Europe & Israel: Venture Capital Data (1H18)

Venture Capital in Europe & Israel
Venture Investment Data: 1H18
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In compliance with applicable UK regulations, Angular Ventures is an Appointed Representative of Sapia
Partners LLP (550103), a firm authorised and regulated by the Financial Conduct Authority (FCA).

Angular is a specialist venture capital firm, built to back a very specific
type of company:
• Enterprise-oriented. If your business requires consumer adoption, it's
not for us. We back companies that sell products and services to other
companies.
• Deep technology. We are firm believers in the value of meaningful
barriers to entry, and we know there are a lot of ways to define and
construct those barriers.
• Born in Europe or Israel. We know that great innovation can come
from anywhere. Our focus is on companies born on the "right" side of
the Atlantic, specifically in Europe or Israel.
• Global ambition. While it's possible to build a great business without
targeting a global opportunity, we are exclusively focused on
companies that are chasing a truly global opportunity. In most cases,
this means a focus on US market entry from day one.
• Outstanding founding teams with domain expertise. We believe
that great founders are the main driver of success for any
entrepreneurial venture. We like "well-rounded" founders, but tend to
prefer founders that are "angular," bringing unique technical or
domain expertise to bear.
• Early stage. We like to be very early. We are not religious about being
first, but most of our investments are into companies that have raised
less than $1M before we engage.
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Notes & more
• The data in this report consists entirely of data I’ve gathered manually based on publicly available, free sources
• No paid data sources or API calls were harmed in the making of this dataset, every investment was manually classified
• This allows analysis of some aspects of the data I consider important – aspects that don’t appear in other data sources.
More importantly, it allows me to exclude deals that are really not “venture capital” rounds but tend to get included by
others
• Seed investment is under-reported and adds a lot
• of noise to the data set, so I exclude deals under $500K
• The analysis is limited to ICT categories and excludes life sciences
• The analysis excludes Turkey and FSU countries
• All currencies converted into USD using monthly average exchange rates
• ICOs included on a selective basis; crypto companies are classified into verticals by their end value proposition
About this data:
A special thank you to Andrew Poesaste (@poetential) for help with data gathering.
He’s looking for a full-time VC gig in London and he’s awesome.

Top 10 deals by region in 1H18 (US $M)
France & Benelux IsraelIberia
UK & Ireland DACH Nordic
58
76
80
92
110
115
125
132
206
250
Global Processing Services
Liberis
Culture Trip
E-Leather
Circle
BenevolentAI
Intercom
Oxford Nanopore
Atom Bank
Revolut
0 100 200 300
51
53
58
65
70
70
71
160
160
560
WISeKey
Dreamlines
Frontier Car Group
Smava
SolarisBank
Sonnen
Design Offices
N26
Number 26
Auto1
0 200 400 600
30
30
34
41
41
45
46
50
50
62
175
Area9 Lyceum
Qapital
Iceye
Small Giant Games
Small Giant
NA-KD
Tactotek
Starship Technologies
Pipedrive
KRY
Taxify
0 50 100 150 200
10
10
12
20
21
23
24
29
40
160
Nextail
Badi
Red Points
PLD Space
TravelPerk
Unbabel
Hawkers
OnTruck
Spotahome
Maximobility (Cabify)
0 50 100 150 200
50
50
59
60
60
66
75
96
200
250
CityScoot
Klaxoon
Recommerce
Openclassrooms
Scality
Front
Ledger
Back Market
Voodoo
Tradeshift
0 50 100 150 200 250 300
36
44
50
51
60
60
80
100
150
300
Algosec
BigID
Moovit
TripActions
BlueVine
Claroty
Gett
eToro
Behalf
Landa Digital Printing
0 100 200 300 400

Top 10 deals by type in 1H18 (US $M)
Systems SaaSEnterprise
Consumer Financial Commerce
100
110
160
160
160
175
200
206
250
560
eToro
Circle
Number 26
N26
Maximobility (Cabify)
Taxify
Voodoo
Atom Bank
Revolut
Auto1
0 200 400 600
65
70
76
100
110
150
160
160
206
250
Smava
SolarisBank
Liberis
eToro
Circle
Behalf
Number 26
N26
Atom Bank
Revolut
0 50 100 150 200 250 300
29
34
38
45
50
53
53
56
59
96
Geld Fuer Flug
Chronext
Gousto
NA-KD
TourRadar
Pharmacy2U
Dreamlines
Made.com
Recommerce
Back Market
0 20 40 60 80 100 120
51
54
58
60
60
66
115
125
132
153
WISeKey
Concentra Analytics
Global Processing Services
Claroty
Scality
Front
BenevolentAI
Intercom
Oxford Nanopore
UiPath
0 50 100 150 200
35
35
36
38
50
51
70
75
132
300
Exotec
Evergaz
Dreem
Almotive
Starship Technologies
WISeKey
Sonnen
Ledger
Oxford Nanopore
Landa Digital Printing
0 100 200 300 400
35
37
42
50
50
51
54
66
115
125
Dutch Finance Lab
Amplience
ContentSquare
Celonis
Pipedrive
TripActions
Concentra Analytics
Front
BenevolentAI
Intercom
0 50 100 150

On track for a record year
• 2018 appears to be on
pace as another record-
setting year in EU+IL
venture
• Over $12.6B was invested in
975 opportunities in the
first half of 2018
• Compared to the first half
of 2017, dollar volume was
up 29%, but the number of
deals was down by 2%
• These numbers, and the
rest of this deck, do not
reflect the $1B in debt
raised by Spotify in March,
2017
6,012 7,844 9,835 12,690
541
949
998 975
0
200
400
600
800
1,000
1,200
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2015 2016 2017 2018
NumberofInvestments
Amountinvested(US$M)
VC Investments in Europe & Israel
(first six months of each year, 2015-2018)
Invested amount (US $M) Number of investments

The first two quarters of 2018 were very strong
• The first and second
quarters of 2018 were both
record-setting quarters in
terms of dollars invested
• In terms of the number of
deals done, 1Q18 was the
slowest quarter since 3Q16,
with “only” 440 deals
done.
• 2Q18, however, was a
record-setting quarter with
535 deals done, surpassing
the previous record of 527
in 1Q17
835
1,703
1,916
2,873
3,139
3,252
2,857
3,730
4,114
3,122
3,520
4,072
5,763
5,609
4,907
6,170
6,520
0
100
200
300
400
500
600
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016 2017 2018

Monthly pace of venture investment
• Looked at on a monthly
basis, the strength of 2Q18
is even more pronounced
• June 2018 was a record-
setting month in terms of
the number of investments
• The impact of summer and
winter holidays on deal
volume is easy to spot
905
971
997
791
787
1,561
1,518
571
1,164
1,084
1,059
715
1,657
1,051
1,021
1,401
1,452
1,261
725
1,101
1,296
1,458
1,170
893
1,671
943
1,458
861
3,014
1,888
2,013
757
2,840
1,926
1,543
1,438
2,451
1,558
2,160
1,727
2,390
2,403
0
50
100
150
200
250
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2015 2016 2017 2018

Even without mega-rounds, volumes are up
• This analysis breaks down VC
investments into brackets by
size:
• Seed (less than $2M)
• Early venture ($2-8M)
• Venture ($8-20M)
• Growth ($20-100M)
• Mega ($100M+)
• Readers of this report know
that I used to put the logos
of the mega-rounds into this
chart – but there are just too
many for that to be practical
• Even without the mega-
rounds, however VC
investment volumes were up
massively in 2Q18 compared
to previous quarters
708 759 733 710 734 753 919
650
921 950 873 1,001 1,081
1,523
1,196
1,395 1,567
2,507 2,126 2,157
2,530
784
778
2,339
1,358
861
2,066
1,400
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2016 2017 2018
AmountInvested(US$M)
Pace of VC Investment in Europe and Israel
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (.5-2)

Strong year-over-year growth in most brackets
• Seed investment was down
33% from 1H17 to 1H18
• All other categories,
however, showed growth:
• Early venture was up 12%
• Venture was up 39%
• Growth was up 58%
• Mega-rounds were up by 11%
393 2621,492 1,671
1,872 2,604
2,962
4,686
3,117
3,466
0
5,000
10,000
15,000
20,000
2017 2018
TotalVCinvestment(US$M)
VC investmentvolume in Europe and Israel by bracket
(1H2018 vs 1H2017)
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

Number of investments, by bracket
• Excluding seed deals, the
total number of VC
investments per quarter
was relatively constant
since 1Q17…until 2Q18 when
the venture and early
venture categories
exploded
77 85 94
140 153 157 144
182 195 185 171 181 186
220
42
62 44
46
61 57 64
53
77 77
75
83 86
122
33
26 38
35
44 52
40
35
40 44 66
57 61
66
6
6 4
3
4 4
1
6
6 9 5 6
11
7
0
50
100
150
200
250
300
350
400
450
2015 2016 2017 2018
NumberofVCinvestments
VC investmentvolume in Europe and Israel by bracket
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)

No impact of Brexit on deal volume…
• Looking just at UK VC deal
volume, there’s so far no
evidence that Brexit caused
any slowdown whatsoever
in VC activity
• There were an average of 45
VC deals per quarter in the 18
months before the
referendum
• There were an average of 74
VC deals per quarter since
the referendum
0
10
20
30
40
50
60
70
80
90
100
Qtr1
Qtr2
Qtr3
Qtr4
Qtr1
Qtr2
Qtr3
Qtr4
Qtr1
Qtr2
Qtr3
Qtr4
Qtr1
Qtr2
2015 2016 2017 2018
VC investmentvolume in the UK by bracket
Pre-
Brexit
avg = 45
Post-Brexit
avg = 74

…and no impact on dollars invested in the UK
• An average of $819M per
quarter was invested in the
UK in the 18 months before
the referendum
• An average of $1,145M per
quarter was invested in the
UK since the referendum
74 70 98 79 136 108 133 150 189 162 180 151 247 213
165 166 96 128
172 148 181 113
159 247 224 184
150
356
459
180
405
209
532
273 202
191
149
514
755
586 442
652
210
150
275
478
192
110
275
202
899
633
391
338
365
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2015 2016 2017 2018
VC investmentvolume in the UK by bracket
Pre-Brexit
avg = $819M
Post-Brexit
avg = $1,204M

Corporate VC activity, by bracket
• Excluding seed deals, the
total number of corporate
VC investments rose to 73
in 2Q18, a new record
• Corporate VC investments
continue to trend towards
later stage, but seem to be
starting to skew earlier
6 4 5
16
7
22 19 23 19
27 25 26 23 25
20
26
4
3
9
12
7
12
6
16
19 5
17 17
18
19 27
31
4
4
7
8
7
7
20
18
6
9
12 11 18
18 14
14
3
1
3
3
3
2 3
1
3
2
0
10
20
30
40
50
60
70
80
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2014 2015 2016 2017 2018
CorporateVC investmentvolume in Europe and Israel by bracket

Corporate VC activity, by country
• During 1H18, Israel saw the
highest number of
corporate VC investments,
with 37
• Germany saw 23, followed
by the UK with 22
• Corporate VCs were active
in 19 European countries
9
6 8 7
3 3
18
7
9
5
7
4 3
0
5
10
15
20
25
30
35
40
Israel
Germany
UK
France
Sweden
Norway
Switzerland
Netherlands
Iceland
Spain
Denmark
Belgium
Ireland
Finland
Hungary
Italy
Portugal
Estonia
Austria
Numberofinvestments
Number of corporate VC investments in Europeand Israel by bracket
(1H18)

Average round size
• This average excludes seed
rounds and mega rounds,
so it reflects all rounds
done in Europe & Israel
between $2M and $100M
• With very few exceptions,
most months saw average
round sizes of $10-12M and
there is seems to be little
pattern other than mean
reversion
• Early 2015 saw higher-
than-average deal sizes
• Late 2016 and early 2017
saw lower-than-average
deal sizes
• Late 2017 seemed to be
characterized by higher-
than average deal sizes – a
trend that solidified in 2018
4
6
8
10
12
14
16
2014 2015 2016 2017 2018
AmountInvested(US$M)
Average investmentsize in Europe and Israel
(Round sizes of 2-100M, and 6-month trailingaverage)

Total venture investment by country, 2017
• The UK saw the most VC
investment in 1H18, with
$2.8B raised
• Germany was second with
$2.3B raised
• Israel came in third with $2.1B
raised
• France was a close fourth,
with $2.0B
2,816
2,292
2,112
1,998
552
498
366
361
283
260
251
153
143
121
116
111
96
39
37
31
21
8
7
6
5
4
1
UK
Germany
Israel
France
Spain
Sweden
Ireland
Netherlands
Estonia
Switzerland
Finland
Romania
Norway
Belgium
Denmark
Austria
Italy
Hungary
Malta
Portugal
Iceland
Greece
Slovenia
Bulgaria
Poland
Luxembourg
Latvia
Total VC investmentvolumeby country, 1H18 (US $M)

Venture dollars per capita (2017)
$0.35
$0.46
$0.51
$0.57
$0.84
$1.16
$1.21
$1.40
$1.51
$1.66
$1.84
$2.70
$6.02
$12.04
$15.57
$16.97
$18.44
$24.31
$29.99
$30.58
$32.42
$34.57
$34.75
$36.34
$42.06
$44.90
$49.02
$54.82
$65.02
$88.04
$98.55
$172.59
$447.17
Serbia
Latvia
Greece
Bulgaria
Lithuania
Czech
Slovakia
Slovenia
Hungary
Italy
Romania
Poland
Portugal
Croatia
Malta
Spain
Belgium
Austria
Switzerland
Denmark
Netherlands
Norway
Germany
France
Estonia
Cyprus
Iceland
Finland
Ireland
UK
Luxembourg
Sweden
Israel
VC dollars per capita in 2017
(US$)
USA(2016)=$213.96
$1.00
$10.00
$100.00
$1,000.00
0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000
VCDollarsperCapita(LogScale)
Population
Venture Capital Investment per Capita
(bubble size indicates total VC investment)
Israel
Sweden
UK
France
Germany
Holland
Italy
Spain
Belgium
Switz.
Ireland
Finland
Lux.
Estonia
Norway
Cyprus
Iceland
Denmark
Croatia
Portugal
Romania
HungarySlovenia
Slovakia
Poland
Czech
Austria
Malta

Venture dollars as a percentage of GDP (2017)
• This graph shows 2017
venture dollars invested as a
percentage of GDP
• Israel leads at 1.16% of GDP
followed by Sweden at 0.34%,
Estonia at 0.24%, and the UK
at 0.23%
• All of the other countries at
below 0.20%
• Latvia and Greece are the
lowest, with VC at 0.003% of
GDP
• In US, by comparison, VC was
0.37% of GDP in 2016, slightly
higher than Sweden
Serbia
Latvia
Greece
Bulgaria
Lithuania
Czech
Slovakia
Slovenia
Hungary
Italy
Romania
Poland
Portugal
Croatia
Malta
Spain
Belgium
Austria
SwitzerlandDenmark
Netherlands Norway
Germany
France
Estonia
Cyprus
Iceland
Finland
Ireland
UK
Luxembourg
Sweden
US 2016
Israel
0.00%
0.20%
0.40%
0.60%
0.80%
1.00%
1.20%
1.40%
0 20,000 40,000 60,000 80,000 100,000 120,000
VCasapercentageofGDP
GDP per Capita

Total venture investment by country (top 5)
• To get a better sense of VC
volumes in various
countries, this analysis
excludes mega-rounds
• With this filter, volumes
and rankings are more
consistent
• The UK overtook Israel in
2Q17 and has maintained
the lead since
• German, French, and Israeli
VC increased dramatically
into 2018, with France
leaping into second place
• Swedish VC investment
volume grew dramatically
in 4Q17, but slowed a bit
into 2018
Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2016 2017 2018
0
200
400
600
800
1000
1200
1400
TotalVC investment,2Q16 - 2Q18 (top 5 countries, excluding mega-rounds)
UK Israel
France Germany
Sweden

Total venture investment by country (6-10)
• To get a better sense of VC
volumes in various
countries, this analysis
excludes mega-rounds
• The “second five” countries
for VC investment in 2016
were Spain, Ireland, the
Netherlands, Finland, and
Switzerland
• Finland hit a record in 1Q18,
and Switzerland hit its
record in 2Q18
2016 2017 2018
0
50
100
150
200
250
TotalVC investment,2Q16- 2Q18
(countries ranked 6-10, excluding mega-rounds)
Spain
Ireland
Netherlands
Switzerland
Finland

Total venture investment by region
• When VC investments
across Europe are
aggregated into regions,
UK & Ireland, Israel, the
Nordics, France, and DACH
are the clear and
consistent leaders
• The UK and Ireland account
for 25% of total investment
volume, DACH 21%, Israel
17%, and France 16%
• Other regions do produce
meaningful VC
investments, but the
volumes are still low
UK & Ireland,
3,182.7, 25%
DACH, 2,663.6, 21%
Israel,2,111.7, 17%
France, 1,998.4, 16%
Nordic,1,313.2, 10%
Iberia,582.8, 4%
Benelux,485.7, 4%
East.Eur., 202.7, 2%
South.Eur., 148.7,
1%
TotalVC investmentby region, 1H18
(US $M, includes megarounds)

Rounds by bracket & region
• Including seed deals, the
UK and Ireland saw 235
venture deals in 1H18
• France came in second
with 217
• The Nordics were third with
144
50 53 44
16 9 20 18
107 100
60
49
47 19 13
42 44
24
37 50
30
19
15
30 21
0
50
100
150
200
250
UK & Ireland France Nordic DACH Israel Benelux Iberia South. Eur. East. Eur.
Numberofinvestments
Number of investments in Europe and Israel by bracket, 1H18
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<.5-2)

Participation rate of US VC firms, by bracket
• During 1H18, US VCs
participated in 11% of the
VC financing rounds in EU
and Israel
• As usual, US VCs are much
more likely to participate in
later rounds
3%
7% 16%
26%
39%
97% 93%
84%
74%
61%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Seed (.5-2) Early Venture (2-8) Venture (8-20) Growth (20-100) Mega (>100)
Percentageofrounds
Did US VC firms participatein EuropeanVC rounds? (1H18)
No Yes

US VC firm participation rose slightly in 1H18
• During 2017, US VC firms
participated in 8.9% of
European & Israeli VC deals
• In 1H18, this rose to 11.2%
15% 17% 13% 17% 16% 11% 9% 11% 14%
8% 8% 8% 9% 10% 11% 11%
85% 83% 87% 83% 84% 89% 91% 89% 86%
92% 92% 92% 91% 90% 89% 89%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015 2016 2017 2018
PercentageofRounds
Did US VC firms participatein EuropeanVC rounds?
(3Q14-2Q18
No Yes

Participation of US VC firms by country
• In 1H18, US VCs firms were
active in 17 different
European countries
• US VC firms were most
active in Israel, where they
participated in 33
investment rounds
• The UK saw 24 US
investments
• US VCs invested in 11
French companies and 10
German companies
33
24
11 10
5 4 4 3 3
0
5
10
15
20
25
30
35
Israel
UK
France
Germany
Ireland
Denmark
Spain
Estonia
Sweden
Austria
Netherlands
Belgium
Finland
Romania
Norway
Portugal
Italy
Rounds with a US VC involved
(1H18)

Participation of US VC firms by country
• This chart shows US VC
activity within Europe
• The overwhelming bulk of
US VC activity is generally
in Israel, the UK & Ireland,
DACH, and the Nordics
0
10
20
30
40
50
60
70
2015 2016 2017 2018
Investments with US VC participation
Israel UK & Ireland DACH Nordic France Iberia Benelux East. Eur. South. Eur.

Three-dimensional approach to sector mapping
Dimension Categories Explanation/Example
1. Target market
Consumer, SMB, Enterprise, Government,
Telecom, OEM
What sort of customer does the
company target?
2. Vertical market
Adtech, Communications, Data, Development,
Durables, Education, Electronics, Employment, Energy,
Fashion, Financial, Food, Gaming, Health, HMI,
Industrial, Infrastructure, Lifestyle, Logistics, Marketing,
Media, Productivity, Real Estate, Security, Sports,
Storage, Transportation, Travel, Water
What type of problem does the
company solve?
3. Business model
Commerce, Components, Content,
Marketplace, SaaS, Semiconductors,
Services, Software, Systems,
How does the company make
money? How is value delivered to
customers? What are customers
paying for?
For example: Consumer + Travel + Marketplace
AirBnB is a travel-related
marketplace for consumers

What target markets are attracting the most VC
investment in Europe & Israel?
• Both consumer and
enterprise investments
increase in 2018, with a
dramatic spike in enterprise
in 2Q18
1,244 1,097 1,002 1,056
1,369 1,551 1,490 1,739 1,963
1,640
1,269
962
1,650
1,345
1,820 1,879
1,785
2,186
270
283 220
264 377
508
187
219
447
255 406
545 240 378
415
0
1,000
2,000
3,000
4,000
5,000
6,000
2016 2017 2018
TotalVCinvestments(US$M)
European& Israeli venture financing by target market
2Q16 to 2Q18 (excluding mega-rounds, US $M)
Agriculture
Government
Telecom
OEM
SMB
Enterprise
Consumer

The enterprise/consumer tug-of-war continues
• When Israel is excluded
from the sample, over 50%
of all VC dollars in Europe
went to consumer-oriented
companies in 1H18
58%
53%
45% 46%
58%
42%
51%
56%
47%
33%
32%
29%
36%
32%
44%
37%
34%
33%
3%
7%
8%
12% 6%
8%
13%
5% 8%
10%
5% 5% 7% 4% 7% 6%6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017 2018
Europeanventure financing by target market
2Q16 to 2Q18 (excluding Israel, percent of US $M)
Agriculture Government Telecom OEM SMB Enterprise Consumer

Breakdown by region & target market
• Regional differences are
apparent when VC
investment are categorized
by target market
1,425
1,799
498
985
705
427
1,397 565
937
730
386
128
223
420
0
500
1,000
1,500
2,000
2,500
3,000
3,500
UK &
Ireland
DACH Israel France Nordic Iberia Benelux East. Eur. South.
Eur.
Totalamountinvested(US$M)
Investment in Europe and Israel by target market by region
1H18 (US $M)
Agriculture Government Telecom OEM SMB Enterprise Consumer

Distribution of investment rounds by country
• Across Europe & Israel, 39%
of VC investment rounds
were in consumer
companies in 1H18; 44%
were in enterprise
companies
21%
30%
36%
42%
44%
45%
47%
50%
58%
48%
44%
42%
44%
45%
33%
33%
5%
9%
10%
7%
5%
10%
9%
11%
11%
11%
9%
5%
6%
8%
6%
5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Israel
Benelux
France
DACH
UK & Ireland
Iberia
Nordic
South. Eur.
Investment in Europe and Israel by target market by country
1H18 (Number of investments)
Consumer Enterprise SMB OEM Telecom Government Agriculture

Growth rounds by target market
• Later stage rounds in
Europe & Israel were
roughly evenly split
between consumer and
enterprise in 1H18
43% 44%
34% 37%
45%
32% 35%
46%
40%
50% 44%
32%
50% 36%
48%
56%
42%
44%
5%
12%
7%
4% 6%
6%
3% 10%
5% 5%
20%
7%
13% 14% 8% 7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2016 2017 2018
Investment in Europe and Israel by target market
(Rounds over $20M, number of investments)
Agriculture Telecom OEM SMB Enterprise Consumer

Finance still leads, security is strong
• Fintech was the most popular
vertical across Europe & Israel,
with 109 investments in the
category in 1H18
• Security came in second at 61
• Data was third at 45
6
6
6
12
16
16
16
17
17
19
22
22
23
24
27
27
28
29
31
31
32
34
38
38
38
39
41
42
43
45
61
109
ERP
Sports
Imaging
Social
Adtech
Payments
Communications
Agtech
Gaming
CRM
Fashion
Legal
Infrastructure
Automotive
Travel
Productivity
Development
Entertainment
Food
Industrial
Energy
Education
Real Estate
Marketing
Logistics
Health
Electronics
Employment
Lifestyle
Data
Security
Financial
1H18 (top 30 categories, number of investments)

Growth rates by vertical
• This graph shows the
change in the number of
investments by vertical
from 1H17 to 1H18
• Data, Real Estate,
Productivity, and Security
saw the biggest increases
• IT Infrastructure, lifestyle,
market, and automotive
saw the biggest declines
Infrastructure, -50%
Lifestyle,-41%
Marketing, -27%
Automotive,-25%
Employment,-21%
Health,-19%
Electronics,-15%
Travel, -4%
Financial,-1%
Entertainment,0%
Food, 7%
Logistics,12%
Education, 26%
Development,33%
Energy, 33%
Industrial,35%
Security,42%
Productivity,42%
Real Estate, 46%
Data, 55%
-60% -40% -20% 0% 20% 40% 60% 80%
Change in the number of venture investments
(1H18 vs 1H17, 20 most popular categories)

Which verticals for which segments?
• Consumer finance was
once again the most
frequently funded vertical,
with 68 investments
• A close second was
enterprise security, with 57
investments
• Enterprise data was third,
with 43 investments
• Consumer lifestyle was a
close fourth, with 42
Logistics
Real Estate
Marketing
Health
Electronics
Employment
Lifestyle
Data
Security
Financial
0 20 40 60 80 100 120
1H18 (number of investments, top 10 verticals)
Consumer
Enterprise
SMB
OEM
Government

The most popular verticals
• This chart shows the ten
most commonly funded
verticals across Europe &
Israel by quarter
2015 2016 2017 2018
0
50
100
150
200
250
300
350
European& Israeli venture financing by vertical market
(number of investments, top 10 verticals)
Data
Health
Logistics
Electronics
Lifestyle
Employment
Security
Infrastructure
Marketing
Financial

Consumer VC investment trends
• Investors continue to favor
consumer fintech, lifestyle,
gaming and consumer
electronics
2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
180
European& Israeli venture financing by consumer verticals
Entertainment
Travel
Health
Fashion
Food
Electronics
Logistics
Gaming
Lifestyle
Financial

Enterprise VC investment trends
• Marketing and security
showed continued strength
• Most of the growth from
2016 to 2017 was in
infrastructure, fintech, and
data
• CRM and Adtech declined
from 2016 to 2017
2015 2016 2017 2018
0
20
40
60
80
100
120
140
160
180
European& Israeli venture financing by enterprise verticals
Financial
Industrial
Health
Employment
Development
Data
Infrastructure
Adtech
Security
Marketing

Services displace SaaS
• SaaS returned to the top
spot in 1H18, with 26% of
the invested amount.
• Services were a close
second, representing 24%
of all VC dollars
• Systems – complete
physical products – took
fifth place at 10% of all
venture dollars
• Commerce represented 11%
and marketplaces were 8%
SaaS, 2,401, 26%
Services, 2,255, 24%
Software, 1,138, 12%
Commerce, 971, 11%Systems, 921, 10%
Marketplace, 720, 8%
Media, 355, 4%
Components, 271, 3%
Materials, 122, 1%
Semiconductors, 69, 1%
European & Israeli venture financing by target market
1H18 (in US $M) (excluding mega-rounds)

Services and SaaS are dominant
• Services and SaaS
remained the top two
business models by funding
volume
0
200
400
600
800
1000
1200
1400
1600
2016 2017 2018
European& Israeli venture financing by business model
(top seven, in US $M, excluding mega-rounds)
Services
SaaS
Software
Commerce
Marketplace
Systems
Media

EU+IL VC Cheat Sheet (1H18)
• This graph provides a quick
overview of the ten most
commonly funded
segments across the top
ten countries for those
segments
• In a nutshell:
• Consumer financial services
(Everywhere, but especially in
the UK)
• Israeli enterprise security
software
• Marketing SaaS en France
• Enterprise data SaaS in the
UK and Israel
• Consumer food commerce in
the UK, Germany, and France
• Enterprise employment/HR
SaaS in the UK and France
• And some other stuff…. 

A closer look at UK venture in 1H18
• Finance was the most
commonly funded category
in the UK, with 30
investments in 1H18
• Data, health, and
employment were next
Education
Security
Development
Travel
Real Estate
Lifestyle
Employment
Health
Data
Financial
0 5 10 15 20 25 30 35
UK venture financing by target market
1H18 (number of investments, top verticals)
Consumer
Enterprise
SMB
Government

A closer look at German venture in 1H18
• Finance was the by far
category in Germany, with
11 consumer investments
and 15 total investments in
1H18
• Automotive was next with
six
• Productivity, lifestyle,
logistics, and real estate
were tied for third
Data
Development
Energy
Fashion
Employment
Electronics
Industrial
Food
Real Estate
Logistics
Lifestyle
Productivity
Automotive
Financial
0 2 4 6 8 10 12 14 16
German venture financing by target market
Consumer
Enterprise
SMB
OEM
Government

A closer look at Israeli venture in 1H18
• Security was the most
in Israel, with 34
investments in 1H18 alone –
more than three times that
of the next most frequent
category - finance
Logistics
Entertainment
Electronics
Real Estate
Agtech
Infrastructure
Data
Automotive
Health
Financial
Security
0 5 10 15 20 25 30 35 40
Israeli venture financing by target market
Consumer
Enterprise
SMB
OEM
Agriculture

A closer look at French venture in 1H18
• Employment, finance, and
marketing were tied for
first place in France, with 15
investments each
• Productivity and logistics
rounded out the top three
Real Estate
Energy
Food
Lifestyle
Electronics
Education
Logistics
Productivity
Marketing
Financial
Employment
0 2 4 6 8 10 12 14 16
French venture financingby target market
Consumer
Enterprise
SMB
OEM

A closer look at Swedish venture in 1H18
• Fintech was the most
in Sweden, with 10
investments in 1H18
• Lifestyle, fashion,
entertainment, and
gaming were also
important categories in
Sweden
Energy
Education
Electronics
Health
Security
Industrial
Gaming
Entertainment
Fashion
Lifestyle
Financial
0 2 4 6 8 10 12
Swedish venture financing by target market
Consumer
Enterprise
SMB
OEM

A closer look at Spanish venture in 1H18
• Real estate tech was the
most funded category in
Spain, with six investments
• Logistics was second, with
five
Fashion
Lifestyle
Security
Marketing
Sports
Payments
Travel
Legal
Logistics
Real Estate
0 1 2 3 4 5 6 7
Spanish venture financingby target market
Consumer
Enterprise
SMB

A closer look at Swiss venture in 1H18
• Financial was again the
category in Switzerland,
with 4 investments in 1H18
Food
Development
Health
Employment
Logistics
Automotive
Security
Fashion
Agtech
Data
Energy
Marketing
Lifestyle
Electronics
Financial
0 1 2 3 4 5
Swiss venture financingby target market
Consumer
Enterprise
OEM
Agriculture

A closer look at Dutch venture in 1H18
• Logistics and energy were
the two most funded
categories in the
Netherlands, with three
investments each in 1H18
Industrial
Infrastructure
Communications
Lifestyle
ERP
Real Estate
Financial
Travel
Entertainment
Payments
Health
Agtech
Fashion
Legal
Development
Employment
Energy
Logistics
0 1 2 3 4
Dutch venture financing by target market
Consumer
Enterprise
SMB
OEM
Agriculture

A closer look at Finnish venture in 1H18
• Fintech and employment
were tied for first place,
with four investments each
in 1H18
• Gaming was third, with
three
Adtech
Health
Industrial
Imaging
Infrastructure
Food
Real Estate
Electronics
Travel
Collaboration
Agtech
Development
Energy
Education
Gaming
Employment
Financial
0 1 2 3 4 5
Finnish venture financingby target market
Consumer
Enterprise
SMB
OEM
Agriculture

A closer look at Irish venture in 1H18
• Fintech was the most
in Ireland, followed by
marketing, entertainment,
and electronics, which were
tied for second place
Health
HMI
Data
Employment
Food
Productivity
Legal
Security
Electronics
Entertainment
Marketing
Financial
0 1 2 3 4
Irish venture financing by target market
Consumer
Enterprise
SMB
OEM

The Nordic VC market in 1H18
• Like elsewhere in Europe,
the Nordics were focused
on fintech
• Entertainment and gaming
took second and third
place
Fashion
Data
Energy
Security
CRM
Development
Industrial
Health
Lifestyle
Education
Gaming
Entertainment
Financial
0 5 10 15 20 25
Nordic venture financingby target market
Consumer
Enterprise
SMB
OEM

The Nordic VC market by country
• Not surprisingly, Sweden
saw the most actively
among Nordic nations
across most verticals – with
particular strength in
financial, lifestyle, gaming,
and entertainment

Venture capital in Southern & Eastern Europe
• Fintech and food were the
most financed vertical in
Southern and Eastern
Europe
• Italy showed strength
across a range of consumer
categories

Focus on SaaS
• Marketing was yet again
the most frequently funded
SaaS vertical in 1H18, with
34 investments
• Data was second with 30
• Employment and
productivity were next
0 5 10 15 20 25 30 35 40
Financial
Legal
Infrastructure
Health
Development
CRM
Productivity
Employment
Data
Marketing
SaaS VC investmentin Europe and Israel
by vertical and target market, 1H18 (top 10 verticals)
Consumer Enterprise Government SMB

Focus on Services
• The lion’s share of the
services investment
landscape is consumer
financial services
• There are, however, many
more verticals where
“services” companies are
emerging – most of these in
the consumer category
0 10 20 30 40 50 60 70
Health
Lifestyle
Security
Payments
Communications
Entertainment
Real Estate
Education
Gaming
Logistics
Financial
Services VC investment in Europe and Israel
Consumer Enterprise SMB

Focus on Marketplaces
• The most frequently funded
marketplace category in
1H18 was financial
marketplaces, mostly
aimed at consumers or
SMBs
• Lifestyle, real estate, and
employment were also
important marketplace
categories
0 5 10 15 20 25
Education
Electronics
Adtech
Food
Fashion
Automotive
Travel
Logistics
Employment
Lifestyle
Real Estate
Financial
MarketplacesVCinvestmentin Europe and Israel
Consumer Enterprise SMB

Focus on Systems
• The most funded systems
categories were agtech
and energy
• Overall, electronics – which
includes consumer
electronic systems as well
as devices for enterprise
applications – was the most
funded vertical
0 2 4 6 8 10 12 14 16 18
Logistics
Space
Payments
Food
Communications
Health
Automotive
Security
Industrial
Agtech
Energy
Electronics
Systems VC investmentin Europe and Israel
Consumer Enterprise Government OEM Agriculture

Focus on Components
• Across Europe & Israel,
components investments
were focused on general
electronics, energy, and
industrial
• Automotive components
declined as an area of
investment focus
0 2 4 6 8 10 12 14 16
Automotive
Space
Imaging
Communications
Industrial
Energy
Electronics
Components VC investment in Europe and Israel
by vertical market, 1H18 (top 10 verticals)

Focus on Fintech
• In 1H18, over $2.2B was
invested into fintech
• After six consecutive
quarters of increase, 2Q18
was the first quarter to see
a decline in the volume of
fintech investment
0
200
400
600
800
1,000
1,200
1,400
2015 2016 2017 2018
Fintech - VC investment in Europe and Israel
(US $M)
SMB Enterprise Consumer

Focus on Fintech
• Over a long horizon, fintech
investment pace has
accelerated across all
brackets
• Mega-rounds accounted
for most of the dramatic
increase in 1Q18, but
growth rounds also grew –
especially in 2Q18
0
200
400
600
800
1,000
1,200
1,400
2015 2016 2017 2018
Fintech - VC investment in Europe and Israel
(US $M)
Mega Growth Venture Early Venture Seed

Focus on Automotive
• 14 countries saw
investments into the
automotive tech space in
2015-2018
• Israel led with 31
• France and the UK each
saw 19

Focus on Marketing
• VCs invested $445M into
marketing tech in Europe &
Israel in 1H18, up
dramatically form $331M in
1H17
0
5
10
15
20
25
30
35
0
50
100
150
200
250
300
350
2015 2016 2017 2018
Numberofinvestments
Marketing - VC investmentin Europeand Israel
Amount
Number

Focus on Employment
• In 1H18, there were 42
investments into
employment (HR)
companies, totaling $253M
• This is down from 1H17,
which saw only $324M
invested across 53
investments in the space
0
5
10
15
20
25
30
0
50
100
150
200
250
2015 2016 2017 2018
Numberofinvestments
Employment(HR) tech - VC investmentin Europe and Israel
Amount
Number

Focus on Health (1 of 3)
• The UK led in the digital
health space, with 50
investments
• Israel was next, with 38
• France was third, with 33

• The most frequently funded
category in health tech in
1H18 was enterprise SaaS
• Consumer health services
was second
0 2 4 6 8 10 12 14 16 18 20
Marketplace
Media
Commerce
Software
Systems
Services
SaaS
Number of investments
HealthtechVC investmentin Europe and Israel
by business model and target market, 1H18
Enterprise Consumer

• In 1H18, over $730M was
invested across 39 rounds
into digital health
companies, up significantly
from 1H17
0
5
10
15
20
25
30
35
0
50
100
150
200
250
300
350
400
450
2015 2016 2017 2018
Numberofinvestments
Health tech - VC investment in Europe and Israel
Amount
Number

Focus on Electronics (components, systems, & semis)
• The majority of
“electronics” investments
were into OEM components
companies
• Consumer and enterprise
systems were also
important categories
0 2 4 6 8 10 12 14 16 18
Materials
Marketplace
Commerce
Semiconductors
Components
Systems
Systems VC investmentin Europe and Israel
Consumer Enterprise Government OEM

Focus on Developer Tools
• The developer tools
investment landscape is
highly fragmented, but the
pace appears to have
suddenly spiked after a
gradual decline

Focus on Infrastructure
• Developer tooling appears
to be steadily declining as
an area of investment

Focus on Data
• Data-oriented investments
continue to increase through
2018
• The “data” category captures
companies whose primary
value proposition revives
around (big) data, AI/ML/BI
tooling, databases, and/or
analytics
0
5
10
15
20
25
30
0
50
100
150
200
250
300
2014 2015 2016 2017 2018
Numberofinvestments
Data - VC investment in Europe and Israel
Amount
Number

Europe & Israel: Venture Capital Data (1H18)

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