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Aug 27, 2019

Overview, Q2’19 European VC Landscape

In Q2’19 European VC-backed companies raised $8.7B across 825 deals as compared to nearly $7B in Q2’18.

Among 10 largest European VC deals in Q2’19 there were:

1. Deliveroo $575M, London, (online food delivery platform), Series G

2. AUTO1 Group, $535.9M, Berlin (connects buyers and sellers of cars via an online platform), Late stage VC

3. GetYourGuide, $484M, Berlin (online platform for booking tours, attractions and activities worldwide), Series E

4. ADC Therapeutics, $276M, Epalinges (develops antibody drugs), Series E

5. Meero, $230M, Paris, (AI company providing enhanced photography services); Series C

6. Checkout.com, $230M, London, (helps companies accept more payments around the world through one integration); Series A

7. Adjust, $227M, Berlin; (focused on mobile measurement and fraud prevention company); Late-stage

8. Gett, $200M, Tel Aviv, (on-demand transportation and delivery company that offers a ride-hailing app), Late-stage VC

9. Glovoapp23, $174.8M, Barcelona, (allows customers to track their deliveries in real-time and locate the nearest glover (courier)), Series D

10. Innoviz Technologies, $170M, Rosh Ha’Ayin, (delivers the vision and intelligence required for the mass-production of autonomous vehicles), Series C

Continuing Diversity of European VC market

The strength of Europe’s VC market continued to be defined by the growing diversity of its innovation hubs; while VC investment in the UK was well – off of historical highs, increasing investment in the Nordic countries, France, Spain, Poland and others combined with steady investment in more established innovation centers in Germany and Israel helped keep VC investment in the region high during Q2’19.
In Europe, Q3’19 is expected to see a continuation of Brexit uncertainty given the new deal deadline is in Q4’19. Despite any localized uncertainty, VC investment in Europe is expected to remain relatively strong, particularly in areas such as fintech, AI, and healthtech.

 

Potential of AI driving VC investor attention

Following on the last quarter, AI drew a significant amount of attention from investors, likely a result of its overwhelming applicability to every sector. Compared to other technologies, AI is seen as a true game-changer in terms of the disruption it poses for industries and verticals the world over, including healthcare and financial services.

 

In addition to VC firms and corporate investors, a number of governments are investing in AI innovation and ecosystems and working to respond to challenges posed by AI, such as data availability and ethics. For example, the UK is currently implementing the first components of its AI Strategy, supporting the development of relevant Machine Learning degree programs and research institutes at UK-based universities. The UK’s Centre for Data Ethics and Innovation is also in the process of consulting on the establishment of data trusts in order to support the use of AI.

China is also investing significantly in the development of AI, with the expectation that it will become one of the country’s primary growth differentiators. While China’s VC market currently faces a number of challenges, it is expected that strong AI value propositions will continue to attract funding.

Healthtech and food delivery are also expected to gain additional traction from investors heading into Q3’19, while foodtech and Agtech are well poised for growth.

 

Leszek Orłowski

Investment Director @ bValue VC

Leszek Orłowski has many years of experience both as an advisor and investor. He advised multiple startups, as well as the largest companies in Poland. He has hands-on experience in crafting market entry strategies, search for strategic investors and commercialization. He is also an expert within corporate finance, M&A, financial restructuring.