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The VC landscape in Europe
Sia Houchangnia
March 2nd
Seedcamp is a Founder’s
First Round Fund.
We invest smart capital into
pre-seed and seed stage startups,
providing up to €...
Some of the top VCs our
companies are raising from
@SiaHouchangnia
1. The current
funding environment
“We need to make the economics work…
We have to understand that every round
of funding must be treated as our last.”
Willi...
Public & private markets are interconnected
@SiaHouchangnia
Yahoo Finance, March 2016
The story in short…
Upcycle
1. More companies raising large rounds on unproven metrics and fundamentals
2. non VC-expert m...
What the data shows
Venture Pulse Q4 2015, KPMG & CBinsights, January 2016
@SiaHouchangnia
2. Where is the capital
coming from?
Leading global VC firms
Large European
VC firms
Emerging European
VC firms
Some of the leading European VC firms
@SiaHouchangn...
Selected examples of new funds
recently launched
The State of European Tech, Slush & Atomico, November 2015
@SiaHouchangnia
The key role of government funding
@SiaHouchangnia
The State of European Venture Capital, BCG, October 2015
US money also contributing to fill the gap
@SiaHouchangnia
2015 Anual European Venture Industry Report, PitchBook, January ...
The State of European Tech, Slush & Atomico, November 2015
@SiaHouchangnia
Selected examples of European
investments made ...
3. The geographic disparities
VC firms all across Europe
€70Maverage size
>800VC firms
80%manage
< €100M
Techstars, Investors in Europe, December 2015
@Si...
…but the capital is not evenly
distributed across the continent
The State of European Tech, Slush & Atomico, November 2015...
A closer look at the main hubs
The State of European Tech, Slush & Atomico, November 2015
@SiaHouchangnia
4. What’s next for Europe?
More and more European success stories
@SiaHouchangnia
European Unicorns: Do They Have Legs?, GP Bullhound, June 2015
The generational effect
The State of European Tech, Slush & Atomico, November 2015
@SiaHouchangnia
Increasing number of entrepreneurs
turned investors in Europe
The State of European Tech, Slush & Atomico, November 2015
@...
…But still lots of room to grow
Entrepreneurship at a Glance 2015, OECD. August 2015
@SiaHouchangnia
We need to have larger funds
@SiaHouchangnia
2015 Anual European Venture Industry Report, PitchBook, January 2016
…funding larger rounds
@SiaHouchangnia
2015 Anual European Venture Industry Report, PitchBook, January 2016
5. Conclusion
The correction in Europe should not
be as bad as the US… Why?
Valuations less inflated than in US and China
Weak EUR & weak...
3 things to remember if you fundraise now
1. Keep your burn under control
2. Demonstrate a clear path towards monetization...
Thank you
Sia Houchangnia - Investment Team at Seedcamp
@SiaHouchangnia
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The VC landscape in Europe - Presentation at Fintech Fusion

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Sia Houchangnia from the Seedcamp investment team was invited to give a talk at the Geneva-based Fintech Fusion accelerator on the current state of the VC landscape in Europe.

Published in: Investor Relations

The VC landscape in Europe - Presentation at Fintech Fusion

  1. 1. The VC landscape in Europe Sia Houchangnia March 2nd
  2. 2. Seedcamp is a Founder’s First Round Fund. We invest smart capital into pre-seed and seed stage startups, providing up to €200k and a lifelong platform of Learning, Network and Capital to support the most ambitious Founders. @SiaHouchangnia
  3. 3. Some of the top VCs our companies are raising from @SiaHouchangnia
  4. 4. 1. The current funding environment
  5. 5. “We need to make the economics work… We have to understand that every round of funding must be treated as our last.” William Shu Founder Deliveroo @SiaHouchangnia European Tech Scene Begins to Feel Silicon Valley’s Woes, Mark Scott, The New York Times, February 2016
  6. 6. Public & private markets are interconnected @SiaHouchangnia Yahoo Finance, March 2016
  7. 7. The story in short… Upcycle 1. More companies raising large rounds on unproven metrics and fundamentals 2. non VC-expert money coming in (Hedge Funds, Family Offices, Corporates) 3. Private markets valuing companies at 50-100x revenue 4. US investors flying to Europe not just for holidays Economic slowdown —> market correction 1. Public stock markets falling 2. Tech IPOs trading below issue price 3. Investors raising their expectations 4. Fundraising taking longer and rounds closing at lower valuations @SiaHouchangnia
  8. 8. What the data shows Venture Pulse Q4 2015, KPMG & CBinsights, January 2016 @SiaHouchangnia
  9. 9. 2. Where is the capital coming from?
  10. 10. Leading global VC firms Large European VC firms Emerging European VC firms Some of the leading European VC firms @SiaHouchangnia
  11. 11. Selected examples of new funds recently launched The State of European Tech, Slush & Atomico, November 2015 @SiaHouchangnia
  12. 12. The key role of government funding @SiaHouchangnia The State of European Venture Capital, BCG, October 2015
  13. 13. US money also contributing to fill the gap @SiaHouchangnia 2015 Anual European Venture Industry Report, PitchBook, January 2016
  14. 14. The State of European Tech, Slush & Atomico, November 2015 @SiaHouchangnia Selected examples of European investments made by US VC firms
  15. 15. 3. The geographic disparities
  16. 16. VC firms all across Europe €70Maverage size >800VC firms 80%manage < €100M Techstars, Investors in Europe, December 2015 @SiaHouchangnia The State of European Venture Capital, BCG, October 2015
  17. 17. …but the capital is not evenly distributed across the continent The State of European Tech, Slush & Atomico, November 2015 @SiaHouchangnia
  18. 18. A closer look at the main hubs The State of European Tech, Slush & Atomico, November 2015 @SiaHouchangnia
  19. 19. 4. What’s next for Europe?
  20. 20. More and more European success stories @SiaHouchangnia European Unicorns: Do They Have Legs?, GP Bullhound, June 2015
  21. 21. The generational effect The State of European Tech, Slush & Atomico, November 2015 @SiaHouchangnia
  22. 22. Increasing number of entrepreneurs turned investors in Europe The State of European Tech, Slush & Atomico, November 2015 @SiaHouchangnia
  23. 23. …But still lots of room to grow Entrepreneurship at a Glance 2015, OECD. August 2015 @SiaHouchangnia
  24. 24. We need to have larger funds @SiaHouchangnia 2015 Anual European Venture Industry Report, PitchBook, January 2016
  25. 25. …funding larger rounds @SiaHouchangnia 2015 Anual European Venture Industry Report, PitchBook, January 2016
  26. 26. 5. Conclusion
  27. 27. The correction in Europe should not be as bad as the US… Why? Valuations less inflated than in US and China Weak EUR & weakening GBP contribute to attract US capital Very low interest rates in EU pushes pension funds / mutual funds to consider asset classes like VC, which drive higher returns Government agencies maintaining / increasing their support @SiaHouchangnia
  28. 28. 3 things to remember if you fundraise now 1. Keep your burn under control 2. Demonstrate a clear path towards monetization 3. Raise for 18 months @SiaHouchangnia
  29. 29. Thank you Sia Houchangnia - Investment Team at Seedcamp @SiaHouchangnia

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