early stage vc in DACH

a presentation summarizing the latest data and insights on venture capital-backed internet companies in DACH. included inside

: US funds becoming more active in DACH
: how much capital is being invested?
: what have DACH exits looked like historically?
: how have round sizes trended?
: what are the large companies and who is backing them?

Transcript

1. © 2019 BALDERTON CAPITAL CONFIDENTIAL © 2019 BALDERTON CAPITAL CONFIDENTIAL VC:DACH 2018 January 2019
2. © 2019 BALDERTON CAPITAL CONFIDENTIAL State of DACH 2
3. © 2019 BALDERTON CAPITAL CONFIDENTIAL VC funding into DACH up >2x in 2 years to $4.7B 3
4. © 2019 BALDERTON CAPITAL CONFIDENTIAL Driven by stark increase in large rounds 4
5. © 2019 BALDERTON CAPITAL CONFIDENTIAL Are round sizes going up? 5 Yes and no. We aren’t seeing much larger round sizes in Early and Mid rounds, but Late stage rounds have moved from ±50% of the capital to ±70% and the high number megarounds at the top skew dataset 2017 avg round: $5.5M 2018 avg round: $13.3M
6. © 2019 BALDERTON CAPITAL CONFIDENTIAL Mega Deals come to DACH 6
7. © 2019 BALDERTON CAPITAL CONFIDENTIAL Large notable Deals in 2018 ($50M+) 7 AboutYou (Hamburg, DE), a German fashion e-commerce marketplace raised $300M in Jul-18 from corporate venture like P7S1, Otto N26 (Berlin, DE) raised $160M in Mar-18 from Tencent and AllianzX GoEuro (Berlin, DE) raised $150M in Oct-18 from Kinnevik, Temasek and Hillhouse, company has raised $350M+ to date HometoGo (Berlin, DE) raised $150M in Dec-18 led by Insight Venture Partners (Harley Miller), has raised $180M to date Dfinity (SF > Zug, CH) raised $102M in Aug-18 from a16z and Polychain for a new ’world computer’ similar to Ethereum Nexthink (Lausanne, CH) raised $85M led by Index in Dec-18. Company founded in 2004 Wayray (Zurich, CH) raised $80M in Sep-18 from Porsche and China Merchants Kunlun Capital Auto1 (Berlin, DE) raised $560M in Jan-18 from Softbank at $3.5B post, has now raised $1.3B total SolarisBank (Berlin, DE) raised $70M in Mar-18 from BBVA, Visa, and Lakestar Smava (Berlin, DE) raised $65M led by Vitruvian in Jan-18 Outfittery (Berlin, DE) raised $60M led by Holtzbrinck in Oct-18 Dreamlines (Berlin, DE) raised $50M led by Princeville Global in May-18 Celonis (Munich, DE) raised $50M led by Accel and 83North at $1B post Tado (Munich, DE) raised $50M led by Amazon Alexa Fund in Oct-18 Uberall (Munich, DE) raised $50M led by HPE Growth Capital in Sep-18 Sophia Genetics (St. Sulpice, CH) raised $77M in Jan-19 from Generation Investment Management N26 (Berlin, DE) raised $300M in Jan-19 from Insight Venture Partners at a $2.7B post Frontier Car Group (Berlin, DE) raised $58M led by Balderton Capital and TPG Growth in Mar-18
8. © 2019 BALDERTON CAPITAL CONFIDENTIAL Other notable deals (Caliber of investor) 8 TourLane (Berlin, DE), a tour booking platform raised a €21M round led by Sequoia TourRadar (Vienna, AT) raised $45M led by TCV DeepL (Cologne, DE) raised a round from Benchmark. Unclear size LeanIX (Vienna, AT) raised $30M in Dec-18 led by Insight Scandit (Zurich, CH) raised $30M in Dec-18 led by GV (Tom Hulme) Dashdash (Berlin, DE) raised $8M pre-launch from Accel Prisma [prev. Graphcool] (Berlin, DE) raised $4.5M from KPCB Pitch (Berlin, DE) raised $19M from Index Ventures and Blueyard
9. © 2019 BALDERTON CAPITAL CONFIDENTIAL Americans in DACH 9
10. © 2019 BALDERTON CAPITAL CONFIDENTIAL Top US investors doing more deals in EU WELCOME TO BALDERTON. 10 Included investors Battery, Benchmark, Bessemer, Founders Fund/Peter Thiel, General Catalyst, Insight Venture Partners, KPCB, Sequoia, USV, a16z
11. © 2019 BALDERTON CAPITAL CONFIDENTIAL Top US investors doing more deals in EU WELCOME TO BALDERTON. 11 Included investors Battery, Benchmark, Bessemer, Founders Fund/Peter Thiel, General Catalyst, Insight Venture Partners, KPCB, Sequoia, USV, a16z
12. © 2019 BALDERTON CAPITAL CONFIDENTIAL Who is doing the most in DACH? WELCOME TO BALDERTON. 12 Spark Capital and Insight Venture Partners are the most active these days, but many investors in the mix in 2018
13. © 2019 BALDERTON CAPITAL CONFIDENTIAL Who is doing the most in DACH? WELCOME TO BALDERTON. 13 Insight Venture Partners consistently deploying the most capital
14. © 2019 BALDERTON CAPITAL CONFIDENTIAL Who are they following on from? WELCOME TO BALDERTON. 14 Redalpine N26, RosieReality, Taxfix Point Nine Kreditech, Contentful Earlybird N26, Simscale Holtzbrinck Tourlane, Zeitgold Lakestar GoEuro, HomeToGo GFC Chrono24, HomeToGo DN Capital Tourlane, HomeToGo Atlantic Clue, Careship e.ventures Blinkist, Coya Creandum Taxfix, Careship Most frequent early investors listed below
15. © 2019 BALDERTON CAPITAL CONFIDENTIAL 15 ¾ of all DACH capital going into Germany
16. © 2019 BALDERTON CAPITAL CONFIDENTIAL Berlin strong lead in terms of deal count All data from all DACH cities in all VC rounds completed in 2018 between $5M and $20M
17. © 2019 BALDERTON CAPITAL CONFIDENTIAL And even stronger in terms of capital raised All data from all DACH cities in all VC rounds completed in 2018 between $5M and $20M
18. © 2019 BALDERTON CAPITAL CONFIDENTIAL What does a typical funded company look like? All data from all DACH cities in all VC rounds completed in 2018 between $5M and $20M Avg Year Founded 2013 Median Year Founded 2014 Avg Current Employees 50 Median Current Employees 35 Average Total Raised 19 Median Total Raised 13
19. © 2019 BALDERTON CAPITAL CONFIDENTIAL Fund Activity $4.2B raised in DACH 2017-2018
20. © 2019 BALDERTON CAPITAL CONFIDENTIAL What have been the biggest exits? 20 DACH Exits in 2018
21. © 2019 BALDERTON CAPITAL CONFIDENTIAL DACH Exits (cont.) 21 DACH exits in aggregate worth ~$30B in the past 5 years
22. © 2019 BALDERTON CAPITAL CONFIDENTIAL Peer Review DACH 2018 22