05.5 New Hubs - Where Next? This emergence of growing and more engaged tech communities in new parts of This emergence of growing and more engaged tech communities in new parts of the region is reðected too in the the region is reflected too in the list of Top 10 fastest-growing tech hubs, ranked by list of Top 10 fastest-growing tech hubs, ranked by year-on-year growth in active members of tech-related Meetup year-on-year growth in active members of tech-related Meetup groups. groups. Top 10 fastest growing hubs in Europe by YoY St. Petersburg, Russia 93% growth rate of active members Sofia, Bulgaria 81% Porto, Portugal 72% LEGEND YoY member growth 2017-2018 (%) Lviv, Ukraine 68% Bern, Switzerland 67% Cardiff, United Kingdom 65% Vilnius, Lithuania 65% Wroclaw, Poland 63% Newcastle, United Kingdom 60% Stuttgart, Germany 59% 0 20 40 60 80 100 % YoY growth Note: 2018 annualised based on active members to end of September Source: 2018 As new hubs continue to proliferate across Europe, the region's leading investors are increasingly backing founders from these locations. In the past 12 months, founders building companies in as diverse a set of cities as Lille, St Gallen and Warsaw have all raised funding from leading European VCs. As new hubs continue to proliferate across Europe, Selected investments in new tech hubs the region’s leading investors are increasingly Country Company Lead Investor Round Type Round Size ($M) Selected investments in new tech hubs Brussels Belgium Cowboy Tiger Global Series A 12 backing founders from these locations. In the past 12 months, founders building companies in as diverse Edinburgh UK Care Sourcer ADV Series A 11 a set of cities as Lille, St Gallen and Warsaw have all Gothenburg Sweden NA-KD Partech Series B 45 raised funding from leading European VCs. Lille France OpenIO Partech Series A 5 Milan Italy Freeda Media Alven Capital Series A 10 Oxford UK Ultromics OSI Series A 13 Reykjavik Iceland Teatime Games Index, Atomico Series A 7 St Gallen Switzerland Frontify Blossom Capital Series A 8 St Paul's Bay Malta FRVR Accel Seed 3 Tallinn Estonia Veriff Mosaic Series A 8 Warsaw Poland Packhelp SpeedInvest Seed 2 Source: We are probably in one of the most difficult positions – trying to produce the world’s fastest electric sportscars out of a country that never had a car industry and has zero market for our products. “ I believe that for software startups, location is not that important. It is harder for hardware startups, especially those whose products are linked to the country’s prestige. We are probably in one of the most difficult positions – trying to produce the world’s fastest electric sportscars out of a country that never had a car industry and has zero market for our products. Despite everything, we have managed to attract funding, the right customers (all major European carmakers) Mate Rimac and talent. It is possible, but probably much much harder than doing it Rimac Automobili in the “right place.” & 80 In Partnership with www.thestateofeuropeantech.com