A year on from when we first reported with Dealroom on the UK's tech unicorns for the Government’s Digital Economy Council, it can be revealed that the UK has created 13 new unicorns - privately-owned tech companies valued at over $1bn - in the last year, ranking the UK third behind only the US and China in creating fast-growing global tech companies. • The UK is behind only the US and China for total number of unicorns created • London ranks second to the Bay Area for the number of fintech unicorns, at 18 • UK tech has created more $1bn companies than any other European country and Israel • Since last year’s London Tech Week, 13 new unicorns have been created bringing the total number of UK unicorns to 72

1. London Tech Week
UPDATE
June 2019
Prepared for Tech Nation and the Government’s Digital Economy Council by Dealroom.co

2. 2
#3
3rd for Unicorns after US & China
Total number of unicorns by country
Current Unicorns
Realized Unicorns

3. London is 2nd for FinTech Unicorns after Bay Area
3
Fintech Unicorns by city/area
#2

4. Facts a year on, show that UK Tech continues to dominate
Europe & Israel
4
Investment
Capital Invested
Strongest Funds
Unicorn Outcomes
Past - Exits
Present - Unicorns
Future - Unicorns

5. In 2018, UK venture investment nearly matched Germany,
France & Sweden combined (and was more than 2x Israel)
5Source:Dealroom.co. Rounds excluding top 10 mega-rounds.

6. 6
$800M $575M
$440M $240M
$230M $175M
$100M $90M
$75M $54M
Notable investment rounds in 2019
All-time record VC investment in first half of 2019 in UK

7. VC rounds at a valuation of $1B+ topped at 13 in 2018 in the
UK; as many as Germany, Israel and Sweden combined
7
Source:Dealroom.co. Note: 2019 rounds exclude Glovo, no valuation confirmation
* Excludes The Access Group round, undisclosed amount
UK
Combined $2.3B raised
(360% YoY growth
2018 Jan-May: $500M* )
$900M
raised
(-35%
YoY)
$230M
raised
(+15%
YoY)
$100M
raised
(+10%
YoY)
$90M
(n/a)
$1.5B
(+380%
YoY)
Unicorn rounds in 2019 so far
Germany
Number of VC rounds at $1 billion+ valuation
France Israel Sweden Rest

8. Source: Dealroom.co
* Dilution factor is adjusting for the stage at which each investor typically invests, and is based on the idea that a Seed round is typically valued at around $10M, a
series A round at $30M, and a late stage round at $100M. 8
The UK is home to 4 of Europe’s 5 leading unicorn hunter funds

9. Plenty of capital available and steadily increasing, as new
VC funds raised were at an all-time high in 2018
9
VC funds raised by investor country

10. 10
Note: Based on $1B or above Acquisition/Buyout or IPO at $1b or above in market
cap. Does not include company branches Acquisitions e.g. TomTomTelematics
2012 2013 2014 2015 2016 2017 2018 2019 May
United Kingdom Wood Mackenzie $1.3B Buyout
Esure Group $1.8B
Worldpay $2.6B Acq.
King.com $7.0B IPO, Markit $4.5B
IPO, AO.com $2.0B IPO, Just Eat
$2.0B IPO, Travelport $1.9B IPO,
CSR $2.4B, ACS $1.0B, Zoopla
$1.3B IPO, Pokerstars $5B
Skrill $1.3B, Sophos $1.6B IPO,
Auto Trader UK $3.5B IPO,
Worldpay $7.4 IPO, King.com
$6.0B Acq, Adaptimmune $1.2B
IPO, Wood Mackenzie $2.8B Acq.
Skyscanner $1.9B
Global Switch $7.5B
ARM $31B
Host Europe Group $1.9B
Alfa $1.3B IPO
MATCHESFASHION.COM $1.0B
Worldpay $10.4B, Callcredit $1.4B,
Farfetch $4.4B IPO, Sky Betting &
Gaming $4.7B, Zoopla $3.0B, Orchard
Therapeutics $1.2B IPO, FNZ $2.1B
Acq, Funding Circle $1.8B IPO, Esure
Group $1.4B, Endava $1.1B IPO,
GlobalSwitch $2.6B, CRF Health $1.0
B Acq., Autolus $1.0B Acq, Yoox Net-
a-porter $5.0B
Worldpay $35B Acq
Acuris $1.7B Acq
Germany Trivago $1.0B Acq.
Hybris $1.0B
Scout24 Holding $1.6B Buyout
Rocket $7.4B IPO
Zalando $6.1B IPO
TeamViewer $1.0B
Scout24 $3.6B IPO Trivago $2.9B IPO
Delivery Hero $4.9B IPO
HelloFresh $1.9B IPO
SUSE $2.5B Acq
Dermapharm $1.7B IPO
France CRITEO $1.7B IPO Exclusive Group $1.5B eFront $1.3B Acq.
Israel Waze $1.1B Mobileye $5.3B IPO Playtika $4.4B
Mobileye $15.3B
NeuroDerm $1.1B
Mazor Robotics $1.3B Acq.
Sweden Mojang $2.0B Acq. Bambora $1.7B Acq.
Spotify $26.5B IPO
iZettle $2.2B
Rest of Europe AVG $1.0B IPO
VKontakte $3.2B
Supercell $3.0B
GlobalCollect $1.0B Acq.
eDreams $1.5B IPO
Avast Software $1.0B
Jazztel $5.0B Acq.
TeamSystem $1.4B
AVITO $2.8B
Flow Traders $2.0B IPO
Heptagon $1.0B, Sitecore
$1.0B, Acerta Pharma $7.0B,
Mail.ru Group $1.2B, AVG
$1.3B, FleetMatics $2.4B,
Allegro $3.3B , Takeaway
$1.0B IPO, Hotelbeds Group
$1.3B, Actelion $30.0B Acq.
Supercell $10.2B
Allfunds Bank $2.0B
Outfit7 $1.0B Acq.
Rovio $1.0B IPO
Ablynx $4.3B
Prexton therapeutics $1.0B
Adyen $7.7B IPO
Elastic $5.0B IPO
Opera $1.4B IPO
Netcompany $1.5B IPO
Avast $2.9B IPO
Avito $1.2B Acq.
Doc Generici $1.2B
Luxoft $2.0B Acq.
Number of
$1B+ Exits
UK consistently delivers many more $1B+ exits than Europe & Israel

11. 11
Source:Dealroom.co. Includes companies founded since 1990 and reached $1B valuation up to May 2019
1.Rumored valuation of $1B, not confirmed through a transaction
2.Exited at Unicorn valuation through IPO, Buyout or Acquisition
Cumulative number of Unicorns per country
Israel: 2
Rest of Europe: 11
2
1
Germany: 6
France: 5
1
2
Sweden: 1
1
2
2
2
UK: 13
New unicorns since last London Tech Week
The UK has created 72 unicorns (34% of total in Europe and
Israel) - lead has been increasing in last 5 years

12. 12
Note: Based on $1B or above Acquisition/Buyout or IPO at $1b or above market cap. Does not include company branches acquisitions e.g.
TomTomTelematics. Rumored Unicorns are Unicorns whose valuation has not been confirmed through a transaction
Since 2012, the UK has delivered as many unicorns as
Israel, Germany, Netherlands and Sweden combined

13. 13Note: Private companies (not acquired or IPO’d), between $250M - $800M in estimated valuation. Full list available in Datacommons
Looking ahead, the UK has 30% of Europe and Israel’s
future unicorns - more than 2x France, Israel & Germany

14. The UK is global leader in responsible technology
14
Start Up Policy Enablers
● Industrial Strategy
e.g. AI Sector deal & Space Catapult
● Open Data
e.g. TfL & Citymapper
● Open Banking
● FCA Sandbox
Practical Thought Leadership
● ODI
● Centre for Data Ethics
● Data Commons
● Online Harms white paper
● Alan Turing Institute
Public Sector Stimuli
● UKRI
● BBB
● BGF

15. Deep pool
of experienced
unicorn talent Unicorns
across
Regions
Ecosystems
across the UK
Unicorns
across Sectors
Jobs
across the
sector
Skills
across the
regions
UK Tech is inclusive and offers opportunities for everyone
15

16. UK now has over 50,000 experienced unicorn talent
Realised unicorns: 54 Unrealised unicorns: 18 Future unicorns: 75
16

17. Experienced unicorn talent is spread across the UK
London: 45 unicorns
Manchester: 5
Cambridge: 5
Berlin: 10
Paris: 9
Stockholm: 9
Amsterdam: 6
Oxford: 5
Munich: 6
Dublin: 2
Hamburg: 2
Edinburgh: 3Leeds: 2
Madrid: 3
Barcelona: 2
Copenhagen: 5
Bristol: 2
17

18. Aside from London, the UK counts five additional hubs with at
least two unicorns, on par with major European tech cities
London Oxbridge Berlin Paris Amsterdam Manchester Edinburgh Dublin Leeds Bristol
Unicorns
created
45 10 10 9 6 5 3 2 2 2
Population 8.2M 290K 3.6M 2.2M 820K 510K 480K 550K 780K 530K
Investment
per capita
$570 $1,160 $660 $1,160 $490 $123 $170 $860 $176 $620
Highest
ranked
university
8 1 & 2 62 72 59 54 27 117 139 76
Number of
accelerators
146 22 42 51 18 10 6 14 10 2
Unicorns: number of companies founded since 1990 that reached $1 billion valuation.
Investment per capita based on investment in 2018 and city population.
University rank as per Times Higher Education. 18

19. Unicorns by sector
Source:Dealroom.co.
Deep Tech/Industrial
UK Europe
9 12
Finance
UK Europe
21 21
Health
UK Europe
9 14
Retail
UK Europe
10 8
Rest: 4
Rest: 7
Rest: 4
Germany: 3
Rest: 7
Sweden: 4
France: 3
Israel: 4
Germany: 2
Sweden: 1
France: 2
Israel: 6
Germany: 3
France: 1
Israel: 3
Germany: 3
France: 1
19

20. VC-funding from 2013-2018. Source:Dealroom.co.
Finance Health
Retail Deep Tech/Industrial
Steady leadership across different industries
20

21. Markets
● Consumers: English + 300 languages
● Enterprise
● Supportive Government policy
● International
Track Record
● Experienced Talent
● Multi-Stage Capital
● Service Providers
Massive Talent Pipeline
● Multi-Sector Experience
● Tech Talent
● World Class Universities
● Strong Regional Tech
21
UK has all the ingredients of a global tech power

22. 22
UK is home to a huge pool of tech talent, creating benefits for all
Source: Tech Nation 2019; Adzuna, ONS
1 2 3 4 5 6 7 8 9 10 11
UK Cluster
Total Digital
Economy Jobs
(2017) Unicorns
Total Digital
Economy
Job
openings
(2018)
% City Jobs
in Digital
Tech
Median
Salary - all
Tech roles in
Digital
Economy
(2018)
Digital Tech
Salary vs
City Average
Tech Jobs in
all
companies
(2017)
Jobs in
Digital Tech
(2017)
Total Non-
Tech Jobs in
Digital Tech
companies
(2017)
Non-Tech
Digital as %
of Digital
London 574,562 45 915,471 6% £53,296 26.90% 256,082 318,480 62,398 10.86%
Manchester 100,520 5 164,043 4% £35,000 2.94% 38,414 9,704 39,154 38.95%
Reading 100,507 48,742 33% £40,000 8.11% 25,416 10,258 15,711 15.63%
Belfast 60,041 16,853 20% £40,000 17.65% 26,999 24,754 42,101 70.12%
Birmingham 59,131 75,401 2% £37,500 7.14% 41,550 17,581 23,969 40.54%
Cambridge 52,196 5 85,679 50% £39,000 2.63% 69,837 30,683 21,190 40.60%
Bristol 51,753 2 86,247 5% £35,520 4.47% 51,071 8,970 2,245 4.34%
Edinburgh 48,118 3 44,879 4% £42,500 14.86% 34,742 12,103 28,710 59.67%
Leeds 46,845 2 88,042 6% £35,000 9.38% 36,693 15,503 22,639 48.33%
Oxford 37,458 5 72,844 25% £36,000 5.88% 25,637 11,821 13,816 36.88%
Newcastle 35,674 29,760 11% £35,000 6.06% 42,398 58,109 15,158 42.49%
Sheffield 28,243 26,059 2% £32,500 8.33% 21,508 4,640 15,825 56.03%
Cardiff 26,148 24,923 2% £35,000 6.06% 22,034 6,209 16,868 64.51%
Notes: 2: Total digital economy jobs include both tech and non tech roles in tech companies, and tech roles outside tech companies, like a software developer at Jaguar Land Rover. 3: $1bn valued tech companies in the given cluster. 4: total number of
advertised jobs through Adzuna’s platform, upweighted to be representative of the volume of jobs recorded for tech by the Office for National Statistics 5: % of jobs in city in Digital Tech 6: the middle value for salaries for tech roles both in tech companies, and
other companies. 7: the difference between salaries for digital tech jobs and other roles in the cluster, where digital tech is on average 10% better paid. 8: tech roles in all companies, such as a software developer at Monzo, or a data scientist at Jaguar Land
Rover. 9: all jobs in digital tech companies, including full stack developers as well as HR professionals, and legal for example. 10: just the non tech roles, such as HR, finance or customer services. 11:The proportion of non digital tech roles within tech companies
by cluster

23. Tech is open, inclusive and growing across the UK
23
Role
Digital
job openings
(2018) Median Salary
Cost of living
adjusted –
best place to work
Median salary
(London)
Software Developer 130,158 £39,430 Belfast £55,000
Front End Developer 32,431 £35,286 London £50,000
Project Manager 31,721 £47,500 Glasgow £56,000
Consultant 23,879 £55,000 Sheffield £60,000
Devops Engineer 23,690 £50,500 London £67,500
IT System Architect 17,340 £63,857 Cardiff £77,500
Full Stack Developer 16,753 £40,964 Belfast £55,000
Analyst 10,452 £33,929 Edinburgh £45,000
Python Developer 10,100 £43,893 Glasgow £60,000
Data Engineer 6,950 £35,553 London £60,000
Data Scientist 6,287 £45,714 Leeds £60,000
Source: Tech Nation 2019; Adzuna, Numbeo

24. 24

25. 25

26. ▪ Investment numbers refer to venture capital investment rounds such as seed, series A, B, C, …. late stage, and growth equity rounds. It excludes
debt or other non-equity funding, lending capital, grants and ICOs
▪ Buyouts, M&A, secondary rounds, and IPOs are treated as exits: excluded from funding data, but included in exit data
▪ A unicorn is defined as an independent private company (i.e. not publicly listed) that has reached a $1 billion valuation, on the basis of a funding
round or, retrospectively, on the basis of an acquisition or IPO
▪ There are some notable edge-cases:
- Companies that IPO-ed at or above $1 billion but subsequently dipped below that valuation, are still included (examples: Alfa, Rovio, eDreams)
- Some companies have at some stage reached a $1 billion but subsequently raised, IPO-ed or were acquired below that value. In this case the
company is not counted as a unicorn (examples: Blippar, Home24, Fanduel, Ulmart, Conduit, Wonga, VE Interactive, Powa)
- If a unicorn moved HQ, the company is counted in the country where it reached unicorn status. Occasionally companies received dual HQ status (1)
▪ This report focuses on companies that crossed the $1 billion mark in the post-internet age, i.e. after 2000. Most but not all unicorns are VC backed
▪ Companies included in the analysis are tech-driven. Industries include software, ecommerce, online marketplaces, hardware, ICT infrastructure. The
full industry & business model taxonomy can be found online via https://datacommons.technation.io
▪ Increasingly, innovative models are scaling offline or via hybrid online-retail models. Examples are beer brand Brewdog which innovated distribution
and marketing, by leveraging viral marketing and crowdfunding to build a brand and Metro Bank, a retail-first challenger bank
▪ Dealroom’s proprietary database and software aggregate data from multiple sources including processing of public news-flow, data feeds, web
scraping, crowd-sourced contributions (verified by Dealroom) and manual research
▪ Data is verified and curated with an extensive manual process, augmented by data processing
▪ Most underlying data from the report is available online. For more info please visit dealroom.co or contact support@dealroom.co
1. Examples include: Elastic (US/NL), King.com (UK/Sweden), Intercom (USA/Ireland), Sitecore (Denmark/USA), Cybereason (Israel/USA). 26
Methodology & definitions

27. 27
Access the underlying data on datacommons.technation.io

28. 28
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Dealroom is Europe’s most comprehensive source for data on
innovative companies and venture capital investment