VC & Fintech in Belgium · 2018. 10. 26. · VC in Belgium -10/10/18 We have selected the 18...

VC & Fintech in Belgium

Fintech Belgium asbl/vzw is the Federation, non-profit organisation, byand for FinTechs in Belgium. Created in 2015, it is the first and biggestcommunity of Fintechers in Belgium gathering financial professionals,startup entrepreneurs and investors, who are interested in discovering anddiscussing disruptive business models and new technology for thefinancial services industry.

Our 3 main missions are:- To be a platform for dialogue with regulators and other parties- To actively and tangibly promote the Fintech sector in Belgium and

Belgian Fintechs abroad- To share the experience within and outside the community.

>> www.fintechbelgium.be

On October 22nd at BOZAR in Brussels, we will organise the 3rd editionof our annual FinTech Belgium Summit the largest FinTech conference inBelgium. Come and join all the Belgian FinTech influencers and discusshow FinTechs are now BEYOND THE HYPE and have evolved intounavoidable players. Discover all the latest trends touching the financialindustry: Payments, Open Banking/APIs, Cross-Industry diversification,Blockchain, AI and Machine learning, ...

Fintech Belgium Summit is a unique opportunity to:- Network with 750+ professionals from the financial world- Be inspired and learn from +60 speakers- Discover 16 rising FinTech Startups and Scale-ups during their investorspitch- Explore 800m2 of pure FinTech expo hall

>> www.fintechsummit.be

Data.be is specialised in structuring unstructured data and providing it in aneasy way.

The company has developed unique algorithms to do entity recognition inofficially published documents. It gathers business data from different sourcesand then offers it packaged in either a web interface, API-feed or simple CSVdumps.

The unique value of Data.be is exactly this combination of being able to extractuseful information out of millions of text documents and building niche easy-to-use products on top of that using Artificial Intelligence and Machine Learning.

We help our customers to screen their business partners, fight fraud, sustainablygrow their business and remain always up-to-date with correct data.

With 50+ deals closed in 5 years, Avolta Partners has proven to be the mostactive M&A boutique in Europe in the Tech industry. As a result, our team haslearned how to maximise the value of a deal – both valuation and legalconditions – thanks to a proven methodology and hard-nosed negotiations.

We chose from the beginning to be pan-European and data-driven. So we builtAvolta.io, a unique platform to automate processes and scale our ability to helpfast-growing tech companies in Europe.

Avoltais used by professional funds, specialised boutiques and startups to gainknowledge on valuation, competitors investment thesis and deal opportunities.

€514m raised in 3 years

The Belgian Venture Capital (VC) market issteadily increasing year over year, from €135m in2015 up to €206m in 2017, i.e. X1.53 in 2 years.

The increase is first explained by the growingnumber of opportunities within the Belgianecosystem: from 55 VC rounds in 2015 up to 59 in2017.

And the second driver is the increase in marketmaturity: the avg. fundraising outstandingly raisingfrom €2.5m in 2015 up to €3.5m in 2017.

104,9 115,3 114,0

30,156,7

92,0

5561 59

-30,0

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

0,0

50,0

100,0

150,0

200,0

250,0

300,0

350,0

400,0

2015 2016 2017

2.5

2.83.5

2.5 Avg. deal size (€m) # of deals

3 biggest deals (€m) Other deals (€m)

VC in Belgium - 10/10/18

20,858

62,63

838,85

8

50

8

26,55

10

86,8510

28,4

10

64,510

Series A

Seed Series B

Series C

30,06

5

59,65

5

45,2

5

32

20

3

2015

Number of deals

Amount invested (€m)

28

24

42

2017 Number of deals


34

21

51

2016Number of deals


The number of Series B+ rounds is increasing over time.Notably there were 2 Series C in 2017: Collibra (€45.5m)and NGData (€19m).

The Belgian VC market is maturing: Series B+ growingfrom 34% of the market up to 45% in just 2 years.

Yet, investors should maintain theirefforts in financing early-stageventures as they are cohorts forfuture growth opportunities


45% invested in Series B+

1

2

4

8

16

32

64

128

0 20 40 60 80 100 120 140Time to raise money (in months)

Pre-money valuation (€m)

Median new money

SEED (median figures)

Pre-money valuation: €1.8mNew money: €0.7mDilution: 24%Time to raise: 36 months

SERIES A(median figures)


SERIES B(median figures)


SERIES C(median figures)


€100m+ valuation for Series C



52% investments from abroad

0

5

10

15

20

25

2 4 8 16 32 64 128 256

Number of deals

Amount invested

48%

52%

24%

76% Domestic investors

International investors

International investors distribution

40%

25% 5%

9%

9%

10% Number of deals

Amount invested

USA

GBR+IRL

LUX

FRA

CHENLD Others

International vs. domestic investors

International investors finance the majority of theVC Belgian market as they participate in Series B+when domestic funds lack of resources

BEL


# of deals

Avg. deal size (€m)

USA

GBR+IRL

NLD

CHE

FRA

LUX

Other

BatteryVenturesDawnCapitalNewScienceVenturesHummingbirdVenturesICONIQCapitalIndexVenturesInsightVentures


Number of deals

Amount invested

73%

27%

47%

53% VCinvestors

Non-VCinvestors

Non-VC investors distribution

24%

23% 44%

3% 5% 2%

Number of deals

Amount invested

Corporates / CVC

Business Angels

Public funds

Crowdfunding

Cap DevOthers

VC vs. non-VC investors

Most investments come from VCs, yet public fundsstill represent 12% of the market (e.g. the BelgianFederal Investment Fund)

BEL


# of deals

Avg. deal size (€m)

0,0

2,0

4,0

6,0

8,0

10,0

12,0

6 12 24 48 96 192

VC

Public funds

Business Angels

Corporates / CVC

Cap DevOthers

Crowdfunding

73% investments are from VCs


4 41

6

2 13

1

8 7

5

5

3

34

3

5 3

1 2

5

3

31

1

1

1

2 111

109

76

31 1

Series BSeed Series A Series C

The most active investors are Belgian funds, oftenspecialised in Seed rounds.

If we look at the investments made by the 30 mostactive investors (“smart money”), we can observe#IoT #deeptech and #fintech as trending sectors.

Investments from the most 30 active investors in Belgium (2015-17)

Where smart money is going

18

20

5

21

11

16

6

5

5

10

6

1

1

4

4

5

5

1

12

3

3

5

3

2

2

1

4

3

9

1

1

2

4

7

6

1

5

4

3

1

1

1

1

1

1

1

1

3

2

#fintech

#deeptech

#health

#ERP

#marketing

#work

#IoT

#energy

#industry/manufacturing

#CRM

#communication

#food/beverage

#3D-viz

#drone

#transportation/mobility

#proptech

#security/privacy

#HR

Subscription Commission Manufacturing Service Research

22

25

14

25

20

18

11

10

11

10

9

6

4

6

5

6

6

4

3

1

4

1

7

1

2

2

1

1

1

2

1

4

1

3

2

#fintech

#deeptech

#health

#ERP

#marketing

#work

#IoT

#energy


#CRM

#communication

#food/beverage

#3D-viz

#drone


#proptech

#security/privacy

#HR

#B2B #B2B2C #B2C #P2P #Public


We have selected the 18most recurrent sector out ofour analysis. A large numberof fintech, deeptech, healthand ERP software startupsreceived funding, followed byIoT, energy and 3D-viz.

We observe a lot of manufacturingmodels in health, energy, IoT, andindustry. And some consumer-oriented commission models infintech, foodtech, marketing, andHR.

But the main model by far isthe B2B SaaS framework, thatrepresents 69% of the market.

B2B-SaaS rocks!

Bull market Matured sector

Bear marketNascent market


Which sector is booming?

Time to raise money (in months)

Avg. New money (€m)

# of rounds

#fintech

#deeptech

#health

#ERP

#marketing

#work#IoT

#energy


#CRM

#communication

#food/beverage

#3D-viz

#drone


#proptech

#security/privacy

#HR

0,2

0,4

0,8

1,6

3,2

6,4

12,8

25,6

10 20 30 40 50 60 70 80 90

The sectors that are taking off rapidly are fintech, health & deeptech. They appear as champions as startupstend to raise higher amounts and faster than in other sectors (e.g. The Glue, Playpass, Qover, etc.)

Champion Late Growth

Slow GrowthEarly Growth

Time to raise money

Time to raise (month)

Actual New money

Series BSeed Series A Series C

New money (€m)


0,0

0,1

0,1

0,3

0,5

1,0

2,0

4,0

8,0

16,0

32,0

64,0

6,0 12,0 24,0 48,0 96,0 192,0


23,6

17,1

37,0

#fintech

#health

#deeptech

11,9

12,1

18,8

Commission

Subscription

Manufacturing

Transaction multiples

New money

Pre money valuation

DilutionTTM revenue

EV/TTM

€1.2m

€2.5m

30%€1.1m

11.3x

Median key figures for a VC round

Median figures (Belgium 2015-17)

Median figures (France 2015-17)

EqV pre-money / TTM Rev.

We analysed the median VC round in Belgium to giveinsights on valuation multiple with:

§ EqV Pre-money = the equity value pre-fundraisingi.e. # of shares before capital increase * PPS

§ TTM Rev. = Trailing Twelve Months Revenue, i.e.pro temporis revenue at the date of fundraising

We excluded the deals with TTM Rev. < €200k to havemore consistent data.

Median figures rely on > 800 valuation multiples forFrance and < 50 for Belgium. This is mainly due to thelack of turnover publication in Belgium.

LET’S ZOOM ON FINTECH!

Blockchain & crypto Neobank & insurtech

Financing & investment solutions

Payment solutions

Infrastructure & Enabling Technologies

The Belgian #Fintech Mapping

@avoltapartners @fintechbe @DataBe


€55m+ raised in 3 years

6,7

19,4

9,9

5,1

8,4

5,5

9

21

9

-10

-5

0

5

10

15

20

25

0

5

10

15

20

25

30

35

40

45

50

2015 2016 2017

# of fundraising rounds

Biggest round (€m)

Other rounds (€m)


Fintechs in Belgium are at the beginning oftheir ascent. All fundraisings in recent yearshave been completed for Seed and SeriesA rounds.

69% of fintech rounds werefirst-time startup fundraisings.

36% of start-ups that raised funds in Seedraised funds in Series A within three years.

SERIES A: 46%

SEED : 56%

The rise of fintechs


Some founders drastically dilute their capital to obtain funds, the highest dilution recorded being 66.7%.

These levels of dilution highlights the investors will to hedge their risk in the young Belgian VC market.

Dilution: the cost of money

34,5%

41,4%

17,2%

6,9%

Low dilution(0 – 20%)

Average dilution (20 – 40%)

High dilution(40 – 60%)

Very high dilution(60 – 100%)


All the start-ups studied have either setup a subscription or commissionbusiness model.

Website

Application

Saas

There is a high proportion of Saas, which facilitatesthe implementation of subscription models, followedby websites. Regarding the commission system, it isfairly well distributed among the three channels.

Subscription or commission?

15,00%

15,00%

15,00%

45,00%

0,00%

10,00%

Subscription Commission


3,6% 3,6% 7,1%

7,1%

17,9%

25,0%

35,7%

Infrastructure & Enabling Technologies

PaymentAnalytics & DashboardLaw & administrationCrowdfunding DeeptechInsurance

Fintechs in Belgium are quite diversifiedacross industries: from payment methods toblockchain solutions.

The most important service isinfrastructure & enabling technologies,which often takes the form of ERP. Thepayment is mainly represented by apps.

From Fintech to fintechs


B2B67,9%

P2P 7,1%

B2C 10,7%

B2B2C 14,3%

The vast majority of fintech products and servicesaim at businesses. This trend is explained by thelarge number of fintech SaaS, notably supplyinganalytics and dashboard tools.

Few fintechs are aimed directly at consumers, although someare successful: Tricount and Spred are among the best-known peer-to-peer platforms

B2B rocks!


Business angels are very active in theBelgian VC scene, taking significantstakes in both Seed and Series A (example:Xpenditure - 5.7m raised by BAs) 72%

16%

8%

4%

Belgium

Swizerland

United States

France

28% investments come from abroad,specially from Switezerland, the USand France

Investors: funds origin

Public; 10%

Funds; 43,3%

Business Angels; 46,7%


Among the most significant investors, we findonce again business angels, such as theBelgians Toon Coppens, Lorenz Bogaert, JonasDhaenens or Bart Swanson.

Crowdfunding is quite popular to raisefunds: as an example, Spreds (formerlyMyMicroInvest) raised €1.6 million throughits online community.

Finally, foreign investors such as Index Ventures or Polytech Ecosystem Venture support growth dynamic.

Investors: funds origin

Belgian venture funds such as Pamica or VoltaVenture are also active in supporting startups for< €3m fundraisings


60,7%

17,9% 21,4%

Early stage (<5m) Early growth (5m-15m) Growth (>15m)

The majority of the start-ups considered are valued< €5m. All fundraisings are Seed or Series A rounds,which explains these figures.

On average, fintechs in Belgium have a post money valuationof €7.2m, with most valued players being Ibanfirst (€23.8m),Anytime (€23.5m), Spreds (€23.1m) and Qover (€23.5m).

Fintech rounds valuations


0,25

0,50

1,00

2,00

4,00

8,00

16,00

0 10 20 30 40 50 60 70

Time to raise money

Champions Late growth

Early stage Slow growers

Ibanfirst€8.4m

Qover€5.5m The Glue

€5.0m

Fund

s ra

ised

(€m

)

Time-to-raise since creation (in months)

Anytime€4,4m

Silverfin€4,5m

Rydoo€5,1m


See you on October 22nd @BOZAR in BrusselsFor the the 3rd edition of FinTech Belgium Summit !

VC & Fintech in Belgium · 2018. 10. 26. · VC in Belgium -10/10/18 We have selected the 18...

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