SlideShare a Scribd company logo

Startups and Venture Capital in Germany

A Frontline Ventures x Point Nine Capital collaboration. It is no surprise that Germany dominates much of the conversation around European tech — the growth of the startup and venture capital ecosystem has surpassed even the most optimistic of expectations. As an early-stage software fund in London/Dublin with a pan-European investment view, we are seeing exciting young companies emerging from all over Germany. They are following in the footsteps of already successful global companies like Rocket Internet, Soundcloud, and Auctionata. Germany’s tech transformation is startling, and seems to only be just beginning. Learn more about: - funding options for German startups - notable players in the VC and startup ecosystem - challenges that lay ahead for German tech - future opportunities & existing winners - typical terms offered to startups - successful exits in Germany so far

1 of 40
Download to read offline
1
www.frontline.vc
Startups & Venture Capital in Germany
Tech emerges in Europes largest economy
A GLOBAL PERSPECTIVE BROUGHT TO YOU BY:
www.pointnine.vc
2
Many new venture funds have been raised in Germany
1Cash on Hand and Bank Balance, RKET Annual Report, Rocket ECP, Earlybird, Creathor, bmp, Target Partners, Lakestar, Coparion, Crunchbase: Global Founders Capital,
Holtzbrinck, HTGF, Cherry Ventures, Dow Jones Venture Source, CBInsights, Estimates may sometimes include realisations, does not include funds HQ’d outside of Germany
TotalFundsRaisedorSimilar(€1,000s)
FUNDS RAISED IN 2016
Funds domiciled in Germany or
primarily do business there
0
400
800
1,200
1,600 RocketInternet
RocketRICP
EarlyBird
Holtzbrink
HTGF
Acton
Lakestar
TargetPartners
ProjectA
Coparion
B-to-V
IBB
Creathor
Cherry
BlueYard
PointNine
Speedinvest
Paua
Capnamic
4065100110120
150
180182200225
290300
385
470
576
635
700
1,000
1,504
3
Which has lead to better upstream funding for startups
Seed Series A - B Late StageIncubators
Note: approximation, many investors participate across different stages
0
13
25
38
50
20%
24%
35%
37%
40%
48%
The highest level of international participation in Europe
4
London
Paris
Berlin
Stockholm
€0b €4.5b €9b €13.5b €18b
$2.3b
$5.8b
$3.7b
$11b
$1.8b
$1.3b
$9.6b
$17b
USD
Total Funds Raised
Total Funds Invested
TOTAL VC FUNDS RAISED VS INVESTED2VC BACKED WITH AN INTERNATIONAL INVESTOR1
1
Crunchbase Pro (2013-2016), 2
The numbers behind Europe's VC ecosystem [datagraphic] (2006-2016)
As funds globally position themselves to do more German deals
5
FUNDS ADD GERMAN DEAL
MAKERS
RECENT TRANSACTIONS IN
GERMANY
Series B
Series A
v
77% OF FUNDING ROUNDS IN
BERLIN ARE LED BY NON-LOCALS
Berlin needs more VCs!
0
15
30
45
60
13%
29%
57%
60%
17%
22%
Berlin Silicon Valley
Local Led
rounds
Non-Local
Domestic
International
Led
Why Berlin Needs More Local VCs a Network Analysis
A boom in investment activity
6Crunchbase Pro, Gil Dibner Slideshare
# OF VC BACKED COMPANIES IN THE PAST 10 YEARS
50
140
230
320
410
500
Q
3
2014
Q
4
2014
Q
1
2015
Q
2
2015
Q
3
2015
Q
4
2015
Q
1
2016
Q
2
2016
Q
3
2016
Q
4
2016
QUARTERLY VC FUNDING EX-MEGA (€100m)
ROUNDS IN GERMANY
Quarterlyfundsraised($1m)
62% CAGR
0 350 700 1050 1400
139
157
165
417
607
1,203

Recommended

White Star Capital Germany Venture Capital Landscape 2020
White Star Capital Germany Venture Capital Landscape 2020White Star Capital Germany Venture Capital Landscape 2020
White Star Capital Germany Venture Capital Landscape 2020JeandeLencquesaing
 
Corporate Venture Capital best practices from interviews and research
Corporate Venture Capital best practices from interviews and researchCorporate Venture Capital best practices from interviews and research
Corporate Venture Capital best practices from interviews and researchMark S. Brooks
 
Vc fund raising & pitch deck outline
Vc fund raising & pitch deck outlineVc fund raising & pitch deck outline
Vc fund raising & pitch deck outlineThe Rudder Group
 
Corporate VC - Qualcomm Ventures
Corporate VC - Qualcomm VenturesCorporate VC - Qualcomm Ventures
Corporate VC - Qualcomm VenturesStartupAlliance
 
Business Opportunity Through Corporate Venture Capital
Business Opportunity Through Corporate Venture CapitalBusiness Opportunity Through Corporate Venture Capital
Business Opportunity Through Corporate Venture CapitalPaul Ark (Polapat Arkkrapridi)
 
Corporate venture capital - Unlocked
Corporate venture capital - UnlockedCorporate venture capital - Unlocked
Corporate venture capital - UnlockedS M Raunaque Mustafa
 
Hack fund pitch deck
Hack fund pitch deckHack fund pitch deck
Hack fund pitch deckRenata George
 

More Related Content

What's hot

The Rise of Corporate Venture Capital; an Australian perpective
The Rise of Corporate Venture Capital; an Australian perpectiveThe Rise of Corporate Venture Capital; an Australian perpective
The Rise of Corporate Venture Capital; an Australian perpectiveAlfred Lo
 
Private Equity Funding
Private Equity FundingPrivate Equity Funding
Private Equity Fundingdipesh_86
 
Introduction to Venture Capital
Introduction to Venture CapitalIntroduction to Venture Capital
Introduction to Venture Capitalpricew
 
Advantages and disadvantages of venture capital
Advantages and disadvantages of venture capitalAdvantages and disadvantages of venture capital
Advantages and disadvantages of venture capitaljim
 
NOAH16 London Investor Book
NOAH16 London Investor BookNOAH16 London Investor Book
NOAH16 London Investor BookNOAH Advisors
 
Start Up Finance
Start Up FinanceStart Up Finance
Start Up FinanceGina Evans
 
Valuation for startups
Valuation for startupsValuation for startups
Valuation for startupsAnjana Vivek
 
How Investors do Valuations for Startups by Sanjay Mehta from 100x.vc
How Investors do Valuations for Startups by Sanjay Mehta from 100x.vcHow Investors do Valuations for Startups by Sanjay Mehta from 100x.vc
How Investors do Valuations for Startups by Sanjay Mehta from 100x.vcClientjoy.io
 
Venture exit strategy
Venture exit strategyVenture exit strategy
Venture exit strategysiva kumar
 
NIST Corporate Venture Capital Study
 	NIST Corporate Venture Capital Study 	NIST Corporate Venture Capital Study
NIST Corporate Venture Capital Studymensa25
 
Venture Capital 101
Venture Capital 101Venture Capital 101
Venture Capital 101Eventbrite
 
Seedcamp Fund IV Fundraising Deck
Seedcamp Fund IV Fundraising DeckSeedcamp Fund IV Fundraising Deck
Seedcamp Fund IV Fundraising DeckSeedcamp
 
Challenges in corporate venture capital
Challenges in corporate venture capitalChallenges in corporate venture capital
Challenges in corporate venture capitalOscar Aabech Jung
 
Notation Capital Fund 1 pitch deck
Notation Capital Fund 1 pitch deckNotation Capital Fund 1 pitch deck
Notation Capital Fund 1 pitch deckNotation Capital
 
Early Stage Startup Valuation
Early Stage Startup ValuationEarly Stage Startup Valuation
Early Stage Startup Valuationstartany
 

What's hot (20)

The Rise of Corporate Venture Capital; an Australian perpective
The Rise of Corporate Venture Capital; an Australian perpectiveThe Rise of Corporate Venture Capital; an Australian perpective
The Rise of Corporate Venture Capital; an Australian perpective
 
Private Equity Funding
Private Equity FundingPrivate Equity Funding
Private Equity Funding
 
Introduction to Venture Capital
Introduction to Venture CapitalIntroduction to Venture Capital
Introduction to Venture Capital
 
Startup valuation
Startup valuation Startup valuation
Startup valuation
 
Advantages and disadvantages of venture capital
Advantages and disadvantages of venture capitalAdvantages and disadvantages of venture capital
Advantages and disadvantages of venture capital
 
NOAH16 London Investor Book
NOAH16 London Investor BookNOAH16 London Investor Book
NOAH16 London Investor Book
 
Start Up Finance
Start Up FinanceStart Up Finance
Start Up Finance
 
Valuation for startups
Valuation for startupsValuation for startups
Valuation for startups
 
How Investors do Valuations for Startups by Sanjay Mehta from 100x.vc
How Investors do Valuations for Startups by Sanjay Mehta from 100x.vcHow Investors do Valuations for Startups by Sanjay Mehta from 100x.vc
How Investors do Valuations for Startups by Sanjay Mehta from 100x.vc
 
Venture exit strategy
Venture exit strategyVenture exit strategy
Venture exit strategy
 
NIST Corporate Venture Capital Study
 	NIST Corporate Venture Capital Study 	NIST Corporate Venture Capital Study
NIST Corporate Venture Capital Study
 
The Venture Capital Process
The Venture Capital ProcessThe Venture Capital Process
The Venture Capital Process
 
Venture Capital 101
Venture Capital 101Venture Capital 101
Venture Capital 101
 
Venture capital
Venture capitalVenture capital
Venture capital
 
Seedcamp Fund IV Fundraising Deck
Seedcamp Fund IV Fundraising DeckSeedcamp Fund IV Fundraising Deck
Seedcamp Fund IV Fundraising Deck
 
Venture Capital 101
Venture Capital 101Venture Capital 101
Venture Capital 101
 
Challenges in corporate venture capital
Challenges in corporate venture capitalChallenges in corporate venture capital
Challenges in corporate venture capital
 
Notation Capital Fund 1 pitch deck
Notation Capital Fund 1 pitch deckNotation Capital Fund 1 pitch deck
Notation Capital Fund 1 pitch deck
 
Private equity
Private equityPrivate equity
Private equity
 
Early Stage Startup Valuation
Early Stage Startup ValuationEarly Stage Startup Valuation
Early Stage Startup Valuation
 

Viewers also liked

Startups and Venture Capital in the Nordics
Startups and Venture Capital in the NordicsStartups and Venture Capital in the Nordics
Startups and Venture Capital in the NordicsFrontline Ventures
 
Au coeur des business models de demain, «L'ubérisation» de l'économie
Au coeur des business models de demain, «L'ubérisation» de l'économieAu coeur des business models de demain, «L'ubérisation» de l'économie
Au coeur des business models de demain, «L'ubérisation» de l'économieFrenchWeb.fr
 
Your Startup Is About To Fail
Your Startup Is About To FailYour Startup Is About To Fail
Your Startup Is About To FailAbhishek Shah
 
5 ROOKIE MISTAKES you should ABSOLUTELY not make
5 ROOKIE MISTAKES you should ABSOLUTELY not make5 ROOKIE MISTAKES you should ABSOLUTELY not make
5 ROOKIE MISTAKES you should ABSOLUTELY not makeFloown
 
You Should Stop Looking for Venture Capital
You Should Stop Looking for Venture CapitalYou Should Stop Looking for Venture Capital
You Should Stop Looking for Venture CapitalAbhishek Shah
 
The Ten Everyday Roles of a Startup Entrepreneur
The Ten Everyday Roles of a Startup EntrepreneurThe Ten Everyday Roles of a Startup Entrepreneur
The Ten Everyday Roles of a Startup EntrepreneurAbhishek Shah
 
25 Lessons Learned From Top Entrepreneurs
25 Lessons Learned From Top Entrepreneurs25 Lessons Learned From Top Entrepreneurs
25 Lessons Learned From Top EntrepreneursMAP Communications
 
5 Phases of Startup Growth
5 Phases of Startup Growth 5 Phases of Startup Growth
5 Phases of Startup Growth Morgan Brown
 
How to Turn Your Startup Into a Profitable Business
How to Turn Your Startup Into a Profitable BusinessHow to Turn Your Startup Into a Profitable Business
How to Turn Your Startup Into a Profitable BusinessMatt Warcholiński
 
Fast Growing Companies: 10 SEO Lessons Learned
Fast Growing Companies: 10 SEO Lessons LearnedFast Growing Companies: 10 SEO Lessons Learned
Fast Growing Companies: 10 SEO Lessons LearnedPhilipp Klöckner
 
Forgotten women in tech history.
Forgotten women in tech history.Forgotten women in tech history.
Forgotten women in tech history.Domo
 
How To Create An Impacting Startup Name
How To Create An Impacting Startup NameHow To Create An Impacting Startup Name
How To Create An Impacting Startup NameTommaso Di Bartolo
 
How to think like a startup
How to think like a startupHow to think like a startup
How to think like a startupLoic Le Meur
 
Startups are Hard. Like, Really Hard. @luketucker
Startups are Hard. Like, Really Hard. @luketuckerStartups are Hard. Like, Really Hard. @luketucker
Startups are Hard. Like, Really Hard. @luketuckerEmpowered Presentations
 

Viewers also liked (14)

Startups and Venture Capital in the Nordics
Startups and Venture Capital in the NordicsStartups and Venture Capital in the Nordics
Startups and Venture Capital in the Nordics
 
Au coeur des business models de demain, «L'ubérisation» de l'économie
Au coeur des business models de demain, «L'ubérisation» de l'économieAu coeur des business models de demain, «L'ubérisation» de l'économie
Au coeur des business models de demain, «L'ubérisation» de l'économie
 
Your Startup Is About To Fail
Your Startup Is About To FailYour Startup Is About To Fail
Your Startup Is About To Fail
 
5 ROOKIE MISTAKES you should ABSOLUTELY not make
5 ROOKIE MISTAKES you should ABSOLUTELY not make5 ROOKIE MISTAKES you should ABSOLUTELY not make
5 ROOKIE MISTAKES you should ABSOLUTELY not make
 
You Should Stop Looking for Venture Capital
You Should Stop Looking for Venture CapitalYou Should Stop Looking for Venture Capital
You Should Stop Looking for Venture Capital
 
The Ten Everyday Roles of a Startup Entrepreneur
The Ten Everyday Roles of a Startup EntrepreneurThe Ten Everyday Roles of a Startup Entrepreneur
The Ten Everyday Roles of a Startup Entrepreneur
 
25 Lessons Learned From Top Entrepreneurs
25 Lessons Learned From Top Entrepreneurs25 Lessons Learned From Top Entrepreneurs
25 Lessons Learned From Top Entrepreneurs
 
5 Phases of Startup Growth
5 Phases of Startup Growth 5 Phases of Startup Growth
5 Phases of Startup Growth
 
How to Turn Your Startup Into a Profitable Business
How to Turn Your Startup Into a Profitable BusinessHow to Turn Your Startup Into a Profitable Business
How to Turn Your Startup Into a Profitable Business
 
Fast Growing Companies: 10 SEO Lessons Learned
Fast Growing Companies: 10 SEO Lessons LearnedFast Growing Companies: 10 SEO Lessons Learned
Fast Growing Companies: 10 SEO Lessons Learned
 
Forgotten women in tech history.
Forgotten women in tech history.Forgotten women in tech history.
Forgotten women in tech history.
 
How To Create An Impacting Startup Name
How To Create An Impacting Startup NameHow To Create An Impacting Startup Name
How To Create An Impacting Startup Name
 
How to think like a startup
How to think like a startupHow to think like a startup
How to think like a startup
 
Startups are Hard. Like, Really Hard. @luketucker
Startups are Hard. Like, Really Hard. @luketuckerStartups are Hard. Like, Really Hard. @luketucker
Startups are Hard. Like, Really Hard. @luketucker
 

Similar to Startups and Venture Capital in Germany

Vc market in Europe - travel & mobility, Media, Healthcare
Vc market in Europe - travel & mobility, Media, HealthcareVc market in Europe - travel & mobility, Media, Healthcare
Vc market in Europe - travel & mobility, Media, HealthcareAliona Schastlivtseva
 
Deutsche Bank - NOAH17 Berlin
Deutsche Bank - NOAH17 BerlinDeutsche Bank - NOAH17 Berlin
Deutsche Bank - NOAH17 BerlinNOAH Advisors
 
FinTech 2018 Study by Clairfield
FinTech 2018 Study by ClairfieldFinTech 2018 Study by Clairfield
FinTech 2018 Study by ClairfieldDirk Freiland
 
White Star Capital - German Venture Capital Landscape 2018
White Star Capital - German Venture Capital Landscape 2018White Star Capital - German Venture Capital Landscape 2018
White Star Capital - German Venture Capital Landscape 2018Sanjay Zimmermann
 
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014CAR FOR YOU
 
FinTech Forum Yearbook 2015
FinTech Forum Yearbook 2015FinTech Forum Yearbook 2015
FinTech Forum Yearbook 2015Samarth Shekhar
 
Deposit Solutions - NOAH18 Berlin
Deposit Solutions - NOAH18 BerlinDeposit Solutions - NOAH18 Berlin
Deposit Solutions - NOAH18 BerlinNOAH Advisors
 
Deposit Solutions - NOAH19 Berlin
Deposit Solutions - NOAH19 BerlinDeposit Solutions - NOAH19 Berlin
Deposit Solutions - NOAH19 BerlinNOAH Advisors
 
Ernst & Young: Venture capital and startups in germany 2014
Ernst & Young: Venture capital and startups in germany 2014Ernst & Young: Venture capital and startups in germany 2014
Ernst & Young: Venture capital and startups in germany 2014Tibor Szász
 
Europe's Rising 100
Europe's Rising 100Europe's Rising 100
Europe's Rising 100CMassociates
 
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORTTHE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORTFrontline Ventures
 
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT Frontline Ventures
 
NOAH19 Berlin Investor Book
NOAH19 Berlin Investor BookNOAH19 Berlin Investor Book
NOAH19 Berlin Investor BookNOAH Advisors
 
Irene Schucht
Irene SchuchtIrene Schucht
Irene SchuchtGOPAcom
 
Digital Days - how startups can save your corporate's life!
Digital Days - how startups can save your corporate's life! Digital Days - how startups can save your corporate's life!
Digital Days - how startups can save your corporate's life! Thomas P. Offner
 
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...CAR FOR YOU
 
FinCompare - NOAH17 London
FinCompare - NOAH17 LondonFinCompare - NOAH17 London
FinCompare - NOAH17 LondonNOAH Advisors
 
Inventorum - NOAH15 London
Inventorum - NOAH15 LondonInventorum - NOAH15 London
Inventorum - NOAH15 LondonNOAH Advisors
 
Perspectives on VC in Europe
Perspectives on VC in EuropePerspectives on VC in Europe
Perspectives on VC in EuropeBen Holmes
 
Tech City - NOAH15 London
Tech City - NOAH15 LondonTech City - NOAH15 London
Tech City - NOAH15 LondonNOAH Advisors
 

Similar to Startups and Venture Capital in Germany (20)

Vc market in Europe - travel & mobility, Media, Healthcare
Vc market in Europe - travel & mobility, Media, HealthcareVc market in Europe - travel & mobility, Media, Healthcare
Vc market in Europe - travel & mobility, Media, Healthcare
 
Deutsche Bank - NOAH17 Berlin
Deutsche Bank - NOAH17 BerlinDeutsche Bank - NOAH17 Berlin
Deutsche Bank - NOAH17 Berlin
 
FinTech 2018 Study by Clairfield
FinTech 2018 Study by ClairfieldFinTech 2018 Study by Clairfield
FinTech 2018 Study by Clairfield
 
White Star Capital - German Venture Capital Landscape 2018
White Star Capital - German Venture Capital Landscape 2018White Star Capital - German Venture Capital Landscape 2018
White Star Capital - German Venture Capital Landscape 2018
 
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
Go4Venture Bulletin - Venture & Growth Equity Market Report Europe, August 2014
 
FinTech Forum Yearbook 2015
FinTech Forum Yearbook 2015FinTech Forum Yearbook 2015
FinTech Forum Yearbook 2015
 
Deposit Solutions - NOAH18 Berlin
Deposit Solutions - NOAH18 BerlinDeposit Solutions - NOAH18 Berlin
Deposit Solutions - NOAH18 Berlin
 
Deposit Solutions - NOAH19 Berlin
Deposit Solutions - NOAH19 BerlinDeposit Solutions - NOAH19 Berlin
Deposit Solutions - NOAH19 Berlin
 
Ernst & Young: Venture capital and startups in germany 2014
Ernst & Young: Venture capital and startups in germany 2014Ernst & Young: Venture capital and startups in germany 2014
Ernst & Young: Venture capital and startups in germany 2014
 
Europe's Rising 100
Europe's Rising 100Europe's Rising 100
Europe's Rising 100
 
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORTTHE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
 
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
THE FRONTLINE & SPEEDINVEST 2019/2020 DACH REPORT
 
NOAH19 Berlin Investor Book
NOAH19 Berlin Investor BookNOAH19 Berlin Investor Book
NOAH19 Berlin Investor Book
 
Irene Schucht
Irene SchuchtIrene Schucht
Irene Schucht
 
Digital Days - how startups can save your corporate's life!
Digital Days - how startups can save your corporate's life! Digital Days - how startups can save your corporate's life!
Digital Days - how startups can save your corporate's life!
 
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
The Go4Venture Advisers’ European Venture & Growth Equity Market Monthly Bull...
 
FinCompare - NOAH17 London
FinCompare - NOAH17 LondonFinCompare - NOAH17 London
FinCompare - NOAH17 London
 
Inventorum - NOAH15 London
Inventorum - NOAH15 LondonInventorum - NOAH15 London
Inventorum - NOAH15 London
 
Perspectives on VC in Europe
Perspectives on VC in EuropePerspectives on VC in Europe
Perspectives on VC in Europe
 
Tech City - NOAH15 London
Tech City - NOAH15 LondonTech City - NOAH15 London
Tech City - NOAH15 London
 

More from Frontline Ventures

Where to Land: Selecting Your European HQ
Where to Land: Selecting Your European HQ Where to Land: Selecting Your European HQ
Where to Land: Selecting Your European HQ Frontline Ventures
 
Venture Backed IPOs in FinTech
Venture Backed IPOs in FinTechVenture Backed IPOs in FinTech
Venture Backed IPOs in FinTechFrontline Ventures
 
Self Serve SaaS: Frontline Ventures x Notion Capital
Self Serve SaaS: Frontline Ventures x Notion CapitalSelf Serve SaaS: Frontline Ventures x Notion Capital
Self Serve SaaS: Frontline Ventures x Notion CapitalFrontline Ventures
 
Startups and Venture Capital in Ireland
Startups and Venture Capital in Ireland Startups and Venture Capital in Ireland
Startups and Venture Capital in Ireland Frontline Ventures
 
Startups & Venture Capital in the United Kingdom: The Global Startup Hub
Startups & Venture Capital in the United Kingdom: The Global Startup HubStartups & Venture Capital in the United Kingdom: The Global Startup Hub
Startups & Venture Capital in the United Kingdom: The Global Startup HubFrontline Ventures
 
Challenger Banks in Europe: Challenge Accepted
Challenger Banks in Europe: Challenge AcceptedChallenger Banks in Europe: Challenge Accepted
Challenger Banks in Europe: Challenge AcceptedFrontline Ventures
 
Lead Generation & Qualification Tactics with Allyson Barr, VP Marketing at Bo...
Lead Generation & Qualification Tactics with Allyson Barr, VP Marketing at Bo...Lead Generation & Qualification Tactics with Allyson Barr, VP Marketing at Bo...
Lead Generation & Qualification Tactics with Allyson Barr, VP Marketing at Bo...Frontline Ventures
 
The Irish Tech Startup Guides: A Guide to Boston
The Irish Tech Startup Guides: A Guide to BostonThe Irish Tech Startup Guides: A Guide to Boston
The Irish Tech Startup Guides: A Guide to BostonFrontline Ventures
 
The Series A Board - Learnings from the Frontline Portfolio and Team
The Series A Board - Learnings from the Frontline Portfolio and TeamThe Series A Board - Learnings from the Frontline Portfolio and Team
The Series A Board - Learnings from the Frontline Portfolio and TeamFrontline Ventures
 
New York Tech Guide for Irish Startups
New York Tech Guide for Irish StartupsNew York Tech Guide for Irish Startups
New York Tech Guide for Irish StartupsFrontline Ventures
 

More from Frontline Ventures (14)

Where to Land: Selecting Your European HQ
Where to Land: Selecting Your European HQ Where to Land: Selecting Your European HQ
Where to Land: Selecting Your European HQ
 
Venture Backed IPOs in FinTech
Venture Backed IPOs in FinTechVenture Backed IPOs in FinTech
Venture Backed IPOs in FinTech
 
Self Serve SaaS: Frontline Ventures x Notion Capital
Self Serve SaaS: Frontline Ventures x Notion CapitalSelf Serve SaaS: Frontline Ventures x Notion Capital
Self Serve SaaS: Frontline Ventures x Notion Capital
 
European FinTech Trends 2017
European FinTech Trends 2017European FinTech Trends 2017
European FinTech Trends 2017
 
Startups and Venture Capital in Ireland
Startups and Venture Capital in Ireland Startups and Venture Capital in Ireland
Startups and Venture Capital in Ireland
 
Startups & Venture Capital in the United Kingdom: The Global Startup Hub
Startups & Venture Capital in the United Kingdom: The Global Startup HubStartups & Venture Capital in the United Kingdom: The Global Startup Hub
Startups & Venture Capital in the United Kingdom: The Global Startup Hub
 
Challenger Banks in Europe: Challenge Accepted
Challenger Banks in Europe: Challenge AcceptedChallenger Banks in Europe: Challenge Accepted
Challenger Banks in Europe: Challenge Accepted
 
Setting Up in the US Playbook
Setting Up in the US PlaybookSetting Up in the US Playbook
Setting Up in the US Playbook
 
Marketplace Lending in Europe
Marketplace Lending in EuropeMarketplace Lending in Europe
Marketplace Lending in Europe
 
Lead Generation & Qualification Tactics with Allyson Barr, VP Marketing at Bo...
Lead Generation & Qualification Tactics with Allyson Barr, VP Marketing at Bo...Lead Generation & Qualification Tactics with Allyson Barr, VP Marketing at Bo...
Lead Generation & Qualification Tactics with Allyson Barr, VP Marketing at Bo...
 
The Irish Tech Startup Guides: A Guide to Boston
The Irish Tech Startup Guides: A Guide to BostonThe Irish Tech Startup Guides: A Guide to Boston
The Irish Tech Startup Guides: A Guide to Boston
 
The Series A Board - Learnings from the Frontline Portfolio and Team
The Series A Board - Learnings from the Frontline Portfolio and TeamThe Series A Board - Learnings from the Frontline Portfolio and Team
The Series A Board - Learnings from the Frontline Portfolio and Team
 
New York Tech Guide for Irish Startups
New York Tech Guide for Irish StartupsNew York Tech Guide for Irish Startups
New York Tech Guide for Irish Startups
 
The Irish Tech Startup Guide
The Irish Tech Startup GuideThe Irish Tech Startup Guide
The Irish Tech Startup Guide
 

Recently uploaded

ASTRAZENECA. Knowledge Graphs Powering a Fast-moving Global Life Sciences Org...
ASTRAZENECA. Knowledge Graphs Powering a Fast-moving Global Life Sciences Org...ASTRAZENECA. Knowledge Graphs Powering a Fast-moving Global Life Sciences Org...
ASTRAZENECA. Knowledge Graphs Powering a Fast-moving Global Life Sciences Org...Neo4j
 
Enterprise Architecture As Strategy - Book Review
Enterprise Architecture As Strategy - Book ReviewEnterprise Architecture As Strategy - Book Review
Enterprise Architecture As Strategy - Book ReviewAshraf Fouad
 
Battle of React State Managers in frontend applications
Battle of React State Managers in frontend applicationsBattle of React State Managers in frontend applications
Battle of React State Managers in frontend applicationsEvangelia Mitsopoulou
 
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...htrindia
 
Early Tech Adoption: Foolish or Pragmatic? - 17th ISACA South Florida WOW Con...
Early Tech Adoption: Foolish or Pragmatic? - 17th ISACA South Florida WOW Con...Early Tech Adoption: Foolish or Pragmatic? - 17th ISACA South Florida WOW Con...
Early Tech Adoption: Foolish or Pragmatic? - 17th ISACA South Florida WOW Con...Adrian Sanabria
 
10 things that helped me advance my career - PHP UK Conference 2024
10 things that helped me advance my career - PHP UK Conference 202410 things that helped me advance my career - PHP UK Conference 2024
10 things that helped me advance my career - PHP UK Conference 2024Thijs Feryn
 
"AIRe - AI Reliability Engineering", Denys Vasyliev
"AIRe - AI Reliability Engineering", Denys Vasyliev"AIRe - AI Reliability Engineering", Denys Vasyliev
"AIRe - AI Reliability Engineering", Denys VasylievFwdays
 
"Testing of Helm Charts or There and Back Again", Yura Rochniak
"Testing of Helm Charts or There and Back Again", Yura Rochniak"Testing of Helm Charts or There and Back Again", Yura Rochniak
"Testing of Helm Charts or There and Back Again", Yura RochniakFwdays
 
LF Energy Webinar: Introduction to TROLIE
LF Energy Webinar: Introduction to TROLIELF Energy Webinar: Introduction to TROLIE
LF Energy Webinar: Introduction to TROLIEDanBrown980551
 
"How we created an SRE team in Temabit as a part of FOZZY Group in conditions...
"How we created an SRE team in Temabit as a part of FOZZY Group in conditions..."How we created an SRE team in Temabit as a part of FOZZY Group in conditions...
"How we created an SRE team in Temabit as a part of FOZZY Group in conditions...Fwdays
 
"The Transformative Power of AI and Open Challenges" by Dr. Manish Gupta, Google
"The Transformative Power of AI and Open Challenges" by Dr. Manish Gupta, Google"The Transformative Power of AI and Open Challenges" by Dr. Manish Gupta, Google
"The Transformative Power of AI and Open Challenges" by Dr. Manish Gupta, GoogleISPMAIndia
 
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...UiPathCommunity
 
"DevOps Practisting Platform on EKS with Karpenter autoscaling", Dmytro Kozhevin
"DevOps Practisting Platform on EKS with Karpenter autoscaling", Dmytro Kozhevin"DevOps Practisting Platform on EKS with Karpenter autoscaling", Dmytro Kozhevin
"DevOps Practisting Platform on EKS with Karpenter autoscaling", Dmytro KozhevinFwdays
 
My Journey towards Artificial Intelligence
My Journey towards Artificial IntelligenceMy Journey towards Artificial Intelligence
My Journey towards Artificial IntelligenceVijayananda Mohire
 
How we think about an advisor tech stack
How we think about an advisor tech stackHow we think about an advisor tech stack
How we think about an advisor tech stackSummit
 
Synergy in Leadership and Product Excellence: A Blueprint for Growth by CPO, ...
Synergy in Leadership and Product Excellence: A Blueprint for Growth by CPO, ...Synergy in Leadership and Product Excellence: A Blueprint for Growth by CPO, ...
Synergy in Leadership and Product Excellence: A Blueprint for Growth by CPO, ...Product School
 
From Challenger to Champion: How SpiraPlan Outperforms JIRA+Plugins
From Challenger to Champion: How SpiraPlan Outperforms JIRA+PluginsFrom Challenger to Champion: How SpiraPlan Outperforms JIRA+Plugins
From Challenger to Champion: How SpiraPlan Outperforms JIRA+PluginsInflectra
 
Digital Transformation Strategy & Plan Templates - www.beyondthecloud.digital...
Digital Transformation Strategy & Plan Templates - www.beyondthecloud.digital...Digital Transformation Strategy & Plan Templates - www.beyondthecloud.digital...
Digital Transformation Strategy & Plan Templates - www.beyondthecloud.digital...MarcovanHurne2
 
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...Product School
 

Recently uploaded (20)

ASTRAZENECA. Knowledge Graphs Powering a Fast-moving Global Life Sciences Org...
ASTRAZENECA. Knowledge Graphs Powering a Fast-moving Global Life Sciences Org...ASTRAZENECA. Knowledge Graphs Powering a Fast-moving Global Life Sciences Org...
ASTRAZENECA. Knowledge Graphs Powering a Fast-moving Global Life Sciences Org...
 
Enterprise Architecture As Strategy - Book Review
Enterprise Architecture As Strategy - Book ReviewEnterprise Architecture As Strategy - Book Review
Enterprise Architecture As Strategy - Book Review
 
Battle of React State Managers in frontend applications
Battle of React State Managers in frontend applicationsBattle of React State Managers in frontend applications
Battle of React State Managers in frontend applications
 
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
 
In sharing we trust. Taking advantage of a diverse consortium to build a tran...
In sharing we trust. Taking advantage of a diverse consortium to build a tran...In sharing we trust. Taking advantage of a diverse consortium to build a tran...
In sharing we trust. Taking advantage of a diverse consortium to build a tran...
 
Early Tech Adoption: Foolish or Pragmatic? - 17th ISACA South Florida WOW Con...
Early Tech Adoption: Foolish or Pragmatic? - 17th ISACA South Florida WOW Con...Early Tech Adoption: Foolish or Pragmatic? - 17th ISACA South Florida WOW Con...
Early Tech Adoption: Foolish or Pragmatic? - 17th ISACA South Florida WOW Con...
 
10 things that helped me advance my career - PHP UK Conference 2024
10 things that helped me advance my career - PHP UK Conference 202410 things that helped me advance my career - PHP UK Conference 2024
10 things that helped me advance my career - PHP UK Conference 2024
 
"AIRe - AI Reliability Engineering", Denys Vasyliev
"AIRe - AI Reliability Engineering", Denys Vasyliev"AIRe - AI Reliability Engineering", Denys Vasyliev
"AIRe - AI Reliability Engineering", Denys Vasyliev
 
"Testing of Helm Charts or There and Back Again", Yura Rochniak
"Testing of Helm Charts or There and Back Again", Yura Rochniak"Testing of Helm Charts or There and Back Again", Yura Rochniak
"Testing of Helm Charts or There and Back Again", Yura Rochniak
 
LF Energy Webinar: Introduction to TROLIE
LF Energy Webinar: Introduction to TROLIELF Energy Webinar: Introduction to TROLIE
LF Energy Webinar: Introduction to TROLIE
 
"How we created an SRE team in Temabit as a part of FOZZY Group in conditions...
"How we created an SRE team in Temabit as a part of FOZZY Group in conditions..."How we created an SRE team in Temabit as a part of FOZZY Group in conditions...
"How we created an SRE team in Temabit as a part of FOZZY Group in conditions...
 
"The Transformative Power of AI and Open Challenges" by Dr. Manish Gupta, Google
"The Transformative Power of AI and Open Challenges" by Dr. Manish Gupta, Google"The Transformative Power of AI and Open Challenges" by Dr. Manish Gupta, Google
"The Transformative Power of AI and Open Challenges" by Dr. Manish Gupta, Google
 
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
 
"DevOps Practisting Platform on EKS with Karpenter autoscaling", Dmytro Kozhevin
"DevOps Practisting Platform on EKS with Karpenter autoscaling", Dmytro Kozhevin"DevOps Practisting Platform on EKS with Karpenter autoscaling", Dmytro Kozhevin
"DevOps Practisting Platform on EKS with Karpenter autoscaling", Dmytro Kozhevin
 
My Journey towards Artificial Intelligence
My Journey towards Artificial IntelligenceMy Journey towards Artificial Intelligence
My Journey towards Artificial Intelligence
 
How we think about an advisor tech stack
How we think about an advisor tech stackHow we think about an advisor tech stack
How we think about an advisor tech stack
 
Synergy in Leadership and Product Excellence: A Blueprint for Growth by CPO, ...
Synergy in Leadership and Product Excellence: A Blueprint for Growth by CPO, ...Synergy in Leadership and Product Excellence: A Blueprint for Growth by CPO, ...
Synergy in Leadership and Product Excellence: A Blueprint for Growth by CPO, ...
 
From Challenger to Champion: How SpiraPlan Outperforms JIRA+Plugins
From Challenger to Champion: How SpiraPlan Outperforms JIRA+PluginsFrom Challenger to Champion: How SpiraPlan Outperforms JIRA+Plugins
From Challenger to Champion: How SpiraPlan Outperforms JIRA+Plugins
 
Digital Transformation Strategy & Plan Templates - www.beyondthecloud.digital...
Digital Transformation Strategy & Plan Templates - www.beyondthecloud.digital...Digital Transformation Strategy & Plan Templates - www.beyondthecloud.digital...
Digital Transformation Strategy & Plan Templates - www.beyondthecloud.digital...
 
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
 

Startups and Venture Capital in Germany

  • 1. 1 www.frontline.vc Startups & Venture Capital in Germany Tech emerges in Europes largest economy A GLOBAL PERSPECTIVE BROUGHT TO YOU BY: www.pointnine.vc
  • 2. 2 Many new venture funds have been raised in Germany 1Cash on Hand and Bank Balance, RKET Annual Report, Rocket ECP, Earlybird, Creathor, bmp, Target Partners, Lakestar, Coparion, Crunchbase: Global Founders Capital, Holtzbrinck, HTGF, Cherry Ventures, Dow Jones Venture Source, CBInsights, Estimates may sometimes include realisations, does not include funds HQ’d outside of Germany TotalFundsRaisedorSimilar(€1,000s) FUNDS RAISED IN 2016 Funds domiciled in Germany or primarily do business there 0 400 800 1,200 1,600 RocketInternet RocketRICP EarlyBird Holtzbrink HTGF Acton Lakestar TargetPartners ProjectA Coparion B-to-V IBB Creathor Cherry BlueYard PointNine Speedinvest Paua Capnamic 4065100110120 150 180182200225 290300 385 470 576 635 700 1,000 1,504
  • 3. 3 Which has lead to better upstream funding for startups Seed Series A - B Late StageIncubators Note: approximation, many investors participate across different stages
  • 4. 0 13 25 38 50 20% 24% 35% 37% 40% 48% The highest level of international participation in Europe 4 London Paris Berlin Stockholm €0b €4.5b €9b €13.5b €18b $2.3b $5.8b $3.7b $11b $1.8b $1.3b $9.6b $17b USD Total Funds Raised Total Funds Invested TOTAL VC FUNDS RAISED VS INVESTED2VC BACKED WITH AN INTERNATIONAL INVESTOR1 1 Crunchbase Pro (2013-2016), 2 The numbers behind Europe's VC ecosystem [datagraphic] (2006-2016)
  • 5. As funds globally position themselves to do more German deals 5 FUNDS ADD GERMAN DEAL MAKERS RECENT TRANSACTIONS IN GERMANY Series B Series A v 77% OF FUNDING ROUNDS IN BERLIN ARE LED BY NON-LOCALS Berlin needs more VCs! 0 15 30 45 60 13% 29% 57% 60% 17% 22% Berlin Silicon Valley Local Led rounds Non-Local Domestic International Led Why Berlin Needs More Local VCs a Network Analysis
  • 6. A boom in investment activity 6Crunchbase Pro, Gil Dibner Slideshare # OF VC BACKED COMPANIES IN THE PAST 10 YEARS 50 140 230 320 410 500 Q 3 2014 Q 4 2014 Q 1 2015 Q 2 2015 Q 3 2015 Q 4 2015 Q 1 2016 Q 2 2016 Q 3 2016 Q 4 2016 QUARTERLY VC FUNDING EX-MEGA (€100m) ROUNDS IN GERMANY Quarterlyfundsraised($1m) 62% CAGR 0 350 700 1050 1400 139 157 165 417 607 1,203
  • 7. $3.1b €9b €2b Is giving birth to the German startup ecosystem!! 7 €3.1b €100m €150m €760m €82m $4b €830m $190m €210m Scout24 €3.2b €210m €150m €100m €215m €950m €1b €272m €300m Current or last valuations: Notable exits, companies with €50m+ in funding, other notable. Private market valuation, best estimate based on public data €420m $700m $700m €480m
  • 9. 9 1See Appendix & FY 2015 Financial Statements and Rocket Internet Financial Statements and Capital Markets Day, 2Crunchbase, 3Rocket ECP, GFC vs. Rocket Internet Capital Partners: Wie passen Rockets Fonds zusammen? ,Rocket Internet Capital Partners fund closes at $1 billion 4 The Samwer brothers control vehicles with billions in combined assets1,2 Rocket participated in 16 out of 20 of Germanys largest funding rounds1 Rocket is largely an emerging markets and eCommerce investor1 Cash €1.5b1 RICP4 €1b FOUNDED 2007 OFFICES Berlin, London FUNDS 2 RAISED - # OF INVESTMENTS 75+ EXITS 5+
  • 10. 10 1Holtzbrinck-Ventures.com, 2Crunchbase, 3Proprietary, 4Holtzbrinck Ventures etabliert 177 Mio. Early-Stage-Fonds mit HarbourVest Partners, 5Holtzbrinck Ventures Closes $331M Fund To Back More Consumer And E-Commerce Startups Founded in 2000 as part of German publishing house Holtzbrinck Track record of investment success: 150+ investments1 , 16 acquisitions2 and 3 IPOs3 LPs include US based HarbourVest Partners and Georg Von Holtzbrinck4 Strong focus on consumer internet, eCommerce, transactional business models AUM €635m Consumer Internet in EU Fund VI €285m5 FOUNDED 2000 OFFICES Munich FUNDS 6 RAISED €635 # OF INVESTMENTS 100+ EXITS 25+
  • 11. 111Tech.eu: Most Active Tech Investors In Europe (H1 2015) SaaS and marketplace focused, Seed and early Series A Created out of Team Europe, a network of Berlin-based entrepreneurs One of the most active Tech Investors in EU1 with strong foothold in Berlin American style VC, with international LPs (US, Israel, EU) €55m Fund 3 SaaS Marketplaces €40m Fund 2 FOUNDED 2011 OFFICES Berlin FUNDS 3 RAISED €112 # OF INVESTMENTS 80+ EXITS 10+
  • 12. 121earlybird.com, 2Heilemann Ventures and Earlybird VC Join Forces Founded in 1997, with €700m invested across 5 funds, invested in over 100 startups1 Earlybird is one of the oldest and most established funds in Germany Invests €250k-10m across all stages1 Recently merged with Heilemann Ventures2 Technology Eastern Europe Healthcare FOUNDED 1997 OFFICES Berlin, Munich FUNDS 3 RAISED €112 # OF INVESTMENTS 120+ EXITS 25+
  • 13. 13 Who to know Marc Samwer Oliver Samwer Alexander Samwer rocket-internet.com @RocketInternet Pawel Chudzinski Christoph Janz pointnine.vc @PointNineCap Hendrik Brandis Christian Nagel Fabian Heilemann earlybird.com @EarlybirdVC Daniel Glasner Christian Meerman Filip Dames cherry.vc @CherryVentures Ciaran O’Leary Jason Whitemire berlinvc.com @BlueYard Uwe Horstmann Dr. Florian Heinemann project-a.com @ProjectAcom Jan Beckers @FinLeap @HitFoxGroup Klaus Hommels Mark Schmitz Nicolas Brand lakestar.com Will Prendergast Thomas Olszewski frontline.vc @frontline
  • 14. Corporate Investors 14 Funds Focus Areas B2C consumer goods, retail and services Manager of several corporate venture funds IoT, smart home, digital customer access, big data Direct-to-consumer or transaction oriented SevenVentures, Redstone Digital, Vito Ventures, Vowerk Digital Media & Publishing Tech Consumer internet, marketplaces, and deep tech Independent venture fund of Commerzbank
  • 15. Accelerators 15 Accelerators % Stake Comments 6% 5% 6-8% 4-5% Investment €20k+100 €25k €15k - Techstars Berlin, Axel Springer Plug & Play, Berlin Startup Academy, Startupbootcamp Smart Transportation & Energy - - Diversified Transportation and energy Axel Springer Diversified Diversified Negotiable Community focusedNegotiable
  • 16. What to expect when you close a deal in Germany 16*Most traditional databases do not contain accurate valuation information, Techstars Berlin1 Incubated Companies Angel & Seed Deals €1-3m €2-6m Angel Round Seed Round TractionInception SaaS Funding Napkin, the mobile-friendly edition , Fundraising Framework for Marketplace Startups in 2016 Expectations can very dramatically Business with some traction, first customers Can include companies from accelerator Typically raising at above market valuations Management owns 0-70% of equity Part of the capital raised may go to the incubator
  • 18. 18 Strengths Top class engineering and business universities Berlin is an attractive place to live for a lot of young talented people Easier immigration policies then elsewhere in Europe Largest EU economy in terms of GDP and population Higher capital efficiency as a result of lower salaries and cost of rent Optimism surrounding Berlin and the prospects of the ecosystem
  • 19. Berlin 19 Population 3.5m 1 Bedroom Flat €500-1,0001 Beer €31 Avg Salary €40,0002 Avg Software Engineer Salary €50,0003 Berlin named most 'fun' city in the world - telegraph.co.uk 1Berlin named most 'fun' city in the world - telegraph.co.uk, 2Salary Survey in Berlin, 3Berlin Software Engineer Average Salary
  • 21. 21 Challenges 1Think We're the Most Entrepreneurial Country In the World? Not So Fast Difficult to retain top talent with lower salaries vs other EU cities Victim of its own success? Rent and cost of living are increasing Culture of risk aversion and slower adoption of new products English & German are used Lower levels of entrepreneurship vs rest of Europe1 Relatively small talent pool of software developers in some sectors
  • 22. 22 Incubated startups, management equity participation Incubator 50% New Investors 30% Management 20% A Letter to German Entrepreneurs, Index Ventures “ ” In some cases, part of the 2nd round of funding is used to pay for services A startling number of German startups that we have spoken to have ownership structures which put them at a real disadvantage when raising their first venture round. In many cases we have observed, the founders have given away too much equity to their first investors - typically angels and family offices, who have little experience with the fast- growing startups or the venture capital funding model. ‘Incubated’ companies allocate a relatively small equity stake to management teams EXAMPLE SEED STAGE INCUBATOR CAP TABLE
  • 24. FinTech • Credit related and consumer business • Large market for consumer finance • Population which travels a great deal Four sectors where German startups have succeeded 24 eCommerce • Fashion, auctions, and food delivery • Largest market for fashion in Europe • Lean and cost competitive, low margin Leisure • E-sports, gaming, travel, and music • Travel culturally important • Large number of consumers AdTech • Big data, data analytics, data mgmt, SEO • E-commerce companies as customers • High small- & mid-cap M&A-activity
  • 25. 25 FinTech Founder Alexander Graubner-Müller Formerly Groupon, Rocket Internet University of St. Gallen Founder Valentin Stalf Formerly Paymill, Rocket Internet University of St. Gallen Pawn Loans Payday Credit Cards Bank Loans Better credit for customers with no or poor access to credit The mobile bank Linkedin Information, Crunchbase
  • 26. 26 AdTech Founder Andreas Bodczek Formerly Telefonica, Bertelsmann Ludwig-Maximilians Universität Mobile in-app ad monetisation platform, incl. ad mediation & marketplace. Founder & CTO Marcus Tober Formerly Ecards, Idealo Internet Technische Fachhochschule Berlin Acquired for $190m Linkedin Information, Crunchbase SEO SaaS platform
  • 27. 27 Founder Hakan Koç Formerly Home24, Rocket Internet, Zalando, DailyDeal Founder David Schneider Formerly Compara Tarifas, Unibicate, Roland Berger San Andrés, Singapore, WHU Trouble Selling Grandma’s Cars Led to $1 Billion Startup, LinkedIn Information, Crunchbase eCommerce Designer shopping online IPO at €5.3b valuation B2B marketplace for used car dealers
  • 28. 28 Leisure Alexander Ljung Formerly Trustmojo.com, Jung Studios, SF Anytime Stockholm University Rolf Schroemgens Formerly ciao.com Leipzig Graduate School of Management Online travel booking Social Music Samwer brothers Trivago, auf leisen Sohlen, LinkedIn Information, Crunchbase Christian Vollmann Dr. Florian Heinemann IPO at $4b valuation
  • 29. Internet Exits 29 €6.5b (at IPO) €5.3b (at IPO) €100m €150m €272m €82m Trivago $4b (40%) TeamViewer €830m $190m €210m 2004 Onward: 16 Biggest German Exits So Far, Tech.eu: Scout24, Windeln Successfully Completes IPO, Das denkt die Szene über den 6Wunderkinder-Exit €3.2b €210m €150 €100m €215m eCommerce Gaming Travel Enterprise AdTech Social €150m (at IPO) $150m FinTech €108m joulex €108m €124m
  • 30. Early stage companies to watch in 2017 30 Data driven publishing house Bus travel platform Large scale data analysis Video game coaching Video sharing network App retargeting Home cooking mail service API based CMS Bank of banks OKR Banking for freelancers Flying cars SME Lending App for your tax returnOffice management software Cloud banking platform Authors choice
  • 32. 32 2017 Predictions Fewer new EU funds will enter the market Expect larger deals from Rocket after a 6 month lull Brexit will continue to accelerate ecosystem growth in Germany Great companies will come from all over Germany! Seed & Series A valuations will level off Interest from non-EU VCs in the German ecosystem will continue to increase
  • 33. 33 2017 Predictions Large incubators will shift towards VC investing After 5 years of B2C growth, B2B startups emerge IPOs of Delivery Hero, Home24, will continue to fuel the ecosystem Global VCs will continue to hire Germans to target the region Zalando will become Germany’s first “decacorn” Germany to surpass the UK in total VC funding
  • 36. Rocket participates in 16 out of 20 of the largest rounds since 2012 36 Rocket Participates in 80% of €50+ funding rounds FY 2015 Financial Statements and Rocket Internet Financial Statements and Capital Markets Day
  • 37. 37 Nine new funds in 2016 DB1 VENTURES TRUMPF STRATEGIC Germany’s 11 New VCs launched in 2016
  • 38. 0 225 450 675 900 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 180 284 719 437 621 444 892 543 555 487 180 267 389 209 379 339 333 388 461 463 29 163 118 232 279 225 281 355 361 443 74 123 89 112 140 84 140 113 194 224 Sweden France Germany UK Funding Trends (ex-mega rounds) 38Europe & Isreal 2016 VC Year in Review, Gil Dibner MillionsofEuro’s
  • 39. Online Content: Rocket Internet Financial Statements Germany’s FinTech Ecosystem: A Wheel in the European Innovation Machine Venture Capital and Startups in Germany 2015, E&Y 16 Biggest German Exits So Far Trouble Selling Grandma’s Cars Led to $1 Billion Startup Salary Survey in Berlin & Berlin Software Engineer Average Salary Berlin named most 'fun' city in the world - telegraph.co.uk A Letter to German Entrprenuers, Index Ventures Think We're the Most Entrepreneurial Country In the World? Not So Fast Heilemann Ventures and Earlybird VC Join Forces GP Bullhound 2015 Unicorn Report, GP Bullhound 2016 Unicorn Report Germany’s 11 New VCs launched in 2016 Data Services: CBInsights Dow Jones Venture Source Crunchbase LinkedIn 39 Source Links
  • 40. Slide 2 - Venture funds in Germany Funds domiciled in Germany or that primarily do business there Does not include corporates, funds without official ‘funds raised’, or non-internet funds Rocket is a publicly traded company with €1.5b of cash and cash equivalents Slide 3 - Fund participation by stage Notable participants by stage, discretionary selection Slide 4- International participation Data from Crunchbase Pro Pitchbook data Slide 6 - A boom in activity Data from Crunchbase Pro Gil Dibner Startups and VC in Isreal Slide 6 - Selection of successful companies Companies with over €30m funds raised Authors choice Slides 9-15 - Notable players Discretionary selection of well known investors Slide 16 - Valuations Estimates based on experience Slides 24-30 - Successful startups Many startups have multiple co-founders that are not included here Authors Choice Slide 28 - Exits Notable internet exits since 2004 Slide 30- Early stage companies to watch Authors choice 40 Methodology