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K 2018 SURVEY Venture Capital & Private Equity activity in Spain

SURVEY Venture Capital & Private Equity activity in Spain 2018

WITH THE SPONSORSHIP OF Survey 2018 Venture Capital & Private Equity in Spain

Sponsor by: 2

THIS REPORT HAS BEEN PREPARED BY: Ángela Alférez (ASCRI Research Director & Venture Capital Affairs), based on statistical data obtained and collected by José Martí Pellón (Professor of Financial Economics at the Complutense University of Madrid) and Marcos Salas de la Hera (Partner of Webcapitalriesgo.com)

All Rights Reserved ASCRI ® 2018 THE TOTAL OR PARTIAL REPRODUCTION OF THE DOCUMENT, OR ITS COMPUTER TREATMENT, IS NOT ALLOWED TRANSMISSION IN ANY WAY OR BY ANY MEANS, WHETHER ELECTRONIC, BY PHOTOCOPY, BY REGISTRATION OR OTHER METHODS, WITHOUT PRIOR AND WRITTEN PERMISSION OF THE COPYRIGHT HOLDER. 3

The Spanish Venture Capital & Private Equity Asso- ciation (ASCRI) is the industry body that units and re- presents the sector to the authorities, Government, institutions, investors, entrepreneurs and media. ASCRI regularly communicates and provides statistics and -up dated information regarding the developments of the tax and legal framework. ASCRI also organizes a range of activities (training courses, events and round tables) for the members and general public in order to disseminate and reinforce the contribution of the Venture Capital & Private Equity industry for the economy and growth of SMEs in Spain.

ASCRI comprises almost 100 national and international Venture Capital & Private Equity firms, 10 limited partners and over 70 service providers, spreading and en- suring the professional standards among its members: transparency, good governance and best practice. 4 Index Survey 2018 5 Index

Letter fromASCRI Chairman 7

Letter fromASCRI Managing Director 9

Summary of 2017 11

Fundraising 14

Investment in Private Equity & Venture Capital 18

Middle Market Investments 22

Large Market. The International Investor 24

Divestment 26

Portfolio 28

Venture Capital 30

2017 Main Transactions 38

Statisticalappendix 42

General Partners included 54 in this survery 6 7 Letter from ASCRI Chairman

have the pleasure, as the Chairman of ASCRI, of presen- Venture Capital and Private Equity activity in Spain primarily ting this annual report on Venture Capital & Private Equi- focused on financing SMEs: of the 715 investments made, I ty activity in Spain during 2017. 612 were made in SMEs with fewer than 100 workers. Financial and management support has enabled the portfolio companies to create jobs, growing faster, more sus- The investment figures for 2017 broke all existing records, tainably and more profitably. ASCRI wishes to highlight the reaching a record high: nearly €5,000M, up 30% from 2016. role of Venture Capital & Private Equity firms as an econo- The sector also reached record highs in: mic growth driver, underscoring the strength of the investments made by this sector, as well as their positive impact • Investment vs. GDP, which grew and on their portfolio companies and, therefo- equals the European average: 0.43%. re, on the Spanish economy as a whole. • Volume of international funds (€3,590.8M), which hit a record for investment in Spanish companies. • 560 investments in early stage companies (Venture Capital). • 13 megadeals or large transactions (>€100M in equity) in 12 companies. Juan Luis Ramírez ASCRI Chairman Middle market investment in Spain is proving to be one of the most active segments among Spanish management companies, with total volume invested of €1,400M in 56 investments, accounting for 28% of total sector investment in Spain. 8 9 Letter from ASCRI Managing Director

he goal of the Spanish Association of Capital, I would like to express our sincere gratitude for the unwa- Growth and Investment (ASCRI) is to improve the vering support of our sponsor of this publication – DIANA quality of the services provided to management CAPITAL –. I also wish to thank all the Venture Capital & Tcompanies, investors and advisors by strengthe- Private Equity Firms that provided the data necessary to ning investment and optimizing our tax framework and collect the information and prepare these statistical data as through internationalization. In order to achieve this goal well as to the team at Webcapitalriesgo who compiled and we have implemented a roadmap for public matters and processed the data with ASCRI through the European EDC are drafting a reputation improvement plan and preparing Platform. To all of them, many thanks for their time and both a regional and a European roadshow. dedication.

This report may be downloaded from our In our 32 years of existence our mana- website (www.ascri.org) in both English gement companies have invested over and Spanish. €44,000 million in nearly 7,500 companies. The Venture Capital & Private Equity sector has become a major focus for the economy, driving growth in companies from their earliest stages through growth and expansion stages.

José Zudaire This is the time to invest, divest and raise ASCRI Managing Director new funds, while we here at ASCRI continue with our training sessions, specialized publications and sector events. Suppor- ting entrepreneurs and their projects and companies, building bridges with other associations, all with institutional loyalty, collaborative spirit and a global vision. 10 Summary of 2017 11 Summary of 2017

Capital inflows from international institutional investors (LPs) The majority of total resources raised came from international investors, and were invested in middle market funds. A great number of management companies are already on their third and fourth generation of funds.

Record high VC&PE High levels of dry powder investment Approximately €4,100M in equity available for By both volume and nº of investments. investment, still far from the 2008 record high (€6,000M). A year of megadeals International funds closed 13 investments Megadeal portfolio turnover drives of >€100M (historical record), representing 60% of total volume invested. up divestment volumes Driven by upward trending valuations for this type of asset. International funds committed to Spain International funds contributed 72% of investment volume for the year, record investment in Spanish companies.

Intense Middle Market activity thanks to domestic management companies that led 43 of the 56 transactions closed in 2017.

Venture Capital shows great momentum Record high number of start ups receiving investments (449) and second highest investment volume on record (€537M). 12

Investment in 2017

+30% +15.8% +28% vs. 2016 vs. 2016 vs. 2016

€4,957.9M 715 investments €4.8M Equity Investment in 596 companies (92% SMEs) Average investment round size

Record high investment

715 €4958M 900 5000

4000 483 600 3000 €2423M 2000 300

1000

0 0 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017

Investment Number of investments

Fundraising in 2017

- 17.9% - 7% - 50% vs. 2016 vs.2016 vs. 2016

€1,865M €1,581.5M €283.6M Spanish private management companies Spanish Private Equity Funds Spanish Venture Capital Funds

Intense Fundraising in Investment and Fundraising Middle Market Vehicles vs. GDP

2000 0.43% €1,865M 0.34% 0.26%• 0.24% 1000 0.23% 0.23% 0.22% 0.23% 0.22% 0.18% 0.16%

€247M 0.04% 0.04% 0.07% 0 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017

Fundraising Investment in Spain / GDP (%) Domestic Funds Raised / GDP (%) 13

Divestment in 2017

+49% +70% -65% vs. 2016 vs.2016 vs. 2016

€3,483.9M €3,357.8M €126M Divestment (at price cost) Private Equity Divestment Venture Capital Divestment

Sale of large companies drives up divestment volumes

5000 2000 424

4000 €3,484M

3000 243 1000 2000 €1,950M

1000

0 0 2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017

Divestment Number of divestments

The sector in Spain

Cumulative Investment (Portfolio)

€237M €56M €1,045M €250M €368M Asturias Cantabria Basque La Rioja Navarre Country €629M Galicia 2,215 €25,400M €4,629M Catalonia €216M €238M Castile-León Aragon Investee Funds under companies management (portfolio) (12.000 from (92% SMEs) international funds) €7,284M €958M Comm. of Madrid Comm. of Valencia €363M €453M Castile-La Extremadura Mancha €1,216M 400,000 342 Balearic Islands

Employees National & €593M €371M international Andalusia Murcia entities with ongoing activity €7M in Spain Canary Islands 14 Fundraising

undraising by private entities in recent years now is an excellent time for fundraising: this variable has remained strong. New funds raised by Private broke all existing records, totaling €453bn (+9% from 2016). Equity and Venture Capital firms in Spain in 2017 In particular, new funds raised in Europe totaled €108bn, Fexceeded €1,865M, representing a 17.9% decrease from the second highest on record for the post-crisis period, 2016 (€2,271M, best figure on record since 2007). Despite behind 2016 (€121M). Large pan-European funds continue this decrease, the amount of new funds raised in 2017 to account for nearly half of all annual fundraising (€55bn is in line with levels of recent years, far from the figures in 2017). In particular, in 2017, the largest pan-European of 2009-2013 where the financial crisis kept funds raised fund on record was raised: CVC Capital Partners Fund VII, below €500M annually. Nevertheless, despite the upturn totaling €16,000M. Market volatility, abundant liquidity in fundraising, the amount of funds raised is still far from from returns and profits earned on divestments of investee other surrounding countries such as France (€16,738M companies and a certain inelasticity in the face of political raised in 2017), Italy (€2,563M) and Germany (€3,037M)1. instability all explain the investor appetite of LPs in Private Including new funds for public entities2 (€172.9M), total Equity and Venture Capital vehicles, to the detriment new funds raised for the sector reach €2,038.2M (-16% of other more rate-sensitive asset classes. According to from 2016). The confidence and interest of international Prequin, 53% of LPs plan to increase their allocations to LPs in the Spanish market and in venture capital and private Venture Capital & Private Equity in the long-term.4 equity as an asset class, abundant liquidity and the support As in 2016, 38 Venture Capital & Private Equity firms of the public sector through the public fund of funds Fond- ("VC&PEs") headed the raising of new private domestic ICO Global continue to drive growth in this variable. An funds. The following middle market vehicles, inter estimated €4,100M in is currently available dry powder alia, stood out5: Portobello Capital Fund IV (€600M) of for investment by private domestic GPs, far from the 2008 Portobello Capital Gestión, Artá Capital Fund II (€400M, record high (€6,000M), clearly demonstrating the need to final fund closing) of Artá Capital, MCH Iberian Capital continue raising new funds in the Spanish market. IV (€348, final fund closing) of MCH Private Equity Globally3, fundraising figures for 2017 clearly reflect that Investments, Aurica III (€162M, final closing) of Aurica

New funds raised by type of entity (GP)

4000

3000

2000 € Millons

1000 Domestic private entity Domestic public entity Source: ASCRI/webcapitalriesgo 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1 Data from "European Private Equity Data, 2017", Invest Europe. 2 This category includes the capital extensions provided under the General State Budgets (both national and regional) and aimed at public VC&PEs. 3 Data from "2018 Prequin Global Private Equity & Venture Capital Report." 4 The 2018 "Global Private Equity Report" published by Bain & Company places this percentage at 95%. 5 Only those funds that have been disclosed are referred to herein. 15

Capital Desarrollo, Magnum II (final fund closing €425M) In 2017, total funds raised by Private Equity GPs totaled of Magnum Capital, GPF Capital (final fund closing GPFII €1,581.5M (€1,702M in 2016), whereas Venture Capital €150M), Everwood Fondo Solar III of Everwood Capital GPs totaled €283.6M (€568M in 2016). and Oquendo III (€200M, final fund closing) of Oquendo Capital. Several funds were closed to finance startups, including Seaya Ventures II (€83, first closing) of Seaya Ventures, Alta Life Sciences Spain I (first closing) managed by Altamar Capital Partners, Alma Mundi Innvierte Fund of Alma Mundi Ventures, Swanlaab Giza Innvierte I (€35M, final closing) of Swanlaab Venture Factory, Nauta Tech Invest IV (€155M, final closing), Seedrocket 4Founders Capital (€12M, final closing), inter alia, as well as several undisclosed capital extensions in Venture Capital & Private Equity vehicles.

nvestment grew vs. GDP, reaching a record this indicator that equals the European average for the first 7 high. The relationship between investment in 2017 as time (0.43%, according to Invest Europe ). Fundraising vs. a percentage of GDP6 in Spain increased by 9 percentage GDP fell by 4 points to 0.18%. Ipoints compared to 2016, reaching 0.43%, a record high for

Fundraising and investments as a percentage of GDP

0.63%

0.42%

Investment in Spain / GDP (%) 0.21% National funds collected / GDP (%) Source: Own elaboration with data from INE and ASCRI / webcapitalriesgo 0.00% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

6 According to the National Institute of Statistics, Spain's gross domestic product in 2017 grew by 3.1% from 2016. 7 "European Private Equity Activity Report 2017," published by Invest Europe in May 2018. 16 Fundraising

unds of funds remained the primary investor Global10 (investment vehicle for VC&PE funds managed (LP) in total funds raised by domestic private by Axis Participaciones Empresariales), decreased entities. As regards capital raised by Spanish private contributions from €348.6M to €285.4M in 2017 (20% FVC&PEs, by type of investor of the funds raised, funds of of total). Family offices also contracted during 2017, funds (and, in particular, European Investment Fund (EIF)) decreasing their weight to 13.9% (€260M). Insurance led capital contributions for the third consecutive year, companies contributed 6.1% of the total, with domestic accounting for 24.8% of the €1,865.2M raised in 2017. insurance companies making the largest contribution These were followed by pension funds, accounting for20% totaling €67M of the total €114M contributed by this type (€372.5M) of capital contributed, in particular to Private of investor in 2017. Equity funds. Domestic pension funds only accounted for New funds raised by Venture Capital vehicles in 2017 a mere €54M of the €372.5M contributed by this type of were, as in previous years, led by public investors (38%), investor. The weight of pension funds in Spanish VC&PE followed by family offices (30%). vehicles remains far from their European counterparts with average annual contributions between 15%-30%8 of total funds raised. The public sector,9 including FOND-ICO

New funds raised by Spanish private VC&PEs entities by type of investor (LP) (2017)

45% 40% 38% 35% 30% 30% 28% 25% 23% 20% 15% 11% 11% 10% 10% 10% 8% 7% 5% 4% 5% 2% 3% 2% 2% 3% 0% 0% 0% 0% 0% of Ps thers Financial Managers Academic Insurance Companies Institutions Institutions Companies thers asset Family office Pulic Sector Non-financial Pension funds Commitement Funds of funds

Private Equity Funds Venture Capital Funds Source: ASCRI / webcapitalriesgo

8 Pension funds accounted for 28% of total funds raised by European VC&PE vehicles in 2017, according to the "European Private Equity Activity Report 2017" published by Invest Europe in May 2018. 9 This category includes public funding aimed at funds raised by domestic private entities. 10 In 2017, FOND ICO Global contributed €182.5M to domestic VC&PE vehicles. Funds allocated to international vehicles should be added to this figure. FOND ICO Global, through nine calls (up to December 2017), has approved total commitments of €1,424M since launch across 64 funds. 17

nternational LPs are main contributors of new 47% from 2016, whereas international investors increased funds in the sector in 2017. International LPs their commitment to Spanish private VC&PEs by 29.8% as stand out as regards geographic origin of contributions compared to the previous year, reflecting their interest in Ito Spanish private VC&PEs in 2017, representing 60% the Spanish market and renewed confidence in the national (€1,124M) of funds invested. On the other hand, economy. Specifically, 40% (€741M) arose in Europe contributions by domestic LPs fell compared to 2016, (Luxembourg, France and the United Kingdom stand out in representing 40% of capital invested in new funds in 2017. particular), followed by the United States with 4.3%. In absolute terms, volume invested by domestic LPs fell by

New funds raised by Spanish private VC&PEs entities by geographic breakdown of investor (LP) (2017) 450 409 400

350 319 300 250 200 182 183

€ Millons 150 102 102 100 67 67 78 53 47 54 40 50 32 33 29 29 20 29 18 1 0 Domestic LPs International LPs of Ps thers Financial Managers Academic Source: ASCRI / webcapitalriesgo Insurance Companies Institutions Institutions Companies thers asset Family office Pulic Sector Non-financial Pension funds Commitement Funds of funds

panish SMEs grew and consolidated its Intended application of new funds raised by position as the main recipient of capital Spanish private VC&PEs GPs raised by Spanish private entities.11 While Sfrom 2009 to 2013, fundraising for investment in startups ther was the main driver of Venture Capital activity, in 2014- 2017 domestic middle market funds renewed their funds for investments over the coming years. In 2017, mature Leveraged uyouts companies (MBO/MBI) accounted for 65% of intended application, compared to 38% in 2016. Investments inseed, roth Capital startup and late stage venture companies accounted for the second highest earmarking of investments, Early Stages representing 20.9% of intended applications. Growth seed + start up + companies accounted for the third highest application of late stage venture 0% 10% 20% 30% 40% 50% 60% 70% new funds raised (13.6% of total funds raised). 2016 2017 Source: ASCRI / webcapitalriesgo

11 This data is developed based on the answers provided by respondent firms to the question "Intended application of new funds raised,” and some of said firms are managing broad market funds. 18 Investment in Private Equity & Venture Capital

ecord high Venture Capital and Private that international funds2 made investments totaling Equity investment. Following extremely positive €3,590.8M (72% of total), a record high for investment performance of the sector in 2016, despite political in Spanish companies, representing 30.5% growth from Runcertainty, 2017 was an exceptional year. 2016 (€2,750.9M). Although the amount and type of transactions carried out by these funds in the Spanish Private Equity and Venture Capital investment in Spain market are increasing, their activity in the megadeals broke the highest figures on record (€4,352.8 in investments segment (transactions for more than €100M) stands out, in 2007). Investment in Venture Capital & Private Equity1 in investing a total of €2,919.3M in 13 investments, an amount Spain in 2017 totaled €4,957.9M, representing30% growth which significantly contributed to the record high Venture from 2016 (€3,809.1M). 83% of investments were allocated Capital and Private Equity investment in Spain in 2017. The to new investments, compared to 16.7% in followons. increased activity of international funds in the Venture Capital sector is also noteworthy. In 2017, international GPs closed a total of 94 investments, the second best on Regarding the number of investments in 2017, a total of record after 2015 (97 investments3). The growing presence 715 were recorded in 596 companies. 64.8% of investments of international funds in the Spanish market is rounded recorded were new investments (compared to 35% in out by domestic fund activity, which made a significant expansions of previous investments), a proportion which contribution for the second consecutive year. has remained stable since 2011.

At the national level, private GPs invested a total of Investments in 2017 were driven by different factors €1,266.2M (+27.4% from 2016) across 452 investments including economic stability, confidence in the Spanish (+11 from 2016). This growth in investment reflects the market, low interest rates, upturn in consumption and recovery of fundraising by domestic GPs in recent years, as abundant liquidity. In addition to these growth-driving well as recovery of the industrial fabric following the crisis. factors for investment in Spain, it is also worth nothing

Investment by type of entity (GP)

6000

5000

4000

3000 € Millons 2000

International GP 1000 Domestic Private GP Domestic public GP Number of investments 0 Source: ASCRI / webcapitalriesgo 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

1 In Spanish, the term Capital Riesgo is now referred to as Capital Privado, and includes both Venture Capital and Private Equity. In preparing the statistics, and for the sake of consistency between our methodologies and those followed by other National Venture Capital and Private Equity Associations, investment figures refer to investments made by domestic (public and private) and international management companies (GPs) in Spanish companies. Therefore, investments made by Spanish GPs outside of Spain, which totaled €364.7M across 124 investments in 2017, are not included. This is a change from the methodology previously used to prepare statistics. 2 The terms fund, management company (GP) and Venture Capital and Private Equity Firm (VC&PE) are used in this report indistinctly to refer to Venture Capital and Private Equity operators. 3 The number of investments as published in this report is calculated from the investor perspective, meaning that some investee companies may be double counted in the case of syndicated investments. 19

Investment of Public GPs increased to €100.9M (+57% A comparison between the two main segments of this YoY), allocated to 169 investments (+32% from 2016). sector shows that Private Equity investment totaled Likewise, the public sector continued supporting Venture €4,420M across 155 investments, whereas Venture Capital Capital and Private Equity through its investment activity investment totaled €537.7M across 560 investments. (Limited Partner) both in Private Equity and Venture Capital vehicles, as further explained in the chapter on Fundraising of this report.

he investment of international funds in €100M) in 2017, the majority of which were buyouts led the large market (transactions with equity by international funds. These funds invested a total of investments above €100M) boosted the €2,562.9M in buyouts in 2017 across 21 investments, Tamount of leveraged transactions4, representing compared to €2,077.6M in 2016 across 24 investments. 60% of total investments. Domestic entities The timing for buyouts is ideal thanks to abundant liquidity, focused their investment activity on growth loan availability, low interest rates, investor appetite of capital and venture capital. banks and the increasing presence of non-traditional debt instruments offered by banks, and which open the door for Investment by development stage of the investee company more flexible debt/equity structures. On the other hand, followed a similar distribution to that of 2016. In terms of the share of buyout transactions carried out by domestic volume, investment focused on leveraged transactions Private Equity funds still only accounts for a small portion of (€2,984.2M, 60.2% of total), followed by growth capital total investments, despite increases in 2017 in investment (€765.3M, 15.4% of total). volume (€421.3M invested in buyouts in 2017 compared to €309.3M in 2016) and number (25 buyout investments in 2017 compared to 13 in 2016). Growth in the volume of leveraged transactions is the result of an increased number of investments (equity >

Stage distribution of Venture Capital & Private Equity investments

6000

4000 € Millons 2000 Seed Growth Start-up + other early LBO/MBO/MBI/LBU stages Others Late stage venture 0 2012 2013 2014 2015 2016 2017 Source: ASCRI / webcapitalriesgo

4 Transactions using equity and external debt to acquire a share in the company. Also referred to as LBO, MBO (buyouts) or MBI. 20 Investment in Private Equity & Venture Capital

Participation of domestic Private Equity firms in the funding up stage5, followed by other early stage6 (151), seed7 (123) of growth in more mature companies (growth capital) stood and late stage venture8 (84). For a detailed analysis of out (€520M) compared to international funds (€69.8M). investments in the seed, start up, other early stage and late 92 growth capital investments were made, most of which stage venture stages see Chapter 6, on Venture Capital. were led by domestic GPs (83 investments). [A list of the main growth capital and buyout investments is provided in page 38]. The remaining investee companies belong to the Other (7) and Replacement9 (10) categories.

By number of investments, companies in start up stages (Venture Capital) received the most investments (560), setting a record high. 202 investments were made in start

he Consumer Goods sector was the primary recipient of Venture Capital and Venture Capital & Private Equity investments by Private Equity financing, and the IT sector sector (2017) Treceived the highest number of investments. With regards to sectors, the Consumer Goods sector received 17.5% of invested funds (as a result of the Communications Pronovias, Farggi-La Menorquina, Merkal, Nice Cold Leisure Corp, Cortefiel transactions, among others), followed by Energy Other Services (16.1%), from the NACE Schools, Grupo atural resources Pacha, Accelya, Centauro Rent a Car, Kids & Us and Chemistry & Materials Sidecu transactions. These sectors were followed by Industrial Products Transportation/Logistics (13.7%), from the CLH, Vectia & Services Mobility and Vicarli transactions; Financial Services Medical elthcare (13.2%), including companies such as Allfunds Bank and thers Production appraisers including Valtecnic and Ibertasa; and IT (7.6%) Computer related from the Cabify, Satlink and Logtrust transactions. Financial Services

Transport

By number of companies, the IT sector ranked first (286 thers services investments, representing 40% of the total 715 investee Consumer related products companies in 2017), followed by Consumer Goods (10.5% of total), Healthcare (7.8% of total) and Industrial 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Products and Services (7.4% of total).

Source: ASCRI / webcapitalriesgo

5 Investment in start ups: first round of investment in companies with early sales but negative EBITDA 6 Other early stage: refers to follow-on rounds or Series B/C investments in startups. 7 Seed: Investment in companies without sales 8 Investment in growth companies with positive sales and EBITDA 9 €765M in investments were allocated to Replacement in only 10 investments thanks to the closing of a large transaction. 21 Investment in Private Equity & Venture Capital

adrid and Catalonia stood out as the As regards number of investments by region, Catalonia main recipients of Venture Capital & topped the ranking with 213 investments, followed by MPrivate Equity investment. Madrid (148), Galicia (85) and the Basque Country (68). The geographic distribution of the Venture Capital and Private Equity investments highlights the wide disparity Volume invested by region in 2017 between the various regions of Spain when it comes

to attracting investment. Madrid stood out with 49.6% 0.7% 0% 0.3% of total investment in Spain, followed by the Catalonia 0.9% 0.6% 0.34% (21%) and the Balearic Islands (9.2%). In the case of 21% 0.9% 3.1% Madrid, the CLH, Allfunds Bank, NACE Schools, Cabify, Cortefiel and Vertex Bioenergy transactions were crucial; 49.6% in Catalonia, the Pronovias, Accelya, Farggi Menorquina, 9.2% 1.1% 4.7% Merkal and Pronokal Group transactions; and in the 0.1% Balearic Islands, the Grupo Pacha, Laboratorios Sanifit and Hundredrooms transactions. Murcia (6%) and Aragon (3%) 6.2% saw significant growth from 2016 in terms of volume due 1.2% to large transactions involving companies headquartered 0.1% in these regions, including berchem, Moyca and Probelte Biotecnología in Murcia and Vitalia Home and Aramen in Aragon. Source: ASCRI / webcapitalriesgo

enture Capital and Private Equity activity Venture Capital & Private Equity investments in Spain primarily focused on financing (Number) by company size (2017) SMEs. Investments in SMEs are dominating the VSpanish Venture Capital & Private Equity market. Of the 715 investments made in Spain in 2017, 612 were made in SMEs with fewer than 100 employees. 100%

80% According to transaction size, of the715 investments, nearly half (43.8%) received contributions of less than €250,000. 60% received less than €1 million, between €1 and 66% 19.6% 40% 5 million, 4.8% between €5 and 10 million, 4.9% between €10 and 25 million and 2.9% between €25 and 100 million. 20% The remaining 1.8% relates to transactions of more than 0% 100 million. 0 to 99 employees 100 to 199 employees 200 to 499 employees More than 500 employees

Thanks to intense middle market activity and large Venture Capital transactions, the average amount invested per company Private Equity increased to €6.9M per investment (the average in 2016 Source: ASCRI / webcapitalriesgo was €6.2M). 22 Middle Market Investments

he Spanish middle market continues to 2016) in middle market transactions across43 investments. recover. Middle market investments (equity On the other hand, international GPs contributed €477.6M investments between €10 and 100 million) (very similar to 2016) in 13 investments (7 less than in Tmaintained pre-crisis levels both in terms of volume and 2016). number of investments. The total amount invested in this By size, middle market investments in 2017 followed a market segment was €1,398.5M (compared to €1,209M in similar pattern to that from 2016, with the exception of 2016) across 56 investments (51 in 2016), leaving behind transactions made between €20M–€25M, which went the low investment levels seen between 2009 and 2014. from 6 to 12 investments in 2017. This segment represented 28% of total Venture Capital and Private Equity investment in Spain (€4,957.9M), and 91% of In the wake of the crisis, middle market investment in Spain invested capital was applied to new investments. is proving to be one of the most active segments among Domestic GPs invested a total of €920.9M (+25% from Spanish management companies. This momentum is supported by the highly fragmented nature of the business

Middle market investments

2000

1000 € Millons

58 63 49 30 30 33 23 12 29 50 51 56 op. 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Volume Source: ASCRI / webcapitalriesgo

Middle market investments by size of investment

600

400

€ Millons 200

0 10 to 15 15 to 20 20 to 25 25 to 50 50 to 75 75 to 100

2016 2017 Source: ASCRI / webcapitalriesgo 23

fabric, which leads to opportunities for the buy & build segment is further supported by the investor appetite both strategies being promoted by several funds. In addition of Private Equity funds with ample dry powder and large to this offering of assets valued below those in the large corporate groups. This has resulted in a significantly more market segment and which often follow a growth strategy competitive environment for this type of transactions. geared towards internationalization, the strength of this

nvestment in LBOs continues to stand out. The [A list of the main middle market transactions is provided on-going availability of cheap bank loans over the past in page 40] three years continues to drive up the number of , LBOs By sectors, the middle market has historically focused on Ifrom 9 in 2014 to 26 in 2017, totaling €783.9M in 2017 traditional industries. The Consumer Goods sector received (€646M in 2016). the highest investment volume (€346.4M; 25% of total), The middle market saw 19 investments in Growth Capital followed by Industrial Products and Services (€223M; (totaling €398.8M) and 3 investments –all by international 15.9% of total). funds– in Venture Capital (€51.2M). The following stand out in the sector distribution by number As regards management companies, international funds of investments: Consumer Goods (13), Industrial Products that invested in the middle market were focused primarily and Services (9) and Other Services (8). on buyouts (82.9% of volume invested in 8 investments), whereas the middle market investments of domestic funds were distributed between buyouts (42% of total investments, by volume and number) and growth capital (38.7% of volume invested and 39.5% by number of investments).

Stage distribution of investment in middle market

2000

1000 € Millons Seed Growth Start-up + other early LBO/MBO/MBI/LBU stages Others Late stage venture 0 Source: ASCRI / webcapitalriesgo 2016 2017 24 Large Market. The International Investor

nternational funds led the large market in nvestment of international funds in Spain Spain. The market for large transactions (>€100M in reached a record high in 2017. Growth in the equity1) –also known as megadeals– reached a record Spanish economy in excess of 3% for the second Ihigh in 2017. This investment segment was led exclusively Iconsecutive year combined with confidence in the by international management companies, which are able to domestic market, improved lending and investor take on large transactions thanks to the size of their funds. appetite spurred by the abundance of capital available Megadeals have helped to support market size contributing for investment drove foreign investment in Spain, an average of 57% of total Venture Capital & Private Equity which exceeded 2016 levels2 both generally and within Investments in Spanish companies over the past five years. the Venture Capital & Private Equity sector. In 2017, In particular, in 2017, 13 large transactions were closed international management companies reached a record in 12 companies: CVC Capital Partners (CLH), Hellman & high with a Venture Capital & Private Equity investment Friedman (Allfunds Bank), Eurazeo (Iberchem), BC Partners in Spain of €3,590.8M (compared to €2,750.9M in 2016), (Pronovias), Providence (NACE), Lone Star (Esmalglass), €2,919.3M of which were megadeals, €477.6M (12%) Trilantic Partners (Grupo Pacha), CVC Capital Partners and in midmarket transactions (equity between €10M and PAI Management (Cortefiel), Rakuten (Cabify), CVC Capital €100M), and the rest, €193.9M, in transactions for less Partners (Vitalia Home) and Warburg Pincus (Accelya) and than €10M in equity. an undisclosed transaction. These transactions represented 59% (€2,919.3M) of total investment in Spain. In 2016, 9 megadeals were carried out totaling €2,150.9M (56% of total amount invested in 2016), headed by 9 international investors.

Investments by international entities in Spain (by size of investment)

4000 14 13 12 3000 9 10 9 9

7 8 2000 6 6 € Millons 6 5 5 4

4 Nº investments 4 1000 2 2 Investments > 100M€ Investments < 100M€ 0 0 Nº inv. > 100M€ 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: ASCRI / webcapitalriesgo

DEALS CLOSED IN THE LARGE MARKET IN SPAIN 2014 2015 2016 CVC (Grupo Hospitalario Quirón y Deóleo), Eurazeo Apax Partners (Idealista), L Capital Asia (Pepe Jeans), Cinven y CPPIB PE (Hotelbeds), Providence Equity (Desigual), Cinven (Ufinet), KKR (Grupo Alfonso PAI (Geriatros) and Partners Group (Joyería Tous) (MásMovil), Cinven (Tinsa), ICG (Garnica), Apax Gallardo, Port Aventura and Telepizza), Arclight and one unpublished operation Partners (Invent Farma), The Carlyle Group Capital (Bizkaia Energía), Investindustrial (Goldcar), (Cupa Group), Cerberus (Renovalia Energy) and Alquemy (Endeka Ceramics) and Partners Group KKR (Telepizza) (Savera)

1 All investment statistics published by ASCRI refer to the equity invested. 2 Foreign investment volume in Spain in 2017 grew by 140% from 2016, exceeding €50 billion according to Thomson Reuters, and representing approximately 36% of total investment in Spain. 25 Large Market. The International Investor

he number of companies invested in by management companies in Spain in 2017 stood out, indeed international funds has continued to this has been the first year in which the largest number of increase over the past few years: In 2013, investments (33) were made in "other early stages." Tthese funds closed a total of 47 investments in companies, The number of international VC&PEs operating in Spain as compared to 94 investments in 2017 (12 more than from 25 in 2006 to 1843 in 2017. in 2016), 50 of which were new investments and 44 grew were follow ons. The intense LBO activity of international

Number of international entities investing in Spain (by size of funds managed)4 200 184 160 155 132 120 98 84 80

Nº of entities 61 53 46 41 40 34 Large GPs 25 29 Medium GPs Small GPs 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

uy outs led in international funds' portfolios. Portfolio of international entities by sectoral The international funds' portfolios totaled distribution (by volume) €12,193M in 2017. Investment of international BVenture Capital and Private Equity funds in Spain has been traditionally directed at consolidated companies, as Energy atural Resources 4.6% evidenced by the composition of these funds' portfolios: Chemistry Materials 4.6% 70% of volume is invested in consolidated companies ther Services 16.9% through buyout transactions, 14.6% in companies in Communications 6.5% replacement and growth stages and 10.3% in startups Medical ealthcare 5.8% and other early Venture Capital stages. Transport 5.8% Consumer Related 16.2% interest in large companies with Financial As regards sectors, Services 7.3% activity in the following sectors stood out: Other Services (16.9%), Consumer Goods (16.2%), IT (11.4%), Industrial Computer Industrial Products & Services 11% Products and Services (11%) and Financial Services Related 11.4% (7.3%).

3 A list of the international entities with activity in Spain is provided at the end of this report. 4 Large: manage or advise on more than €150 million Medium: manage or advise on between €50-150 million Small: manage or advise on less than €50 million 26 Divestment

he timing is good for the sale of companies, By type of entity, highest divestment volumes were led driving portfolio turnover. Since the market by international funds (€2,650.3M in 37 divestments), up moved out of the recessive stage of the economic 60.9% from 2016. On the other hand, private domestic Tcycle, both in Spain and worldwide, favorable conditions funds2 completed divestments totaling (at price cost) have continued to support divestment of Venture €798.3M in 144 divestments. Public domestic funds went Capital & Private Equity portfolio companies. Against from 137 divestments totaling (at price cost) €40M in this favorable environment for sellers, both industrial 2016 to €35.3M in 62 divestments in 2017. and financial investor appetite stand out thanks to the abundant liquidity on the market, affecting significant portions of economic activity. This "investment pressure" The sector with the highest number of divestments in has generated very attractive multiples for divestment, 2017 was IT (69 exits), followed by Industrial Products resulting in higher divestment levels in 2017 than 2016 and Services (41) and Healthcare and Other Services, (€2,337.2M), albeit not reaching the record highs of each with 21 divestments. The sectors with the highest 2014 (€5,048.4M) and 2015 (€3,850.3M). In particular, divestment volumes (at price cost) were Healthcare with divestments in 2017 for all Venture Capital and Private €896.5M (25.7%), followed by Other Services (€561.3M) Equity firms1 totaled (at price cost) €3,483.9M (+49% (16%) and Consumer Goods (€439.6M). from 2016) across 243 divestments, as compared to 359 in 2016. The drop in number of divestments was particularly sharp in public firms. The average holding period for the portfolio3 was 6.2 97% of divestments were made in Private Equity years, down from 7 years in 2016. transactions and 53% in Venture Capital transactions.

Divestment by type of entity (GP) 6000

5000

4000

3000 € Millons 2000

1000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

International GP Domestic private entity Domestic public entity

Source: ASCRI / webcapitalriesgo

1 The divestment activity covered in this section refers to all domestic (public and private) and international Venture Capital and Private Equity firms that have divested in companies headquartered in Spain. 2 As regards portfolio turnover of domestic management companies, regardless of whether the investee companies were headquartered in Spain or elsewhere; divestments in 2017 totaled (at price cost) €1,097.5M in 233 divestments compared to €850M in 360 divestments in 2016. 3 Solely for full divestments. 27

Some of the main divestments in the Private Equity in Guzman Gastronómica, GPF in Acuntía, Artá Capital sector in 2017 were headed by, inter alia, CVC in IDC in Flex, Oquendo in Ingesport and Portobello in Vitalia Salud, Providence in Masmovil, Triton Partners in Befesa, Home. The following Venture Capital divestments stood 3i in Memora, Permira in Cortefiel and Telepizza, Tensile out: Highland Europe Nauta Capital, Idinvest Partners Capital Management in Keraben Grupo, ICG in Esmalglass, and Greylocken Partners in Social Point; Active Venture Investindustrial in Goldcar, Magnum in NACE, Iberchem Partners in Review Ranko and Uninvest in Agrenvec. and Orliman, Alantra Private Equity in Q Diagnóstica and Probos, Miura and Demeter in Contenur, Miura

he most commonly used divestment lowest figure recorded since the crisis began. By number of method in 2017 (by volume) was Trade transactions, only 24 divestments were classified as Write Sale (43.7%). This was followed by Secondary Offs, the best figure on record. TBuyout (17.1%) best record in the last five years and Stock By number of transactions, the primary divestment Exchange Sale (12.3%). method was Loan Repayment (37.4%), followed by Trade Sale (20.6%) and Owner's Buyback (17.7%).

By volume, Write Offs grew slightly compared to 2016 (from €91.7M to €186M in 2017), albeit still the second

Divestment by exit route 4000

3000

2000 € Millons 1000

0 2015 2016 2017

Trade Sale Secondary Buyout Stock market Loan Repayment Others Buyback Write Off

Source: ASCRI / webcapitalriesgo 28 Portfolio

he Venture Capital and Private Equity sector include an outstanding cumulative portfolio of €593M in has a total of 2,644 investee companies in loans from CDTI, Enisa and other regional organizations. TSpain valued at €18,913M. The portfolio of investees for the aforementioned The portfolio, at price cost, of the Venture Capital and domestic and international Venture Capital & Private Equity Private Equity firms (hereinafter, VC&PEs) operating in operators as a whole totaled 2,644 companies at the end of Spain totaled €18,913M as of 31 December 2017. This 2017. After excluding the investments syndicated between includes the investee companies of 161 domestic entities several operators, the total portfolio was estimated to and 180 international entities, 53 of which have on-going consist of 2,215 companies. 4,268 companies backed by activity in Spain. Portfolio value increased again following CDTI, Enisa and/or a similar regional organization should be the significant divestments of 2014 and 2015. International added to this figure. VC&PEs accounted for 64.5%, private domestic VC&PEs for 30.7% and public ones for 4.8%. This amount does not

Portfolio at cost in Spain

25000

20000

15000

10000

5000

0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

International entity Domestic private entity Domestic public entity Source: ASCRI / webcapitalriesgo 29

enture Capital and Private Equity portfolio domestic and international VC&PEs since 1972 is estimated companies employ a total of 345,600 at 6,470 companies. Firms backed by CDTI and Enisa that people. The average investment at price cost of have not yet received Venture Capital/Private Equity should Vthe domestic and international VC&PEs in each portfolio be added to this figure. company was estimated at €7.2M at the end of 2017, rising to €8.5M if the investments of several operators are grouped in the same firm. However, there is a noticeable n aggregate employment terms, the out difference between the average per company investment standing portfolio of the domestic and at the end of 2017 recorded for international VC&PEs international VC&PEs totaled 331,000 (approx. €45.8M) and for private domestic VC&PEs (€4M). Iemployees, compared to 417,000 in 2015, with an average of 148 employees per company. Employment in the portfolio companies of CDTI, Enisa and/or other The average length of time that firms remain in the portfolio regional organizations with activity through programs of domestic and international VC&PEs, after subtracting based in participative loans, added another 45,000 at the syndicated investments, was estimated at 4.6 years. end of 2016. Employment in new investee companies in 2016 was estimated at 38,100 workers, with an average With the 417 additional investee companies in 2017, of 128 workers for each new company added. including syndicated investments by various investors in a single company, the historic portfolio of the firms backed by

Impact of Venture Capital & Private Equity in Spain

600 7000

500 6000 5000 400 4000 300 3000

200 Number of firms 2000

Thousands of employees 100 1000 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Employees in portfolio companies Employees in initial investments Cummulative number on investee firms Source: ASCRI / webcapitalriesgo 30 Venture Capital

MAIN CONCLUSIONS FOR 20171

Venture Capital Key Indicators

Fundraising Investment Divestment

700 700 500 600 600 400 500 500 400 400 300

300 300 200 200 200 100 100 100 0 0 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

Fundraising Investment international VC entity Divestments Investment domestic private VC entity Investment domesitc public VC entity

• Venture Capital momentum in 2017, with €537M2 in correcting for the lack of capital available for funding investments, is driving growth in this segment, making this range; in 2017, 15 investments3 were closed in 8 2017 one of the best years on record, just behind 2015 companies, the majority of which were led by international (€548M). funds.

• Record high number of Spanish start ups funded by • Record high number of scaleups: 88 start ups received domestic and international Venture Capital (449 start investments >€1M, double the figure on record for 2012. ups in 2017). By number of companies invested, all stages saw growth, in particular seed capital and series A funding. • In 2017, private domestic Venture Capital firms drove Likewise, growth of companies funded was very scattered increases to early stage investment in Spain, both by across different sectors (ICT, Digital and Consumer, Life investment volume and number of investee companies, Sciences and Industry). reaching record highs for both variables. This intense activity is supported by the new funds being raised both • Investor Appetite: 300 Spanish start ups received by existing firms and by new management companies Venture Capital funding for the first time, the best figure that have started activity in recent years. on record. • Public Venture Capital firms regained some of the ground • Activity in the €5M–€10M investment range grew, lost in direct investment, doubling the investment

1 All statistical data on the Venture Capital sector is available on page 36. 2 For methodological reasons, the round in Letgo was not included in the statistics as it has no branch in Spain. In general, the information both in this chapter and in the rest of this report refer to investments (equity and quasi-equity, including equity and convertible loans) made in Spanish companies by domestic and international firms, not including investments made outside Spain by domestic management companies. 3 The number of investments published is calculated from the perspective of the funds, meaning that some investee companies may be double counted in the case of syndicated investments. 31

volumes recorded in 2016. Their investment activity had year (of the 26 new funds making a first-time investment a particularly strong impact on the Industry sector, the in Spain, 18 were Venture Capital funds), and more and fastest growing sector in terms of investment received in more funds are increasingly investing without the backing 2017. of local funds.

• The interest of international funds in the Spanish market • Spain surpassed the European average for Venture continues to be reflected by investment volume (57% of Capital investment in terms of GDP, reaching 0.043% in total Venture Capital investment in Spain in 2017), by 2017.4 the record high number of investments closed (63 in 34 companies), by the new funds that continue to open each

Summary of Venture Capital investment in Spanish start ups in 2017

2017 DOMESTIC INTERNATIONAL Corporate VC (Investment) €8.7M €146.7M5 VC (Investment) €176M €161.4 Public VC (Investment) €44.4M - Active Investors 2017 72 51 Invested (M€) €229.6M €308.1M Nº of Investments 497 63 Start Ups Invested 4326 34 Avg. Round (M€) €0.55M €9.1M Avg. Ticket (M€) Investments €0.46M €4.9M

VENTURE CAPITAL ACTIVITY IN 2017

enture Capital investment in Spain is segment. In 2017, a transaction for >€100M was closed growing. Venture Capital funds (domestic (72) by a single investor7 for the second consecutive year. and international (51))invested a total of €537.7M International funds, attracted by the maturity of the Vin Spanish companies in 2017, a 23.9% increase from sector, have become one of the primary actors in the investment volume in 2016 (€433.9M), close to the all- domestic Venture Capital sector in just 4 years, increasing time high recorded in 2015 (€548.3M). their commitment to the Spanish start up, both by volume, totaling €308M (+20% vs. 2016), the second best figure on record, as well as by number of investments8 (63 in 34 This excellent figure is driven in part by recovery in the companies9), a record high. As at the end of 2017, 118 of number of large funding rounds (>€10M) directed to 8 start the approximately 182 international entities with Spanish ups, all performed by international funds, as is coming to portfolio companies were Venture Capital firms. At the be the norm in the Spanish market. Furthermore, the 15 national level, the sector had close to 95 Venture Capital investments closed in the €5M–€10M segment, totaling active firms10, 12 of which were public. €101.4M, also had a positive impact and temporarily corrected for the lack of capital available for funding this

4 Data from the "2017 European Private Equity Activity" annual report published by Invest Europe in May 2018. 5 As in 2016, the investment by Rakuten in Cabify (also held by, inter alia, the Spanish fund Seaya Ventures) in 2017 was decisive for International Corporate Venture investments. 6 A total of 449 companies received funding in 2017, 17 of which were co-invested by domestic and international funds. 7 Investment by Rakuten in Cabify 8 The number of investments published in this report is calculated from the perspective of the funds, meaning that some investee companies may be double counted in the case of syndicated investments. 9 Of these 381 companies, 18 companies received co-investments from domestic and international funds. 10 Venture Capital and Private Equity firms with an investment focus on Venture Capital and that have portfolios in which seed, startup, other early stage and late stage venture account for at least half of the portfolio. 32 Venture Capital

ecord high Venture Capital investment ecovery in late stage venture in the by domestic funds. Fundraising by private Spanish market. As a sign of the maturity domestic Venture Capital funds in recent years, attained by a growing number of start ups inthe Rtogether with increased leeway in the budget of public RSpanish ecosystem, late stage venture continues to grow entities, has stimulated their investment activity. In every year, reaching a record high in investment volume particular,domestic entities increased their investment in 2017, totaling €250M in 50 companies, 23 of which in Spanish start ups, totaling €229.6M (+29% from the received Venture Capital funding for the first time (3 more €177.8M invested in 2016). Capital was invested across than in 2016 and a record high). The remaining categories, 497 investments. Looking to the coming years, the by stage of investment, also grew compared to 2016 in outlook remains positive thanks both to the available terms of volume and number of investee companies. In offering of start ups which continues to mature and to particular, investment in start ups and round A funding demand driven by local Venture Capital funds with dry stood out with €102M (+33% from 2016), a record high in powder and international funds coming to Spain as one number of investee companies (177), 130 of which were of the most attractive countries for channeling investor new investments. appetite.

Seed capital increased by 48% in 2017 in terms of ecord high in number of start ups receiving investment volume (€22M in 2017), and by 44% in terms Venture Capital funding for the first time. of number of investee companies (118, 102 of which were The number of start ups funded by Venture new investments, a record high for both variables), thanks RCapital grew for the fifth consecutive year. In 2017, a to the domestic Venture Capital funds that are currently total of 560 Venture Capital investments were made the main driver for future start ups. in 449 companies, of which 299 start ups received Venture Capital funding for the first time (51 more companies than in 2016 and a record high). Capital injections in 150 companies were used to support the portfolio (+4% vs. 2016). As regards Venture Capital funds that invested capital in new portfolio investments, a total of €249M was invested, compared to €288.7M11 in extensions and follow ons in 2017. 58.6% of start ups received investment rounds below €250,000 in equity.

rivate Venture Capital firms led investment in start ups through Venture Capital funds, using funds activity. By type of entity, the significance of of funds programs such as FOND-ICO Global (managed investment fell, primarily, in private entities, by Axis), Innvierte (managed by CDTI through 2017 and Ptotaling €493.3M in investments in 2017 (92% of playing a significant role in the growth of technology total volume invested), as compared to €44M in Venture Capital funds during the crisis years) and the investments by public funds (8%). The role of public fund investment program of Institut Català de Finances. funds has without a doubt evolved since the start of In particular, the public sector is once again positioned the crisis, reducing support of SMEs through direct as a primary investor (LP) for domestic Venture funds, 12 investment and strengthening its role as an investor (LP) with over €109M.

11 This figure was the highest on record thanks to the reinvestment of Rakuten in Cabify. 12 A more detailed description of the fundraising activity in 2017 is provided in the chapter of this report on "Fundraising, page 14." 33

Nevertheless, in 2017, economic recovery in general and Sabadell Venture Capital, Kibo Ventures and Bankinter of the public sector in particular was confirmed, with the (Intergestora). In the public sector: Seed Capital Bizkaia, latter increasing direct investment in start ups by 61% as Xesgalicia, Sodena, Vigo Activo and Gestión Capital compared to 2016, across a total of 152 investments, a Riesgo País Vasco. As regards international funds, the record high. following stood out by number of investments: Idinvest Partners, Pointnine Capital, Mangrove Capital Partners, Innogest Capital. In 2017, the most active private domestic investors (by number of investments) were, inter alia: Caixa Capital Risc, Inveready Technology Investment Group,

Venture Capital investment by company stage

Volume 300 250 200 150 100 Thousands € 50 0 2013 2014 2015 2016 2017 Seed 9.0 12.8 18.5 14.7 21.7 Startup 49.8 42.8 167.6 76.6 101.9 Other early stages 52.9 51.0 134.1 151.0 163.7 Late stage venture 82.9 185.6 228.0 191.5 250.3

Seed Startup Other early stages Late stage venture

Number of start ups 200 180 160 140 120 100

Number 80 60 40 20 0 2013 2014 2015 2016 2017 Seed 39 52 66 82 118 Startup 118 80 117 156 177 Other early stages 43 47 69 107 104 Late stage venture 55 55 66 47 50

Seed Startup Other early stages Late stage venture 34 Venture Capital

enture Capital support across all sectors This volume yet again surpassed the record highs registered has increased, and in particular, in the over the past three years, as did the number of start ups Industry sector. In 2017, the four categories receiving investments in the Life Sciences sector (60, four Vresulting from the sectoral classification grew bothby more than 2016). Recovery of public Venture Capital fund capital received and number of starts up funded. In activity in 2017 drove the Industry sector, which saw the particular, a total of €307.6M was invested in 148 most growth (44% vs. 2016), totaling €91.8M in investment companies in the Digital and Consumer sector. In this in 127 start ups, both record highs. category, international funds stood out, as is becoming the norm, contributing 80% of investment volume in this category.13 The Life Sciences sector continues to attract investment from both private domestic funds as well as from several international funds, which contributed €31M (€21M invested in biotechnology start ups, a record high) of the total €66.9M received by this sector in 2017.

Venture Capital Investment Volume by Sector

600000 500000

400000 300000 Thousands € 200000

100000 0 2013 2014 2015 2016 2017 ICT 59979 139688 109350 62659 71435 Industrial & others 59260 31412 65362 63469 91769 Digital 40445 89939 324247 245423 307577 Life Sciences 34842 31207 49335 62309 66890

ICT Industrial & others Digital Life Sciences Source: ASCRI/webcapitalriesgo

13 The new Cabify round was decisive for this category. 35

adrid and Barcelona, the two Venture early stage investments. In distant positions were Galicia Capital hubs. With a total of €236M in (€17.7M invested in the region), Navarre (€13.8M) and the investments in start ups in Madrid14 and Balearic Islands (€11.7M). Catalonia also led by number M€201.8M in Catalan start ups in 2017,15 these two of start ups financed (115). Followed by Madrid (77 start regions continue to position themselves as innovation and ups), the Basque Country (63 start ups), Galicia (55 start entrepreneurship hubs, standing out for the concentration ups) and Navarre (37 start ups). of Venture Capital funds and start ups, as well as for holding events and creating start up communities that have without a doubt contributed to the development of

wlowdown in divestments in 2017. 2016 as the main divestment method used by volume (47.5% was an exceptional year for portfolio turnover for of total), with the number of write-offs decreasing early stage companies, both by volume (€363.8M) to a record low (only 15 divestments made using this Sand number (228) and quality of exits, and in 2017, divestment method). this variable dropped considerably, totaling €126M in divestments (at price cost), in 131 divestments. These figures highlight the need to continue driving the sale of investee companies as one of the challenges of the sector. The "Trade Sale" category shows positive figures,

14 According to "The State of European Tech 2017" study published by Atomico, Madrid is the fourth largest hub by number of developers. 15 According to "The State of European Tech 2017" study published by Atomico, Barcelona is the third most preferred city by entrepreneurs for building start ups. 36 Venture Capital

INVESTMENT

AMOUNT (M€) NUMBER START UPS TYPE OF GP 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 International VC 58.6 158.1 401.3 256.0 308.1 33 38 73 43 63 Domestic Private VC 101.6 112.6 119.9 150.3 185.2 261 258 293 338 345 Domestic Public VC 34.4 21.5 27.0 27.5 44.4 68 53 107 108 152 TOTAL 194.5 292.2 548.3 433.9 537.7 362* 349* 473* 489* 560* STAGE OF DEVELOPMENT Seed 9.0 12.8 18.5 14.7 21.7 39 52 66 82 118 Start-up 49.8 42.8 167.6 76.6 101.9 118 80 117 156 177 Other early stage 52.9 51.0 134.1 151.0 163.7 43 47 69 107 104 Late stage venture 82.9 185.6 228.0 191.5 250.3 55 55 66 47 50 TOTAL 194.5 292.2 548.3 433.9 537.7 255 234 318 392 449 SIZE 0 - 0.25 M€ 19.7 15.8 22.4 21.7 24.1 145 136 202 213 263 0.25 - 0.5 M€ 17.5 16.6 16.2 27.5 20.2 38 26 30 50 36 0.5 - 1 M€ 30.9 41.2 45.5 40.2 52.8 31 27 35 56 61 1 - 2.5 M€ 57.3 59.9 83.6 92.2 108.5 25 32 24 50 59 2.5 - 5 M€ 39.6 22.6 64.2 69.2 70.5 10 4 12 13 13 5 - 10 M€ 29.5 52.1 49.6 29.4 101.4 5 6 5 3 8 10 - 15 M€ 0.0 24.0 28.3 10.0 33.7 0 0 4 2 3 15 - 20 M€ 0.0 30.0 34.8 0.0 17.5 0 1 2 2 2 20 - 25 M€ 0.0 0.0 0.0 0.0 0.0 1 1 2 1 1 25 - 50 M€ 0.0 30.0 114.8 37.5 0.0 0 0 0 1 2 50 - 75 M€ 0.0 0.0 0.0 0.0 0.0 0 0 0 0 0 75 - 100 M€ 0.0 0.0 89.1 0.0 0.0 0 1 1 0 0 More than 100M€ 0.0 0.0 0.0 106.2 109.0 0 0 1 1 1 TOTAL 194.5 292.2 548.3 433.9 537.7 255 234 318 392 449 INDUSTRY Life Sciences 34.8 31.2 49.3 62.3 66.9 55 48 51 56 60 Digital & Consumer 40.4 89.9 324.2 245.4 307.6 110 106 129 142 148 Industry and others 59.3 31.4 65.4 63.5 91.8 72 56 75 113 127 TIC 60.0 139.7 109.4 62.7 71.4 69 61 88 79 114 TOTAL 194.5 292.2 548.3 433.9 537.7 306 271 343 390 449 REGIONS Andalucía 7.9 4.2 7.2 4.6 4.2 22 14 16 8 7 Aragón 0.3 0.5 0.1 0.6 2.2 2 2 2 2 5 Asturias 3.3 2.9 1.6 2.1 7.2 14 12 9 12 28 Baleares 0.1 2.3 10.3 23.2 11.7 3 1 4 4 6 Canarias 0.0 0.0 0.1 0.0 0.0 0 1 2 1 0 Cantabria 0.4 0.0 0.0 0.0 0.0 1 0 0 0 0 Castilla-La Mancha 1.8 3.0 4.8 3.0 1.8 4 6 21 4 3 Castilla-León 12.0 4.8 2.7 12.0 25.9 15 9 7 18 16 Cataluña 64.9 172.4 342.4 144.3 201.8 75 75 88 105 115 Cdad. de Madrid 53.6 64.8 129.6 195.6 236.0 42 47 63 64 77 Cdad. Valenciana 15.2 10.1 20.1 4.7 3.6 22 19 16 32 23

*Number investments. 37

AMOUNT (M€) NUMBER OF START UPS REGIONS 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Extremadura 2.0 4.1 8.0 1.7 3.9 15 8 9 2 3 Galicia 11.7 2.7 4.8 10.8 17.7 9 12 26 46 55 La Rioja 0.3 0.0 0.3 0.1 0.3 1 0 1 1 4 Murcia 2.0 2.3 0.4 3.9 0.6 4 3 3 6 7 Navarra 13.5 8.9 6.0 14.7 13.8 12 11 15 36 37 País Vasco 5.5 9.0 10.1 12.7 7.1 14 14 36 51 63 Ceuta/Melilla 0.0 0.0 0.0 0.0 0.0 0 0 0 0 0 TOTAL 194.5 292.2 548.3 433.9 537.7 255 234 318 392 449

DIVESTMENT

AMOUNT (M€) NUMBER OF DIVESTMENTS EXIT WAY 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Owner/manager buy-back 36.3 40.1 41.8 27.2 24.5 40 46 38 36 18 Sale to PE & VCs 2.2 3.6 11.5 97.2 0.0 4 6 6 4 Trade sale 26.6 62.9 15.7 204.8 59.9 32 24 17 39 20 Stock Market 2.7 0.0 0.2 1.4 0.2 1 0 3 4 3 Write-offs 78.5 71.4 30.7 23.5 28.4 97 60 70 36 15 Repayment of loans 10.2 8.0 8.6 8.2 8.8 40 120 133 87 67 Others 5.7 8.0 6.3 1.5 4.4 11 12 14 22 8 TOTAL 162.2 194.0 114.7 363.8 126.2 225 268 281 228 131 STAGE OF DEVELOPMENT Seed 17.5 31.9 11.3 9.9 38.2 79 118 117 86 52 Start-up 109.0 130.2 62.9 116.6 18.7 124 114 113 88 40 Other early stage 33.2 8.1 19.5 25.7 8.9 16 19 36 40 17 Later stage venture 2.6 23.8 21.0 211.7 60.9 6 17 15 14 23 TOTAL 162.2 194.0 114.7 363.8 126.2 225 268 281 228 131

FUNDRAISING

AMOUNT (THOUSANDS) TYPE OF LP 2013 2014 2015 2016 2017 Financial institutions 82,846 65,333 37,917 109,965 6,000 Pension funds 9,614 32,798 23,610 15,007 9,892.47 Insurance Companies 2,114 1,000 6,003 16,700 6,383 Fund of funds 24,700 2,519 26,137 98,440 15,575 Corporate investors 43,254 87,484 40,224 30,532 22,955 Family office 19,170 41,799 75,439 179,271 84,167 Government agencies 20,381 112,013 82,026 98,271 109,139 Academic institutions - - 988 - - Stock Market - 2,228 - - - Others 1,000 7,176 14,141 20,800 29,583 Capital gains available for re-investment 750 6,412 - - - TOTAL 203,829 358,761 306,484 568,987 283,694 38 2017 Main transactions 39 2017 Main transactions

2017 LARGE TRANSACTIONS IN SPAIN WITH EQUITY INVESTMENT > €100M

PRIVATE EQUITY & VENTURE TARGET CAPITAL FIRM INDUSTRY TYPE OF DEAL TYPE OF FIRM Compañía Logística de CVC Capital Partners Energy - International Hidrocarburos (CLH) Allfunds Bank Hellman & Friedman Financial Services Buyout International Consumer Products & Iberchem Eurazeo Buyout International Services Consumer Products & Pronovias BC Partners Buyout International Services NACE Providence Education Buyout International

Esmalglass Lone Star Materials Buyout International

Grupo Pacha Trilantic Partners Leisure Buyout International PAI Management / CVC Consumer Products & Cortefiel Buyout International Capital Partners Services

Cabify Rakuten Transport Late Stage Venture International

Vitalia Home CVC Capital Partners Elderly Care Homes - International

Consumer Products & Accelya Warburg Pincus Services Buyout International

Source: ASCRI/webcapitalriesgo Note: Infrastructure, real estate and financial sector not included 40 2017 Main transactions

MIDDLE MARKET DEALS CLOSED AND PUBLISHED IN 2017

TARGET PRIVATE EQITY & VENTURE CAPITAL FIRM TYPE OF DEAL INDUSTRY TYPE OF FIRM Emeru Investindustrial Buyout Commercial and industrial services International Vertex Bioenergy Trilantic Capital Partners Buyout Energy International Farggi-Menorquina Black Toro Capital Partners Turnaround Food industry Domestic Contenur Acon Investments / Oquendo Capital Buyout Waste processing International Merkal OpCapita Buyout Consumer products International Nice Cold Corp Moira Capital Partners Growth Food industry Domestic Resorts Blue Sea Portobello Capital Gestión Buyout Hostelry Domestic Vivanta Portobello Capital Gestión Buyout Dental care Domestic Moyca ProA Capital Buyout Food industry Domestic Marypaz Black Toro Capital Partners Growth Consumer products Domestic Charme Capital Partners / Miura Private Valtecnic e Ibertasa Buyout Real state appraisal International Equity Alvinesa Arta Capital Growth Consumer products Domestic Pronokal Group Abac Capital Buyout Health Domestic Extrusiones de Toledo MCH Growth Manufactures Domestic Satlink Arta Capital Growth Communications Domestic Plating Brap Abac Capital Buyout Plastics Domestic Gestión Tributaria GED Iberian Privete Equity / Oquendo Buyout Municipal services Domestic Territorial Capital Grupo Pachá MCH / GPF Capital Buyout Leisure Domestic Centauro Portobello Capital Gestión Buyout Rental car Domestic Lateral Bluegem Capital Partners Buyout Branded restaurant chain Domestic Kids & Us Coprfin Capital / Oquendo Capital Growth Education Domestic Pumping Team MCH Growth Industrial products and services Domestic Grupo 5 Corpfin Capital Growth Health Domestic Mr. Wonderful Realza Capital / Oquendo Capital Buyout Gift items and stationery Domestic GED Iberian Private Equity / Oquendo Araven Buyout Materials Domestic Capital Flex Equipos de Descanso Aurica Capital Desarrollo Growth Other consumer goods Domestic McBath Nazca Capital Buyout Construction materials Domestic Tubing Food Espiga Equity Partners Buyout Industrial products Domestic Hedonai 3 Sherpa Capital Turnaround Health services Domestic Suaval Oquendo Capital Growth Thermal isolation Domestic Andilana Meridia Capital Growth Hostelry Domestic Devo (Logtrust) Insight Venture Capital Growth Big data International Tiko Real Estate Other early Rocket Internet Real state appraisal International Technologies stages Delta Tecnic Aurica Capital Desarrollo Growth Chemistry & materials Domestic Envases Soplados GED Iberian Privete Equity Growth Industrial products Domestic Grupo La Flauta GPF Capital Buyout Restaurants Domestic Domestic / Cabify GAT Inversiones / Endeveavor Capital Late stage Transport International Vicarli GPF Capital Buyout Logistic Domestic Grupo de Dermatología Moira Capital Partners Growth Health services Domestic Pedro Jaén

Source: ASCRI/webcapitalriesgo 41

SOME OF THE MAIN VENTURE CAPITAL1 INVESTMENTSN CLOSED IN 2017

TARGET VENTURE CAPITAL FIRM TYPE OF DEAL INDUSTRY TYPE OF FIRM Rakuten, GAT Inversores, International / Cabify Later stage VC Internet Endeavor, Liil Ventures Domestic Connect Ventures, GEN Typeform Atlantic, Index Ventures, Later stage VC Internet International Pointnine Capital, Rakuten, Cathay Capital, Seaya Ventures, Entrée Capital, Bonsai International / Glovo App Later stage VC Internet Venture Capital, Caixa Capital Domestic Risc Insight Venture Partners, Kibo International / Logtrust Ventures, Investing Profit Other early stages Software Domestic Wisely E.Ventures, Greycroft, Spark Verse Other early stages Internet International Capital Tiko Real Estate Rocket Internet Other early stages Proptech International Technologies Seroba Life Sciences, Ysios Capital Partners, Edmon de International / Medlumics Other early stages Biotech Rothchild, Innogest Capital, Domestic Caixa Capital Risc Idinvest Partners, Ysios Capital Partners, Caixa Capital Risc, International / Minoryx Therapeutics Other early stages Health Chiesi Ventures, Roche Venture Domestic Fund McRock Capital, ETF Partners y Worldsensing Other early stages Internet of things International Cisco Investments North Zone, Innogest Capital, E. Ventures, Randstad Innovation Fund, Sabadell Venture Capital, International / Cornerjob Later stage VC Internet Caixa Capital Risc, Bonsai Domestic Venture Capital, Samaipata Capital Partners. Red de Calor de Aranda Suma Capital Start-up Energy Domestic Atomico, Pointnine Capital, International / Ninjatruck Samaipata Capital Partners, Other early stages Internet Domestic Idinvest Partners JME Venture Capital, Kibo Ventures, Samaipata Capital International / 21 Buttons APP Partners, 360 Capital, Breega Other early stages Internet Domestic Capital, Sabadell Venture Capital, Venturcap Adams Street Partner, Balderton Capital, Sap International / Scytil Late stage VC ICT Ventures, Vulcan Capital, Riva Domestic y Garcia Nauta Capital VC, Axa Strategic International / Tritium Software Other early stages ICT Ventures, Sabadell VC Domestic

1 Investments closed in Spain by national and international Venture Capital firms. Source: ASCRI/webcapitalriesgo Note: Deals listed by the amount invested by the Venture Capital firm (minority investors might not appear in this list). 42 Statistical appendix 43 Statistical appendix

NEW FUNDS RAISED

AMOUNT (M€) TYPE OF ENTITY (GP) 2015 2016 2017 Domestic private entity 1,529.0 2,271.1 1,865.2 Domestic public entity 152.9 167.1 172.9 TOTAL 1,681.9 2,438.3 2,038.2 TYPE OF LPs Domestic private entity Financial institutions 156.6 211.6 168.9 Pension funds 168.5 97.8 372.5 Insurance Companies 216.7 174.9 114.2 Fund of funds 296.2 491.7 462.1 Corporate investors 123.8 81.4 61.7 Family office 235.1 459.9 260.0 Government agencies 147.2 348.6 285.4 Academic institutions 82.4 13.6 1.0 Other asset managers - 150.0 60.1 Others 102.5 241.7 79.3 TOTAL 1,529.0 2,271.1 1,865.1 GEOGRAPHIC BREAKDOWN OF TYPE OF LP IN 2017 Domestic LPs Intenational LPs LPs Domestic private entity Financial institutions 66.8 102 168.9 Pension funds 53.8 318.6 372.5 Insurance Companies 67.3 46.8 114.2 Fund of funds 53.3 408.6 462.1 Corporate investors 33.1 28.5 61.7 Family office 181.6 78.3 260.0 Government agencies 183.4 101.9 285.4 Academic institutions 0 1 1.0 Other asset managers 40 20.1 60.1 Others 61.3 18 79.3 TOTAL 741.0 1,124.2 1,865.2 44 Statistical appendix

NEW FUNDS RAISED

AMOUNT (M€) LOCATION LP 2015 2016 2017 Domestic private entity Spain 543.8 1,404.8 806.1 Other European countries 634.8 581.1 814.2 United States 168.0 121.4 80.3 Asia 76.9 5.4 5.0 Canada 0.0 0.0 35.0 Others 105.5 158.6 124.7 TOTAL 1,529.0 2,271.1 1,865.2

DRY POWDER AMOUNT (M€) Domestic private entity 2,896.1 4,085.2 4,096.3 Domestic public entity 278.3 68.6 115.2 TOTAL 3,174.3 4,153.8 4,211.5

FUNDS UNDER MANAGEMENT1

AMOUNT (M€) TYPE OF ENTITY (GP) 2015 2016 2017 Domestic private entity 8,660.5 10,355.4 10,797.6 Domestic public entity 2,168.4 2,015.8 2,205.7 International entity 9,811.0 11,004.3 12,393.4 TOTAL 20,639.9 23,375.4 25,396.7

NUMBER OF ENTITIES BY TYPE OF ENTITY 2015 2016 2017 International entity 132 157 182 Domestic private entity 110 121 141 Domestic public entity 17 17 19 TOTAL 259 295 342 International Entity National Entity All Entities BY SIZE OF FUNDS UNDER MANAGMENT 2016 2017 2016 2017 2016 2017 Large entities (>150 m.) 130 155 25 29 155 184 Medium entities (between 50 and 150 m.) 23 21 37 33 60 54 Small institutions (<50 m) 4 6 76 98 80 104 TOTAL 157 182 138 160 295 342

1 Due methodological reasons. managed funds are now being obtained from adding the portfolio value at cost and dry powder 45

INVESTMENT1

AMOUNT (M€) BY TYPE OF ENTITY (GP) 2015 2016 2017 International VC2 401.3 256.0 308.1 Domestic Private VC 119.9 150.3 185.2 Domestic Public VC 27.0 27.5 44.4 TOTAL 548.3 433.9 537.7 International PE3 998.6 2,494.9 3,282.7 Domestic Private PE 749.9 843.6 1,081.0 Domestic Public PE 80.5 36.6 56.5 TOTAL 1,829.1 3,375.2 4,420.2 International Entity (VC+PE) 1,400.0 2,751.0 3,590.8 Domestic Private Entity (VC+PE) 869.9 994.0 1,266.2 Domestic Public Entity (VC + PE) 107.6 64.2 100.9 TOTAL 2,377.4 3,809.1 4,957.9 NEW - FOLLOW ONS New Investments 1,925.1 3,490.3 4,128.2 Follow ons investments 452.3 318.8 829.7 TOTAL 2,377.4 3,809.1 4,957.9 STAGE OF DEVELOPMENT Seed 18.5 14.7 21.7 Startup 167.6 76.6 101.9 Other early stages 134.1 151.0 163.7 Late stage venture 228.0 191.5 250.3 Growth 222.0 734.5 590.3 Replacement 405.8 129.2 765.3 LBO/MBO/MBI/LBU 1,155.0 2,387.3 2,984.2 Others 46.3 124.2 80.5 TOTAL 2,377.4 3,809.1 4,957.9 INDUSTRY Computer related 671.5 310.6 380.0 Other Electronic related 9.5 1.5 1.9 Industrial Products & Services 212.1 346.4 257.0 Consumer-related Products 437.3 426.7 866.3 Agriculture 63.2 49.1 4.7 Energy 37.0 290.4 175.4 Chemistry & Materials 19.5 137.1 236.7 Construction 51.2 177.0 44.5 Health related 437.3 446.3 301.3 Leisure 37.4 58.6 91.1 Communications 27.4 358.8 72.9 Biotechnology 23.7 100.2 42.9 Industrial Automation 3.2 0.0 0.0 Financial Services 31.4 215.3 658.4 Other Services 293.6 819.5 798.0 Others - 0.1 32.0 Transportation 6.8 50.6 679.8 Other Manufacturing 15.3 20.9 314.9 TOTAL 2,377.4 3,809.1 4,957.9

1 The investment figures contained in this report refer to investments made by domestic (public and private) and international GPs in Spanish companies. thus excluding investments by Spanish GPs abroad. which totaled €364M across 124 investments in 2017 2 Venture Capital 3 Private Equity 46

INVESTMENT

AMOUNT (M€) REGION 2015 2016 2017 Andalucía 47.1 53.0 58.7 Aragón 39.1 1.1 155.3 Asturias 2.5 41.9 36.1 Baleares 10.3 740.1 455.5 Canarias 0.1 0.0 3.8 Cantabria 0.0 0.0 0.0 Castilla-La Mancha 5.2 232.5 54.8 Castilla y León 10.7 42.2 45.7 Cataluña 796.4 742.9 1,040.5 Cdad. de Madrid 996.3 1,095.6 2,457.1 Cdad. Valenciana 141.2 242.2 232.7 Extremadura 21.1 30.7 3.9 Galicia 52.6 267.1 43.0 La Rioja 75.9 145.9 16.9 Murcia 0.6 43.4 308.3 Navarra 67.5 43.8 31.7 País Vasco 110.8 86.8 14.0 Ceuta/Melilla 0.0 0.0 0.0 TOTAL 2,377.4 3,809.1 4,957.9 SIZE OF INVESTMENT 0 - 0.25 M€ 22.9 23.5 26.3 0.25 - 0.5 M€ 19.8 30.4 22.2 0.5 - 1 M€ 47.9 47.1 59.2 1 - 2.5 M€ 114.3 117.6 144.4 2.5 - 5 M€ 78.8 98.6 156.2 5 -10 M€ 134.4 131.9 231.8 10 - 15 M€ 203.1 168.0 150.0 15 - 20 M€ 139.8 149.8 177.2 20 - 25 M€ 107.7 126.1 266.6 25 - 50 M€ 404.7 601.0 559.9 50 - 75 M€ 221.8 164.2 67.4 75 - 100 M€ 248.7 0.0 177.4 More than 100 M€ 633.5 2,150.9 2,919.3 TOTAL 2,377.4 3,809.1 4,957.9 Between 10 and 100 M€ 1,325.8 1,209.1 1,398.5

COMPANY SIZE Private Equity Venture Capital All 0 to 9 € employees 153 100.9 253 10 to 19 employees 25 101.7 127 20 to 99 employees 317 130.9 448 100 to 199 employees 418 190.3 608 200 to 499 employees 902 13.8 916 500 to 999 employees 688 0.0 688 1,000 to 4,999 employees 1,615 0.0 1,615 More than 5,000 employees 303 0.0 303 TOTAL 4,420 537.7 4,957.9 47

INVESTMENT

Nº INVESTMENTS BY TYPE OF ENTITY (GP) 2015 2016 2017 International VC 73 43 63 Domestic Private VC 293 338 345 Domestic Public VC 107 108 152 TOTAL 473 489 560 International PE 24 39 31 Domestic Private PE 55 69 107 Domestic Public PE 25 20 17 TOTAL 104 128 155 International Entity (VC+PE) 97 82 94 Domestic Private Entity (VC+PE) 348 407 452 Domestic Public Entity (VC + PE) 132 128 169 TOTAL 577 617 715 NEW - FOLLOW ONS New Investments 350 387 463 Follow ons investments 227 230 252 TOTAL 577 617 715 STAGE OF DEVELOPMENT Seed 83 87 123 Startup 149 176 202 Other early stages 114 165 151 Late stage venture 127 61 84 Growth 46 74 92 Replacement 10 6 10 LBO/MBO/MBI/LBU 38 37 46 Others 10 11 7 TOTAL 577 617 715 SECTOR Computer related 275 256 286 Other Electronic related 6 5 6 Industrial Products & Services 36 50 53 Consumer-related Products 40 60 75 Agriculture 19 22 18 Energy 9 29 38 Chemistry & Materials 8 16 20 Construction 3 6 11 Health related 47 57 56 Leisure 13 7 10 Communications 11 17 20 Biotechnology 48 44 45 Industrial Automation 9 Financial Services 11 4 10 Other Services 28 28 43 Others 1 3 Transportation 1 7 10 Other Manufacturing 13 8 11 TOTAL 577 617 715 48

INVESTMENT

Nº INVESTMENTS REGION 2015 2016 2017 Andalucía 25 11 15 Aragón 4 4 11 Asturias 12 18 33 Baleares 11 16 17 Canarias 2 1 1 Cantabria 0 0 0 Castilla-La Mancha 24 5 5 Castilla y León 12 24 23 Cataluña 174 192 213 Cdad. de Madrid 133 116 148 Cdad. Valenciana 33 46 32 Extremadura 14 9 3 Galicia 50 55 85 La Rioja 3 6 9 Murcia 4 10 11 Navarra 23 46 41 País Vasco 53 58 68 Ceuta/Melilla 0 0 0 TOTAL 577 617 715 SIZE OF INVESTMENT 0 - 0.25 M€ 272 272 313 0.25 - 0.5 M€ 61 88 67 0.5 - 1 M€ 73 74 92 1 - 2.5 M€ 75 75 94 2.5 - 5 M€ 23 30 46 5 -10 M€ 19 18 34 10 - 15 M€ 17 15 13 15 - 20 M€ 8 9 10 20 - 25 M€ 5 6 12 25 - 50 M€ 13 18 18 50 - 75 M€ 4 3 1 75 - 100 M€ 3 0 2 More than 100 M€ 4 9 13 TOTAL 577 617 715 Between 10 and 100 M€ 50 51 56

COMPANY SIZE Private Equity Venture Capital All 0 to 9 employees 35 303 338 10 to 19 employees 11 107 118 20 to 99 employees 33 123 156 100 to 199 employees 25 19 44 200 to 499 employees 17 8 25 500 to 999 employees 14 0 14 1,000 to 4,999 employees 17 0 17 More than 5,000 employees 3 0 3 TOTAL 155 560 715 49

DIVESTMENT

AMOUNT (M€) BY TYPE OF ENTITY (GP) 2015 2016 2017 International Entity (VC+PE) 2,095.0 1,647.1 2,650.3 Domestic Private Entity (VC+PE) 1,700.7 650.1 798.3 Domestic Public Entity (VC + PE) 55 40 35 TOTAL 3,850.3 2,337.2 3,483.9 CONCEPTS Final Divestments 3,264.9 2,051.7 2,836.5 Partial Divestments 585.4 285.5 647.4 TOTAL 3,850.3 2,337.2 3,483.9 STAGE OF DEVELOPMENT Seed 11.3 9.9 38.2 Start-up 62.9 116.6 18.7 Other early stage 19.5 25.7 8.9 Later stage venture 21.0 211.7 60.9 Growth 609.8 336.3 570.9 Replacement 291.1 90.2 7.5 LBO/MBO/MBI/LBU 2,548.5 1,511.20 2,752.90 Others 286.2 35.6 26 TOTAL 3,850.3 2,337.2 3,483.9 EXIT WAY Owner/manager buy-back 183.3 282.5 170.7 Sale to PE & VCs 314.7 293.2 594.4 Trade sale 1,631.7 1,183.7 1,522.8 Stock Market 1,255.8 244.1 426.8 Write-offs 392.2 91.7 186.5 Repayment of loans 41.6 95.0 304.2 Others 30.9 146.9 278.4 TOTAL 3,850.3 2,337.2 3,483.9 INDUSTRY Computer related 124.7 253.1 255.5 Other Electronic related 8.9 1.0 1.1 Industrial Products & Services 103.9 254.5 260.0 Consumer-related Products 481.4 216.1 439.6 Agriculture 7.3 21.2 5.2 Energy 701.3 375.6 389.5 Chemistry & Materials 21.3 4.3 4.9 Construction 41.7 66.6 38.2 Health related 118.2 53.3 896.5 Leisure 274.9 171.8 208.5 Communications 763.0 79.1 321.8 Biotechnology 11.7 18.5 10.9 Industrial Automation 0.4 0.0 0.0 Financial Services 10.0 560.3 64.4 Other Services 1,137.3 194.4 561.3 Others 3.4 16.4 24.2 Transportation 36.9 46.9 0.0 Other Manufacturing 3.9 4.0 2.3 TOTAL 3,850.3 2,337.2 3,483.9 50

DIVESTMENT

Nº DIVESTMENTS BY TYPE OF ENTITY (GP) 2015 2016 2017 International Entity (VC+PE) 19 41 37 Domestic Private Entity (VC+PE) 224 181 144 Domestic Public Entity (VC + PE) 220 137 62 TOTAL 463 359 243 CONCEPTS Final Divestments 257 216 157 Partial Divestments 206 143 86 TOTAL 463 359 243 STAGE OF DEVELOPMENT Seed 117 86 52 Start-up 113 88 41 Other early stage 36 40 17 Later stage venture 15 14 21 Growth 111 82 63 Replacement 11 12 2 LBO/MBO/MBI/LBU 38 31 43 Others 22 6 3 TOTAL 463 359 243 EXIT WAY Owner/manager buy-back 74 72 43 Sale to PE & VCs 20 11 14 Trade sale 73 72 50 Stock Market 13 9 6 Write-offs 81 45 24 Repayment of loans 179 120 91 Others 23 30 15 TOTAL 463 359 243 INDUSTRY Computer related 90 88 69 Other Electronic related 13 8 4 Industrial Products & Services 52 43 41 Consumer-related Products 35 31 15 Agriculture 14 8 7 Energy 55 16 11 Chemistry & Materials 19 16 8 Construction 5 10 7 Health related 21 32 21 Leisure 16 12 5 Communications 18 15 11 Biotechnology 47 33 14 Industrial Automation 8 - - Financial Services 2 3 2 Other Services 46 33 21 Others 8 4 2 Transportation 6 4 - Other Manufacturing 8 3 5 TOTAL 463 359 243 51

PORTFOLIO

AMOUNT (M€) BY TYPE OF ENTITY (GP) 2015 2016 2017 International Entity (VC+PE) 9,811.0 11,004.3 12,193.4 Domestic Private Entity (VC+PE) 4,884.8 5,387.5 5,815.5 Domestic Public Entity (VC + PE) 803.5 841.0 904.2 TOTAL 15,499.3 17,232.8 18,913.2 INDUSTRY Computer related 1,684.7 1,778.3 1,917.6 Other Electronic related 192.5 197.7 198.4 Industrial Products & Services 2,168.4 2,540.6 2,472.0 Consumer-related Products 2,424.5 2,697.1 3,293.0 Agriculture 132.1 162.3 161.9 Energy 1,022.1 893.6 927.3 Chemistry & Materials 526.9 656.2 816.3 Construction 453.7 569.4 584.8 Health related 1,339.9 1,795.4 1,231.6 Leisure 1,327.8 1,152.5 822.3 Communications 1,053.9 1,285.2 1,073.7 Biotechnology 162.2 247.3 273.1 Industrial Automation 8.5 7.7 7.6 Financial Services 441.2 268.5 926.9 Other Services 2,220.5 2,607.6 2,874.8 Others 31.2 28.6 60.5 Transportation 237.4 255.8 868.7 Other Manufacturing 72.0 88.8 402.8 TOTAL 15,499.3 17,232.6 18,913.2 REGION Andalucía 505.2 561.1 592.8 Aragón 164.2 138.9 238.3 Asturias 182.6 216.6 237.4 Baleares 22.6 780.1 1,216.0 Canarias 4.0 3.4 7.2 Cantabria 57.2 56.0 56.0 Castilla-La Mancha 82.3 310.9 363.3 Castilla y León 237.6 252.6 216.4 Cataluña 3,633.5 3,881.5 4,628.6 Cdad. de Madrid 7,242.3 6,897.3 7,284.2 Cdad. Valenciana 804.8 1,000.4 957.5 Extremadura 397.4 450.5 452.6 Galicia 422.3 673.5 628.7 La Rioja 87.8 233.7 250.5 Murcia 83.3 126.9 371.3 Navarra 313.2 338.1 367.5 País Vasco 1,259.1 1,311.4 1,044.9 Ceuta/Melilla 0.0 0.0 0.0 TOTAL 15,499.3 17,232.8 18,913.2 52

CARTERA

Nº INVESTMENTS BY TYPE OF ENTITY (GP) 2015 2016 2017 International Entity (VC+PE) 230 240 266 Domestic Private Entity (VC+PE) 1,175 1,275 1,463 Domestic Public Entity (VC + PE) 765 813 915 TOTAL 2,170 2,328 2,644 INDUSTRY Computer related 707 793 910 Other Electronic related 28 26 28 Industrial Products & Services 256 270 288 Consumer-related Products 188 209 257 Agriculture 46 56 63 Energy 99 110 138 Chemistry & Materials 51 60 66 Construction 39 40 44 Health related 134 147 172 Leisure 79 69 69 Communications 86 86 97 Biotechnology 176 176 183 Industrial Automation 20 20 20 Financial Services 23 23 32 Other Services 160 157 176 Others 18 16 19 Transportation 26 31 34 Other Manufacturing 34 39 48 TOTAL 2,170 2,328 2,644 REGION Andalucía 199 186 187 Aragón 38 38 39 Asturias 91 100 114 Baleares 18 25 33 Canarias 9 7 8 Cantabria 11 9 9 Castilla-La Mancha 73 70 72 Castilla y León 71 72 84 Cataluña 535 589 659 Cdad. de Madrid 375 380 425 Cdad. Valenciana 112 130 149 Extremadura 122 115 115 Galicia 200 231 286 La Rioja 9 15 22 Murcia 18 25 28 Navarra 80 92 116 País Vasco 209 244 298 Ceuta/Melilla 0 0 0 TOTAL 2,170 2,328 2,644 53

TYPE OF INVESTMENT BY REGION IN 2017 Type of investment by region (amount M€) Other Late LBO / Seed Start-up eraly Stage Expansion Replacement MBO / Others Total stages Venture MBI / LBU Madrid 5.1 20.9 57.6 152.5 247.4 672.9 1,281.4 19.3 2,457.1 Cataluña 11.3 27.1 77.0 86.4 161.0 55.9 571.9 50.0 1,040.5 Andalucía 0.0 0.3 3.9 0.0 44.1 10.4 0.0 0.0 58.7 País Vasco 0.6 3.1 2.6 0.8 6.9 0.0 0.0 0.0 14.0 Galicia 1.9 14.2 1.6 0.0 18.2 0.0 7.1 0.0 43.0 Castilla y León 0.2 19.7 2.9 3.0 8.4 0.0 7.0 4.5 45.7 Castilla-La Mancha 0.0 0.1 1.7 0.0 27.0 26.0 0.0 0.0 54.8 Aragón 0.0 1.2 0.7 0.3 5.3 0.0 147.8 0.0 155.3 Extremadura 0.0 3.9 0.0 0.0 0.0 0.0 0.0 0.0 3.9 Canarias 0.0 0.0 0.0 0.0 3.8 0.0 0.0 0.0 3.8 Navarra 1.0 2.1 6.5 4.1 4.0 0.0 13.9 0.0 31.7 Asturias 0.5 3.7 1.6 1.3 22.5 0.0 5.0 1.5 36.1 Comunidad Valenciana 1.0 0.7 0.7 1.1 6.4 0.1 220.5 2.0 232.7 Baleares 0.0 4.5 6.6 0.7 22.0 0.0 421.7 0.0 455.5 Murcia 0.0 0.1 0.5 0.0 0.1 0.0 307.7 0.0 308.3 Cantabria 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 La Rioja 0.0 0.2 0.0 0.0 13.5 0.0 0.0 3.2 16.9 Ceuta/Melilla 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ALL 21.7 101.9 163.7 250.3 590.3 765.3 2,984.2 80.5 4,957.9

INVESTMENT BY REGION IN 2017 Type of investment by region (number of investments) Other Late LBO / Seed Start-up eraly Stage Expansion Replacement MBO / Others Total stages Venture MBI / LBU Madrid 13 37 35 14 31 3 14 1 148 Cataluña 26 50 60 48 14 3 10 2 213 Andalucía 1 2 4 1 5 2 0 0 15 País Vasco 16 34 11 3 4 0 0 0 68 Galicia 25 33 9 0 17 0 1 0 85 Castilla y León 2 7 6 1 5 0 1 1 23 Castilla-La Mancha 0 1 2 0 1 1 0 0 5 Aragón 0 2 3 1 2 0 3 0 11 Extremadura 0 2 1 0 0 0 0 0 3 Canarias 0 0 0 0 1 0 0 0 1 Navarra 18 10 5 5 1 0 2 0 41 Asturias 8 11 5 4 3 0 1 1 33 Comunidad Valenciana 12 5 2 5 2 1 4 1 32 Baleares 0 5 3 1 1 0 7 0 17 Murcia 1 1 5 0 1 0 3 0 11 Cantabria 0 0 0 0 0 0 0 0 0 La Rioja 1 2 0 1 4 0 0 1 9 Ceuta/Melilla 0 0 0 0 0 0 0 0 0 ALL 123 202 151 84 92 10 46 7 715 54 General Partners included in this survey

CONSIDERED INVESTORS 29. Santander Innoventures I. DOMESTIC PRIVATE VENTURE CAPITAL & PRIVATE 30. SeedRocket 4Founders Capital S.A. SCR-Pyme EQUITY ENTITIES (S.C.R.) 31. Soria Futuro, S.A. 1. Activos y Gestión Empresarial, SCR, S.A. 32. Telefónica Open Future 2. Amadeus Ventures 33. Torreal, SCR, S.A. 3. Angels Capital S.L. 34. Unirisco Galicia SCR, S.A. 4. Bonsai Venture Capital 35. Univen Capital, S.A., SCR de Régimen Común 5. BStartup 36. Up Capital 6. Caja Burgos, Fundación Bancaria 37. Vigo Activo, SCR de Régimen Simplificado, S.A. 7. Collins Capital Desarrollo SCR-PYME, S.A. 38. VitaminaK Venture Capital SCR de régimen común, 8. Compas Private Equity S.A. 9. Corporación Empresarial de Extremadura, S.A. 10. Fides Capital, SCR, S.A. II. DOMESTIC PUBLIC VENTURE CAPITAL & PRIVATE 11. FIT Inversión en Talento SCR de Régimen EQUITY ENTITIES (S.C.R.) Simplificado S.L. 1. INVERTEC (Societat Catalana d'Inversió en Empreses de Base Tecnològica, S.A.) 12. Gat Technology Tecnología, Telecomunicaciones y Movilidad 2. Sadim Inversiones 13. Grupo Intercom de Capital, SCR, S.A. 3. SEPI Desarrollo Empresarial, S.A. (SEPIDES) 14. Grupo Perseo (Iberdrola) 4. Sociedad de Desarrollo de las Comarcas Mineras, S.A. (SODECO) 15. Healthequity SCR, de Régimen Simplificado S.A. 5. Sociedad de Desarrollo Económico de Canarias, S.A. 16. Indes Capital (SODECAN) 17. Integra Capital SCR, S.A. 6. Sociedad de Desarrollo de Navarra, S.A. (SODENA) 18. Investing Profit Wisely 7. Sociedad para el Desarrollo Industrial de Aragón, 19. Landon Investment S.A. (SODIAR) 20. Moira Capital Partners, SGEIC, S.A. 8. Sociedad para el Desarrollo Industrial de Castilla-La 21. Murcia Emprende Sociedad de Capital Riesgo, S.A. Mancha, S.A. (SODICAMAN) 22. Najeti Capital, SCR, S.A. 9. Sociedad para el Desarrollo Industrial de Extremadura, S.A. (SODIEX) 23. Navarra Iniciativas Empresariales, S.A. (Genera) 10. Sociedad Regional de Promoción del Pdo. de 24. Nero Ventures Asturias, S.A. (SRP) 25. Onza Venture Capital Investments Régimen Simplificado S.A. III. DOMESTIC PRIVATE VENTURE CAPITAL & PRIVATE 26. Repsol Energy Ventures EQUITY ENTITIES (S.G.E.C.R.) 27. Ricari, Desarrollo de Inversiones Riojanas S.A. 1. Abac Capital 28. Sinensis Seed Capital SCR, S.A. 2. Active Venture Partners, SGEIC, S.A. 55 General Partners included in this survey

3. Adara Venture Partners 36. Going Investment Gestión SGEIC 4. Addquity Growth Capital, S.A. 37. GPF Capital 5. Ade Gestión Sodical SGEIC, S.A. 38. Hiperion Capital Management, SGEIC, S.A. 6. Alma Mundi Ventures, SGEIC, S.A. 39. Institut Català de Finances Capital SGEIC 7. Alta Life Sciences 40. Inveready 8. Alter Capital Desarrollo SGEIC, S.A. 41. JB Capital Markets, S.V., S.A. 9. Ambar Capital y Expansión SGEIC S.A. 42. JME Venture Capital, SGEIC, S.A. (antes Fundación Entrecanales) 10. Artá Capital SGEIC, S.A. 43. Kanoar Ventures, SGEIC, S.A. 11. Athos Capital, SGEIC, S.A. 44. Kibo Ventures 12. Atlas Capital Private Equity SGEIC, S.A. 45. Magnum Industrial Partners 13. Aurica Capital Desarrollo, SGEIC, S.A.U. 46. MCH Private Equity, S.A. 14. Axón Capital e Inversiones SGEIC, S.A. 47. Meridia Capital Partners, SGEIC, S.A. 15. Bankinter Capital Riesgo, SGEIC (Intergestora) 48. Miura Private Equity 16. Baring Private Equity Partners España, S.A. 49. Nauta Tech Invest 17. Beable Capital SGEIC, S.A. 50. Nazca Capital, S.G.E.C.R, S.A. 18. Black Toro Capital LLP 51. Nekko Capital, S.G.E.I.C. S.A. 19. Bullnet Gestión, SGEIC, S.A. 52. Neotec Capital Riesgo 20. Caixa Capital Risc SGEIC, S.A. 53. Next Capital Partners, SGEIC, S.A. 21. Cantabria Capital SGEIC, S.A. 54. Nmás1 Capital Privado, SGEIC, S.A. 22. Clave Mayor SGEIC, S.A. 55. Ona Capital 23. Corpfin Capital Asesores, S.A., SGEIC 56. Oquendo Capital 24. CRB Inverbío SGEIC 57. PHI Industrial Acquisitions 25. CVP Asset Management, SGEIC, S.A. 58. Portobello Capital 26. Decenes Mecenes SGEIC, S.A. 59. Proa Capital de Inversiones SGEIC, S.A. 27. Diana Capital, SGEIC, S.A. 60. Qualitas Equity Partners 28. EBN Capital SGEIC, S.A. 61. Realza Capital SGEIC, S.A. 29. Eland Private Equity SGEIC S.A. 62. Renertia Investment Company SGEIC S.A. 30. Endurance Equity Partners, SGEIC, S.A. 63. Riva y García Gestión, S.A. 31. Espiga Capital Gestión SGEIC, S.A. 64. Sabadell Venture Capital 32. Everwood Capital SGEIC, S.A. 65. Samaipata Ventures 33. Finaves 66. Seaya Ventures 34. Gala Capital Desarrollo 67. Santander Private Equity SGEIC 35. GED Iberian Private Equity, SGEIC, S.A. 56

68. SES Iberia Private Equity, S.A. 6. Charme Capital Partners SGR S.p.A. 69. Sherpa Capital Gestión 7. CVC Capital Partners Limited 70. SI Capital R&S I S.A., SCR de Régimen Simplificado 8. Demeter Partners 71. Swanlaab Venture Factory, SGEIC, S.A. 9. EQT Partners 72. Suma Capital Private Equity 10. Ergon Capital 73. Taiga Mistral de Inversiones 11. Harvard Investment Group Capital (HIG) 74. Talde Gestión SGEIC, S.A. 12. Intermediate Capital Group (ICG.) 75. Telegraph Hill Capital 13. Investindustrial Advisors, S.A. 76. Thesan Capital 14. Kohlberg Kravis Roberts (KKR) 77. Torsa Capital, SGEIC, S.A. 15. MBO Partenaires 78. Uninvest Fondo I+D 16. PAI Partners 79. Venturcap 17. Permira Asesores 80. Victoria Venture Capital 18. Quantum Capital Partners AG 81. Ysios Capital Partners 19. Riverside España Partners, S.L. 20. Springwater Capital IV. DOMESTIC PUBLIC VENTURE CAPITAL & PRIVATE 21. The Carlyle Group España, S.L. EQUITY ENTITIES (S.G. E.C.R.) 1. AXIS Participaciones Empresariales, SGEIC, S.A. VI. INTERNATIONAL VENTURE CAPITAL & PRIVATE 2. Cofides EQUITY FIRMS WITHOUT OFFICE IN SPAIN 3. Extremadura Avante Inversiones (antes Sociedad de (RECURRENT ACTIVITY) Fomento Industrial de Extremadura) 1. 3i Europe plc (Sucursal en España) 4. Gestión de Capital Riesgo del País Vasco, SGEIC, S.A. 2. 14W 5. Innova Venture, SGEIC, S.A. (antes Invercaria 3. Accel Partners Gestión) 4. Apax Partners España, S.A. 6. Seed Capital de Bizkaia, SGEIC, S.A. 5. Atomico 7. XesGalicia, SGEIC, S.A. 6. Balderton Capital 7. BC Partners V. INTERNATIONAL VENTURE CAPITAL & PRIVATE 8. Bertelsmann SE & Co EQUITY ENTITIES WITH OFFICE IN SPAIN 9. Breega 1. Ardian 10. Canada Pension Plan Investment Board (CPPIB) 2. Advent International Advisory, S.L. 11. CCMP Capital Advisors 3. Aurelius 12. Cerberus Capital 4. Bridgepoint 13. Digital Sky Technologies 5. Cinven 14. DLJ South American Partners 57

15. Edmon de Rothschild I.P. 48. TA Associates 16. Elaia Partners 49. Tiger Global Management 17. Entrée Capital 50. Trident Capital 18. E.Ventures 51. Trilantic Partners 19. Forbion Capital Partners 52. Warburg Pincus 20. General Atlantic 21. Gilde Healthcare Partners VII. INTERNATIONAL VENTURE CAPITAL & PRIVATE 22. Greycroft EQUITY FIRMS WITHOUT OFFICE IN SPAIN (NON RECURRENT ACTIVITY)1 23. Idinvest Partners 1. 123 Investment Managers 24. Index Ventures 2. 360 Capital 25. Insight Venture Partners 3. Acon Investments 26. Institutional Venture Partners 4. Adams Street Partners 27. Investcorp 5. Adventure 28. JZ International 6. Alchemy Capital Management 29. Kleiner Perkins C&B 7. Altpoint Capital 30. Kurma Partners 8. Amadeus Capital Partners 31. L Catternon Europe (antes L Capital. 9. ArcLight Capital Partners 32. London Venture Partners 10. Avalon Ventures 33. Mangrove 11. Avenue Capital Group 34. Naspers Limited 12. AXA Strategic Ventures 35. New Enterprise Associates 13. Bain Capital 36. Northzone 14. Baxter Ventures 37. Otium Capital (antes Smart Ventures) 15. Bessemer Venture Partners 38. Palamon Capital Partners 16. Boehringer Ingelheim 39. Partech Ventures 17. Boston Seed Capital 40. Partners Group 18. Bruckmann, Rosser, Sherrill & Co 41. Passion_Capital 19. Cathay 42. Prime Ventures 20. Chiesi Ventures 43. Providence 21. Cisco Investments 44. Serena Capital 22. Connect Ventures 45. Spark Capital 23. Coral Group 46. Stage 1 Ventures 24. Correlation Ventures 47. Sun Capital 25. Data Collective VC

1 In 2017 there were 20 other international investors whose name are confidential although their aggregate activity in 2017 is reflected in the survey. 58

26. Delta Partners Group 59. Philips N.V. 27. Early Bird 60. Platinum Equity 28. Eight Road Ventures 61. Point Nine Capital 29. Emerige Societe par Accions Simplifiee 62. Roche Venture Fund 30. Endeavor 63. QED Investors 31. Eurazeo 64. Qualcomm 32. Fidelity Growth Partners Europe 65. Randstad 33. GGM Capital 66. Rakuten Inc. 34. GGV Capital 67. Rocket Internet 35. Hellman & Friedman 68. Rose Tech Ventures 36. Holtzbrinck 69. Rothenberg Ventures 37. Horizon Ventures 70. RTAventures 38. Industry Ventures 71. SalesForce Ventures 39. Initial Capital 72. Sandton Capital 40. Innogest Capital 73. Sapphire Ventures (antes SAP Ventures) 41. Intel Capital 74. Scope Capital Advisory 42. Inversur Capital 75. Sequoia Capital 43. Jackson Square Ventures 76. Seroba Life Sciences 44. JJDC Innovation 77. Sigma Partners 45. L Capital Asia 78. SoftBank 46. Liil Ventures 79. Sonae Ventures 47. Lone Star 80. Spark Capital Partners 48. Lundbeckfond Ventures 81. StepStone Group 49. Magenta Partners 82. Sunstone Capital A/S 50. Maveron 83. TC Growth Partners 51. Middleland Capital 84. Techstars Ventures 52. Monsanto Growth Ventures 85. Tekton Ventures 53. Nokia Growth Partners 86. Theventure.city 54. Omega 87. Top Tier Capital 55. OpCapita 88. Triton Investment Advisers 56. Open Ocean 89. Vulcan Capital 57. Oxford Capital Partners 90. Vy Capital 58. P101 59

VIII. ENTITIES THAT CEASED ACTIVITY IN 2017 17. Innogest Capital 1. Arle Capital Partners 18. Liil Ventures 2. Avet Ventures SGEIC S.A. 19. Lone Star 3. First Reserve 20. Moira Capital Partners, SGEIC, S.A. 4. Gescaixa Galicia, SGEIC, S.A. 21. Nekko Capital, S.G.E.I.C. S.A. 5. Highland Capital Partners 22. Omega 6. Costanoa Venture Capital 23. Randstad 7. G Square 24. Rocket Internet 8. Greylock Partners 25. SeedRocket 4Founders Capital S.A. SCR-Pyme 9. Javelin Venture Partners 26. Seroba Life Sciences 10. Kennet Partners 27. Theventure.city 11. Oaktree Capital Management, L.P. 12. Siemens AG X. OTHER PUBLIC ENTITIES WITH COMPLEMENTARY 13. Suanfarma Biotech, SGEIC, S.A. INVESTMENT IN THE PRIVATE EQUITY & VENTURE CAPITAL SECTOR 1. Centro para el Desarrollo Tecnológico Industrial IX. ENTITIES THAT START THEIR ACTIVITY IN SPAIN IN (CDTI) 2 2017 . 2. Empresa Nacional de Innovación, S.A. (ENISA) 1. 123 Investment Managers 3. Institut Català de Finances (ICF) 2. 360 Capital 4. Institut Valenciá de Competitivitat Empresarial 3. Acon Investments (IVACE) 4. Adventure 5. SODIAR 5. Alta Life Sciences 6. Ardian XI. MANAGING COMPANIES OR ADVISERS OF 7. Athos Capital, SGEIC, S.A. TRANSNATIONAL FUNDS THAT REACTIVATED THEIR ACTIVITY IN SPAIN 8. AXA Strategic Ventures 1. BC Partners 9. Bessemer 2. General Atlantic 10. Cathay 3. Warburg Pincus 11. Decenes Mecenes SGEIC, S.A. 12. Endeavor 13. EQT Partners 14. Gat Technology Tecnología, Telecomunicaciones y Movilidad 15. Hellman & Friedman 16. Holtzbrinck

2 To these 27 incorporations in the Private Capital market, we should add several international investors whose name are confidential although their aggregate activity in 2017 is reflected in the survey. 60 Notes CUBIERTA-INFORME-2018-aaff.pdf 2 7/5/18 17:45

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K 2018 SURVEY Venture Capital & Private Equity activity in Spain

SURVEY Venture Capital & Private Equity activity in Spain 2018

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