DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016
Spanish Startup Ecosystem - Ecosystem - European Tech Hubs - Top sectors - Attracting talent Investment in Spain - Overview - Average investment Tickets - Top Rounds - Top invested sectors - Types of investor - M&A Activity Barcelona Digital Hub - Overview - Top Sectors - Investment figures - Top invested sectors - M&A Activity Conclusions
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017
2
Spanish Startup Ecosystem
2.663
Digital sector to account for 5,2% of Spain’s GDP in 2016; €42,3 billion (+2% YoY) 3 main hubs
Startups in Spain in 2016 +0,94% YoY Barcelona: 28,4% of all startups Madrid: 27,1% Valencia: 5,2% REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: Dealroom/PitchBook/ONTSI/StartupExplore
4
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 SPANISH STARTUP ECOSYSTEM: EUROPEAN TECH HUBS
Around 60 tech hubs in Europe +1/3 of European startups concentrated in the 10 biggest hubs Barcelona and Madrid ranked in the European top 10 in Europe by number of startups
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: Balderton
5
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 SPANISH STARTUP ECOSYSTEM: TOP SECTORS
eCommerce is still the most representative sector eCommerce, Social and Enterprise software are the fastest growing sectors (+4% YoY on average)
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: Startupxplore/ European Startup Monitor
6
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 SPANISH STARTUP ECOSYSTEM: ATTRACTING TALENT
Male
Spain is a destination for European founders Second country in the EU attracting international talent to start their businesses UK and Germany are the biggest ecosystems with totally different models: capture vs. culture
Citizenship of founders
Female Overall 2015 Overall EU UK Germany France Spain 0
20
Same Country
40
EU country
60
80
100
Non-Eu country
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: http://europeanstartupmonitor.com
7
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 SPANISH STARTUP ECOSYSTEM: ATTRACTING TALENT
% of developers with +6 years of experience
Healthy developers density Spain is the 5th country with more qualified developers (Europe) … and also shows a really competitive cost compared to other countries (worldwide) The average salary in Spain has increased 33% in the last 4 years Source: Atomico/ AngelList/Jobfluent
Salary $k SPAIN
POLAND
4,8
RUSSIA
FRANCE
5,2
SPAIN
10
20
66
NEW YORK 25,6
0
64
IRELAND
16,7
UK
59
UK
15,5
NETHERLANDS
56
EUROPE
12,5
GERMANY
51
GERMANY 9,8
FRANCE
45
30
93
SAN FRANCISCO
104 0
50
100
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017
150 8
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 SPANISH STARTUP ECOSYSTEM: ATTRACTING TALENT
Talent is moving fast Spain is the 4th destination for international tech talent…
Destination Tech talent / country
Sweden Ireland Spain Nederlands France Germany UK 0
5
10
15
European
… attracting 14% …and exporting 7% to other European countries
20
25
30
35
Non-European
% of Migrants Poland Russia Ukraine Ireland Netherlands Italy Spain Germany Frnce United Kingdom 0
2
4
6
8
10
12
14
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: Atomico
16 9
Investment in Spain
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 INVESTMENT IN SPAIN: OVERVIEW
Total Capital Invested and Deal Count
Investments still over 500M€
€600,0M €500,0M
Although it decreases following the European tendency
€576,3M 315 291
€502,1M
352 274
€400,0M €282,6M
€300,0M €207,1M €200,0M €100,0M €0,00M
2013
2014
Total Capital Invested
2015
2016
Deal Count
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc./Crunchbase
11
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 INVESTMENT IN SPAIN: AVERAGE INVESTMENT TICKETS
Valuation Average (M€)
Capital Invested(M€)
But the average investment ticket has grown significantly, reflecting the more mature stage of the ecosystem
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc.
12
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 INVESTMENT IN SPAIN: TOP ROUNDS
Rounds bigger than €10M
Source: PitchBook Data, Inc./Crunchbase
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017
13
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 INVESTMENT IN SPAIN: TOP INVESTED SECTORS
% Capital Invested by Industries
Social and Mobile are the main sectors leading the investment
Automotive 2% FinTech 2% Communication Software 2%
Other 21%
Social 31%
eLearning 2% Electronics (B2C) 3% Media 6%
Enterprise
Mobile 19%
eCommerce 4%
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc./Sirris
14
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 INVESTMENT IN SPAIN: TYPES OF INVESTOR
Capital Invested by Investor Type
100,00
The mix of investors’ types is healthy Early stage VC investments have significantly turned into later stage, which reflects the maturity of the ecosystem While the increasement of Business Angels reinforces the continuity of the ecosystem
90,00 80,00
30,20 51,99
70,00
45,84
49,94
Acquisition Financing
60,00
Corporate
50,00
Grants
40,00
44,90
30,00 20,00 10,00
Later stage VC 33,30
41,55
28,80
Seed
9,53
Angel 4,62
2013
Early stage VC
2014
3,73 2015
16,68
Pre/Accelerator/Incubator
2016
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc.
15
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 INVESTMENT IN SPAIN: TYPES OF INVESTOR
Capital Invested by Source
Foreign investors bet for the Spanish ecosystem
59% of the investment in Spanish Startups comes from 43 international investors
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc./ El Referente
16
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 INVESTMENT IN SPAIN: M&A ACTIVITY
Mergers & Acquisitions
Record year in Exits: +1 Billion
123
104
120
108
Top Exits: - - - -
140
100
Privalia – Vente Privée: 500M€ Pepemobile – Másmovil Ibercom: 158M€ Ticketbis – eBay: 147,27M€ Olapic – Monotype Imaging: 116,03M€
80 62
64
60 40
Barcelona is the city with more deals - Barcelona: 36 deals (+3 vs. 2015) - Madrid: 28 deals (-7 vs. 2015) - Valencia: 2 deals (-2 vs. 2015) *Excluding Jazztel 2015
20 0 2012
2013
Total Capital invested
2014
2015
2016
Deal Count
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc.
17
Barcelona Digital Hub
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 BARCELONA DIGITAL HUB: OVERVIEW
28,4% of all Spanish Startups Market 43% B2B 23% B2C 34% B2B2C
Sectors • E-commerce 21% (+7,6% YOY) • Mobile 10% (-2% YOY) • Enterprise 10% (-1% YOY) • Social 9% (nd 2015) • Tourism 9% (+4,1% YOY)
Barcelona’s startups revenue: 1,3B€
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc./Catalonia Startups /Government of Catalonia / StartupXplore
19
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 BARCELONA DIGITAL HUB: TOP SECTORS
eCommerce is still “The” sector for Barcelona startups eCommerce was the #1 sector in 2015 (13,2%) and has increased its presence Tourism startups have growth from a 5,9% to a 10%, showing the city’s economic reality
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: StartupXplore
20
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 BARCELONA DIGITAL HUB: INVESTMENT FIGURES
Capital Invested by Hub
Barcelona dominates startup investments
2016
€700 M
2015
€282M
56% of € invested in Spain went to Barcelona-based startups
2014
€525M €350 M
€324M €173M
€175M
€165M
€4,3M €20M
€0 Barcelona*
Madrid Valencia REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017
Source: PitchBook Data, Inc.
21
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 BARCELONA DIGITAL HUB: TOP INVESTED SECTORS
% Capital Invested by Industries
Social Software, Mobile and FinTech and eLearning sectors are leading investments
Other 21%
Social 33%
eCommerce 5%
Enterprise 7% eLearning 8% FinTech 8%
Mobile 18%
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc./ Sirris
22
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 BARCELONA DIGITAL HUB: M&A ACTIVITY
Mergers & Acquisitions 140
Barcelona deals represent 48,2% of the capital from Spanish Exits, and have increased in 2016
33
36
120
29
100 80 17
60
14
In contrast with the global amount of Spanish Exits, that have decreased from 123 in 2015 to 104 in 2016
40 20 0 2012
2013
Total Capital invested
2014
2015
2016
Deal Count
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017 Source: PitchBook Data, Inc.
23
CON Conclusions
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 CONCLUSIONS
It is all about hubs Spain and its main hubs remain important players at European level, which demonstrates the maturity of its startups through: investments –increasing in advanced stages-, exits, as well as the power to attract talent. Facing the future, we must take advantage of these variables to expand the Spanish ecosystem and bring it closer to other hubs such as the UK, France or Germany. Open to new markets Success of Spanish startups relies on new markets opening. Today, 54,8% of the startup economy remains inside the country and this tendency should change in the future if startups want to gain more international recognition. If they want to compete with other countries then they should be able to demonstrate estbalished business models can work in other countries.This will make international investors believe more in the spanish startup ecosystem. Favorable Regulations required As we mentioned last year there is a lack of impact within the Spanish entrepreneurial law. At this point we should work to make the creation of new businesses and the investment in Spain more attractive. Limitations, burocracy and tax friendly policies need to be designed and implemented if we want to take advantatge of Spain’s momentum and take the ecosystem to the next level keeping investors interested in Spanish startups.
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017
25
DIGITAL STARTUP ECOSYSTEM OVERVIEW 2016 METHODOLOGY
All of the charts, tables and figures that are included in this report come from publicly available sources.
REPORT BY MOBILE WORLD CAPITAL BARCELONA, 2017
26
THANK YOU MWCB 2017
27
