picking up year by
year.
Europe has seen a significant
slowdown in deals in 2015
(-12% compared to 2014).
Countries like Israel, Ireland
Finland, Luxembourg,
Estonia, Sweden or
Switzerland come close to the
US in terms of per capita deals.
Most important countries
by absolute number of deals
following the US are: United
Kingdom, Canada, Israel,
Germany, Ireland, France, Italy,
China and India.

Source: PitchBook Inc. and World Bank Data

SME Equity Financing Atlas 2017 17

 Series A investors take biggest equity
stakes (on average)

Average equity stake taken by investors (2015)

28.5%
23.3%
20.8% 20.5%
16.8%
11.2%

Seed Series A Series B Series C Series D Series E

Source: PitchBook Inc.

18 PwCs Accelerator
Follow-up financing after seed-round
52% make it to a Series A round
No follow-up

% of these companies that received equity financing in

follow up Series (until 2015)

till till till till till No

Series A Series B Series C Series D Series E+ follow-up

187
51.8%
39.6%
SMEs received
their first seed
equity financing 19.3% 48.2%
in 2005 12.0%
(Seed) 3.7%

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 19

 A journey of equity financed SMEs
g over a 10 year period (part 1)
Companies applying for equity financing in 2005

On average only

0.56%
of companies that
apply for equity
financing actually
1,182
SMEs worldwide
receive it1 raised their first
money in 2005 from
Only a small number of all SMEs equity investors (Seed
worldwide are raising capital from or Series A)
equity investors. For the management
of SMEs its highly important to
identify the right investors in their
domain, before approaching them.
Moreover, the inability to manage
expectations and lack of experience in
the screening phase can often result in
unsuccessful fundraising of SMEs.

Ren Andres
PwCs Accelerator
Senior Advisor
1. Based on PwCs Accelerator internal knowledge

20 PwCs Accelerator
 A journey of equity financed SMEs
over a 10 year period (part 2)
M&As remain the most attractive exit option for investors. This is because IPOs are
complex and timing is a further difficult factor to control. It takes a lot of time and
preparation work to make companies ready to go public, compared to M&As. Moreover,
investors cant directly liquidate all their shares in an IPO compared to an M&A.

1,182
SMEs worldwide
raised their first
Seed or Series A only
money in 2005 After 1 in 125
10 years
from equity companies
investors is able to exit via
an IPO > 1b EUR

Origin of ventures:
75% US ventures, with only 11% EU ventures
Number of % (of 1,182 Source: PitchBook Inc.
Status in 2015
companies companies) % of US
Valuation %
IPO and current enterprise ventures
Value > 1b EUR
10 0.8%
0-10m 34% 40%
IPO and current enterprise
Value < 1 b EUR
51 4.3%
10m-20m 13% 41%
Were acquired or merged 509 43.0% 20-50m 16% 47%
Are generating revenue and
have > 15 employees
241 20.4% 50-100M 13% 48%
Are generating revenue and
have < 15 employees
157 13.2% > 100m 24% 63.%
Are still in clinical trials/
27 2.3%
product development
Out of Business or
187 15.8%
Bankruptcy/Liquidation A trade sale is
8.34 times
For European SMEs that exited via M&A more frequent
35% were bought by US companies and than an IPO.
10% by Asian companies.
SME Equity Financing Atlas 2017 21
 Part 2

22 PwCs Accelerator
Regional perspective

SME Equity Financing Atlas 2016

2017 23
 USA still globally dominant in terms
of deals and volumes
The USA are the biggest market for equity financing worldwide. Over many years, the
USA have created local hubs with a high density of start-ups and investors. This and the
fact that investors generally prefer proximity to their ventures explain why many deals
are local. As there are so many young companies for example in Palo Alto, many
investors are also located there and invest in them. Moreover, for very large deals
(> EUR 25m) many non-US ventures (e.g. Canadian, Mexican) seek money in the USA,
due to the availability of capital and expertise in this region.

Foreign investors1 15,000 100,000

Local investors1 USA
12,500 80,000
10,000
60,000
7,500
40,000
5,000
2,500 20,000

- 0
2010 2011 2012 2013 2014 2015
2,000 15,000
Canada
12,500
1,500
10,000
1,000 7,500
5,000
500
2,500
- 0
2010 2011 2012 2013 2014 2015

500 5,000
Mexico

250 2,500

- 0
2010 2011 2012 2013 2014 2015

1. Percentage of foreign (local) investors that invested in

SMEs in the respective country in 2015

24 PwCs Accelerator
Capital invested in local SMEs (in EUR m) by ticket size and
importance of foreign investors involved (2015)

Country 0-499k 500k-1m 1m-5m 5m-10m 10m-25m 25m+

USA 664 994 7,761 7,316 14,241 36,653
% local inv. 87% 87% 85% 84% 80% 75%
Canada 41 44 298 252 655 1,128
% local inv. 58% 78% 53% 39% 37% 44%
Mexico 5 3 17 37 38 445
% local inv. 46% 87% 50% 20% 16% 33%

Explanation

500 Number of Capital invested in 5,000

deals closed EUR m
400 4,000

300 3,000
200
180
200 160 2,000
140
120
100
100 1,000

0 -
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 25

 As a North American SME, where do I look for
the highest density of investor(s) according to
my industry and my financing need?
Theres so much capital available in all industries in the US that
ventures dont necessarily need to look for investors in other
countries. Only for some industries, US ventures could consider
the UK or Canada as a second option.
Industrialised and well developed countries (US, Germany,
France, UK, etc.) mainly focus on IT-driven ventures (SaaS,
Cybersecurity, Big data), whereas many emerging and developing
countries have more capital invested in B2C or B2B products and
services.

Ticket size

Industry 0 1m 1m-10m +10m

SaaS
UK UK UK
(2015 EUR 14.93bn)
Canada Canada Canada
+500 USA +500 USA +500 USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500

Mobile India UK China

(2015 EUR 7.24bn) Canada Canada UK
+500 USA +500 USA +500 USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500

Life science UK UK Canada

(2015 EUR 14.64bn) Canada Canada China
USA USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500

Manufacturing
UK UK China
(2015 EUR 8.89bn)
Canada Canada Canada
USA +500 USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500

E-Commerce
Mexico UK China
(2015 EUR 3.45bn)
Canada Canada Canada
USA +500 USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500

CleanTech UK France UK
(2015 EUR 3.13bn) Canada Canada Canada
USA USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500

Big Data
2. Capital invested in North American SMEs in 2015 in UK China Canada
(2015 EUR 3.73bn)
these industry vertical Canada Canada UK
USA +500 USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
26 PwCs Accelerator
FinTech
Japan UK Canada
(2015 EUR 3.20bn)
 Ticket size
Industry 0 1m 1m-10m +10m
Industry 0 1m 1m-10m +10m
SaaS
UK UK UK
(2015 EUR 14.93bn)
SaaS Canada Canada Canada
+500 UK
USA +500 UK
USA +500 UKUSA
(2015 EUR 14.93bn)
Canada Canada Canada
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
+500 USA +500 USA +500 USA

Mobile - 125 250 375 500 India - 125 250 375 500 UK - 125 250 375 500 China
(2015 EUR 7.24bn)
Mobile Canada
India UK
Canada UK
China
+500 USA +500 USA +500 USA
(2015 EUR 7.24bn) Canada Canada UK
- 125 +500
250 375 500USA - 125 +500
250 375 500
USA - 125 +500
250 375 500
USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Life science UK UK Canada
(2015 EUR 14.64bn)
Life science Canada
UK UK
Canada China
Canada
(2015 EUR 14.64bn) USA USA USA
Canada Canada China
- 125 250 375 500USA - 125 250 375 500
USA - 125 250 375 500
USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Manufacturing
UK UK China
(2015 EUR 8.89bn)
Manufacturing Canada
UK UKCanada Canada
China
(2015 EUR 8.89bn) USA +500 USA USA
Canada Canada Canada
- 125 250 375 500USA - 125 +500
250 375 USA
500 - 125 250 375 USA
500

E-Commerce - 125 250 375 Ticket

500 - size
125 250 375 500 - 125 250 375 500
Mexico UK China
E-Commerce
(2015 EUR 3.45bn)
Canada Canada Canada
Mexico UK China
(2015 EUR 3.45bn)
USA +500 USA USA
Industry 0 1m Canada 1m-10m Canada +10m Canada
- 125 250 375 500USA - 125 +500
250 375 USA
500 - 125 250 375 USA
500
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
CleanTech
SaaS UK France UK
CleanTech
(2015
(2015 EUR
EUR 14.93bn)
3.13bn) UK
Canada
UK
UK
Canada
France
UK
UKCanada
(2015 EUR 3.13bn) Canada Canada Canada
USA
Canada USA
Canada USA
Canada
+500 USA +500 USA +500 USA
- 125 250 375 USA
500 - 125 250 375 USA
500 - 125 250 375 USA
500
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Big Data
Mobile India UK China
BigData
(2015
(2015 EUR
EUR 3.73bn)
7.24bn)
UK
Canada
China
Canada
Canada
UK
UK
Canada China
Canada Canada
UK
(2015 EUR 3.73bn)
+500 USA
Canada
USA +500
+500 USA
Canada
USA +500 USA
UKUSA
-- 125 250 375 USA
500 -- 125
+500
250 375 USA
500 -- 125 250
250 375 USA
375 500
500
125 250 375 500 125 250 375 500 125
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
FinTech
Life science
FinTech
(2015EUR
(2015 3.20bn)
EUR14.64bn)
UK
Japan UK
UK Canada
Canada
Japan
Canada
Canada UKCanada
Canada Canada
China
UK
(2015 EUR 3.20bn)
Canada
USA
USA +500 Canada
USA
USA UKUSA
USA
USA +500 USA USA
-- 125
125 250
250 375
375 500
500 -- 125
125 250
250 375
375 500
500 -- 125
125 250
250 375
375 500
500
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Cybersecurity
Manufacturing UK Israel France
Cybersecurity
(2015 UK
UK UK
Israel China
France
(2015
EUR
EUR 2.39bn)
8.89bn) Canada Canada Canada
(2015 EUR 2.39bn) Canada
Canada Canada
Canada Canada
Canada
USA USA USA
USA
USA +500 USA
USA USAUSA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
-- 125
125 250
250 375
375 500
500 -- 125
125 250
250 375
375 500
500 - - 125125 250
250 375
375 500
500

IoT
E-Commerce
IoT Australia UK Canada
(2015EUR
(2015 EUR 1.04bn) Mexico
Australia UKUK China
(2015 EUR3.45bn)
1.04bn) Canada
Canada Ireland
Canada
Canada
UK
Canada Ireland UKCanada
USA
USA +500 USA
USA USA
USA
USA USA USA
- 125 250 375 500 - 125 250 375 500
500 - 125 250 375 500
-- 125 250
125 250 375
375 500
500 -- 125
125 250
250 375
375 500 - - 125
125 250
250 375
375 500
500

CleanTech
Explanation:
Explanation: The
The numbers displayed include
numbers displayed includeinvestors
investorshaving
having
UK at atleast
leastdone
doneone
oneinvestment
investmentin in the
the
France last
last two
two years
years in in
thethe given
given UKindustry
industry
(sorted
(2015 by
(sorted the
EUR
by top
top three
three countries
the3.13bn) with the
countries with the greatest
greatestamount
amount ofofactive
Canadaactiveinvestors
investorsininthat
thatindustry
industry and
and
Canada deal
deal range).
range). Canada
USA USA USA
Australia
Australia Canada
Canada China
China France
France India
India Ireland
Ireland Israel
Israel UK
UK USA
USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
Source:
Source: PitchBook
PitchBook Inc.Inc.
Big Data
UK China Canada
(2015 EUR 3.73bn)
Canada Canada UK
USA +500 USA USA
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500

FinTech
Japan UK Canada
(2015 EUR 3.20bn)
Canada Canada UK
USA +500 USA USA
SME Equity Financing Atlas 2017 27
- 125 250 375 500 - 125 250 375 500 - 125 250 375 500
 Slowdown in deals in
European SMEs in 2015
The EU is attractive for many ventures and their investors, due to the size of the
market and the number of potential customers. Another benefit is the nearly
harmonised approach when it comes to regulation and the use of a single currency
across several countries.

2,000 10,000
UK
Foreign investors 8,000
1,500
Local investors
6,000
1,000
4,000
500
2,000

- 0
2010 2011 2012 2013 2014 2015
2,000 10,000
Ireland
8,000
1,500
6,000
1,000
4,000
500
2,000

- 0
2010 2011 2012 2013 2014 2015
2,000 10,000
Germany
8,000
1,500
6,000
1,000
4,000
500
2,000

0 -
2010 2011 2012 2013 2014 2015
2,000 10,000 2,000 10,000 2,000 10,000
Netherlands Spain France
8,000 8,000 8,000
1,500 1,500 1,500
6,000 6,000 6,000
1,000 1,000 1,000
4,000 4,000 4,000
500 500 500
2,000 2,000 2,000

0 - 0 - 0 -
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

28 PwCs Accelerator
Capital invested in local SMEs (in EUR m) by ticket size and
importance of foreign investors involved (2015)

Country 0-499k 500k-1m 1m-5m 5m-10m 10m-25m 25m+

UK 109 123 830 620 1,306 5,708
% local inv. 58% 59% 50% 52% 42% 37%
Ireland 8 10 89 22 119 186
% local inv. 41% 60% 33% 50% 26% 7%
Germany 10 15 181 156 390 2,376
% local inv. 48% 71% 55% 49% 43% 19%
France 15 40 360 252 396 1,465
% local inv. 78% 74% 74% 74% 62% 55%
Spain 14 16 75 38 189 1,018
% local inv. 58% 58% 51% 44% 31% 31%
Netherlands 11 9 69 69 63 716
% local inv. 58% 80% 43% 43% 16% 17%

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 29

 As a European SME, where do I look for
highest density of investor(s) according to my
industry and my financing need?

Industry 0 1m 1m-10m +10m

SaaS
France Germany Germany
(2015 EUR 3.55bn)
USA USA UK
UK UK USA
- 125 250 - 125 250 - 125 250

Mobile
(2015 EUR 2.92bn) Italy Germany UK
USA USA Germany
UK UK USA
- 125 250 - 125 250 - 125 250

Life science
(2015 EUR 3.45bn) Spain France Switzerland
France Germany UK
UK UK USA
- 125 250 - 125 250 - 125 250

Manufacturing
Germany USA UK
(2015 EUR 3.53bn)
France France Germany
UK UK France
- 125 250 - 125 250 - 125 250

E-Commerce
Italy USA Germany
(2015 EUR 2.75bn)
Spain France UK
UK UK USA
- 125 250 - 125 250 - 125 250

CleanTech Italy Germany France

(2015 EUR 1.00bn) France France Germany
UK UK UK
- 125 250 - 125 250 - 125 250

Big Data
Germany France USA
(2015 EUR 0.32bn)
France USA UK
UK UK France
- 125 250 - 125 250 - 125 250

FinTech
Spain Germany Germany
(2015 EUR 1.830bn)
Germany USA UK
30 PwCs Accelerator UK UK USA
- 125 250 - 125 250 - 125 250
 Industry 0 1m 1m-10m +10m
Industry 0 1m 1m-10m +10m
SaaS
France Germany Germany
SaaS
(2015 EUR 3.55bn)
USA
France USA
Germany UK
Germany
(2015 EUR 3.55bn)
UK
USA UK
USA USA
UK
- 125 250 UK - 125 250 UK - 125 250USA
- 125 250 - 125 250 - 125 250
Mobile
Mobile
(2015 EUR 2.92bn) Italy Germany UK

(2015 EUR 2.92bn) USA

Italy USA
Germany Germany
UK
UK
USA UK
USA USA
Germany
- 125 250 UK - 125 250 UK - 125 250USA
- 125 250 - 125 250 - 125 250
Life science
Lifescience
(2015 EUR 3.45bn) Spain France Switzerland
(2015 EUR 3.45bn) France
Spain Germany
France UK
Switzerland
UK
France UKGermany USA
UK
- 125 250 UK - 125 250UK - 125 250USA
- 125 250 - 125 250 - 125 250
Manufacturing
Germany USA UK
Manufacturing
(2015 EUR 3.53bn)
France
Germany France
USA Germany
UK
(2015 EUR 3.53bn)
UK
France UK
France France
Germany
- 125 250UK - 125 250 UK - 125 250France
- 125 250 - 125 250 - 125 250
E-Commerce
Italy USA Germany
E-Commerce
(2015 EUR 2.75bn)
Spain
Italy France
USA UK
Germany
(2015 EUR 2.75bn)
Industry 0 1m UK
Spain 1m-10m UK
France +10m USA
UK
- 125 250 UK - 125 250 UK - 125 250USA
- 125 250 - 125 250 - 125 250
SaaS
CleanTech France
Italy Germany Germany
France
(2015 EUR 3.55bn)
CleanTech
(2015 EUR 1.00bn) USA
France
Italy USA
France
Germany UK
Germany
France
(2015 EUR 1.00bn) UK
France UKFrance USA
UKGermany
- 125 250 UK - 125 250 UK - 125 250UK
- 125 250 - 125 250 - 125 250
- 125 250 - 125 250 - 125 250
Mobile
Big Data
(2015 EUR 2.92bn) Italy Germany UK
Germany France USA
Big Data
(2015 EUR 0.32bn) USA USA Germany
France
Germany USA
France UK
USA
(2015 EUR 0.32bn) UK UK USA
UKFrance UK
USA France
UK
- 125 250UK - 125 250 - 125 250France
- 125 250 - 125 250 UK - 125 250
- 125 250 - 125 250 - 125 250
Life science
FinTech
(2015
EUR
FinTech
(2015 3.45bn)
EUR 1.830bn)
Spain
Spain France
Germany Switzerland
Germany
France
Germany
Spain Germany
USA
Germany UK
UK
Germany
(2015 EUR 1.830bn)
UK
UK
Germany UK
USA USA
USA
UK
-- 125
125 250UK
250 -- 125
125 250UK
250 -- 125
125 250USA
250
- 125 250 - 125 250 - 125 250
Manufacturing
Cybersecurity Germany
USA USA
France UK
Israel
(2015 EUR 3.53bn)
Cybersecurity
(2015 EUR 0.22bn) France
France
USA France
USA
France Germany
UKIsrael
(2015 EUR 0.22bn) UKUK
France UK
USA France
USA
UK
- 125
125 250 UK - 125 250 UK - 125
125 250USA
- 125 250 - 125 250 - 125 250
E-Commerce
IoT Italy USA Germany
(2015 EUR 2.75bn)
IoT EUR 0.45bn)
(2015 Spain
Spain
Germany
France
Switzerland
UK
(2015 EUR 0.45bn) Italy
Spain UKGermany UKSwitzerland
UK UK USA
UKItaly France
UK France
UK
- 125 250 - 125 250 - 125 250
- 125 250 UK - 125 250 France - 125 250France
- 125 250 - 125 250 - 125 250
CleanTech Italy Germany France
Explanation:
(2015 EURThe numbers displayed include investors having at least done one investment in the last two years in the given industry
1.00bn) France France
(sorted by the top
Explanation: Thethree countries
numbers with include
displayed the greatest amount
investors of active
having investors
at least in that
done one industry
investment inand
thedeal years in theGermany
range).
last two given industry
UK UK UK
(sorted by the top three countries with the greatest amount of active investors in that industry and deal range).
France Germany Israel
- Italy
125 Spain
250 - Switzerland
125 UK
250 - USA 125 250
France Germany Israel Italy Spain Switzerland UK USA
Big Data
Germany France USA
(2015 EUR 0.32bn)
France USA UK
UK UK France
- 125 250 - 125 250 - 125 250

FinTech
Spain Germany Germany
(2015 EUR 1.830bn)
Source: PitchBook Inc.
Germany USA UK
UK UK SME Equity Financing Atlas
USA2017 31
- 125 250 - 125 250 - 125 250
 China and India are the dominating
hubs in Asia
Israel has become a start-up hub over the last few years, known all around the world.
One of the explanations for this trend lays in the entrepreneurial mindset in Israel.
Also the ecosystem includes many investors and research institutions constantly
developing and supporting new innovative solutions. This ecosystem has also already
attracted many foreign investors (the US for example).

Foreign investors
Local investors
2,000 20,000
China
1,500 15,000

1,000 10,000

500 5,000

- 0
2010 2011 2012 2013 2014 2015

2,000 20,000 2,000 10,000

India Israel
8,000
1,500 15,000 1,500
6,000
1,000 10,000 1,000
4,000
500 5,000 500
2,000

- 0 - 0
2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015

32 PwCs Accelerator
Capital invested in local SMEs (in EUR m) by ticket size and
importance of foreign investors involved (2015)

Country 0-499k 500k-1m 1m-5m 5m-10m 10m-25m 25m+

China 5 9 101 355 1,205 13,923
% local inv. 50% 50% 57% 55% 74% 44%
India 43 57 432 530 1,047 7,296
% local inv. 60% 65% 52% 38% 31% 29%
Israel 16 25 274 206 511 408
% local inv. 33% 48% 41% 40% 37% 30%

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 33

 As an Asian or Middle East SME, where do I look
for the highest density of investor(s) according
to my industry and my financing need?

Industry 0 1m 1m-10m +10m

SaaS
Israel India Israel
(2015 EUR 4.62b)
India Israel China
USA USA USA
- 125 250 - 125 250 - 125 250

Mobile
Singapore India Japan
(2015 EUR 8.54b)
USA China USA
India USA China
- 125 250 - 125 250 - 125 250

Life Science India USA Israel

(2015 EUR 1.32b) South Korea Japan China
USA Israel USA
- 125 250 - 125 250 - 125 250

Manufacturing South Korea India USA

(2015 EUR 1.77b)
USA China Israel
India USA China
- 125 250 - 125 250 - 125 250

E-Commerce
Singapore Singapore India
(2015 EUR 7.57b)
USA India USA
India USA China
- 125 250 - 125 250 - 125 250

CleanTech Singapore India China

(2015 EUR 0.49b) USA Israel India
India USA USA
- 125 250 - 125 250 - 125 250

Big Data
USA South Korea China
(2015 EUR 0.37b)
Israel Israel Israel
India USA USA
- 125 250 - 125 250 - 125 250

FinTech
Japan Japan Hong Kong
(2015 EUR 1.84b)
Singapore India USA
USA USA China
- 125 250 - 125 250 - 125 250

Cybersecurity Israel Germany USA

(2015 EUR 0.21b) USA USA China
34 PwCs Accelerator India Israel Israel
- 125 250 - 125 250 - 125 250
 Industry 0 1m 1m-10m +10m
SaaS
Israel India Israel
(2015 EUR 4.62b)
SaaS India Israel China
Israel India Israel
(2015 EUR 4.62b) USA USA USA
India Israel China
- 125 250 - 125 250 - 125 250
USA USA USA

Mobile - 125 250 - 125 250 - 125 250

Singapore India Japan
(2015 EUR 8.54b)
Mobile USA China USA
Singapore India Japan
(2015 EUR 8.54b) India USA China
USA China USA
- 125 250 - 125 250 - 125 250
India USA China

Life Science - 125 250

India - 125 250
USA - 125 250
Israel
(2015 EUR 1.32b) South Korea Japan China
Life Science India USA Israel
USA Israel USA
(2015 EUR 1.32b) South Korea Japan China
- 125 250 - 125 250 - 125 250
USA Israel USA
- 125 250 - 125 250 - 125 250
Manufacturing South Korea India USA
(2015 EUR 1.77b)
Manufacturing USA
South Korea
China
India
Israel
USA
(2015 EUR 1.77b) India USA China
USA China Israel
- 125 250 - 125 250 - 125 250
India USA China

E-Commerce - 125 250 - 125 250 - 125 250

Singapore Singapore India
(2015 EUR 7.57b)
E-Commerce USA India USA
Singapore Singapore India
Industry
(2015 EUR 7.57b) 0 1m India
USA
1m-10mUSA
India
+10m China
USA
- 125 250 - 125 250 - 125 250
India USA China

SaaS
CleanTech - 125 250
Singapore
- 125 250
India
- 125 250
China
France Germany Germany
(2015
(2015 EUR
EUR 0.49b)
3.55bn) USA USA Israel India
CleanTech Singapore
USA
India
UKChina
India USA USA
(2015 EUR 0.49b) USA UK UK
Israel USA
India
-- 125
125 250250
India
-- 125
125 250
250USA
-- 125
125 250
250USA
- 125 250 - 125 250 - 125 250
Big Data
Mobile
USA Italy South Korea
Germany China
UK
(2015 EUR
(2015 EUR2.92bn)
0.37b)
Big Data IsraelUSA Israel
USA Israel
Germany
USA South Korea China
(2015 EUR 0.37b) India UK USAUK USA
USA
Israel Israel Israel
-- 125125 250
250 -- 125
125 250 -- 125
125 250
India USA USA

FinTech
Life science - 125 250 - 125 250 - 125 250
Japan Japan Hong Kong
(2015EUR
(2015 1.84b)
EUR3.45bn) Spain France Switzerland
FinTech Singapore
France
India
Germany
USA
UK
Japan Japan Hong Kong
(2015 EUR 1.84b) USA
UK
USA
UK
China
USA
Singapore India USA
-- 125
125 250250 -- 125
125 250
250 -- 125
125 250
250
USA USA China

Cybersecurity - 125 250 - 125 250 - 125 250

Manufacturing Israel Germany USA
(2015 EUR 0.21b) Germany USA UK
(2015 EUR 3.53bn) USA USA China
Cybersecurity Israel
France
India
Germany
France
Israel
USA
Germany
Israel
(2015 EUR 0.21b) USAUK USAUK China
France
- 125 250 - 125 250 - 125 250
- 125 India
250 - 125 Israel
250 - 125 250Israel
- 125 250 - 125 250 - 125 250
IoT
E-Commerce South Korea Japan Japan
(2015 EUR
(2015 EUR2.75bn)
0.29b) Italy USA Germany
IoT India Taiwan Israel
SouthSpain
Korea France
Japan UKJapan
(2015 EUR 0.29b) Israel USA USA
IndiaUK UK
Taiwan USA
Israel
-- 125125 250 250
Israel
-- 125
125 250
250
USA
-- 125
125 250
250USA

- 125 250 - 125 250 - 125 250

Explanation:
CleanTech The numbers displayed include investors having at least done one investment in the last two years in the given industry
Italy Germany France
(sorted
(2015 by
the top three countries with the greatest amount of active investors in that industry and deal range).
EUR 1.00bn)
Explanation: The numbers displayed include investors having at least done one investment in the last two years in the given
France France industry
Germany
(sorted
Chinaby the India
top three countries
Israel withJapan
the greatest amount
SingaporeUKof active
Southinvestors
Korea in that industry
Taiwan UK and
UK dealUSA
range). UK
- 125 250 - 125 250 - 125 250
China India Israel Japan Singapore South Korea Taiwan UK USA
Source: PitchBook Inc.
Big Data
Germany France Source: PitchBook
USA Inc.
(2015 EUR 0.32bn)
France USA UK
UK UK France
- 125 250 - 125 250 - 125 250

FinTech
Spain Germany Germany
(2015 EUR 1.830bn)
Germany USA UK
UK UK USA
- 125 250 - 125 250 - 125 250

Cybersecurity USA France Israel

(2015 EUR 0.22bn) France USA SME Equity Financing Atlas
UK2017 35
UK UK USA
 Part 3

36 PwCs Accelerator
 Countries in the
Spotlight

Germany
Germany France
France

At European level, we have seen a slowdown in deals in 2015. Factors influencing that
development include stable/slightly declining fundraising of investor funds as well as market
uncertainty.
The major investor hubs for Germany remain Berlin and Munich, as well as for France Paris, with
a focus on software ventures (especially SaaS, mobile and E-Commerce). Most SMEs employ new
and interesting solutions, with a current trend to use more and more machine learning and deep
learning approaches.

SME Equity Financing Atlas 2016

2017
2015 37
 German equity investment market
in SMEs
Most active investors in German SMEs

Location of ten most active investors

(last two years) Investor # deals Investor # deals
(<EUR 10m) (>EUR 10m)

High-Tech
37 1 Holtzbrinck Ventures 12 1
Grnderfonds
Axel Springer Plug
18 2 Rocket Internet 10 2
& Play Accelerator
Hamburg
7
2
10
IBB 11 3 Wellington Partners 6 3
3
9 8
Highland Capital
2
Target Partners 10 4 5 4

Share of Foreign Partners Europe

investors ProSiebenSat.1
10 B-to-v Partners 5

56%
5 5
6 Accelerator
10
Tengelmann
B-to-v Partners 8 6 4 6
1
10
Ventures
Bonn Innovationsstarter
8 7
Mangrove Capital
4 7
Hamburg Partners
Earlybird Venture
Holtzbrinck Ventures 7 8 4 8
Capital
Munich
8
4 1 Cavalry Ventures 7 9 DN Capital 4 9

5 3

High-Tech
Capnamic Ventures 7 10 4 10
Grnderfonds
6 5
Switzerland
7 Luxembourg 9
UK Source: PitchBook Inc.

38 PwCs Accelerator
 Slowdown in deals and increase in
capital invested
Ten most important industry verticals (# deals
last five years) for German SMEs Deals and capital invested (German SMEs)

34 Number Capital
35 of deals invested
37
closed in EUR m
53 259
500 5,000

71

400 4,000

114 302
300 270 3,000
256

225 188
200 2,000
121
142
116
152 100 1,000

SaaS Mobile
E-Commerce Manufacturing
Life Sciences CleanTech 0 -
FinTech Internet of Things 2010 2011 2012 2013 2014 2015
Big Data LOHAS & Wellness

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 39

40
size

0-1m
Deals

>10m

Konux

Mambu
Seerene

Gestigon

Testbirds
1m-10m

Zenmate
Riskmethods
Holtzbrinck Ventures Target Partners High-Tech Grnderfonds

Early stage
SaaS
Highland Capital Partners Europe Iris Capital Mmgt. Axel Springer Plug and Play Accelerator

Deposit Solutions
Cavalry Ventures High-Tech Grnderfonds Point Nine Capital

PwCs Accelerator
Highland Capital Partners Europe Target Partners Startupbootcamp

Treasury Intelligence Solutions

Rocket Internet Iris Capital Mmgt. Innovationsstarter Hamburg

Mobile
Wellington Partners Capnamic Ventures ProSiebenSat.1 Accelerator

Wellington Partners High-Tech Grnderfonds High-Tech Grnderfonds

Life
BioMedPartners Peppermint Venture Partners Innovationsstarter Hamburg

science
Life Sciences Partners BioM Business Angels Stuttgart Region Most active investors in German SMEs

Azeti
Arago
Adjust
High-Tech Grnderfonds IBB Founder.org

Navvis

Facelift
Kreditech

Webtrekk
Wellington Partners SHS European Pioneers

Manu-

Blue Yonder
Later stage

Searchmetrics
facturing
Robert Bosch Venture Capital NEO Investment Startupbootcamp
(within last two years)

Wellington Partners Munich Venture Startupbootcamp

Tech

High-Tech Grnderfonds IBB High-Tech Grnderfonds

Clean-

Innogy Venture Capital eCAPITAL entrepreneurial Partners Founder.org

Wellington Partners Tengelmann Ventures High-Tech Grnderfonds

Point Nine Capital Kima Ventures Kima Ventures

Big Data

Cipio Partners IBB IBB

Example of innovative German SMEs receiving equity in the last two years*
Holtzbrinck Ventures Redalpine Venture Point Nine Capital

Index Ventures Holtzbrinck Ventures High-Tech

FinTech

Phenomen Ventures Earlybird Venture Capital Innovationsstarter

ABRY Partners High-Tech Grnderfonds Target Partners

LBBW Venture Capital Plug & Play

Cyber-
security
German SMEs by ticket size and industry

Holtzbrinck Ventures Axel Springer Venture

Top three most active investors investing in

Rocket Internet High-Tech Grnderfonds ProSiebenSat.1 Accelerator

E-

Holtzbrinck Ventures e.ventures High-Tech Grnderfonds

Insight Venture Partners Cherry Ventures Plug and Play

Commerce

Source: PitchBook Inc.

* Selection is based on innovativeness and

only represent a small fraction of all firms
interesting new use cases of the solutions and
 French equity investment market in
SMEs
Most active investors in French SMEs

Location of ten most active investors

(last two years) Investor # deals Investor # deals
(<EUR 10m) (>EUR 10m)

Bpifrance 58 1 Bpifrance 20 1

8 5 9
Kima Ventures 19 2 IDInvest Partners 10 2

8 10
7 9
4 1
Alven Capital CM-CIC
5 3 2 10 19 3 4 3
6 4
3 2
1 Partners Investissement
BNP Paribas
Audacia 16 4 4 4
Dveloppement
Degree of Foreign Cap Decisif Alven Capital
15 5
4
investors
5
Management Partners

37% GO Capital 14 Accel Partners 4

6 6

7
Rhne-Alpes
12 7
Ventech 3 7
Cration

xAnge Private Equity 11 8

Serena Capital 3 8

Seventure Partners 11 9
Omnes Capital 3 9

6
USA Partech Ventures 11 10 Naxicap Partners 3 10

Source: PitchBook Inc.

SME Equity Financing Atlas 2017 41

 Slowdown in deals and volatile
capital invested
Ten most important industry verticals (# deals -
last five years) for French SMEs Deals and capital invested (French SMEs)

53 52 Number Capital
54 of deals invested
closed in EUR m
55 331
500 5,000

432
93
402 400
400 365 4,000

328
307
163
300 3,000

325 200 2,000

174

241 100 1,000

SaaS Manufacturing
Mobile Life sciences
0 -
E-Commerce CleanTech 2010 2011 2012 2013 2014 2015
Marketing Tech Internet of Things
AdTech Big Data

Source: PitchBook Inc.

42 PwCs Accelerator
 size

0-1m
Deals

Ledger
>10m

Neotys

Sqreen

Finalcad
Clustree

Netwave
1m-10m

Enovacom
CybelAngel
Alven Capital Partners Bpifrance Bpifrance

Early stage
SaaS
Accel Partners Alven Capital Partners Kima Ventures

Lead Edge Capital Kima Ventures AXA Strategic Ventures

IDInvest Partners Bpifrance Paris Incubateurs

Lead Edge Capital Alven Capital Partners Femmes Business Angels

Mobile
Accel Partners xAnge Private Equity Cap Decisif

Bpifrance Cap Decisif GO Capital

Life
Edmond de Rothschild Investment Partners Bpifrance Seventure Partners

sciences
Versant Ventures Seventure Partners SEB Alliance

Actility
Augure
Intersec
SlimPay

Qowisio
Netatmo

Talentsoft
PeopleDoc
Bpifrance Bpifrance Newfund

Later stage
Sofimac Partners Emertec Gestion Bpifrance
Manu-
facturing

Robolution Capital Demeter Partners Audacia

(within last two years)

Bpifrance Entrepreneur Venture PACA Investissement

Tech

Xerys Xerys Scientipole Capital

Clean-

Omnes Capital GO Capital Turenne Capital Partenaires

Ventech Alven Capital Partners WestTech Ventures

Seventure Partners Serena Capital Microsoft Accelerator

Big Data

Example of innovative French SMEs receiving equity in the last two years*
Serena Capital Truffle Capital Paris Incubateurs

Prime Ventures Partech Ventures AXA Strategic Ventures

Partech Ventures xAnge Private Equity Kima Ventures

firms.
FinTech

Tekton Ventures SORIDEC

xAnge Private Equity Elaia Partners

SORIDEC PACA Investissement

Cyber-
Top three most active investors investing

security

Bpifrance IT-Translation
in French SMEs by ticket size and industry

IDInvest Partners CM-CIC Capital Kima Ventures

E-

SME Equity Financing Atlas 2017

Bpifrance Alven Capital Partners Partech Ventures

and only represent a small fraction of all

* Selection is based on innovativeness and
Ventech Partech Ventures Techstars

interesting new use cases of the solutions

Source: PitchBook Inc.
Commerce

43
 Part 4

44 PwCs Accelerator
 Industry in the
Spotlight

Big Data

With the increase of computational power and of the quantity of data generated and stored, more
and more machine learning and deep learning approaches are used to build new solutions for
important business problems. The majority of these Big Data SMEs are located in the US. Many of
the applications are B2B driven, and target big corporates, located in developed economies. Europe
(mainly in Germany, France and the UK) has some very interesting ventures in the field of Big
Data, while India and China are also on the rise.

SME Equity Financing Atlas 2017 45

 Significant growth of investments in
Big Data focused SMEs
Equity investments in Big Data SMEs worldwide

Number of deals closed Capital invested in EUR bn

6,000

727
750
680
5,000

588

4,000

500

386 3,000

2,000
235
250
165
112 1,000
90
45 48 57
23
20
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Key
information Strong annual growth in Big
Data SMEs investments since
Pre-money valuation of Big Data
SMEs is constantly above the
2003 (average annual growth: global industry average.
+37% in deals and +56% in Biggest pre-money valuation
capital invested). premiums in 2014 (+3.2 m)
The first signs in the first half of compared to global industry
2016 show that these evolutions average.
are going to continue.
Equity investors invested EUR
5.2bn in 727 deals in Big Data
SMEs in 2015.

46 PwCs Accelerator
Median pre-money valuation (Big Data vs. global average)

16.00-
Big Data median Global median
Median pre-money valuation in EUR m

12.00-

8.00-

4.00-

-
2010 2011 2012 2013 2014 2015

SME Equity Financing Atlas 2017 47

 Location of equity investor backed Big
Data SMEs worldwide (last five years)

Europe

300

Asia

North America
121
1,010 Oceania

Africa
5
South America 2
20

> 100 SMEs 100-50 SMEs 49-20 SMEs 19-10 SMEs 9-5 SMEs <5 SMEs or 0 SMEs

48 PwCs Accelerator
Example of innovative Big Data SMEs
receiving equity in last two years*

Company name Activity/solution Country of origin

Import io Data extract solution United Kingdom
Europe

Frops Fraud prevention solution United Kingdom

Kreditech Credit scoring platform Germany
Blue Yonder Predictive analytics solution Germany
Onfido Background checking platform United Kingdom
Intersec Data analytics solution France

Company name Activity/solution Country of origin

Sight Machine Manufacturing analytics USA
America
North

Civitas Learning Predictive analytics platform USA

Datavisor Fraud detection analytics USA
Rapidminer Predictive analytics solution USA
DataRobot Machine learning software USA
Datameer Data analytics solution USA

Company name Activity/solution Country of origin

Middle East

ThetaRay Fraud detection analytics Israel

Asia and

Wecash Credit scoring platform China

DeepGlint 3D image analytics China
Logz.io Predictive analytics solution Israel
Windward Data analytics for maritime Israel
CB4 Predictive analytics solution Israel

* Selection is based on innovativeness and interesting new use cases of the solutions and only represent
a small fraction of all firms

SME Equity Financing Atlas 2017 49

 Most active investors in Big Data
SMEs by deal size (last two years)

Investor # deals Investor # deals Investor # deals

(0-1m) (1-10m) (>10m)
New Enterprise
Techstars 12 Data Collective 12 12
Associates

500 Startups 6 AME Cloud Ventures 12 Battery Ventures 10

New Enterprise
Y Combinator 5 9 Accel Partners 9
Associates

Frost Data Capital 5 Khosla Ventures 7 Data Collective 8

Acceleprise 5 True Ventures 6 Sequoia Capital 7

DeamIT Ventures 4 Social Starts 6 Redpoint Ventures 7

Working Capital
3 Redpoint Ventures 6 Intel Capital 7
Accelerator
General Catalyst
Start-Up Chile 3 Plug and Play 6 7
Partners

Tim Ventures 3 Marado Venture Partners 6 Andreesseen Horowitz 7

Enterprise Ireland 3 Blumberg Capital 6 AME Cloud Ventures 7

Source: PitchBook Inc.

50 PwCs Accelerator
SME Equity Financing Atlas 2017 51
 For more detailed and regular
updates on SMEs and SME equity
financing, please visit
www.pwcaccelerator.com Connect
PwC's Accelerator
2, Gerhard Mercator
BP 1443
L-1014 Luxembourg
www.pwcaccelerator.com

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PwCs Accelerator can help

For a deeper discussion on these results, please contact us.

Laurent Probst Cyrille Foillard

Network Global Leader, Managing Director,
PwCs Accelerator PwCs Accelerator
laurent.probst@lu.pwc.com cyrille.foillard@lu.pwc.com
+352 49 48 48 2199 +352 49 48 48 4579

52 PwCs Accelerator
SME Equity Financing Atlas 2017 53
www.pwcaccelerator.com

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