[DECODE] France remains behind the United Kingdom and Germany in terms of tech investments
With almost 8.3 billion euros ($ 9.3 billion) invested, the first quarter of 2019 broke new records in Europe
The FinTech and software sectors were particularly well funded, with + 60% investment over the period compared to the previous quarter, according to data from Dealroom.
Another record was reached in terms of “mega-financings” aimed at developing companies of international size: the ten largest operations in the first quarter in Europe represented 2.5 billion dollars (2.2 billion euros), or 26% of total investments. A dynamic that follows a trend that began in 2018. Investments amounted to $ 31 billion in European and Israeli companies last year, compared to nearly $ 29 billion in 2017.
Business as usual, the United Kingdom remains by far the number one country where venture capital funds invest in 2018
Despite a complex Brexit process, the UK continued to attract the majority of technology investment to Europe, with $ 7.9 billion invested in 2018. Slightly less than the year before, where UK companies benefited of $ 8.1 billion in investment.
Despite the massive support of the BPI, France is only positioned third in 2018
In 2018, Germany experienced strong growth, with $ 4.6 billion in funding, compared to $ 3.2 billion in 2017.
With 4.4 billion dollars of investment (2.8 billion in 2017), France comes only third, despite a financing strategy of the French ecosystem very dependent on the BPI, which invests directly through most of the major French investment funds to which it has subscribed, and aid granted by its various aid and support entities.
It should be noted that very logically, due to the evolution of the maturity of our start-ups, the number of seed investments remains stable, and rounds of funding increase in series A (+ 56%), B (+ 37% ) and C (+ 300%).
Three French companies have raised funds exceeding 100 million euros: Blablacar with 101 million euros (Baring Vostok Capital Partners and SNCF), Deezer with 160 million euros (Kingdom Holding Company, the company of investment of Prince Alwaleed bin Talal bin Abdulaziz Al Saud and Rotana) and Voodoo with 171 million euros (Goldman Sachs), mainly from foreign funds.
On the exit side, Sweden enjoys the best valuations in 2018 thanks to Spotify and iZettle
European tech companies recorded a total of 107 billion dollars in exits (resales or IPOs), of which 40 billion in the United Kingdom (with the IPOs of Funding Circle, Farfetch and Orchard Therapeutics), 14.2 billion in Italy, France and Germany combined, and 34 billion in Sweden (thanks in particular to the IPO of Spotify and the takeover of iZettle by PayPal). Europe was thus reducing the distance which separates it from the United States, where companies financed by venture capital have recorded 136 billion dollars in buybacks and IPOs.
A good start in 2019
This trend continued in the first quarter of 2019 with 9.3 billion dollars (around 7.8 billion dollars excluding Israel) over the first three months of the year, or 15.2% of the world total (61 billion dollars). dollars).
Investments in Europe were made in 800 operations, of which 418 exceeded 2.25 million dollars. By way of comparison, the first quarter of 2018 recorded $ 7.4 billion in venture capital investments in Europe, with a higher number of transactions (1,412, of which 422 exceeded $ 2.25 million). ). In the first quarter of 2017, the total reached $ 5.7 billion for 1,868 investments. It should be noted that the value of transactions above 28 million dollars increased significantly in the first quarter of 2019. It almost doubled compared to the same period in 2017.
Veeam, OakNorth Bank, N26 Record Biggest Investments
Among the European companies that recorded the most significant investments in the first quarter of 2019, are the Swiss backup software specialist Veeam ($ 500 million in January, notably from Insight Venture Partners and the Canada Pension Plan Investment Board – CPPIB ), the British bank for small and medium-sized businesses OakNorth Bank ($ 440 million in February, notably with SoftBank and The Clermont Group), the German online bank N26 ($ 300 million in January, notably with Insight Venture Partners and GIC), the British energy supply company Ovo Energy ($ 262 million in February from Mitsubishi Corporation in particular), the Finnish specialist in planning solutions for the retail and supply chain Relex Solutions ($ 200 million in February with Technology Crossover Ventures in particular), or the French appointment booking platform -you online with Doctolib healthcare professionals ($ 168 million in March with Accel Partners, General Atlantic, Bpifrance, Eurazeo and Kernel).
The first quarter of 2019 ended yesterday and broke the all-time record for venture investment with € 8 bn invested in Europe & Israel (€ 7 bn excl. Israel). Full data: https://t.co/wG2o6fsXgS pic.twitter.com/GP0BnbzM7R
– Dealroom.co (@dealroomco) April 1, 2019
Doctolib achieves the biggest fundraising in France
France represents nearly 1.3 billion dollars (1.2 billion euros) of the European total of 9.3 billion in the first quarter of 2019, or almost 14%. Globally, this is 2% of the total. Apart from Doctolib, which carried out the biggest fundraising in France during the first three months of the year, these investments include those of Ynsect, a start-up which breeds insects for aquaculture and animal nutrition. company ($ 112 million in February from Bpifrance, Talis Capital, Idinvest Partners, Astanor Ventures, Finasucre), the Wynd point of sale digitalization solution ($ 81 million in January, notably from Alven, Sofina , Orange Digital Ventures, Natixis and Sodexo Ventures), marketplace solutions provider Mirakl ($ 70 million in February, notably with Bain Capital, Elaia Partners and 83North), or even AssurTech Shift Technology ($ 60 million in March notably with Accel Partners, Bessemer Venture Partners, Elaia Partners, Iris Capital and General Catalyst Partners). In comparison, these investments in the first quarter of 2018 in France reached 853 million dollars, or 11.5% of the European total.
The UK concentrates over a quarter of investment in Europe
In the UK, investments in the first quarter of 2019 reached almost $ 2.5 billion, almost 27% of the European total and 4% of the world total. After OakNorth Bank and Ovo Energy, the largest investments were recorded (all in February) by the start-up specializing in connected cars Wejo ($ 102 million from General Motors), the mobile bank Starling Bank (98 million from Harald McPike and Merian Global Investors) and the GoCardless online payment solution ($ 75 million from Accel Partners, Adams Street Partners, Balderton Capital, Passion Capital and Notion Capital). In the first quarter of 2018, these investments in the United Kingdom reached 1.7 billion dollars, or 23% of the European total.
In Germany, N26 is followed by Wefox, Raisin and BioNTech
On the German side, companies recorded $ 1.35 billion in investments. This is equivalent to 14.5% of the European total and 2.2% of the world total. If N26 occupies the first place of the most important investments in the country, the start-up is followed by the specialist of the AssurTech Wefox Group (125 million dollars in March with in particular Goldman Sachs, CreditEase and Mubadala Investment Company), FinTech Raisin ($ 112 million in February from Index Ventures, PayPal and Ribbit Capital), the biotechnology company BioNTech ($ 90 million in January from Sanofi), or the start-up specializing in auto insurance digital Friday ($ 84 million in March from Baloise Group). In the first quarter of 2018, however, investments in Germany had reached a record high of $ 2.2 billion (thanks in part to mega-raises from Auto1 Group, NuCOm Group, BioNTech and N26), or almost 30% of the total. European.
The United States still weighs more than half of the world total
However, we are still far from the record level reached by the United States. Companies have recorded $ 32.3 billion in investments, more than half (53%) of the global total. The country saw in the first three months of 2019 colossal fundraising from the software publisher Infor ($ 1.5 billion in January from Golden Gate Capital and Koch Equity Development), the start-up specialist OneWeb telecommunications satellites ($ 1.3 billion in March from Qualcomm and SoftBank), the transport and customs brokerage company Flexport ($ 1 billion in February from Cherubic Ventures, DST Global, Susa Ventures, Founders Fund and SoftBank), Verily, Alphabet’s life sciences and engineering research organization ($ 1 billion in January from Silver Lake Partners and Ontario Teachers’ Pension Plan), or robotics specialist Nuro (940 million dollars in February from SoftBank).
Investments in the first quarter of 2019 in the United States are higher than those of the same period last year. They reached 25.6 billion dollars, that is “only” 45.5% of the world total (56.2 billion dollars). Investments represented 44.2% of the global total in the fourth quarter of 2018, 43% in the third quarter, and 34.2% in the second quarter.
Bpifrance in fourth place among the largest investors in France
To date, Index Ventures remains the leading European investor, and worldwide (2.8 billion dollars invested worldwide over the last twelve months). The San Francisco and London-based venture capital giant is in the top 5 in Europe ahead of HV Holtzbrinck Ventures, Northzone, Balderton Capital and Atomico. Globally, Index Ventures ranks, in order, ahead of Accel Partners, HV Holtzbrinck Ventures, Northzone and Balderton Capital.
In France, Bpifrance is in fourth place among the largest investors (and in 38th place worldwide), behind, respectively, Sofinnova Partners, Idinvest Partners, Elaia Partners, and ahead of the investor Oleg Tscheltzoff.