Periodic Reporting for period 3 - SEP 2.0 (Startup Europe Partnership 2.0)
Periodo di rendicontazione: 2019-05-01 al 2020-07-31
There are barriers to scaling up in Europe. Notably:
The Report on Startup Transatlantic M&A produced by MIND THE BRIDGE in partnership with Crunchbase shows that European scaleups get acquired too early (36% are less than 5 years old) and with a 45% discount compared to American scaleups. Furthermore, 44% of European scaleups are acquired by US-based corporates. European corporates are not in the forefront of open innovation: the report shows that the first European company in the ranking of the most acquisitive corporates is only 33th. Extending the analysis to procurement and other forms of corporate-startup collaboration, still a US company leads the ranking of corporates working with European startups.
The number of European scaleups going public in Europe is still too small. The latest SEP Monitor shows that only 2% of European ICT scaleups go public. The ones that decide to go public in the US raise 6 times more capital than the ones that IPO in Europe. If we consider IPOs of European scaleups, over $100M, 45% are completed in the US.
The growth process of scaleups is too much venture-capital-driven. In turn, venture capitalists depend on opportunities to exit their initial investment, returning capital for reinvestment in new firms. Properly functioning primary and secondary markets are therefore key to boosting angel and VC investment.
For VC-backed companies, trade sales to corporates are significantly more common than IPOs. In Europe, VC-backed exits represented less than 2% of all exits during 2010-2014; this compares with an average rate of over 13% in the US for the same period.
SEP 2.0 supports European scaleups to grow internationally with three main activities:
• Matching
• IPO Conduit
• International Showcase
The Report on Startup Transatlantic M&A produced by MIND THE BRIDGE in partnership with Crunchbase shows that European scaleups get acquired too early (36% are less than 5 years old) and with a 45% discount compared to American scaleups. Furthermore, 44% of European scaleups are acquired by US-based corporates. European corporates are not in the forefront of open innovation: the report shows that the first European company in the ranking of the most acquisitive corporates is only 33th. Extending the analysis to procurement and other forms of corporate-startup collaboration, still a US company leads the ranking of corporates working with European startups.
The number of European scaleups going public in Europe is still too small. The latest SEP Monitor shows that only 2% of European ICT scaleups go public. The ones that decide to go public in the US raise 6 times more capital than the ones that IPO in Europe. If we consider IPOs of European scaleups, over $100M, 45% are completed in the US.
The growth process of scaleups is too much venture-capital-driven. In turn, venture capitalists depend on opportunities to exit their initial investment, returning capital for reinvestment in new firms. Properly functioning primary and secondary markets are therefore key to boosting angel and VC investment.
For VC-backed companies, trade sales to corporates are significantly more common than IPOs. In Europe, VC-backed exits represented less than 2% of all exits during 2010-2014; this compares with an average rate of over 13% in the US for the same period.
SEP 2.0 supports European scaleups to grow internationally with three main activities:
• Matching
• IPO Conduit
• International Showcase
Activities:
Scouting, Profiling and Ranking
+10,000 startups
Scaleup Summits
9 Summits, 5 Cities. 5 Stock Exchanges, 2 Digital Summits.
247 Corporate Executives.
191 Investors. 513 Scaleups
Matchmaking
1000+ highly curated 1:1 meetings
79% cross-border meetings
IPO Conduit
+600 startups received IPO prep
International Exposure
2 missions to San Francisco
2 missions to Tel Aviv
Research
8 Reports (3 Scaleup Monitors, 4 Policy Recommendations & 2 State of OI in EU)
Corporate Startup Stars identified top corporates collaborating with startups
Scouting, Profiling and Ranking
+10,000 startups
Scaleup Summits
9 Summits, 5 Cities. 5 Stock Exchanges, 2 Digital Summits.
247 Corporate Executives.
191 Investors. 513 Scaleups
Matchmaking
1000+ highly curated 1:1 meetings
79% cross-border meetings
IPO Conduit
+600 startups received IPO prep
International Exposure
2 missions to San Francisco
2 missions to Tel Aviv
Research
8 Reports (3 Scaleup Monitors, 4 Policy Recommendations & 2 State of OI in EU)
Corporate Startup Stars identified top corporates collaborating with startups
At the date of this presentation, we have accomplished almost all of the ambitious targets we set for ourselves:
➢ Exits: 10 acquisitions, 1 IPO + 17 companies in IPO training
➢ Capital raised: €657M+ for 74 scaleups
➢ Revenue via facilitated business deals: €22.4M+ in secured revenue for next 3 years
It is expectable that in the 2-year period after the end of the project, we’ll go beyond even these numbers.
➢ Exits: 10 acquisitions, 1 IPO + 17 companies in IPO training
➢ Capital raised: €657M+ for 74 scaleups
➢ Revenue via facilitated business deals: €22.4M+ in secured revenue for next 3 years
It is expectable that in the 2-year period after the end of the project, we’ll go beyond even these numbers.