1. The European Startup Ecosystem
April 2017
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Fund of Funds specializing in venture capital investing
www.cachettecapital.com

2. The European Startup Ecosystem
Is Taking Off
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3. EU Unicorns Will Energize the Market
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● When unicorns exit they’ll accelerate growth of European tech
● Employees at unicorn companies build capital, skills, and expertise,
and then leave to start their own companies or VC firms
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Source: The State of European Tech 2016, Atomico

4. VCs Are Moving Into Europe
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● Growing number of VCs in Europe
● Google Ventures will be investing up to $100 million in Europe
● Access to follow-on capital means seed stage VCs are more willing to 4
Source: The State of European Tech 2016, Atomico

5. EU Ecosystem Is Geographically Diffuse
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● Not just London, Paris and Berlin
● Stockholm, Tel Aviv, Barcelona, Zurich, Munich, Copenhagen, Frankfurt,
Lisbon, Warsaw, Budapest, Dublin, Amsterdam, Madrid 5
Source: The State of European Tech 2016, Atomico

6. EU’s Startup Ecosystem
Differs from the USA’s
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● Fragmented: Various languages, regulations, and cultures
● Language: Startups are smaller, more local in native language before
moving into adjacent countries
● Regulations: EU startups abide by local regulations and deal with
complexity of broader European market only when necessary. Bla Bla
Car’s global expansion suggests that’s changing.
● Culture: Unlike American entrepreneurs, European entrepreneurs tend to
wait to finish a product before beginning sales, marketing and
fundraising rounds. And, unlike Europeans, Americans accept failure, and
encourage risk taking.
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7. Plenty of Tech Talent in Europe
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Source: The State of European Tech 2016, Atomico

8. Tech is Attracting European MBAs
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Historically there’s been a dearth of experienced managers in sales,
business development and marketing, but that’s changing.
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Source: The State of European Tech 2016, Atomico

9. More M&A = More Exits
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Source: The State of European Tech 2016, Atomico

10. EU Startup Market Primed for Investment
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● Because Europe’s ecosystem lags America’s, we can take what we’ve
learned from America and apply it to Europe
● American experience has proven that VCs can generate strong returns
● A fund of VC funds can offer access to those returns, allowing pension
funds to benefit from Europe’s startup ecosystem
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11. Thank you.
Cachette Capital Management
101 W 24th Street, New York, NY 10011
+1 (917) 324-3805 / cachettecapital.com
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