Expanding European Investor Base One of the most critical ways in which the European tech ecosystem has evolved has been the buildout of the investor base supporting it, which has grown in depth and, importantly, One of the most critical ways in which the European tech ecosystem has evolved has been the build out of the sophistication. One way to demonstrate the remarkable expansion of the investor base investor base supporting it, which has grown in depth and, importantly, sophistication. One way to demonstrate is to look at the number of unique institutional investors that have made at least one the remarkable expansion of the investor base is to look at the number of unique institutional investors that have investment in European tech per year. In 2018, this reached more than 2,500 unique made at least one investment in European tech per year. In 2018, this reached more than 2,500 unique institutions, up 2.8x since 2013 institutions, up 2.8x since 2013 # of unique institutions that have DATASET:AT LEAST 5 ROUNDS participated in at least 1 and 5 investment 300 285 291 rounds in Europe per year 267 235 LEGEND s Unique investors r o 200 t s e v n 151 i e qu i 117 n One of the most critical ways in which the European tech ecosystem has evolved has been the build out of the u f o 100 # investor base supporting it, which has grown in depth and, importantly, sophistication. One way to demonstrate the remarkable expansion of the investor base is to look at the number of unique institutional investors that have made at least one investment in European tech per year. In 2018, this reached more than 2,500 unique institutions, up 2.8x since 2013 0 2013 2014 2015 2016 2017 2018 # of unique institutions that have DATASET:AT LEAST 1 ROUND participated in at least 1 and 5 investment 2,468 2,513 rounds in Europe per year 2,500 s 2,068 DATASET: AT LEAST 1 ROUND r o t s2,000 e v n LEGEND i 1,554 e qu Unique investors i1,500 n u 1,195 f o # 1,000 905 500 Note: Number of unique investors (incl. investment funds, 0 Note: corporate investors & accelerators, but excl. angel 2013 2014 2015 2016 2017 2018 Number of unique investors (incl. investment funds, corporate investors) that have participated in at least 1 investment investors & accelerators, but excl. angel investors) that have round per year. 2018 annualised based on data to participated in at least 1 investment round per year. 2018 September 2018. Source: annualised based on data to September 2018. It’s important to note, however, that more capital and more investors alone are not enough. In order to maximise the chances of success for early-stage European startups, it’s important It's important to note, however, that more capital and more investors alone are not enough. In order to maximise that capital is allocated to sophisticated investors best able to support young companies the chances of success for early-stage European startups, it's important that capital is allocated to sophisticated as they navigate the scaling journey. This is proven in data. Startups raising Seed from top investors best able to support young companies as they navigate the scaling journey. This is proven in data. Startups raising Seed from top investors are signi cantly more likely to raise a Series A. investors are significantly more likely to raise a Series A. Median conversion rates to Series A within 36 40 40% ) months of Seed round, by investor quartiles % ( A s e i r LEGEND e 30 S o t Conversion to Series A (%) d e e 24% Median conversion rate to Series A (%) S m 19% 19% 19% 19% o r f 20 e t a r n o i 13% s r e v n 10 o C 7% Note: 0 Based on disclosed Seed and Series A rounds, conversion Top quartile Second quartile Third quartile Bottom quartile rates calculated for VC funds that made at least 8 Seed rounds since 2012, and at least 75% of rst investments at Seed/Pre- Seed. See: https://blog.dealroom.co/the-journey-to-series-a- in-europe/ Source: 112 In Partnership with & www.thestateofeuropeantech.com