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Analysis of Q1-Q3 2015 venture investment activity in Swedish private tech companies
Industrifonden Swedish
Tech Funding R...
2
Industrifonden is a Swedish venture capital fund, investing in early-stage tech and
life science growth companies. Found...
3
The Swedish startup sector is booming and continues to punch above its weight in terms of global
winners. At the same ti...
4
Swedish private tech companies reach $1 billion in disclosed venture investments YTD.
Q3 2015:
Copyright Industrifonden ...
5
50%
Top 10 most active
investors involved in
50% of all deals
Top 10 funding rounds
make up 80% of total
disclosed deal ...
6
High foreign investor activity in Swedish tech
landscape – led by USA, UK and Germany
Copyright Industrifonden 2015
37%
...
7 Copyright Industrifonden 2015
Note: Data from 34 funding rounds where the company has disclosed phase
0
5
10
15
20
25
30...
8
Quarterly breakdown: Increasing number of small
funding rounds result in minor decrease in median
round sizes
Copyright ...
9
SaaS, Media, and Finance most popular verticals by
number of funding rounds
Copyright Industrifonden 2015
Top 3 vertical...
10
Music, Finance and eCommerce most popular
verticals by total investment value
Copyright Industrifonden 2015
Top 3 verti...
11
Total venture investments – including undisclosed
funding – in Swedish tech companies estimated
north of $1.2 billion Y...
12
Methodology
What’s included
• This report covers venture investments in Swedish private
tech companies
• Analysis based...
13
Stay in touch.
Copyright Industrifonden 2015
industrifonden.com
@industrifonden
/company/industrifonden
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Industrifonden Swedish Tech Funding Report Q1-Q3 2015

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Analysis of Q1-Q3 2015 venture investment activity in Swedish private tech companies

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Industrifonden Swedish Tech Funding Report Q1-Q3 2015

  1. 1. Analysis of Q1-Q3 2015 venture investment activity in Swedish private tech companies Industrifonden Swedish Tech Funding Report Q1-Q3 2015 Copyright Industrifonden 2015
  2. 2. 2 Industrifonden is a Swedish venture capital fund, investing in early-stage tech and life science growth companies. Founded in 1979, Industrifonden is a reinvesting evergreen fund with SEK 4 billion (~$490 m) in assets. About Industrifonden. Copyright Industrifonden 2015 industrifonden.com @industrifonden /company/industrifonden
  3. 3. 3 The Swedish startup sector is booming and continues to punch above its weight in terms of global winners. At the same time, access to capital is crucial for companies looking to grow at speed. Our dataset of disclosed funding rounds shows that venture investments in Swedish tech companies during 2015 has exceeded $1 billion, distributed across more than 100 funding rounds. Summary. Copyright Industrifonden 2015 While a small number of funding rounds and investors account for a large proportion of total investment activity, more than 180 investors have participated in at least one funding round in 2015. Active investors range from local business angels to international hedge funds and corporate VCs. Foreign investors continue to play an important role in the Swedish tech landscape, participating in 37% of all funding rounds. However, foreign involvement is heavily skewed toward later-stage rounds with 22% participation in <1 MUSD rounds compared to being a part of all later-stage growth rounds. The number of funding rounds per quarter has increased steadily throughout the year, mainly driven by a higher amount of disclosed small rounds (<1 MUSD). This results in a minor decrease in median rounds while average rounds are still heavily impacted by individual deals. The companies that receive the most investments – both by deal count and deal size – are mainly focused on consumers. Most well-funded sectors include Media, Finance and eCommerce.
  4. 4. 4 Swedish private tech companies reach $1 billion in disclosed venture investments YTD. Q3 2015: Copyright Industrifonden 2015 >$1bn(>SEK 8.2 billion) raised during Q1-Q3 2015 >100Funding rounds
  5. 5. 5 50% Top 10 most active investors involved in 50% of all deals Top 10 funding rounds make up 80% of total disclosed deal value 80% Top 10 funding rounds as % of total deal value Top 10 active investors as % of deal count Copyright Industrifonden 2015
  6. 6. 6 High foreign investor activity in Swedish tech landscape – led by USA, UK and Germany Copyright Industrifonden 2015 37% 0 10 20 30 40 50 60 70 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% ≤1 MUSD 1.1 - 6 MUSD 6.1 - 25 MUSD 25 - MUSD Funding rounds with foreign participation Foreign participation Deal count Deal count 34% 28% 14% 11% 7% 6% Average number of funding rounds with foreign participation Foreign participation by country USA UK RoW Germany Denmark Finland
  7. 7. 7 Copyright Industrifonden 2015 Note: Data from 34 funding rounds where the company has disclosed phase 0 5 10 15 20 25 30 35 40 45 Angel Seed Series A Series B Series C Series D Average round size (MUSD) 3x 6.2x 3.7x 2x 1.2x 0.24 0.75 4.6 17.0 33.7 40.9 Snapshot: Average round sizes by phase
  8. 8. 8 Quarterly breakdown: Increasing number of small funding rounds result in minor decrease in median round sizes Copyright Industrifonden 2015 Note: The inflated average deal size in Q2 2015 is mainly due to Spotify’s >$500m Series G financing 0 5 10 15 20 25 30 35 40 45 50 0 2 4 6 8 10 12 14 16 Q1 2015 Q2 2015 Q3 2015 Average deal size (MUSD) Median deal size (MUSD) Deal count Deal countMUSD 0 5 10 15 20 25 30 <1 MUSD 1.1 - 6 MUSD 6.1-25 MUSD 25- MUSD <1 MUSD 1.1 - 6 MUSD 6.1-25 MUSD 25- MUSD <1 MUSD 1.1 - 6 MUSD 6.1-25 MUSD 25- MUSD Q1 Q2 Q3 Deal count
  9. 9. 9 SaaS, Media, and Finance most popular verticals by number of funding rounds Copyright Industrifonden 2015 Top 3 verticals by deal count 12% 11% 10% Note: Deal count as percentage of total Software-as-a-Service (SaaS) MediaTech FinTech
  10. 10. 10 Music, Finance and eCommerce most popular verticals by total investment value Copyright Industrifonden 2015 Top 3 verticals by total deal value Note: Deal size as percentage of total * Spotify’s Series G round represents ~98% of the total deal value for MusicTech MusicTech* FinTech 54% eCommerce 14% 9%
  11. 11. 11 Total venture investments – including undisclosed funding – in Swedish tech companies estimated north of $1.2 billion YTD 2015 Copyright Industrifonden 2015 Note: Estimation of undisclosed funding rounds is highly uncertain and can differ significantly from actual numbers. Estimation based on historic proprietary figures and estimations from selected local investors. Analysis puts undisclosed funding at >45% of adjusted total value • Total investments calculated as sum of total disclosed value and a factor of total disclosed value adjusted for outsized funding rounds • Estimation made up by: o Proprietary deal history o Peer analysis o Analysis of disclosed investments with undisclosed amounts Common types of undisclosed funding rounds • Undisclosed new investment • New investment with undisclosed amount • Undisclosed follow-on/bridge round • Follow-on/bridge financing with undisclosed amount
  12. 12. 12 Methodology What’s included • This report covers venture investments in Swedish private tech companies • Analysis based on proprietary database with 100+ funding rounds from 2015 • 10+ parameters including deal size, stage, investors and vertical • Both first-time and follow-on investments. • Deals are tracked in SEK. If originally reported in other currencies, conversion is based upon exchange rate per date of disclosure. Aggregate figures are subject to change due to currency fluctuation. What’s not included • Investments in life science, med tech, bio tech, retail, and consulting • Secondary investments and M&A deals • Investments in public companies of any kind • Grants, bank loans and other types of funding that is not intended to result in ownership Copyright Industrifonden 2015 For more information, contact: Björn Bergström, bjorn.bergstrom@industrifonden.se The information contained in this report has not been independently verified as to its accuracy. No representation or warranty, express or implied, is given by Industrifonden or any of its directors, partners, officers, affiliates, employees, advisers or agents as to the accuracy or completeness of the contents of this report or any other document or information supplied or any opinions or projections expressed herein or therein, nor is any such party under any obligation to update the report or correct any inaccuracies or omissions in it which may exist or become apparent.
  13. 13. 13 Stay in touch. Copyright Industrifonden 2015 industrifonden.com @industrifonden /company/industrifonden

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