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
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