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The European Startup Ecosystem, April 2017

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Venture capital and financing in Europe is starting to follow the trend of upcoming unicorns and companies set for success. European startups began to gain traction in 2011 and are maturing into a global presence

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The European Startup Ecosystem, April 2017

  1. 1. The European Startup Ecosystem April 2017 CONFIDENTIAL © Cachette Capital Management 2017 Fund of Funds specializing in venture capital investing www.cachettecapital.com
  2. 2. The European Startup Ecosystem Is Taking Off CONFIDENTIAL © Cachette Capital Management 2017 2
  3. 3. EU Unicorns Will Energize the Market CONFIDENTIAL © Cachette Capital Management 2017 ● 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 3 Source: The State of European Tech 2016, Atomico
  4. 4. VCs Are Moving Into Europe CONFIDENTIAL © Cachette Capital Management 2017 ● 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. 5. EU Ecosystem Is Geographically Diffuse CONFIDENTIAL © Cachette Capital Management 2017 ● 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. 6. EU’s Startup Ecosystem Differs from the USA’s CONFIDENTIAL © Cachette Capital Management 2017 ● 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. 6
  7. 7. Plenty of Tech Talent in Europe CONFIDENTIAL © Cachette Capital Management 2017 7 Source: The State of European Tech 2016, Atomico
  8. 8. Tech is Attracting European MBAs CONFIDENTIAL © Cachette Capital Management 2017 Historically there’s been a dearth of experienced managers in sales, business development and marketing, but that’s changing. 8 Source: The State of European Tech 2016, Atomico
  9. 9. More M&A = More Exits CONFIDENTIAL © Cachette Capital Management 2017 9 Source: The State of European Tech 2016, Atomico
  10. 10. EU Startup Market Primed for Investment CONFIDENTIAL © Cachette Capital Management 2017 ● 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 10
  11. 11. Thank you. Cachette Capital Management 101 W 24th Street, New York, NY 10011 +1 (917) 324-3805 / cachettecapital.com CONFIDENTIAL © Cachette Capital Management 2017 11

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