• The 2017 State of European Tech is on its way. Contribute now! September 13, 2017 10:09 am
    Where is Europe’s tech now and where is it headed? You tell us. In November 2017, Atomico and Slush will publish their annual State of European Tech report, the most comprehensive deep-dive into the local ecosystem and the issues that impact it most — from talent and capital, to the strength of communities and the challenges and opportunities of deep tech. A core part of the report is an annual survey of the people that make up the European ecosystem: the entrepreneurs, investors, developers and the individuals across Europe’s many start-up hubs. Dealroom is proud to support the survey as it sets out to become the definitive dataset of tech communities in Europe. Please click here to help make they survey a success and have your say It should take no more than 5 minutes to complete – 5 free Slush 2017 tickets are also up for grabs for those who complete the survey before 8 October. Thanks for helping to make the voices at the heart of European tech heard. The post The 2017 State of European Tech is on its way. Contribute now! appeared first on Blog | Dealroom.
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  • Dealroom’s Presentation from XXII ACCIÓ Investment Forum in Barcelona July 16, 2017 7:46 am
    On July 6th, entrepreneurs and investors met at ACCIÓ’s XXII Investment Forum in Barcelona, Catalonia’s most important event on the field. Over 700 people attended the event, including many prominent investors such as Index Ventures, Hoxton and many others. Read more about the event itself here. Dealroom’s founder Yoram Wijngaarde gave the keynote, titled “Is it morning in European tech?” which is available here: The post Dealroom’s Presentation from XXII ACCIÓ Investment Forum in Barcelona appeared first on Blog | Dealroom.
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  • 9-page report on the Dutch angel investing landscape in partnership with Angel Academy May 14, 2017 9:11 pm
    European angel investing has increased sharply in the first quarter of 2017, Dealroom data shows, in a 9-page report published jointly with Angel Academy. Funding rounds with at least one angel participating reached a value of €700 million, compared with €180 million in the first quarter of 2016. The number of such rounds quadrupled during the same period. Growth was strongest in the UK, France, Spain, and Sweden. In the Netherlands however, angel investing has failed to catch up, according to Dealroom data (although limited disclosure of angel-backed rounds maybe partly to blame here). Given the importance of business angels in supporting new ventures in their earliest stages of development, it is important that the Netherlands develops and nurtures angel investing, by creating a favorable climate. Jointly, Angel Academy (the Dutch Academy for private investors) and Dealroom published an initial 9-page overview of the Dutch angel investing landscape. Ohad Gilad from Angel Academy handed over the report personally to the Dutch minister of economic affairs Henk Kamp, who also announced a new €10 million government scheme to support angel investing. As a next step, Dealroom and Angel Academy have begun development of an online overview of all active Angel Investors in the Netherlands. The objective is to provide startups with easier access to investors while at the same time providing better insights to business angels about attractive investment opportunities. A comprehensive ranking of Angel Investors will also be published to provide a clear overview of the most active and successful angel investors in the Netherlands. Get the... The post 9-page report on the Dutch angel investing landscape in partnership with Angel Academy appeared first on Blog | Dealroom.
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  • Atomico + Slush + Dealroom + Tech.eu September 15, 2016 2:20 pm
    Last year, Slush and Atomico published an impressive piece of research titled the State of European Tech. The presentation was viewed over 170,000 times. Soon it is time for the 2016 edition! Dealroom will be core data partner this year, along with the great people at Tech.eu. Apart from Dealroom data, an important part of the report is a survey. If you are a founder, entrepreneur, investor or tech employee in Europe, your voice will be very important. All it takes is 5 minutes. Start the survey now! Your contribution is highly appreciated! Thank you. The post Atomico + Slush + Dealroom + Tech.eu appeared first on Blog | Dealroom.
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  • Unleash UK’s tech scene onto Europe (don’t Brexit) May 27, 2016 8:53 am
    Mattias Ljungman, Partner at one of Europe’s largest VC funds Atomico, made yet another important case for the UK to remain in the European Union. He is clear that staying in the EU does not mean “more of the same”, and instead gives the UK “a once-in-a-lifetime opportunity to shape Europe’s future […] into what we want it to be.” I couldn’t agree more. This is a time of rapid technological change (artificial intelligence, self-driving cars, …). And London is in a unique position as the epicentre of European tech (although other’s are catching up). On a global scale, London is arguably taking a strong second place, behind Silicon Valley. One could be forgiven for taking London’s leadership position for granted, given the City’s long-standing importance in world financial markets. In the case of technology however, it is not about bankers pushing around capital from their Bloomberg computer screens (to put in bluntly). Rather, it is about companies which deliver tangible benefits to consumers across Europe and beyond. The innovation and creativity are happening inside the UK, but it needs easy access to Europe’s markets and free-flow of skilled labor to be competitive. Silicon Valley, which had the benefit of a single USA market, is shaping our daily lives immeasurably (think of Google, Apple, Amazon, Facebook, Netflix, and so forth). Imagine what the UK can do, too, if it remains in one of the the biggest single markets in the world (500 million people). Proponents of a Brexit should ask themselves what they want UK’s tech sector to be in 10-20 years: a global leader such as the City’s financial sector, or a follower alongside other... The post Unleash UK’s tech scene onto Europe (don’t Brexit) appeared first on Blog | Dealroom.
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  • A digital VC market November 1, 2015 12:16 pm
    For the last five years or so there has been a lot of buzz about software-driven innovation in the venture capital industry. Innovations such as AngelList syndicates, crowdfunding, and digital M&A marketplaces play an increasing role. The USA is leading this development, predominantly in seed stage investing. But by and large, today’s VC industry remains “business as usual”. We’ve recently seen the launch of so called “quantitative funds”, but this an incremental change; not a game-changer for capital markets as a whole. In this post I will argue why such change hasn’t happened yet, why it would be beneficial, and what is required to make change finally happen. Let’s for a moment look at the public stock market. Today, public stock markets are fully electronic, but they used to have an open outcry system. Traders used shouting and hand gestures to communicate pricing and give buy/sell orders (remember that brilliant movie Trading Places?). It took most stock markets an awful long-time to finally switch to electronic trading platforms. The New York Stock Exchange only converted as late as 2006! A notable exception is the London Stock Exchange which converted early on in 1986. What took Wall Street so long? The answer is that financial markets were held back by special interest groups wanting to keep open outcry in place, as it gave many people very lucrative jobs, and kept the market opaque enough to maintain higher margins for insiders. The eventual catalyst to convert came in the form of a... The post A digital VC market appeared first on Blog | Dealroom.
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  • Behind closed doors: investment platforms vs. proprietary dealflow March 15, 2015 1:14 pm
    A year ago I wrote a post titled “Proprietary dealflow isn’t dead and for good reason”. But with the rapid emergence of online investment platforms, how much is left of the rationale for keeping an investment opportunity behind closed doors? Too many investors: the winner’s curse   According to conventional wisdom, a hyper competitive auction-style process may drive up the asking price so much that only the last “fool” will invest. But what if investment platforms make it possible to invest a smaller amount in a single deal? Then, total demand in $ terms does not change that much, so the bidding price is much less affected. Even if the price would go up somewhat, investors receive compensation in the form of diversification: they get to make more smaller bets, instead of fewer bigger bets (just like public market investing). Compensation for time spent on due diligence Another underlying argument for keeping a deal private, is that due diligence is a time-consuming and costly process. To justify spending time on an investment opportunity, investors generally like to have some degree of upfront certainty that they can invest if they decide to make an offer. But what if more company transparency and better online due diligence tools, can make this process less time consuming? And if an investment platform allows for smaller bets on a single deal, it would justify doing less due diligence on a single deal (again, comparable to public market investing). What really drives private equity and venture... The post Behind closed doors: investment platforms vs. proprietary dealflow appeared first on Blog | Dealroom.
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  • FinTech and the corporate finance profession February 26, 2015 1:02 pm
    Corporate finance can be broken down in two different areas: deal origination and deal execution. Deal origination (pitching investment ideas, networking, providing actionable market intelligence) is increasingly taken over by data providers, using SaaS business models, especially around early stage companies and reporting on past events. What such SaaS models are not capturing yet, are deeper insights and forward-looking information on larger companies. Deal execution is where the fees are made: creating marketing materials (IM or investment deck), finding potential investors, soliciting offers, managing the due diligence process, and deal negotiation. Part of the reason why deal fees are often so high is that bankers need to be compensated for (a) time spent on deal origination and (b) executing deals that do not result in a completed transaction. FinTech is now making it possible to significantly reduce these costs (a) and (b). And of course, it will no longer be needed to spend $100,000 on an online dataroom. Then, what is left of corporate finance, after it’s been stripped off the costly and least efficient processes, are the more value-added human involvement such as: creating marketing documentation, tactical advice, negotiation. In summary, then, corporate finance seems ideally suited to be disrupted by FinTech. Customers stand to benefit through lower costs, more control and higher service levels. This disruption is likely to take place with early growth stage companies first, and mid-market companies second. The post FinTech and the corporate finance profession appeared first on Blog | Dealroom.
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  • Funding marketplaces or VC data analytics: why not both? November 11, 2014 4:29 pm
    Finally, FinTech is arriving to the world of VC, private equity and corporate finance, spurred by at least three major trends. 1) Venture capital firms have started to embrace software to become more efficient 2) The traditional lines between LPs and GPs are blurring. The type of investors is diversifying: corporates, super angels, investor clubs, micro funds, SWFs, … 3) Growth trajectories of tech companies are shortening, creating a need for real-time actionable data and intelligence Many promising tools for VCs have been launched in response to this. In particular we’ve seen the emergence of two types of software models: (a) marketplaces as platform for funding (many-to-many)  (b) tools to discover and track startups (one-to-many) a) Marketplaces as a platform for funding Marketplaces are in theory a logical way of matching supply and demand for startup investing. Marketplaces bring transparency, market discipline (the invisible hand), and create a level-playing field. Once critical mass is reached, marketplaces tend to grow stronger and stronger thanks to positive network effects. Taken to the extreme, they could eliminate proprietary deal-flow, although I have expressed some skepticism about proprietary deal-flow completely disappearing. One of the hurdles for marketplaces is the adverse selection problem: the best companies often won’t list themselves on any platform because they enjoy already plenty of love and attention from VCs eager to invest. Secondly, professional investors do not like the idea of investing in companies via platforms. VCs and angels like to take the initiative. They generally don’t like the idea of being pitched or passively being fed deals. b) Tools to discover marketplaces Some data analytics tools... The post Funding marketplaces or VC data analytics: why not both? appeared first on Blog | Dealroom.
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  • Corporate Finance in the FinTech era October 29, 2014 12:08 pm
    Today we are witnessing banking activities being disrupted, vertical by vertical. Instead of banks sitting on technology and using it to their own benefit, FinTech is about giving the end-user the power of technology, via user-friendly products. Is the corporate finance industry (incl. venture capital, private equity, investment banking advisory) ready for FinTech? And if so, what would that look like? So far corporate finance has gone through two major phases and it is about to enter a third major phase: – Until 1980s: personal relationship based finance – From 1980s until now: balance sheet driven finance – Next up: technology driven finance (= FinTech) Finance 1.0: relationship based finance Until roughly the early 1980s, finance was dominated by Wall Street based and London based firms, and business revolved largely around personal relationships. These firms were mostly partnerships, led by a handful of power brokers who today still have famous banks named after them (although most names disappeared during the industry consolidation that came with Finance 2.0). Bankers of this era were seen as a major catalyst for industrial and technological progress. One of these power brokers was John Pierpont Morgan, founder of JP Morgan. He was super connected in both the business and political world. He played a major role in the formation of US Steel and General Electric (he also invested in the Titanic). Governments had close relationships with him and other brokers as they were seen as crucial to finance deficits caused by  wars. JP Morgan has some great quotes attributed to him. My favorite JP Morgan quote is: “A man generally has two... The post Corporate Finance in the FinTech era appeared first on Blog | Dealroom.
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