investment in startups in spain in 2015 - ascri · 2015 – record year for investment in startups...

June 8, 2016 Carlos Trenchs- @ctrenchs

INVESTMENT in STARTUPS in SPAIN in 2015

Venture Capital Overview

BACKGROUND

Focus on Innovative Spanish Companies in early stages (startups) receiving external investments. Data obtained confidentially from investors (public/private) with formal investment vehicles or instruments. Only companies incorporated in Spain (including examples of re-domestication) and money effectively invested (as compared to investment commitments) are accounted for.

June 8, 2016 Carlos Trenchs

GENERAL HIGHLIGHTS 2015

2015 – Record Year for Investment in Startups – 1,527 investments*

4 Source: ASCRI/Webcapitalriesgo

1,2621,140

1,527

2013 2014 2015

x 1.2

* Investment = individual ticket per investor, one round has as many investors as tickets

2015 – Record Year for Investment in Startups – €659.4M (+83%)

5 Source: ASCRI/Webcapitalriesgo

€224K €316K €432K

AVERAGE INVESTMENT PER TRANSACTION

€282.2M

€359.9M

€659.4M

2013 2014 2015

x 2.3

18

70

53

48

11

200

CDTI, ENISA andSimilar

Accelerators andBAN

National VC&PEs InternationalVC&PEs

Corporate VCs TOTAL

High Investor Diversity (200)

6 Source: ASCRI/Webcapitalriesgo

No. of Investors by Category (2015)

35% 27% 24% 9% 6% 100%

862

300

295

60 12

1,529

CDTI, ENISA andSimilar

Accelerators andBAN

National VC&PEs InternationalVC&PEs

Corporate VCs TOTAL

Public investors accounted for 56% of investments*

7 Source: ASCRI/Webcapitalriesgo

56% 20% 19% 4% 1% 100%

No. of Investments by Category (2015)

* Includes both equity and equity loans

€118M

€34M

€119M

€290M

€99M

€659M

CDTI, ENISA andSimilar

Accelerators andBAN

National VC&PEs InternationalVC&PEs

Corporate VCs TOTAL

But foreign VCs accounted for 44% of euros invested

8 Source: ASCRI/Webcapitalriesgo

44% 18% 15% 5% 100%

Amount Invested by Category (2015)

18%

Investment distribution* by Autonomous Community

2013 2014 2015 Catalonia 371 374 502 32.9% Madrid 355 287 394 25.8% Autonomous Community of Valencia 162 168 182 11.9% Andalusia 62 60 89 5.8% Galicia 38 29 65 4.3% Basque Country 39 38 62 4.1% Aragon 30 42 41 2.7% Castille-La Mancha 15 18 39 2.6% Murcia 27 31 39 2.6% Navarra 24 19 27 1.8% Asturias 38 22 20 1.3% Balearic Islands 15 8 19 1.2% Castille and León 37 19 16 1.0% Extremadura 21 12 12 0.8% La Rioja 7 6 7 0.5% Canary Islands 8 6 6 0.4% Cantabria 12 1 6 0.4% Ceuta/Melilla 1 0 0 0.0%

Total 1,262 1,140 1,526

* Investment = individual ticket per investor, one round has as many investors as tickets

Investment distribution (€M) by Autonomous Community

2013 2014 2015 Catalonia 89.4 196.0 371.0 56.3%

Madrid 80.3 79.5 160.5 24.3% Autonomous Community of Valencia 27.4 22.8 30.5 4.6%

Andalusia 11.6 13.7 24.5 3.7% Balearic Islands 0.8 2.8 13.2 2.0% Basque Country 8.0 10.3 11.6 1.8%

Extremadura 2.6 4.2 9.8 1.5% Galicia 15.7 3.7 8.3 1.3% Navarra 13.9 6.1 7.3 1.1%

Castille-La Mancha 2.7 3.8 6.4 1.0% Murcia 3.4 4.5 5.1 0.8%

Castille and León 13.5 5.3 3.2 0.5% Aragon 2.7 2.9 3.2 0.5% Asturias 6.7 3.5 3.1 0.5% La Rioja 1.2 0.4 0.8 0.1%

Cantabria 1.4 0.1 0.5 0.1% Canary Islands 1.0 0.4 0.4 0.1% Ceuta/Melilla 0.1 0.0 0.0 0.0%

Total 282.2 359.9 659.3

Carlos Trenchs

KEY INVESTORS BY TYPE

June 8, 2016

Carlos Trenchs

1- Accelerators and BAN

June 8, 2016

1 – Incubators / Accelerators, Crowdfunding Platforms and BAN

13 Source: ASCRI/Webcapitalriesgo

Key Actors 2015

Key Data 2015

No. of Investors

Total No. of Transactions

Total Amount Invested (€M)

Avg. Transaction Amount

Category Total (Spain)

70; 35%

300; 20%

34; 5%

200

1,527

659

€114K €432K

ESADE BAN / IESE / Crowdcube / capital cell / start up Explore / Wayra / BStart Up / Fundación Repsol / KIC Innoenergy / Lanzadera

1- Accelerators and BAN

14 Source: ASCRI/Webcapitalriesgo

Change in No. of Transactions

8%

16%

22%

20%

% / Total (Spain)

1,143

1,262

1,140

1,527

95 203 247 300

2012 2013 2014 2015

TOTAL Spain Incubators & BAN

€297.1M €282.2M

€359.9M

€659.4M

€6.9M €14.5M €23.3M €34.3M

2012 2013 2014 2015

1- Accelerators and BAN

15 Source: ASCRI/Webcapitalriesgo

€73K €94K €114K

AVERAGE INVESTMENT PER TRANSACTION

Amount Invested (€M)

€71K

2.3%

5.1% 6.5%

5.2%

1- Accelerators and BAN

16 Source: ASCRI/Webcapitalriesgo

€5.6M

€14.3M

€12.0M

€2.4M

€5.8M

€10.1M

€5.5M

€2.0M€2.2M

€8.6M

€2.1M€1.6M€1.4M

€4.3M

€0.9M€0.2M€0.0M

€1.2M

€0.1M€0.4M

Seed Startup Other early stages Late stage venture

2015

2014

2013

2012

2011

2010

Amount Invested by Category (€M)

Carlos Trenchs

2- CDTI, ENISA and Similar

June 8, 2016

2- CDTI, ENISA and Similar

18 Source: ASCRI/Webcapitalriesgo

Types of public investment: Investors or vehicles for equity loans / unsecured loans (whether through co-investment or not) leverage investment of private investors or demand private co-investment Public venture capital and private equity funds (primarily regional) with equity investments in companies participate in the capital of companies individually or jointly with private VCs

2- Public Investors

19 Source: ASCRI/Webcapitalriesgo

Key Actors

Key Data 2015

No. of Investors

Total No. of Transactions

Total Amount Invested (€M)

Avg. Transaction Amount

Category Total (Spain)

200

1,527

659

€118K €432K

18; 9%

769; 50%

91; 14%

CDTI / ENISA / AXIS / SEPIDES ICF / IVACE / XES GALICIA / SPRI / SEED Capital / ...

* Only includes equity loans. Investments in equity are included in the VC section.

62% 56%

48% 50%

1,143

1,262

1,140

1,527

708 705 549

769

2012 2013 2014 2015

2- CDTI, ENISA and Similar

20 Source: ASCRI/Webcapitalriesgo

Change in No. of Transactions

31.3% 27.0%

13.8%

13.8%

€131K

2- CDTI, ENISA and Similar

21 Source: ASCRI/Webcapitalriesgo

AVERAGE INVESTMENT PER TRANSACTION

Amount Invested (€M)

€91K €118K €108K

297.1 M€ 282.2 M€

359.9 M€

€659.4M

€93.0M €76.3M €49.8M €90.9M

2012 2013 2014 2015

2- CDTI, ENISA and Similar

22 Source: ASCRI/Webcapitalriesgo

Amount Invested by Category (€M)

€2.8M

€41.8M€39.7M

€6.7M

€14.0M

€21.9M

€10.8M

€3.1M

€20.3M

€35.4M

€16.3M

€4.3M

€27.1M

€42.3M

€13.0M€14.3M

€41.0M

€7.7M

€2.6M

Seed Startup Other early stages Late stage venture

2015

2014

2013

2012

2011

2010

Carlos Trenchs

3- Venture Capital National VC&PEs

International VC&PEs (+ Corp. VCs)

June 8, 2016

3- Venture Capital

24 Source: ASCRI/Webcapitalriesgo

Key Actors

Key Data 2015

No. of Investors

Total No. of Investments

Total Amount Invested (€M)

Avg. Transaction Amount

Category Total (Spain)

200

1,527

659

€1,151K €432K

112; 56%

464; 30%

534; 81%

CAIXA CAPITAL RISC / KIBO / SEAYA / YSIOS / INVEREADY / ACCEL PARTNERS / IDINVEST / GILDE / INDEX / FIDELITY / ...

30% 28%

30% 30%

1,143

1,262

1,140

1,527

340 354 344 464

2012 2013 2014 2015

3- Venture Capital

25 Source: ASCRI/Webcapitalriesgo

Change in No. of Transactions

€297.1M €282.2M

€359.9M

€659.4M

€197.1M €191.5M €286.8M €534.1M

2012 2013 2014 2015

66.4% 67.8%

79.7% 81.0%

€580K

3- Venture Capital

26 Source: ASCRI/Webcapitalriesgo

AVERAGE INVESTMENT PER TRANSACTION

Amount Invested (€M)

€834K €1,151K €541K

3- Venture Capital

27 Source: ASCRI/Webcapitalriesgo

Amount Invested by Category (€M)

€17.6M

€181.5M

€138.7M

€196.3M

€12.8M

€53.4M €53.1M

€167.5M

€8.6M

€72.8M

€56.9M

€13.2M

€63.0M

€95.8M

€25.4M€19.8M

€67.9M

€87.5M

€69.7M

Seed Startup Other early stages Late stage venture

2015

2014

2013

2012

2011

2010

3- Venture Capital by Sector

28 Source: ASCRI/Webcapitalriesgo

Amount Invested by Sector (€M)

92 82 59 31 62

30 3334

30

49

152

82 99225

423

2011 2012 2013 2014 2015

Industry Life Sciences ICT and Digital

3 - Venture Capital – A key participant in the development of startups

29 Source: ASCRI/Webcapitalriesgo

190 Spanish companies (+25% from 2014) received their first Venture Capital investment in 2015, totaling €206.5M (compared to €74M in 2014).

Increase in first ticket of €520K to €1.08M.

152 Spanish companies received follow-on or new rounds totaling €327M.

Average ticket in follow-on or investment rounds > €2M.

Participation of 2.1 VCs per company – co-investment, especially as follow-ons progress.

31 36

70

2013 2014 2015

€57.1M

€153.8M

€388.6M

2013 2014 2015

€134.3M €133.0M €145.5M

2013 2014 2015

3- Venture Capital

30 Source: ASCRI/Webcapitalriesgo

Investment by International VC&PEs (€M) Investment by National VC&PEs (€M)

x 6.8

x 2.3

x 1.1

x 1.2

No. of Investments by International VC&PEs No. of investments by National VC&PEs

323 308 394

2013 2014 2015

4 – Venture Capital Investment in Spain

31 Source: ASCRI/Webcapitalriesgo

Private National VC&PEs (No. of Transactions)

AUTONOMOUS COMMUNITY 2014 2015 Catalonia 100 106 Madrid 62 79 Autonomous Community of Valencia 25 23 Galicia 15 21 Andalusia 10 16 Castille and León 12 9 Other 29 32 Total 253 286

Private National VC&PEs (€M)

AUTONOMOUS COMMUNITY 2014 2015 Catalonia 38.3 48.8 Madrid 37.8 36.9 Andalusia 7.8 10.4 Autonomous Community of Valencia 10.1 6.5 Balearic Islands 2.3 3.7 Basque Country 2.4 3.1 Other 12.8 8.8 Total 111.4 118.2

28%

8%

Other: 14%

37%

6%

7%

31%

6%

Other: 13%

41%

9%

4 – Venture Capital Investment in Spain

32 Source: ASCRI/Webcapitalriesgo

International VC&PEs (No. of Transactions)

AUTONOMOUS COMMUNITY 2014 2015 Catalonia 26 38 Madrid 11 23 Autonomous Community of Valencia 0 6 Balearic Islands 0 5 Basque Country 0 0 Murcia 0 0 Other 0 0 Total 37 72

International VC&PEs (€M)

AUTONOMOUS COMMUNITY 2014 2015 Catalonia 132.9 277.2 Madrid 21.0 89.7 Autonomous Community of Valencia 0.0 13.6 Balearic Islands 0.0 8.7 Basque Country 0.0 0.0 Murcia 0.0 0.0 Other 0.0 0.0 Total 153.9 389.1

71% 23%

3%

Other: 3%

53% 32%

8%

Other: 7%

Carlos Trenchs

CONCLUSIONS

June 8, 2016

Conclusions

34 Source: ASCRI/Webcapitalriesgo

200 investors participated in over 1,500 transactions. Of these 200, 18 public entities (national and regional) participated in more than 50% of the transactions (primarily with equity loans). Incubators/accelerators, BA networks and crowdfunding platforms (which were virtually non-existent before 2010) participated in 300 transactions. Key participant in the seed and startup stages.

VC managers (Spanish and foreign) account for a majority of funding.

Growing investment of Corporate VCs.

Conclusions

By investment stage: Seed capital (pre-sale) is negligible.

The majority of investments were made in the startup stage and subsequent follow-ons. Overall growth in number of companies / number of rounds (series) and average ticker per round.

Late stage saw significant growth thanks to international operators.

Conclusions

By sector: ICT/Digital accounted for 80% of investment

In particular in the B2C digital environment

Life Sciences broke records, although only accounting for €48M

2016 figures will improve thanks to closings in 2015 of significant rounds with committed contributions

The industrial environment has grown significantly, reaching €62M (cleantech effect and green/white biotechnology)

Conclusions

By region: Spain is already a market drawing pan-European funds' attention

However, the market is heavily concentrated: Catalonia and Madrid account for over 80% of total investment by all investor types

Looking at just the public sector, this percentage shoots up to 90%

International investors primarily invest in these two Autonomous Communities Regional VC funds partially set off the lack of resources outside Barcelona and Madrid

ACKNOWLEDGMENTS

Investors that shared data Web Capital Riesgo for crunching the numbers

Angela and the ASCRI team for their work arranging and organizing the report

THANKS FOR YOUR ATTENTION

Carlos Trenchs

@ctrenchs