Europe & Israel 1Q15 VC Trends Review

Venture Capital in Europe & Israel
Venture Investment Data: First Quarter, 2015
Prepared by Gil Dibner @gdibner
blog: yankeesabralimeyMarsaxlokk Harbor, Malta, population 4,000

The data
• Around the middle of last year, I decided I wasn’t happy with available data sources on VC
rounds in Europe & Israel, and that I’d need to build my own
• The data in this report consists entirely of data I’ve gathered manually based on publically
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
• Seed investment is still under-reported, but I got a bit better at capturing it in the fourth
quarter. Rounds smaller than $500K are generally excluded from this analysis
• The analysis is limited to ICT categories and excludes life sciences
• The analysis excludes Turkey and FSU countries
• I’m converting EUR and GBP into USD using monthly average exchange rates
2@gdibner
blog: yankeesabralimey Syndicate for European & Israeli Enterprise Companies

Monthly pace of venture investment
• During the nine months
ended March, 2015, there
were 596 reported venture
investments across Europe &
Israel
• A total of $6.487B was
invested in Europe & Israel
during this period, an
average of $721M per month
• During these nine months,
January, February, and March
were each – in turn – record-
breaking months
• March saw $998M invested
across 103 rounds
@gdibner
blog: yankeesabralimey 3
493
565
644 625
562
725
903
971 998
42 30 50 79 73 52
92 75 103
0
200
400
600
800
1,000
1,200
Jul Aug Sep Oct Nov Dec Jan Feb Mar
Qtr3 Qtr4 Qtr1
2014 2015
Numberofinvestments
VC Investments in Europe & Israel, July 2014 - March 2015
Invested amount (US $M) Number of investments
Syndicate for European & Israeli Enterprise Companies

Quarterly pace of venture investment
• The first quarter of 2015 saw
a significant uptick in activity
over the third and fourth
quarters of 2014
• In 1Q15, over $2.8B was
invested across 270
companies in Europe & Israel
4
@gdibner
blog: yankeesabralimey
1,703
1,912
2,872
122
204
270
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
50
100
150
200
250
300
Qtr3 Qtr4 Qtr1
2014 2015
Amountinvested(US$M)
Numberofinvestments
VC Investments in Europe & Israel
Invested amount (US $M) Number of investments

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+)
• Five mega-rounds took place in
Europe in the first quarter:
• Taboola, an Israeli content-
recommendation company, raised
$117M in February
• Sigfox, a French wireless network for
IoT, raised $115M in February
• WorldRemit, a British money transfer
company raised $100M in February
• Simplivity, an Israeli enterprise
systems company, raised $175M in
March
• Financial Force, a British ERP SaaS
provider, raised $110M in March
• Even adjusting for mega-rounds,
1Q is still significantly above the
previous two quarters
5
@gdibner
98 57 92
121 120 102 85 82
118
118
60
168 109 76 127 169 226 161
171 342 26
366
340
229
613
153
387
0
200
400
600
800
1,000
1,200
Qtr3 Qtr4 Qtr1
2014 2015
AmountInvested(US$M)
Pace of VC Investment in Europe and Israel
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (.5-2)

Number of investments, by bracket
• In terms of deal volume,
Europe & Israel have
completely rebounded from
the Christmas-induced lull.
• March was the busiest month
since I started tracking the
data
• 45 seed deals
• 33 early venture deals
• 13 venture deals
• 10 growth deals
• 2 mega rounds
6
@gdibner
6 3 7
28 26
15
37
30
45
21
14
25
31 29
22
24
20
33
9
5
16
10
6
10
13
16
13
5
7
1
10
12
4
18
5
10
0
20
40
60
80
100
120
Qtr3 Qtr4 Qtr1
2014 2015
NumberofVCinvestments
Number of investments in Europe and Israel by bracket
June 2014 to March 2015
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

Average round size, by bracket
• Previously, I presented this
broken down by bracket, but
I think the data is more
meaningful when taken in
aggregate.
• This average excludes seed
rounds and mega rounds, so
it reflects all rounds done in
Europe & Israel between $2M
and $100M
• It’s still hard to see a trend,
but I think its safe to say
rounds are averaging around
$11-12M and trending
upwards
7
@gdibner
11.1
17.6
6.8
11.7
11.4
12.7
15.8
11.2
11.9
4
6
8
10
12
14
16
18
20
Qtr3 Qtr4 Qtr1
2014 2015
AmountInvested(US$M)
Average investment size in Europe and Israel
(Round sizes of 2-100M)

Total venture investment by country, 2H 2014
• The UK overtook Israel to
regain its position as the
country with the largest
amount of VC activity in
1Q15
• Germany, France, and
Sweden rounded out the rest
of the top five
8
@gdibner
930.1
834.6
537.6
233.0
88.9
52.7
50.6
38.9
34.3
23.4
17.2
7.8
5.4
3.8
3.4
2.7
2.5
1.3
1.0
0.9
0.9
0.6
0.3
UK
Israel
Germany
France
Sweden
Spain
Denmark
Netherlands
Switzerland
Estonia
Finland
Belgium
Italy
Norway
Latvia
Ireland
Poland
Austria
Portugal
Iceland
Serbia
Lithuania
Greece
0 100 200 300 400 500 600 700 800 900 1,000
Total VC investment volume by country, 1Q15 (US $M)

Total venture investment by country, 3Q & 4Q 2014
• To get a better sense of VC
volumes in various countries,
this analysis excludes mega-
rounds
• UK venture activity
skyrocketed in 1Q15,
doubling that of 3Q14
• Investment volume in Israel
stayed roughly flat from a
record-breaking 4Q
• Investment volume in
Germany continued to show
strong increases
• France & Sweden both
declined slightly, but France
held on to its fourth place
slot
9
@gdibner
Israel, 315.2
Israel, 567.5
Israel, 542.6
UK, 369.0
UK, 262.9
UK, 720.1
Germany, 180.2
Germany, 284.4
Germany, 388.6
France, 29.3
France, 163.3
France, 118.0
Sweden, 74.4 Sweden, 123.2 Sweden, 88.9
Qtr3 Qtr4 Qtr1
0
100
200
300
400
500
600
700
800
TotalVCinvestment(US$M)
Total VC investment, 3Q14 - 1Q15 (top 5 countries, excluding mega-rounds)

Average venture round sizes, by country
• Looking across all VC deals in
the second half of 2014, it’s
possible to draw some
conclusions about the
funding environments in
various countries
• This analysis excludes mega-
rounds and rounds less than
$2M
• UK & Ireland companies
raised the largest round sizes
on average in 1Q, a
significant jump from 4Q
• DACH startups seem to raise
consistently large rounds on
average
10
@gdibner
Benelux, 10.6
Benelux, 4.7
Benelux, 7.2
DACH, 18.0
DACH, 14.9
DACH, 14.4
France, 3.7
France, 5.6
Iberia, 10.4
Iberia, 7.2
Iberia, 14.1
Israel, 11.6
Israel, 15.9
Israel, 12.1
Nordic, 7.7
Nordic, 11.5
Nordic, 11.4
UK & Ireland, 11.9
UK & Ireland, 18.9
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
Qtr3 Qtr4 Qtr1
2014 2015
Averageroundsize(US$M)
Average investment size in Europe and Israel (rounds of $2-20M)

Total venture investment by region, 3Q14 to 1Q15
• When VC investments across
Europe are aggregated into
regions, Israel, DACH, UK &
Ireland, the Nordics, and
France are the clear and
consistent leaders
• Benelux, Iberia, Southern
Europe, and Eastern Europe
do produce meaningful VC
investments (Adyen, Prezi,
and many others), but the
volumes are still low
11
@gdibner
Israel, 315.2
Israel, 567.5
Israel, 834.6
UK & Ireland, 399.0
UK & Ireland, 262.9
UK & Ireland, 932.8
DACH, 532.2 DACH, 290.2
DACH, 573.2
Nordic, 124.0
Nordic, 219.3
Nordic, 188.6
France, 129.3 France, 163.3
France, 233.0
Benelux, 284.9Iberia, 168.1
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Qtr3 Qtr4 Qtr1
2014 2015
TotalVCinvestment(US$M)
Total VC investment by region
Israel UK & Ireland
DACH Nordic
France Benelux
Iberia East. Eur.
South. Eur.

Rounds by bracket & country
• To get a better sense of deal
volume, this analysis excludes
seed deals which are often
poorly reported
• Excluding seed deals, Israel
led the region in the number
of VC deals reported
• The UK and France followed
• Interestingly, France and the
UK saw an equal number of
early venture and growth
deals, but the UK saw 13
“venture deals” compared to
only 5 in France
12
@gdibner
17 15 15 15
8
4
18
13
5
2
3
9
9
9
3
2
2
0
5
10
15
20
25
30
35
40
45
50
Israel UK &
Ireland
DACH France Nordic Benelux Iberia East. Eur. South. Eur.
Numberofinvestments
Number of investments in Europe and Israel by bracket, 1Q 2015
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8)

Investment by region, by bracket
• In 1Q, UK & Ireland led in
terms of total VC dollars
invested, even with mega-
rounds included
• Israeli was in second place,
DACH was third
• Excluding Sigfox’s $115M,
France came in fifth; including
it would catapult France
ahead of the Nordics
13
@gdibner
74 70 46 28 45
165 235
63 49
460
226
308
82
210
292
149
115
0
100
200
300
400
500
600
700
800
900
1,000
UK &
Ireland
Israel DACH Nordic France Iberia Benelux South. Eur. East. Eur.
Totalamountinvested(US$M)
Investment in Europe and Israel by bracket by region, 1Q 2015
(ranked excluding mega-rounds)
Mega (>100) Growth (20-100) Venture (8-20) Early Venture (2-8) Seed (<2)

Participation rate of US VC firms, by bracket
• US VC firms are increasingly
active in the European and
Israeli VC markets
• Over the past nine months,
US VC firms participated in
16% of the venture rounds in
Europe
• US VCs participated in only
5% of seed rounds, 11% of
early venture rounds, and
24% of venture rounds
• As a company moves from
bracket to bracket, the
chance of US VC participation
doubles with each bracket
change
14
@gdibner
5%
11%
24%
44%
80%
95%
89%
76%
56%
20%
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)
Did US VC firms participate in European VC rounds? (3Q14-1Q15)
No Yes

Rate of participation by US firms is declining
• As the pace of European and
Israeli VC investment
increased, the rate of
participation by US firms did
not keep pace
• Within rounds of between
$2M and $20M, US VC
participation dropped from
24% of rounds in October to
just 11% of rounds in March
15
@gdibner
10% 5%
17%
24%
17% 16% 19%
8% 11%
90% 95%
83%
76%
83% 84% 81%
92% 89%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1
2014 2015
Did US VC firms participate in European VC rounds? (3Q14-1Q15)
No Yes

Participation of US VC firms by country
• In 1Q, US VCs firms were
active in 10 different
European countries, down
from 12 in 4Q
• US VC firms were most active
in Israel, where they
participated in 15 investment
rounds
• The UK saw 10 investments
with US VC participation,
double the number in 4Q
16
@gdibner
15
10
4
43 49
28
13 11 11 10
0
10
20
30
40
50
60
70
Israel
UK
Germany
Spain
Denmark
Switzerland
Netherlands
Sweden
Ireland
Austria
NumberofVCinvestments
In which countries are US VCs most active?
1Q, 2015
No US VC involved US VC involved

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? What are customers paying
for?
Combined segment descriptor Consumer + Travel + Marketplace
AirBnB has built a travel-related
marketplace for consumers 17
Three-dimensional approach to sector mapping

• The increase in venture
investment activity was seen
across both consumer and
enterprise
• Consumer deal volume
increased 65% from 4Q14 to
1Q15
• Enterprise deal volume
increased only 20% during
the same period
• SMB-oriented and OEM-
oriented investment volume
declined
18
@gdibner
475 595
980
494
794
951
78
133
122
78
114
47
0
500
1,000
1,500
2,000
2,500
Qtr3 Qtr4 Qtr1
2014 2015
TotalVCinvestments(US$M)
European & Israeli venture financing by target market
3Q14 to 1Q15 (in US $M)
Government
Telecom
OEM
SMB
Enterprise
Consumer
What target markets are attracting the most VC
investment in Europe & Israel?

• Last quarter’s trend reversed
itself, with consumer-oriented
companies accounting for
43% of all VC investment in
Europe & Israel, up from 31%
• Enterprise dropped from 55%
to 47%
• Other categories declined,
with SEM, OEM, and
Government-oriented
companies nearly
disappearing from the deal
volumes
19
@gdibner
The return of consumer investment
54%
31%
43%
29%
55%
47%
5%
7%5%
6%7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1
2014 2015
TotalVCinvestments(US$M)
3Q14 to 1Q15 (in US $M)
Government Telecom OEM SMB Enterprise Consumer

Breakdown by region & target market
• The Israeli VC landscape
continued to be dominated
by non-consumer companies
• The DACH region saw a
return to the dominance of
consumer-oriented
companies in VC financing
• Sigfox’s massive round meant
that the majority of VC dollars
flowing into France went into
the telecom space – clearly
an anomaly
• The Nordics seemed to echo
Israel’s emphasis on
enterprise
• UK dealflow was split almost
evenly
20
@gdibner
464
80
504
55 50
407
670
64
80
122
60
46
115
0
100
200
300
400
500
600
700
800
900
1,000
UK & Ireland Israel DACH France Nordic Iberia Benelux
Investment in Europe and Israel by target market by country
1Q, 2015 (US $M)
Government Telecom OEM SMB Enterprise Consumer

Distribution of investment rounds by country
• Across Europe & Israel, 47%
of VC investment rounds
were in consumer companies
in 1Q, up from 41% in 4Q
• Israel and Nordics were the
only geographies to see a
majority of investment rounds
happen into non-consumer
companies – for Israel that’s
normal, for the Nordic’s it’s a
reversal
• Most other European markets
saw 50-60% of rounds go
into consumer companies
21
@gdibner
26%
37%
52%
53%
56%
57%
67%
76%
100%
60%
47%
36%
29%
39%
41%
33%
18%
7%
9%
12%
3%
3%
6%
5%
7%
6%
6%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Israel
Nordic
France
Benelux
UK & Ireland
DACH
South. Eur.
Iberia
East. Eur.
Investment in Europe and Israel by target market by country
1Q 2015 (Number of investments)
Consumer Enterprise SMB OEM Telecom Government

Seed and growth swing back to consumer
• Unlike last quarter, a clear
majority of both growth deals
and seed deals were in
consumer-oriented
companies
22
@gdibner
59%
44%
43%
66%
31%
47%
57%
28%
5%
5%
6%
4%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Seed (<2)
Early Venture (2-8)
Venture (8-20)
Growth (20-100)
Investment in Europe (excluding Israel) by target market by stage bracket
1Q 2015 (Number of investments)
Consumer Enterprise SMB OEM Government

DACH investors shift back to consumer
• DACH is clearly a region with
a record of strong consumer-
oriented investment
• In 4Q14 this began to
change, but this trend may
not be long-lived
• 1Q15 saw a majority of
investments in DACH go into
consumer companies
23
@gdibner
100%
67%
60%
40%
13%
57% 60%
33%
73%
17%
20%
40%
88%
43% 40%
67%
20%
20%
10%
7%
17%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015
Investment in DACH by target market by stage bracket
July 2014 to March 2015 (Number of investments)
OEM SMB Enterprise Consumer

The Nordics shift towards the enterprise…
• The Nordic region saw pretty
diverse investment patterns in
3Q14 and 4Q14, but in 1Q15
there was a clear shift
towards the enterprise
• Interestingly, but not
surprisingly, OEM-oriented
deals seemed to disappear
from the landscape almost
entirely
24
@gdibner
40%
25%
67%
83%
50%
64%
20%
50%
38%
60%
50%
17%
42%
27%
60%
50%
38%
8%
10% 14%
25%
17% 17%
9% 10% 10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015
Investment in the Nordics by target market

…especially in terms of dollars invested
• When we look at dollars
investment as opposed to the
number of investments, the
trend in the Nordics is even
clearer
• Interestingly, but not
surprisingly, OEM-oriented
deals seemed to disappear
from the landscape almost
entirely (from 40% in August
to just 4% in March)
25
@gdibner
32%
11%
72% 75%
44%
52%
44%
20%
12%
68%
49%
6%
55%
24%
54%
80%
72%
12%
40%
21% 25% 24%
4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015
Investment in the Nordics by target market
July 2014 to March 2015 (Total US $M invested)

About 40% of French VC deals were enterprise…
• In France, the ratio of
enterprise deals to consumer
deals seems roughly constant
from September 2014 to
March 2015
26
@gdibner
100% 100%
50% 46%
58%
50%
62% 60%
46%
38%
38%
33% 50% 31%
40%
46%
15%
8%13%
8% 8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Qtr3 Qtr4 Qtr1
2014 2015
VC Investment in France by target market

…but money increasingly flows to enterprise
• When the data is presented
by the amount of dollars, it
becomes clear that more and
more of French VC dollars are
flowing towards enterprise-
oriented companies
27
@gdibner
100% 100%
59%
44%
65%
77%
33% 31%
19%
23%
46%
10%
23%
64% 69%
74%
10%
25%
18%
3% 7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2014 2015
VC Investment in France by target market

• 4Q saw a reshuffling of
popular verticals
• Market, lifestyle, adtech and
infrastructure were the most
often funded verticals across
Europe & Israel
• Finance dropped to the fifth
slot
28
@gdibner
Marketing displaced finance as the top vertical
Marketing, 20
Lifestyle, 18
Adtech, 17
Infrastructure, 17 Financial, 15
Electronics, 14
Employment, 13
Security, 11
Travel, 11
Communications, 10
Productivity, 10
Development, 10
Health, 10
Logistics, 10
Data, 9
Education, 9Fashion, 9Payments, 6
Gaming, 5
ERP, 5
1Q 2015 (number of investments)

• Enterprise and SMB
marketing companies were
the most popular category of
investment across Europe &
Israel
• Various consumer lifestyle
companies were the second-
most popular category
• Adtech, despite falling
dramatically out of favor in
the US, took the third slot
• Infrastructure companies
(mostly for the enterprise)
took the fourth slot
• Fintech was dominated by
consumer companies
29
@gdibner
Health
Development
Productivity
Logistics
Communicati…
Security
Travel
Employment
Electronics
Financial
Infrastructure
Adtech
Lifestyle
Marketing
0 5 10 15 20 25
1Q, 2015 (number of investments, top 10 verticals)
Consumer
Enterprise
SMB
OEM
Telecom
Government
Which verticals for which segments?

• Not surprisingly, enterprise
infrastructure and security
were the most popular
categories for investment in
Israel
• Adtech took the third spot
• Consumer communications
companies and enterprise
marketing companies were
two other popular categories
30
@gdibner
A closer look at Israeli venture in 1Q15
Health
Education
ERP
Lifestyle
Payments
Financial
Development
Marketing
Productivity
Communications
Adtech
Security
Infrastructure
0 1 2 3 4 5 6 7 8 9
Israeli venture financing by target market
Consumer
Enterprise
SMB
OEM
Telecom

• In 1Q15, the most popular
vertical in the UK was
consumer fintech
• Adtech was the second most
popular vertical
• Consumer fashion and
consumer durables were also
popular categories for UK
VCs in 1Q
31
@gdibner
Consumer fintech led the UK
Infrastructure
Lifestyle
Logistics
Music
Marketing
Security
Real Estate
Communications
Durables
Travel
Fashion
Employment
Health
Adtech
Financial
0 1 2 3 4 5 6 7
UK venture financing by target market
Consumer
Enterprise
SMB
OEM

• In terms of dollars invested
during 1Q15, services (31%)
and commerce (18%) were
the leaders
• Software and SaaS came in
third and fourth, respectively
• Marketplace business models
took fourth place, with 10%
of invested capital
• Physical products (systems,
components, and
semiconductors) accounted
for only 4% of total
investment combined, down
from 14% in 4Q14
32
@gdibner
Services, 666, 31% Commerce, 389, 18%
Software, 374, 18%
SaaS, 332, 16%
Marketplace, 206, 10%
Media, 57, 3%
Systems, 49, 2%
Components, 18, 1%
Semiconductors, 15, 1%
1Q, 2015 (in US $M) (excluding mega-rounds)
Service models led the pack in 1Q

• Service-style business models
have been exploding in
popularity across Europe &
Israel
• Part of this may be due to
how the community is
starting to characterize
companies – things that
might have been described
previously as software (i.e.
apps) are increasingly being
characterized by the
underlying service delivered
(education, logistics, etc.)
• E-commerce has also seen a
resurgence in 1Q15
33
@gdibner
Services are exploding
0
100
200
300
400
500
600
700
Qtr3 Qtr4 Qtr1
2014 2015
European & Israeli venture financing by business model
3Q14 to 1Q15 (in US $M, excluding mega-rounds)
Software
SaaS
Services
Marketplace
Commerce

US VCs focused on SaaS, software, and services
• US VC firms investing in
Europe & Israel continued to
focus mainly on SaaS,
software, and services
• Last quarter, no commerce-
oriented companies in
Europe or Israel attracted US
VC interest – this quarter US
VCs backed five companies in
that category
• Components, and
semiconductors attracted
almost no interest from local
VCs, and no interest at all
from US VCs
• Marketplaces attracted US
VCs in only two cases
34
@gdibner
12 11
7 5 2 2
46 47 54
17 25
21
18
0
10
20
30
40
50
60
70
Services Software SaaS Commerce Marketplace Systems Media Components Semiconductors
VC Investments in Europe & Israel
1Q, 2015 (number of investments)
No US VC involved US VC involved

• Enterprise marketing SaaS
was the most popular
segment for VC investment in
1Q15 with 17 investments
across the region
• Consumer electronics systems
was the second most popular
segment, with 11 investments
• The UK was the clear leader
in consumer financial
services.
• Israel completely dominated
the enterprise security
software segment
35
@gdibner
0 2 4 6 8 10 12 14 16 18
Consumer Employment Marketplace
Enterprise Development SaaS
Enterprise Infrastructure Software
Enterprise Development Software
Enterprise Adtech Services
Enterprise Data Software
Consumer Lifestyle Commerce
Consumer Lifestyle Media
Enterprise Employment SaaS
Consumer Fashion Commerce
Consumer Education Services
Enterprise Security Software
Consumer Financial Services
Consumer Electronics Systems
Enterprise Marketing SaaS
Number of VC investments
Investment in Europe & Israel by segment by country
1Q15 (segments with 5 or more investments)
UK & Ireland Israel
Nordic DACH
France Benelux
Iberia South. Eur.
East. Eur.
Enterprise marketing & consumer electronics

• Across Europe & Israel, US VC
firms invested in 21 enterprise
companies, 11 consumer
companies, and 1 SMB
company
• In the consumer space, US
VC interest was concentrated
on UK services companies
and DACH commerce
companies
36
@gdibner
0 1 2 3 4 5 6 7 8 9 10
SaaS
Media
Commerce
Services
Marketplace
Systems
SaaS
Services
Software
SMBConsumerEnterprise
US VC Investments in Europe and Israel by end market,
business model, & country, 1Q 2014
Israel
UK & Ireland
DACH
Iberia
Nordic
What business models attract US VC investments?

Focus on dev tools: everywhere you look
• Over the past nine months,
22 dev tooling companies
raised VC money across
Europe & Israel
• These companies were
distributed across ten
countries
• Israel led the pack with 6; UK
and the Netherlands each
saw 3, Germany and Estonia
each saw 2
37
@gdibner
0
1
2
3
4
5
6
7
Jul Sep Oct Nov Dec Jan Feb Mar
2014 2015
Numnberofinvestment
Development tools VC investment in Europe and Israel
3Q14 to 1Q15, Number of investments
Ireland France Latvia Norway Sweden
Estonia Germany Netherlands UK Israel

Focus on services: what’s behind the boom
• 49 services-oriented
companies raised VC
financing across Europe &
Israel in 1Q15
• Finance, education, and
communications were the
most popular verticals for
consumer-oriented services
companies
• Adtech was the only services
vertical with significant
enterprise investment
38
@gdibner
0 2 4 6 8 10 12 14
Entertainment
Lifestyle
Social
Music
Infrastructure
Logistics
Payments
Communications
Adtech
Education
Financial
Services-oriented VC investment in Europe and Israel
by vertical and target market, 1Q 2015 (top 10 verticals)
Consumer Enterprise SMB Telecom

Focus on enterprise SaaS: verticals by country
• Marketing remained in the
top spot within enterprise
SaaS, but data dropped from
second place to fifth
• Employment and HR-related
SaaS offerings were the
second-most popular
category within enterprise
SaaS
• Development tooling SaaS
offerings were the third most
popular category
• Enterprise infrastructure, the
fourth most popular
category, saw only Israeli
companies get funded
39
@gdibner
0 5 10 15 20
Logistics
Productivity
Travel
CRM
Communications
Security
Health
Data
ERP
Adtech
Infrastructure
Development
Employment
Marketing
Enterprise SaaS VC investment in Europe and Israel
by vertical by country, 1Q 2015 (number of investments)
Israel France
UK Germany
Denmark Estonia
Sweden Netherlands
Lithuania Norway
Austria Ireland

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 three more that haven’t been announced yet.
If you found this useful, I hope you’ll subscribe to my blog.
40
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.

Europe & Israel 1Q15 VC Trends Review

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