Today, I’m happy to release a data-driven review of VC investment trends in Europe and Israel in the third quarter of 2017. Some key highlights: Overall, dealflow volume continues to hit new highs Total VC investment volume into Europe and Israel was $5.5B in 3Q17 and $5.8B in 2Q17 (a record) The number of deals peaked in 1Q17 at over 500 and has been trending gently downward, but still at very high levels. Deal size is trending up again In the past two quarters, there were 13 mega-deals (over $100M) There is still zero evidence that Brexit has impacted the UK venture environment. Both deal numbers and investment volumes are up since the Brexit vote In both 3Q and 2Q, the UK led the region in investment volume. Israel was in second place France continues to boom, with 4 quarters of consecutive growth in investment volume After six quarters of consecutive growth, Swedish VC investment volume declined in 3Q Fintech was the yet again most frequently funded vertical, with 48 investments in 3Q. Marketing was second (31) and Electronics tied with Lifestyle for third (26) The categories that showed the most growth in frequency from 3Q16 to 3Q17 were Entertainment (+171%), Health (+133%), and Employment/HR (+111%) The categories that showed the most decrease in frequency from 3Q16 to 3Q17 were industrial (-50%), communication (-46%), and Fashion and Adtech (both down 43%). You’ll find all that and more in the 52-page report, so download it here or view it on Slideshare below. I’d recommend also taking a look at the more detailed 2016 year in review report, which can be found here. As always, I welcome your comments, questions, and feedback. Please let me know if there are additional slices of data you think I should add into the report.

1. Venture Capital in Europe & Israel
Venture Investment Data: Third Quarter 2017
Prepared by Gil Dibner
Leadenhall Market in the City of London. The market dates from the 14th century,
but the current structure dates to 1881.
blog

2. The data
• 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
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3. Top 10 deals by region in 2017 YTD (US $M)
France & Benelux IsraelIberia
UK & Ireland DACH Nordic
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60
66
75
75
100
102
190
385
397
502
Babylon Health
Revolut
Darktrace
Kobalt
Funding Circle
Atom Bank
Neyber
Deliveroo
FarFetch
Improbable
0 200 400 600
50
50
53
70
90
120
128
165
404
423
Market Logic
NewStore
ResearchGate
SoundCloud
Lilium
Kreditech
Lampenwelt.de
Tricentis
Auto1
Delivery Hero
0 100 200 300 400 500
24
25
27
27
30
50
64
88
120
481
StarCounter
Min Doktor
24 Storage
MariaDB
Yubico
Collibra
iZettle
ForgeRock
Snow Software
Klarna
0 200 400 600
50
50
53
57
62
69
72
75
107
173
Leap Motion
Protix
Algolia
Shadow
Vestiaire Collective
Oodrive
Manomano
Actility
Picnic
Showroomprivee
0 50 100 150 200
60
65
70
75
75
76
84
85
100
250
StoreDot
Innoviz
SentinelOne
WalkMe
Kaminario
Vroom
Trax
Valens
CyberReason
Via
0 100 200 300
10
10
11
12
20
22
28
35
100
175
OnTruck
Fever
Logtrust
Scytl
Verse
CornerJob
Fintronic
TypeForm
Cabify
LetGo
0 50 100 150 200

4. Top 10 deals by type in 2017 YTD (US $M)
Systems SaaSEnterprise
Consumer Financial Commerce
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107
120
128
173
175
250
385
397
404
423
Picnic
Kreditech
Lampenwelt.de
Showroomprivee
LetGo
Via
Deliveroo
FarFetch
Auto1
Delivery Hero
0 100 200 300 400 500
41
45
48
50
58
66
100
102
120
190
Zopa
10x Future Technologies
Younited Credit
Receipt Bank
Credit Peers
Revolut
Funding Circle
Atom Bank
Kreditech
Neyber
0 50 100 150 200
33
39
40
62
76
107
128
173
385
397
Fritchi
CarWow
Lesara
Vestiaire Collective
Vroom
Picnic
Lampenwelt.de
Showroomprivee
Deliveroo
FarFetch
0 100 200 300 400 500
75
75
75
75
84
88
100
120
165
190
481
502
Kobalt
Kaminario
WalkMe
Darktrace
Trax
ForgeRock
CyberReason
Snow Software
Tricentis
Neyber
Klarna
Improbable
0 200 400 600
20
20
20
21
23
30
33
50
53
64
75
90
Intuition Robotics
Healthwatch
Highcon
Vulog
Ultrahaptics
Volocopter
Airobotics
Rimac
Arralis
iZettle
Kaminario
Lilium
0 20 40 60 80 100
50
50
50
53
69
75
75
120
165
481
Market Logic
Collibra
Receipt Bank
Algolia
Oodrive
Kobalt
WalkMe
Snow Software
Tricentis
Klarna
0 200 400 600

5. Quarterly pace of venture investment
• In 3Q17, Europe & Israel saw
$5.4 billion flowing into 455
venture transactions
• 2Q17 was a record-breaking
quarter in terms of the
amount invested
• The number of deals
declined in 3Q and 2Q from
a record number in 1Q
• These numbers, and the rest
of this deck, do not reflect
the $1B in debt raised by
Spotify in March
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835
1,703
1,916
2,873
3,139
3,252
2,857
3,730
4,114
3,122
3,520
4,072
5,790
5,476
0
100
200
300
400
500
600
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2014 2015 2016 2017
Amountinvested(US$M)
VC Investments in Europe & Israel
Invested amount (US $M) Number of investments

6. Monthly pace of venture investment
• Looked at on a monthly
basis, the strength of 2Q and
3Q are even more
pronounced
• May 2017 was a record-
setting month in terms of
investment volume
• September 2017 was a
record-setting month in
terms of the number of deals
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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
1,887
2,013
751
2,712
0
20
40
60
80
100
120
140
160
180
200
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
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
Amountinvested(US$M)
VC Investments in Europe & Israel
(January 2015 - September 2017)
Invested amount (US $M) Number of investments

7. Mega-rounds skew the investment totals
• 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+)
• 13 mega-rounds took place in Europe
in 2Q17 and 3Q17
• Snow Software (Sweden, $120M)
• Cabify (Spain, $100M)
• Kreditech (Germany, $120M)
• Improbable (UK, $502M)
• Showroomprivee (France, $173M)
• Delivery Hero (Germany, $423M)
• Auto1 (Germany, $404M)
• CyberReason (Israel, $100M)
• Farfetch (UK, $397M)
• Klarna (Sweden, $225M & $250M)
• Via (Israel, $250M)
• Neyber (UK, $152M)
• Deliveroo (UK, $385M)
• Adjusting for mega-rounds, 3Q17 was
a record quarter at $4.2B
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592 708 759 741 707
752 650
921 941 873
1,336 1,196
1,395 1,567
2,473
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2016 2017
AmountInvested(US$M)
Pace of VC Investment in Europe and Israel
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (.5-2)

8. Strong year-over-year growth
• All size brackets except seed
saw YoY increases in 3Q17
compared to 3Q16
• Growth volume increased by
85%
• Mega-round volume
increased by 359%
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167 159
592 707
752
873
1,336
2,473275
1,263
0
1,000
2,000
3,000
4,000
5,000
6,000
Qtr3 Qtr3
2016 2017
TotalVCinvestment(US$M)
VC investmentvolume in Europe and Israel by bracket
(3Q17 vs 3Q16)
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

9. Number of investments, by bracket
• Excluding seed deals, the
total number of VC
investments per quarter was
very constant for the past
three quarters: 318 in 1Q, 315
in 2Q, and 315 in 3Q
• The mix, however, seems to
be shifting towards later-
stage rounds
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77 85 94
140 153 157 144
182 195 186 170
42
62 44
46
61 57
64
53
77
76
75
33
26 38
35
44 52
40
35
40 44 65
6
6 4
3
4 4
1
6
6 9 5
0
50
100
150
200
250
300
350
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
NumberofVCinvestments
VC investmentvolume in Europe and Israel by bracket
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)

10. 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 15 VC
deals per month in the 18
months before the referendum
• There were an average of 23 VC
deals per month since the
referendum
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0
5
10
15
20
25
30
35
40
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
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
NumberofVCinvestments
VC investmentvolume in the UK by bracket
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)
Pre-
Brexit
avg = 15
Post-Brexit
avg = 23

11. …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 $1,092M per
quarter was invested in the
UK since the referendum
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74 70 98 79 136 108 133 150 189 162 178
165 166 96 128
172 148 181 113
159 247 224
459
180
405
209
532
273 202
191
149
514
755210
150
275
478
192
110
275
202
899
538
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
NumberofVCinvestments
VC investmentvolume in the UK by bracket
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)
Pre-Brexit
avg = $819M
Post-Brexit
avg = $1,092M

12. Corporate VC activity, by bracket
• Excluding seed deals, the
total number of corporate VC
investments rose to 60 in
3Q17, tying 2Q16 for the
record
• Corporate VC investments
continue to trend towards
later stage
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6 4 5
16
7
22 19
23
19
27 25 27
23
4
3
9
12
7
12
6
16
19 5
17 16
18
4
4
7
8
7
7
20
18
6
9
12 11 18
3
1
3
3
3
2 3
1
0
10
20
30
40
50
60
70
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2014 2015 2016 2017
NumberofVCinvestments
CorporateVC investmentvolume in Europe and Israel by bracket
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)

13. Corporate VC activity, by country
• During 3Q17, the UK saw the
highest number of corporate
VC investments, with 17
• Israel saw 16 corporate VC
investments during the
quarter
• Germany came in third, with
7
• Sweden and France tied for
fourth place, with 4 each
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6
2
5
2 2
6
6
3
5
7
2
2
0
2
4
6
8
10
12
14
16
18
UK
Israel
Germany
Sweden
France
Switzerland
Finland
Norway
Spain
Croatia
Ireland
Estonia
Netherlands
Numberofinvestments
Number of corporate VC investments in Europeand Israel by bracket
(3Q17)
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)

14. 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
• Until now, 3Q15 was the only
systematic outlier to this
trend, with average round
sizes of $14M
• 3Q17 saw average round
sizes jump up to $13M, from
lows of sub-$10M in 4Q16
and 1Q17
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4
6
8
10
12
14
16
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2014 2015 2016 2017
AmountInvested(US$M)
Average investmentsize in Europe and Israel
(Round sizes of 2-100M, and 6-month trailingaverage)

15. Total venture investment by country, 3Q 2017
• The UK saw the most VC
investment in 3Q17, with
$1.7B raised
• Israel came in second place,
with $1.3B raised
• Sweden saw the third-highest
amount of venture
investment, with $658M
• France was a close fourth,
with $645M
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1,736
1,281
658
645
422
136
110
107
89
81
50
40
28
26
23
9
8
6
5
4
4
3
2
2
1
UK
Israel
Sweden
France
Germany
Ireland
Finland
Norway
Spain
Switzerland
Croatia
Netherlands
Italy
Cyprus
Denmark
Austria
Belgium
Hungary
Portugal
Estonia
Poland
Serbia
Malta
Iceland
Czech
Total VC investmentvolumeby country, 3Q17 (US $M)

16. Rule Britannia!
Total venture investment by country, 3Q15 to 3Q17
• 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 leapt into first place,
ahead of Israel which also saw
a strong increase over 2Q
• Sweden’s steady rise (seven
quarters of uninterrupted
growth) reversed itself in 3Q
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Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
0
200
400
600
800
1000
1200
1400
TotalVCinvestment(US$M)
TotalVC investment,3Q15 - 3Q17 (top 5 countries, excluding mega-rounds)
Israel
UK
France
Germany
Sweden

17. Total venture investment by country, 3Q15 to 3Q17
• 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
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Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
0
20
40
60
80
100
120
140
160
TotalVCinvestment(US$M)
TotalVC investment,3Q15 - 3Q17
(countries ranked 6-10, excluding mega-rounds)
Spain Ireland
Netherlands Switzerland
Finland

18. 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
• Other regions do produce
meaningful VC investments,
but the volumes are still low
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UK & Ireland,1,872
Israel,1,281
Nordic,904
France, 645
DACH, 512
South.Eur., 110
Iberia,94
Benelux,48
East.Eur., 11
TotalVC investmentby region, 3Q17

19. Rounds by bracket & region
• To get a better sense of deal
volume, this analysis excludes
seed deals which are often
poorly reported
• Excluding seed deals, the UK
and Ireland saw 92 venture
deals in the third quarter
• France came in second with
54
• Israel was right behind France
with 53
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44
34
17
32
21
10 7
2 3
21
12
16
11
11
1
25
8
19
5
5
1
2
1
2
0
10
20
30
40
50
60
70
80
90
100
UK &
Ireland
France Israel DACH Nordic Iberia Benelux South. Eur. East. Eur.
Numberofinvestments
Number of investments in Europe and Israel by bracket, 3Q 2017
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)

20. Participation rate of US VC firms, by bracket
• In the first quarter, US VCs
participated in 9% of the VC
financing rounds in EU and
Israel
• As usual, US VCs are much
more likely to participate in
later rounds
• Unlike previous quarters,
however, more mega-rounds
happened without US VCs
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2% 4% 12%
32%
20%
98% 96%
88%
68%
80%
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? (3Q17)
No Yes

21. US VC firm participation rate drops in 4Q
• From 4Q16 to 3Q17, US VCs
participated in about 12% of
the rounds that took place in
Europe
• This rate is the lowest since
I’ve been tracking the data,
but it appears to be stable
• This analysis excludes seed
and mega-rounds
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15%
23%
17% 20% 20% 16% 16%
21% 21%
12% 12% 12% 12%
85%
77%
83% 80% 80% 84% 84%
79% 79%
88% 88% 88% 88%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2014 2015 2016 2017
PercentageofRounds
Did US VC firms participatein EuropeanVC rounds?
(3Q14-3Q17)
No Yes

22. Participation of US VC firms by country
• In 3Q17, US VCs firms were
active in 9 different European
countries
• US VC firms were most active
in Israel, where they
participated in 15 investment
rounds
• The UK saw 11 US
investments
• US VCs invested in 4 French
companies and 3 German
companies
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16
11
4
3
2
1 10
2
4
6
8
10
12
14
16
18
Israel
UK
France
Germany
Ireland
Finland
Norway
Switzerland
Sweden
NumberofVCinvestments
Rounds with a US VC involved
(3Q17)

23. 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
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0
10
20
30
40
50
60
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
NumberofVCinvestments
Investments with US VC participation
Israel UK & Ireland DACH Nordic France Iberia Benelux East. Eur. South. Eur.

24. 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
Three-dimensional approach to sector mapping
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25. • Excluding mega-rounds,
investment activity increased
uniformly across target
markets
What target markets are attracting the most VC investment
in Europe & Israel?
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1,177
931 1,076 1,244 1,097 1,002 1,056
1,352 1,546
910
1,110
1,654
1,640
1,269
962
1,650
1,361
1,820
275
224
270
283 220
244
182
150
163 187
219
447
255 406
531
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
TotalVCinvestments(US$M)
European& Israeli venture financing by target market
3Q15 to 3Q17 (excluding mega-rounds, US $M)
Agriculture
Government
Telecom
OEM
SMB
Enterprise
Consumer

26. • When Israel is excluded from
the sample, 45% of all VC
dollars in Europe went to
enterprise-oriented
companies in 3Q
• In 2Q 2017, there was a spike
in consumer-focused
investments
Shifting towards enterprise?
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62%
36%
56%
63% 62% 57% 53% 58%
53%
45% 46%
58%
41%
18%
48%
34% 22% 24% 31% 36%
33%
32%
29%
36%
32%
45%
6%
10%
4% 12% 8% 6% 5% 3%
7%
8%
12%
3%
6%5%
4% 2% 4% 5% 6% 5% 8%
10%
5% 5% 7%6% 6%8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2014 2015 2016 2017
Europeanventure financing by target market
3Q14 to 3Q17 (excluding Israel, percent of US $M)
Agriculture Government Telecom OEM SMB Enterprise Consumer

27. Breakdown by region & target market
• Regional differences are very
apparent when VC
investment are categorized
by target market
• In 3Q17, the Nordics
evidenced a strong emphasis
on enterprise investments
• Unlike previous quarters,
Israel was more balanced,
with a sizeable percentage of
consumer-oriented
investments
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875
457
135
308 248
772
575
674
179
174
110
113
224
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
UK &
Ireland
Israel Nordic France DACH South.
Eur.
Iberia Benelux East. Eur.
Totalamountinvested(US$M)
Investment in Europe and Israel by target market by region
3Q17 (US $M)
Agriculture Government Telecom OEM SMB Enterprise Consumer

28. Distribution of investment rounds by country
• Across Europe & Israel, 45%
of VC investment rounds
were in consumer companies
in 3Q17
• Over two-thirds of Israeli
venture investments were
into enterprise companies
• France and DACH skewed
towards consumer
• The UK, Ireland, and Nordics
skewed towards enterprise
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18%
42%
43%
50%
50%
52%
56%
73%
64%
32%
41%
33%
21%
30%
30%
18%
12%
9%
8%
21%
11%
6%
13%
11%
6%
4%
7%
5%
6%
4%
5%
9%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Israel
Nordic
UK & Ireland
Iberia
Benelux
DACH
France
South. Eur.
Investment in Europe and Israel by target market by country
3Q17 (Number of investments)
Consumer Enterprise SMB OEM Telecom Government Agriculture

29. Growth rounds by target market
• Enterprise companies
accounted for just under half
of the later-stage market in
Europe & Israel in 3Q17
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56%
37%
46%
56%
43% 39% 38%
43% 44%
34% 37%
45%
33%
25%
41%
46% 25%
38% 50% 50%
50% 44%
32%
50% 36%
49%
6%
7%
5%
9% 12%
3% 6% 5%
12%
7%
4% 4%
6% 11%
6%
7% 5% 6% 5% 5%
20%
7%
13% 14%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2014 2015 2016 2017
Investment in Europe and Israel by target market
(Rounds over $20M, number of investments)
Agriculture Government Telecom OEM SMB Enterprise Consumer

30. • Fintech was the most popular
vertical across Europe &
Israel, with 48 investments in
the category
• Marketing tech was a distant
second with 31
• Lifestyle (a catch-all category
for consumer commerce) was
tied with Electronics for third,
with 26
Finance returned to being the top vertical
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4
4
4
5
5
6
6
6
7
8
8
8
8
9
11
12
13
13
15
15
15
17
18
19
19
20
21
22
26
26
31
48
ERP
HMI
SCM
CRM
Agtech
Gaming
Food
Legal
Communications
Industrial
Productivity
Fashion
Adtech
Social
Development
Energy
Automotive
Payments
Travel
Data
Education
Real Estate
Logistics
Entertainment
Employment
Security
Health
Infrastructure
Lifestyle
Electronics
Marketing
Financial
European& Israeli venture financing by target market
3Q17 (top 30 categories, number of investments)

31. • This graph shows the change
in the number of investments
by vertical from 3Q16 to 3Q17
• Entertainment, health,
employment, and payments
saw the biggest increases in
VC investment
• Industrial, Communications,
Adtech, and Fashion saw the
biggest decreases
Growth rates by vertical
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Industrial,-50%
Communications,-46%
Adtech,-43%
Fashion,-43%
Security,-13%
Lifestyle,-7%
Travel, -6%
Marketing, 15%
Data, 15%
Logistics,20%
Infrastructure, 29%
Automotive,30%
Education, 36%
Electronics,37%
Financial,45%
Energy, 50%
Payments,63%
Employment,111%
Health,133%
Entertainment,171%
-100% -50% 0% 50% 100% 150% 200%
Change in the number of venture investments
(3Q17 vs 3Q16, 20 most popular categories)

32. • Finance was once again the
most frequently funded
vertical
• Marketing (mostly for
enterprise, but some SMB)
took second place
• Consumer lifestyle and
electronics (split between
consumer and OEM) tied for
third place,
Which verticals for which segments?
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Logistics
Employment
Entertainment
Security
Health
Infrastructure
Lifestyle
Electronics
Marketing
Financial
0 10 20 30 40 50 60
European& Israeli venture financing by target market
3Q17 (number of investments, top 10 verticals)
Consumer
Enterprise
SMB
OEM
Telecom
Agriculture

33. • This chart shows the ten most
commonly funded verticals
across Europe & Israel by
quarter
The most popular verticals in the past 2 years
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Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
0
50
100
150
200
250
300
350
European& Israeli venture financing by vertical market
(number of investments, top 10 verticals)
Adtech
Health
Logistics
Electronics
Lifestyle
Employment
Security
Infrastructure
Marketing
Financial

34. • Investors continue to favor
financial, and lifestyle
• Travel bounced back in 3Q
• Entertainment (non-gaming)
showed new strength, with a
slew of investments in media
businesses
• Health and gaming declined
in 3Q
Consumer VC investment trends
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Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
0
20
40
60
80
100
120
140
160
180
European& Israeli venture financing by consumer verticals
(number of investments, top 10 verticals)
Entertainment
Travel
Health
Fashion
Food
Electronics
Logistics
Gaming
Lifestyle
Financial

35. • Marketing, security, and
infrastructure showed
continued strength
• Ad tech, employment/HR,
and fintech verticals show a
decline
Enterprise VC investment trends
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Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
0
20
40
60
80
100
120
140
160
180
European& Israeli venture financing by enterprise verticals
(number of investments, top 10 verticals)
CRM
Financial
Industrial
Employment
Development
Data
Infrastructure
Adtech
Security
Marketing

36. • Services displaced SaaS as
the most funded business
model in 3Q17, representing
24% of all VC dollars
• SaaS took 22% of the venture
dollars invested in Europe &
Israel
• Systems – complete physical
products – took fourth place
at 9% of all venture dollars
SaaS above all (but keep an eye on systems)
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Services, 1,020, 24%
SaaS, 972, 23%
Software, 771, 18%
Systems, 365, 9%
Commerce, 273, 7%
Components, 262, 6%
Marketplace, 248, 6%
Media, 188, 4%
Semiconductors, 108, 3%
Materials, 8, 0%
European & Israeli venture financing by target market
3Q17 (in US $M) (excluding mega-rounds)

37. • Services and SaaS remained
the top two business models
by funding volume
• Software rebounded in 3Q
• Systems maintained their
fourth place ranking
Commerce disappears and systems rise
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0
200
400
600
800
1000
1200
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3
2015 2016 2017
European& Israeli venture financing by business model
(top seven, in US $M, excluding mega-rounds)
Services
SaaS
Software
Commerce
Marketplace
Systems
Media

38. • 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)
• Marketing SaaS in the UK,
France, and Sweden
• Israeli enterprise security
software
• Consumer entertainment media
• British and French consumer
lifestyle
• Israeli and British infrastructure
• French consumer electronics
• And some other stuff…. 
EU+IL VC Cheat Sheet (1Q17)
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39. • Finance was the most
commonly funded category
in Israel, with 57 investments
in 2017
• Real estate, marketing, and
lifestyle were next
A closer look at UK venture in 2017 YTD
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Data
Education
Health
Security
Infrastructure
Employment
Lifestyle
Marketing
Real Estate
Financial
0 10 20 30 40 50 60
UK venture financing by target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM

40. • Security was the most
commonly funded category
in Israel, with 32 investments
in 2017
• Automotive jumped to
second place, tied with
marketing
• Infrastructure and health tied
for third
A closer look at Israeli venture in 2017 YTD
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Financial
Logistics
Electronics
Development
Data
Health
Infrastructure
Marketing
Automotive
Security
0 5 10 15 20 25 30 35
Israeli venture financing by target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM
Agriculture

41. • Fintech was the most
commonly funded category
in Sweden, with 19
investments in 2017
• Entertainment and electronics
were next
• Lifestyle and gaming tied for
fourth
A closer look at Swedish venture in 2017 YTD
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Energy
Payments
Employment
Health
Marketing
Gaming
Lifestyle
Electronics
Entertainment
Financial
0 2 4 6 8 10 12 14 16 18 20
Swedish venture financing by target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM

42. • Lifestyle was the most
commonly funded category
in Israel, with 31 investments
in 2017
• Electronics and finance were
next
A closer look at French venture in 2017 YTD
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Food
Health
Adtech
Marketing
Infrastructure
Logistics
Employment
Financial
Electronics
Lifestyle
0 5 10 15 20 25 30 35
French venture financingby target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM

43. • Finance was the by far most
commonly funded category
in Germany, with 24
investments in 2017
• Consumer lifestyle was next
• Food and electronics tied for
third
A closer look at German venture in 2017 YTD
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Automotive
Payments
Marketing
Employment
Infrastructure
Travel
Health
Electronics
Food
Lifestyle
Financial
0 5 10 15 20 25 30
German venture financing by target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM

44. • Education was the most
commonly funded category
in Ireland, with 3 investments
in 2017
A closer look at Irish venture in 2017 YTD
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HMI
Industrial
Data
Logistics
CRM
Payments
Lifestyle
Legal
Infrastructure
Marketing
Employment
Development
Health
Financial
Communications
Education
0 1 2 3 4
Irish venture financing by target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM

45. • Gaming was the most
commonly funded category
in Finland, with 8 investments
in 2017
• Industrial and electronics
were next
A closer look at Finnish venture in 2017 YTD
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Data
Energy
HMI
Education
Entertainment
Marketing
Health
Electronics
Industrial
Gaming
0 1 2 3 4 5 6 7 8 9
Finnish venture financingby target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM

46. • Consumer lifestyle was the
most commonly funded
category in Spain, with 9
investments in 2017
• Financial was second
• Logistics and health tied for
third
A closer look at Spanish venture in 2017 YTD
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Electronics
Education
Social
Employment
Infrastructure
Travel
Health
Logistics
Financial
Lifestyle
0 1 2 3 4 5 6 7 8 9 10
Spanish venture financingby target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM
Telecom
Government

47. • Financial was by far the most
commonly funded category
in Switzerland, with 6
investments in 2017
• Interestingly, there were two
space-related investments in
Switzerland
A closer look at Swiss venture in 2017 YTD
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Health
Communications
ERP
Food
Employment
Real Estate
Legal
SCM
Infrastructure
Data
Electronics
Payments
Automotive
Space
Financial
0 1 2 3 4 5 6 7
Swiss venture financingby target market
2017 YTD (number of investments, top verticals)
Consumer
Enterprise
SMB
OEM

48. Focus on Health Tech
• 2017 is witness to a dramatic
rise in the number of health
tech investments across
Europe and Israel
• This is happening across the
geography
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49. Focus on Employment/HR
• 2017 is also seeing an
increase in Employment/HR
startup investment
• Activity in France and the UK
was the main driver here
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50. Focus on Data
• The UK, France, and Israel
continue to see investment
into data startups (big data,
analytics, and databases)
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51. Based in , I was previously a partner at . Before that, I helped run the
European seed program for . I moved to London after seven years in
during which I worked as a VC with and . I’m originally from .
My VC investments include and .
Angel investments include and many more.
If you found this useful, I hope you’ll subscribe to my blog.
51
Gil Dibner
To invest in the best European & Israeli enterprise startups,
consider backing me on here. Lots of exciting stuff in the
pipeline – and you’ll be in pretty good company.

52. Thank you
blog