Startup Cities in the Entrepreneurial Age

Startup cities in the Entrepreneurial Age

8 JULY 2021

https://itif.org/publications/2020/10/19/2020-state-new-economy-index https://www.credit-suisse.com/about-us/en/re ports-research/csri.html

✔ To raise awareness and instil a sense of urgency across the EU27 Member States, through powerful Global data platform for intelligence on startups, innovation, ecosystems and venture capital. insights and narratives that highlight strengths and Created by Dealroom and Sifted, and supported by the address weaknesses in a constructive manner European Commission and European Parliament, European Startups is a two-year project aimed at ✔ Facilitate transparent and insight-driven policy facilitating informed conversation and collaboration making and help direct EU funding decisions x among European tech ecosystem stakeholders, to take Europe’s startup economy to the next level. ✔ The aim is to facilitate constructive multi-facetted discussions, supported by data-driven insights At the centre of the initiative is the European Startups database, a definitive platform providing macro-level trends. We also publish several research reports and ✔ Better alignment between private and public sector could be a global competitive advantage Financial Times-backed new media site organise a few events each year. telling the untold Stories of European Tech.

Page / 2 EuropeanStartups.co Previous reports:

» Corporate innovation (June ‘21)

» Deep Tech (Jan ‘21)

» Index Ventures / Not Optional (Oct ‘20)

» Covid-19 Startup Survey (Jul ‘20) » View all reports & data

» Europe stepping up (Jun ‘20)

» Launch report (April ‘20)

Page / 3 Join event €259B

2.3x

€48B 2.9x

What you need to know.

Record venture capital investment Two new unicorns per day Entrepreneurship is spreading

Globally venture capital investment has Each day, more than two new unicorns emerged Knowledge about building startups is much smashed previous records with €264B in the globally during 2021. There are now 1,601 more widespread. There are now 170 cities with 1. Globally VC investment records smashed with YoY growth of 2.2x first six months of 2021. This represents unicorns and $1B+ exits of which 1,071 still at least one unicorn. Europe has the most year-over-year (YoY) growth of 2.3x private unicorns. unicorn cities. 2. Europe is the fastest growing major region by VC investment (faster than US, China, Asia) Europe is the fastest growing major region by The combined global value of tech companies The Bay Area is still growing but its relative venture capital investment (growing faster than has ballooned to over $35 trillion, of which $18T contribution peaked in 2014. The rest of the US 3. Explosion of unicorns: more than two unicorns were created every day in 2021 globally. USA extending its lead here. There US, China, Asia). Investment into European from companies founded after 2000, and $10T has more unicorns, more VC funding and is are now [1,600] unicorns and $1B+ exits and [900] private unicorns startups grew by 2.9x YoY to €49B. from companies founded after 2010. The rate of growing faster by number of unicorns. innovation is accelerating 4. The combined global value of tech companies has ballooned to over $35 trillion, of which $18T from companies founded after 2000, and $10T from companies founded after 2010

VC funding into startups globally €264B Unicorns and $1B exits 1,601 Cities with one or more unicorns 170 5. There are now 170 cities with at least one unicorn. Europe has the most unicorn cities 155 1,322 2.3x 6. Strong growth of new emerging startup cities across the USA, but also across Europe 7. Bay Area “peaked” in 2014 on a relative basis. On an absolute basis it’s still growing of course €114B 8. Unlike during dot-com, tech companies make money and have significant share of corporate earnings

50 22

H1 H1 H1 2010 2021 2010 2021 2012 ‘20 ‘21

Page / 5 Source: Dealroom.co

An explosion of unicorns. A sea of capital. Tech is getting more distributed.

more than two unicorns were created every day [....] Silicon Valley didn’t peak but it’s global in 2021 globally. USA extending its lead here. dominance peaked in 2014 in terms of share of There are now [1,600] unicorns and $1B+ exits funding and unicorns and [900] private unicorns

$28B 2.8x

$9.9B

Q1 2017 Q1 2021 Europe’s share of global equity markets has shrunk

Global tech is dominated by U.S. companies across several core domains.

Why should cities care about startups and Europe’s share of world equity market value … while Europe’s share of global equity has

unicorns? has shrunk, largely due to the rise of big tech. shrunk considerably.

The world’s 20 most valuable companies Startups have become a leading source of job growth. In cities analysed by ▊ VC-backed tech companies ▊ Non-tech 35% Dealroom, startup jobs grew by about 10% annually, or 2‒3x faster than the Apple $2.1T wider local economy*. Tech is also more resilient to external shocks (e.g. pandemic, Brexit). Today, 1% of European jobs are at startups (most are Microsoft $1.8T venture backed). In the US, where venture capital has been around for much 30% Saudi Aramco $1.8T longer, it is estimated that venture-backed companies are responsible for Amazon $1.6T 10% of all jobs. Alphabet $1.6T 25% Facebook $0.9T Meanwhile, the global economy is transitioning to digital. Tech companies Tencent $0.7T are reshaping nearly every industry and tech giants are forming. US tech companies are worth $24 trillion (the entire S&P 500 is $32T). They Berkshire Hathaway $0.7T contribute to 50% of all domestic R&D. About 70% of all AI experts work for 20% Tesla $0.6T Google, Facebook, Microsoft, Amazon. But despite the concentration of Alibaba $0.6T economic power, entrepreneurialism is on the rise as startups are able to TSMC $0.5T scale faster than ever before. Younger cohorts of startups are creating as 15% Visa $0.5T much value, actually taking advantage of the infrastructure of big tech (AWS, JPMorgan Chase $0.5T Facebook, Google).

$0.5T 10% Samsung This means there’s a huge opportunity for younger startup ecosystems, like Johnson & Johnson $0.4T Europe and elsewhere. Europe’s startup ecosystem is coming of age. Walmart $0.4T Europe’s tech companies are now worth $3 trillion. Entrepreneurial 5% LVMH $0.4T ecosystems are increasingly borderless, as startup teams can be distributed UnitedHealth $0.4T and venture capital is being invested remotely. This new reality means it’s important to embrace and foster entrepreneurship more than ever. It also Nvidia $0.4T means that ecosystems do not exist in isolation. This report therefore takes $0.4T Mastercard a global perspective, of startup ecosystems in the entrepreneurial age. 2000 2005 2010 2015 2020

Source: Refinitiv (via Financial Times).

Page / 6 * Source: various reports including Amsterdam, Netherlands, and Berlin.

Global market share in core tech domains

Search Google 90%

70% >50% $24T 27% Social Facebook 70%

Online ads Facebook, Google 70%

Web browsers Chrome [...]%

Artificial Intelligence R&D spending Combined valuation Share of net earnings Video streaming Youtube, Netflix 80% experts work for Google, done by big tech of all US tech companies. of tech companies of Facebook, Microsoft, companies which were Nasdaq is $19 trillion, S&P 500, up from 2% Mobile OS Android, Apple iOS

Amazon originally VC backed compared with $32 during the dotcom boom Cloud hosting AWS, Google, Microsoft 60% trillion for the entire S&P in 2000 (source: 500 Heartcore.com analysis) Online payments Paypal, Stripe 60%

Computer OS [Windows, Apple] 80%

Semiconductor sales Intel, Nvidia, [....] 47%

Inspired by Benedict Evans’ Jan 2020 presentation Standing on the Shoulders of Giants (data from companies and Zenith). Source for B2B: “In-depth: B2B e-Commerce 2019” by ecommercedb.com 1. Very possible other big funds will emulate crossover fund strategies like tiger global which means activity could remain high for a while. Also, pension funds putting more money in venture and have so far just dipped their toes in. Some quarters will be less active as there are always fluctuations

2. Investors should see that even seemingly niche markets can create $100B platforms (Airbnb) and there's still plenty of opportunities also in education, health and even in categories that have already gone digital like cars, homes by adding more vertical integration and add-ons. B2B is largely untapped

3. 80% of global adult population is online. Consumers are digitally native and want/expect more convenience. Technology is highly scalable and therefore creating huge companies. This is the underlying trend. On top of that, abundant capital and lock-down are external factors that are accelerating this

We’re deep into the Entrepreneurial Age. The Entrepreneurial Age. The Entrepreneurial Age.

The rise of startups everywhere Availability of capital anywhere The rise of startups everywhere Availability of capital anywhere Transition to a digital economy The rise of startups everywhere Abundance of capital, more of Startups have become the vehicle of choice for rapid which is moving more towards 80% of the population is online and Startups have become the vehicle of choice innovation. They’ve become venture & tech. Tech has gone great places to build a career and from risky to safe asset. Capital is increasingly expecting services to be online. for rapid innovation. They’ve become great fulfill individual potential, for also accessible in more places Simultaneously, tech makes it easier than places to build a career and fulfill individual entrepreneurs and operators (capital mobility). ever to launch and scale a company. potential, for entrepreneurs and operators from diverse backgrounds. from diverse backgrounds.

Supportive governments Transition to a digital economy Supportive governments Transition to a digital economy Tech and entrepreneurship are 80% of the population is online Supportive governments Availability of capital anywhere being recognised as resilient and increasingly expecting economic & job growth engine. services to be online. Tech and entrepreneurship are being Abundance of capital and capital moving Global competition for startups Simultaneously, tech makes it recognised as resilient economic & job more towards venture. Tech has become the and capital has intensified (and easier than ever to launch and growth engine. Global competition for safe asset. Capital is also accessible in more playing field has levelled). scale a company. startups and capital has intensified (and places. playing field has levelled).

Page / 7 Table of contents.

The rise of startups everywhere 1 1

2 2 Availability of capital anywhere

3 3 Benefiting from a distributed world 1 The rise of startups everywhere “If you start a startup now, your parents won't freak out the way they would have a generation ago, and knowledge about how to do it is much more widespread.”

“But the main reason it's easier to start a startup now is that it's cheaper. Technology has driven down the cost of both building products and acquiring customers.”

“Technology hasn't just made it cheaper to build and distribute things, but faster too. This trend has been running for a long time. IBM, founded in 1896, took 45 years to reach a billion 2020 dollars in revenue. Hewlett-Packard, founded in 1939, took 25 years. Microsoft, founded in 1975, took 13 years. Now the norm for fast-growing companies is 7 or 8 years.”

Paul Graham Co-founder of Y Combinator written in April 2021 on How People Get Rich Now Over two new unicorns were announced each day in the first half of 2021. Inflection point around 2014. New unicorns announced During 2021: What happened? over 2 new unicorns per day 400 ■ Population online/on smartphones ‒ 2018 2020: (80% of adults as of today) a new unicorn every day 320 ■ Scalable software (AWS) and global 300 285 distribution (Facebook, Google, ...) available on-demand to any startup 2014‒2018: 255 a new unicorn 241 ■ Massive growth of venture capital every three days industry 200 Until 2014: ■ Large pools of experienced talent one unicorn every with knowledge of building startups month 121 122 and influx of new talent 90 100 71 ■ Chinese internet took off during 2014-2018 26 34 13 18 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1

Page / 11 Source: Dealroom.co The US continues to outperform the rest of the world in terms of new unicorns, especially the “Rest of the US” i.e. outside of the Bay Area. Projected at Number of new unicorns announced current pace USA: 853 250 3.5x since Dec 2017

Rest of USA (excl. Bay Area) 200

150 Bay Area

100 Europe Europe: 251 2.6x since Dec 2017 Rest of Asia Rest of Asia: 133 50 3.9x since Dec 2017 RoW China: 263 China 2.5x since Dec 2017 RoW: 71 12x since Dec 2017 2010 2012 2014 2016 2018 2020 2021E 2000 2005 2008 2013 2017 2021

Page / 12 Source: Dealroom.co

USA and Canada

Europe Rest of Asia China RoW CAGR unicorns 2016-2021

USA 58% https://app.dealroom.co/charts/unicorns_yearly/f/location/allof_Europe_United%20States_Asia?range=100 Asia 52% Cumulative number of unicorns created by year $1 billion valuation was reached Europe 52%

RoW 42% (See appendix for more information about what makes unicorns a useful measure)

1,601 tech companies founded since 1990 Tech companies globally have reached a that have crossed the $1 billion milestone. combined value of $35 trillion, of which $27 trillion (79%) after 1990.

Cumulative number of unicorns and $1B exits Cumulative valuation ($T) 1,600

During 2021: over 2 new unicorns per day 1,601 1,250 $35T $35T Inflection point around 2014: Population online/on smartphones (today 80%) $30T Scalability as a service (AWS) Inflection point around 2014 1,322 80% online population Global distribution (Facebook, Google, ...) $25T Scalability as a service Venture capital industry growing fast 1990+ Global distribution (Facebook, Google, ...) Large pools of experienced talent cohort $20T $27 trillion Venture capital available anywhere Chinese internet took off in 2014 2014-2020: a new unicorn every 2 days Large pools of experienced talent

$15T

$10T 250 $5T Pre 1990 50 Until 2014: one unicorn every month $1.9T cohort $7.3 trillion *

2000 2010 Jan ‘21 Today 2010 2021 2000 2014 Jan ‘21 Today

Page / 13 Source: Dealroom.co. * Pre 1990 includes companies like Microsoft, Apple, Intel, Adobe, IBM, Oracle, SAP.

2005 2008 2013 2017

Cumulative number of unicorns and $1B exits There are now 170 “unicorn cities” with one or more unicorn, of which 65 in Europe.

170 Cities with one or more unicorn 155 17 RoW

15 140 23 China 12 21 Rest of Asia 119 23 20 (excl. China) 8 20 95 15 17 6 16 78 42 USA 11 38 65 3 34 10 11 52 3 30 7 9 2 6 27 38 3 6 24 32 28 3 24 4 22 3 20 65 Europe 3 4 57 61 3 18 50 1 15 40 14 32 13 21 25 13 7 8 10 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Page / 14 Source: Dealroom.co Since 2014, the number of cities with one unicorn grew from 28 to 71. The number of cities with over 10 unicorns grew from 2 to 29.

Number of cities by size ▉ in 2014 ▉ in 2021

0 10 20 30 40 50 60 70 Cities with 1 unicorn 28 71

Cities with 2 unicorns 11 26 (incl. Prague, Belo Horizonte, Dubai) 3 unicorns 1 15 (incl. Dublin, Vienna, Montreal) 4 unicorns 8 8 (incl. Helsinki, Tampa, Madrid) 5 unicorns 2 8 (incl. Houston, Copenhagen, Manchester) 6 to 10 unicorns 4 13 (incl. Atlanta GA, Hong Kong, Tokyo) 11 to 20 unicorns 1 16 (incl. Berlin, Singapore, New Jersey, São Paulo, Bengaluru)

21 to 50 unicorns 0 6 (incl. Seattle, Chicago, Paris) >50 unicorns 1 7 (incl. Bay Area, New York City, Beijing)

Page / 15 Source: Dealroom.co Cities with 2 unicorns 7 - Prague, Leeds, Moscow 3 - Barcelona, Basel, 3 unicorns Jerusalem 4 unicorns 2 - Madrid Tampa 5 unicorns 1 - Manchester 4 - Cambridge, Sydney, 6 to 10 unicorns Raleigh-Durham Success breeds success. Of the 28 cities with one unicorn in 2014, 82% have more in 4, Salt Lake City region, New Jersey, San 11 to 20 unicorns Diego 2021, and several have more than 10. 21 to 50 unicorns Paris, Shenzhen Unicorns & $1B+ exits per city 21 unicorns Paris, Shenzhen 20 Paris, Shenzhen (21 unicorns each)

Salt Lake City Metro (16) Greater Los Angeles 55 15 New Jersey (15) Tel Aviv 30 San Diego (14) Seattle 28 Paris 21 Hangzhou 21 Shenzhen 21 New Delhi (11) Chicago 20 10 Toronto (10) Berlin 19 Cambridge (9) Singapore 18 Stockholm 18 16 Sydney, Raleigh-Durham (6) Austin 5 Salt Lake City metro 16 Manchester (5) New Jersey 15 Madrid, Tampa (4) São Paulo 14 Barcelona, Basel, Jerusalem (3) Bengaluru 14 Prague, Leed, Moscow (2 unicorns each) San Diego 14 1 Amsterdam 14 Melbourne 14 2014: 28 cities with 2021: most have Washington DC 14 one unicorn several unicorns

Page / 16 Source: Dealroom.co

Number of unicorns ▉ in 2014 ▉ in 2021

0 10 20 30 40 50 60 70 Cities with 1 unicorn 28 71

21 to 50 unicorns 0 6 (incl. Seattle, Chicago, Paris) >50 unicorns 1 7 (incl. Bay Area, New York City, Beijing) https://www.inc.com/magazine/202104/bill- Several first-time unicorn cities were born in 2020 and 2021. saporito/steve-case-rise-of-the-rest-midwes t-cities-startup-hub-ecosystem.html

Mo i Rana

Nedre Vats Glasgow Malmo Sheffield New cities since 2020 Tattenhall Munster Bend, OR Grand Rapids Venlo Almaty Pittsburgh Baoding Cairo, Accra, Belo Malmo Horizonte, Mexico City, Kansas City St. Louis Lexington Tirat Carmel Zhengzhou Uruguay Morehead, KY Anhui Cairo Orlando, FL Riyadh Zhengzhou, Anhui, Mexico City Thane Chennai Boading

Accra Almaty, Chennai, Istanbul,

Bello Horizonte

Montevideo Orlando, Kansas City, Bend, St. Louis, Pittsburg, Lexington, Morehead

Page / 17 Source: Dealroom.co Munster, Sheffield, Glasgow, Mo I Rana, Nedre Vats, Malmo

Bali, Indonesia Bay Area

Hang zhou Future Unicorns 21 Bay Area 545 New York 192 Boston Metro 167 Beijing 122 Los Angeles 84 London 81 Shanghai 74 Shenzhen 60 Bengaluru 38 Paris 34 Chicago 33 Austin 31 Berlin 30 Unicorns Toronto 27 Atlanta 24 Singapore 21 Seattle 21 1 Tel Aviv-Yafo 18 Seoul 51 Mumbai 51 San Diego 51 Sao Paolo 31 Hangzhou 13 Guangzhou 2 Where the world’s unicorns and $1B+ exits are based. Stockholm 8

USA China Europe Rest of Asia RoW 853 (53%) 280 (17%) 268 (17%) 132 (8%) 68 (4%)

São 14 Tel Aviv 30 Paulo London 71 Bay Area 392 Beijing 113 Singapore 18 Melbourne 14

Paris 21 Bengaluru 14 Berlin 19 New York City 113 Toronto 10

Stockholm 18 Seoul 13 Shanghai 63 Greater Boston Region 61 Amsterdam 13 Sydney 6 Greater Los Angeles 54 Munich 11 New Delhi 11 Hangzhou 21 Seattle, WA 28 Montreal 3 Shenzhen 21 Chicago 21 Hong Kong 8 Nanjing 10 Austin, TX 16 Guangzhou 7 Salt Lake City metro, UT 16 Rest 115 New Jersey 15 Rest 21 Rest 38 Rest 45 Rest 137

Page / 18 Source: Dealroom.co

337 Bay Area 322 545 867 New York 82 192 274 Beijing 116 122 238 Boston Metro 41 167 208 Beijin 59 81 Shanghai Shenz London 140 g hen Shanghai 55 74 129 116 55 21 Los Angeles 20 84 104 San Diego 10 15 70 Shenzhen 21 60 55 Paris 15 34 53 New York 88 Boston41 Metro Bengaluru 159 38 50 Berlin 16 30 46 12 31 P Austin 43 London 59 15ar Rest of NPA Chicago 10 33 43 is 16 21 Singapore 37 LA 20 Berlin16 Singapore16 Seattle16 16 21 Seattle 37 Mumba Bengaluru15 Sao Paolo15 4 Toronto2 Stockholm8 Hangzhou 21 13 34 i 8 24 Atlanta 32 Austin12 Seoul11 Stockholm11 Guangzhou10 Toronto 2 27 29 Tel Aviv-Yafo10 Chicago10 San 10Diego Atlanta8 Tel Aviv-Yafo 106 18 28 Sao Paulo 15 13 28 Seoul 1115 26 Other Guangzhou 1012 22 Stockholm 118 19 Mumbai 415 19 When looking at earlier stages, Europe is starting to take a more prominent place.

Combined Total Unicorns Number of Number of enterprise value and $1B+ exits New unicorns Future series A+ seed stage since 1990 * since 1990 since 2020 Unicorns ** companies companies 3% 4% 4% 5% 5% 7% RoW 6% 8% 9% 10% 10% 9% Rest of Asia 10% 17% 15% 14% 20% 17% 8% 35% Europe 17% 14% 6%

3% China

64% 65% 58% 53% 56% 47% USA

Page / 19 Source: Dealroom.co * Combined enterprise value of all startups & tech companies founded since 1990. ** Future unicorns are valued $250M-$1B and funded in last 5 years. The USA, China and UK are the top three countries by number of unicorns and $1B+ exits. Australia, Canada and Brazil are the fastest growing.

Unicorns and $1B+ exits USA 875 China 280 United Kingdom 100 Germany 43 Israel 34 India 34 Growth: increase in number of Unicorns since 2015 France 23 Australia 21x Sweden 21 Canada 19x 21 Brazil 19x Australia Hong Kong 10x Canada 19 Japan 7.0x 19 Switzerland 6.5x Brazil Norway 6.0x Netherlands 19 Spain 6.0x 18 France 5.8x Singapore Sweden 5.3x South Korea 15 South Korea 5.0x Switzerland 13 India 4.3x Israel 4.3x Hong Kong 10 Denmark 4.0x Japan 7 Belgium 4.0x United States 3.9x Norway 6 Germany 3.9x Spain 6 Singapore 3.6x China 3.2x Indonesia 6 Netherlands 3.2x Denmark 4 United Kingdom 3.0x Indonesia 3.0x Finland 4 Mexico 3.0x Belgium 4 Ireland 3.0x Nigeria 3.0x Russia 4 Italy 3.0x Mexico 4 Austria 3.0x

Page / 20 Source: Dealroom.co The Bay Area, Beijing, New York and London are the top hubs, while Salt Lake City, New Jersey and São Paulo are the fastest growing by number of Unicorns.

Unicorns and $1B+ exits Bay Area 392 Beijing 113 New York City 113 London 71 Growth: increase in number of Unicorns since 2015 Shanghai 63 Greater Boston Region 61 Salt Lake City metro 16x Greater Los Angeles 55 New Jersey metro 15x São Paulo 14x Tel Aviv 30 San Diego 14x Seattle 28 Melbourne 14x Paris 21 Nanjing 10x 21 Toronto 10x Hangzhou Philadelphia 10x Shenzhen 21 Hong Kong 8.0x Chicago 20 Paris 7.3x Berlin 19 Guangzhou 7.0x Tokyo 7.0x Singapore 18 Greater Los Angeles 6.8x Stockholm 18 Seoul 6.5x Austin 16 Boston Metro 6.1x Tel Aviv 6.0x 16 Salt Lake City metro Sydney 6.0x New Jersey 15 Dallas 6.0x São Paulo 14 Raleigh-Durham 6.0x Bengaluru 14 Detroit 6.0x Munich 5.5x San Diego 14 New York City 5.4x Amsterdam 14 Mumbai 5.0x Melbourne 14 Houston 5.0x Manchester 5.0x Washington DC 14

Page / 21 Source: Dealroom.co

Growth: increase in number of Unicorns since 2015

Australia 21x Canada 19x Brazil 19x Hong Kong 10x Japan 7.0x New unicorns Hub Region Country since 2020

Bay area USA and Canada United States 131

New York USA and Canada United States 70

Los Angeles USA and Canada United States 22

London Europe United Kingdom 20

Beijing Asia China 19

Boston metro USA and Canada United States 18

Tel Aviv Asia Israel 13

Chicago USA and Canada United States 10

Salt Lake City USA and Canada United States 10

Paris Europe France 9

New unicorns Hub Region Country since 2020

London Europe United Kingdom 20

Paris Europe France 9

Berlin Europe Germany 7

Munich Europe Germany 6

Stockholm Europe Sweden 5

Amsterdam Europe Netherlands 4

Oslo Europe Norway 3

Malmö Europe Sweden 3

Vienna Europe Austria 2

Helsinki Europe Finland 2

Fastest growing by funding is San Diego and Boston Explore over 1,600 unicorns online.

Why count unicorns? With so many unicorns, the term itself has become a misnomer. Still, it’s a very helpful metric to measure the development local ecosystems. The rise of a new unicorn creates a boost for local ecosystems (the founders, employees, the investors) which creates tons of positive second order effects. Every day, two unicorns emerge. To keep track of them all, we’ve created a dedicated page, including a set of definitions. Check out the link below to explore:

» New unicorns in 2021

» Private unicorns

» Rumoured unicorns

» More ...

Page / 22

Funding by top tier hub in the US 2015-2020 VC Investment 2015 2016 2017 2018 2019 2020 CAGR Bay area $ 38.4B $ 25.5B $ 30.8B $ 52.5B $ 49.8B $ 54.2B 7% New York $ 8.9B $ 11.0B $ 15.9B $ 16.8B $ 15.6B $ 15.1B 11% Boston Area $ 6.0B $ 5.2B $ 7.5B $ 11.8B $ 9.1B $ 11.8B 15% Los Angeles $ 5.4B $ 5.3B $ 4.2B $ 7.2B $ 8.0B $ 10.2B 14% San Diego $ 1.2B $ 1.4B $ 1.2B $ 3.5B $ 2.3B $ 4.8B 32% Seattle $ 1.3B $ 1.0B $ 1.3B $ 1.7B $ 1.9B $ 3.9B 25% Austin $ 2.0B $ 1.0B $ 1.2B $ 1.3B $ 1.9B $ 2.2B 1% Chicago $ 1.2B $ 1.0B $ 1.7B $ 1.8B $ 1.3B $ 2.2B 12% Atlanta $ 0.5B $ 0.4B $ 0.6B $ 0.8B $ 1.1B $ 1.6B 28% Houston $ 1.2B $ 1.4B $ 0.4B $ 0.4B $ 1.0B $ 0.4B -19% Dallas $ 0.3B $ 1.1B $ 0.4B $ 0.6B $ 1.4B $ 0.8B 19% Pittsburgh $ 0.1B $ 0.1B $ 1.2B $ 0.1B $ 0.2B $ 2.8B 81% Denver $ 1.2B $ 0.4B $ 0.4B $ 0.7B $ 0.4B $ 1.1B -2% Arlington $ 0.6B $ 1.3B $ 0.1B $ 0.1B $ 1.4B $ 0.3B -13% Washington $ 0.5B $ 0.3B $ 0.6B $ 1.1B $ 0.5B $ 0.7B 4% Cary $ 0.0B $ 0.0B $ 0.0B $ 1.3B $ 0.0B $ 1.8B 120% Philadelphia $ 0.1B $ 0.2B $ 0.1B $ 0.4B $ 1.5B $ 0.7B 42% Minneapolis $ 0.3B $ 0.3B $ 0.3B $ 0.6B $ 0.9B $ 0.8B 25% Gardena $ 0.0B $ 0.0B $ 0.0B $ 2.0B $ 0.8B $ 0.0B 84% Boulder $ 0.2B $ 0.2B $ 0.2B $ 1.1B $ 0.5B $ 0.5B 24% 2 Capital available anywhere Global venture capital is crushing previous records in 2021.

Global venture capital investment » view online €264B

2.3x

▊ Megarounds plus €250M+ €200B

▊ Megarounds €100M–€250M €114B

€100B ▊ Series C €40M–€100M

▊ Series B €15M-€40M ▊ Series A €4M-€15M ▊ Seed €1M-€4M ▊ Pre-seed €0M-€1M H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Page / 24 Source: Dealroom.co

H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 €259B

2.3x

€48B 2.9x

In Europe, the growth in venture capital is even more pronounced.

European venture capital investment » view online

€250B €50B €49B 2.9x

€40B ▊ Megarounds plus €250M+

€30B

▊ Megarounds €100M–€250M

€20B €17B ▊ Series C €40M–€100M

€10B ▊ Series B €15M-€40M

▊ Series A €4M-€15M ▊ Seed €1M-€4M ▊ Pre-seed €0M-€1M H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Page / 25 Source: Dealroom.co

H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 https://app.dealroom.co/transactions.rounds/f/growth_stages/not_mature/months_names/anyof_jan_feb_mar/rou nds/not_GRANT_PRIVATE%20PLACEMENT/tags/not_outside%20tech/years/anyof_2021?showStats=quarterly &sort=-amount

€1 50 B Europe’s share of global venture capital is higher than it’s ever been, now 18%. China’s share of global Venture Capital has been shrinking.

€1 Venture capital investment by destination » view online 2020Q1- 2021Q1 YoY growth 00 $134B B 100% 7% RoW $8B ▊RoW +259% YoY growth 2.3x $12B +38% YoY growth Rest of Asia 12% Rest of Asia 80% $19B +264% YoY growth China €5 11% China 0B $88B $79B $83B $77B 60% $79B $71B $68B $74B $66B $61B $63B $59B $59B $6B $55B $55B $75B $10B +119% YoY growth USA 52% USA $51B 40% $7B $38B

20% $36B

16% 18% 12% 12% 14% 12% 13% 15% Europe $20B +132% YoY growth Europe 9% 12% 11% 10% $14B

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2018 2019 2020 2021

Page / 26 Source: Dealroom.co

Driven by mega rounds, but early stage is also growing. Quarterly VC investment by geography ▊ USA ▊ Europe ▊ China ▊Rest of Asia ▊Rest of world

Global venture capital investment

United States

Asia

Rest of World Rest of Europe London 2021 YoY growth by region

Rest of world 4.1x

Europe 2.8x

United States 2.1x

Asia excl. China 2.1x

China 1.6x

Nearly all regions are seeing rapid growth in VC investment.

VC investment by destination USA Europe China $160B $60B $53B $60B $154B +2.9x $40B $40B +2.3x $30B +1.6x

$120B $20B $20B

H1 H2 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2010 2012 2014 2016 2018 2020 2021 2010 2012 2014 2016 2018 2020 2021 $80B Rest of Asia (excl. China) Rest of the World Latin America $12B $40B $12B $9B $8B $34B +3.3x +5.5x $30B +2.3x $8B $6B $40B

$20B

$4B $3B $10B

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2010 2012 2014 2016 2018 2020 2021 2010 2020 2021 2010 2021 2010 2021

Page / 27 Source: Dealroom.co By investment, Europe was one of the fastest growing regions in the first half of 2021. 12 RoW

23 China

22 Asia USA and China at the top All green, with the top one

49 USA and Canada

Northern Europe has been one of the world’s fastest growing regions for VC investment. 64 Europe

Venture capital investment in H1 2021 2021 YoY growth by country

USA $153.6B USA 2.3x China $30.3B China 1.6x UK $17.1B Norway 12.4x Germany $8.4B Netherlands 7.0x Sweden $6.8B Sweden 6.9x France $5.2B Denmark 5.2x Netherlands $3.6B Spain 4.2x Spain $1.9B Austria 3.9x Switzerland $1.7B Finland 3.2x Finland $1.3B Germany 2.8x Denmark $1.1B UK 2.7x Norway $1.0B Italy 2.2x Ireland $1.0B France 1.8x Belgium $0.8B Switzerland 1.7x Austria $0.5B Russia 1.6x Russia $0.4B Belgium 1.3x Italy $0.4B Ireland 1.1x Canada $7.8B Nigeria 9.2x Brazil $4.8B Colombia 9.2x Australia $1.8B Mexico 8.6x Mexico $1.5B Canada 4.3x Colombia $1.0B Brazil 4.3x Nigeria $0.5B Australia 1.6x India $10.3B Turkey 21.1x Israel $4.6B Hong Kong 5.6x Indonesia $4.2B South Korea 3.0x Singapore $3.3B UAE 2.7x Hong Kong $2.8B Indonesia 2.5x South Korea $2.5B Israel 2.2x UAE $1.3B Vietnam 2.2x Turkey $1.3B India 1.9x Japan $0.7B Singapore 1.5x Vietnam $0.6B Japan 1.0x

Page / 28 Source: Dealroom.co * including primary capital raised via SPAC private placement. Venture capital has become more global, especially more flows from USA and Asia into European marketplaces.

% of investment by source of capital Global startups USA startups European startups Asian startups United States startups European startups Asian startups Source of capital » view online » view online » view online » view online 100% ▊Unknown HQ ▊ RoW 90% Asia Asia Asia Asia ▊Asia 80% Europe 70% USA USA USA 60% ▊ Europe Domestic USA 50% Europe cross border

40% Europe Domestic 30% ▊ Europe Domestic 20% Domestic 10%

0% ▊ Domestic

2010 2021 2010 2021 2010 2021 2010 2021

Page / 29 Source: Dealroom.co 2021E average European per capita funding still lags the US and Israel. But individual countries like the UK, Sweden and Finland have closed in significantly.

Venture capital funding per capita in 2021E

Venture capital funding per capita in 2020

$1,329 Sweden Venture capital funding per capita in 2016-2021E

$1,011 Israel

$883 USA

$479 UK $478 Finland $407 Netherlands

$201 Germany $150 France

Page / 30 Source: Dealroom.co 3 Benefiting from a distributed world “Innovation can happen anywhere. Distribution right now is a wonderful thing. If you follow Twitter in the US, it seems like every entrepreneur and VC is moving to Miami or Austin, Texas. Some amount of that is real and that's good. Digital tools allow you to do that. That couldn't have happened 10 years ago and it's such a net positive for society. “Distribution of But the reality is that clusters of people who work together innovation is a wonderful will continue to work in those locations and the real thing. It's such a net innovation and creativity is when you have the interaction of humans and ideas, and that will always continue to positive for society. happen in the cities as it has in the past.”

Mark Suster “We have invested in many companies over the last year Partner, Upfront Ventures where I have never met the founders in person. That's Dealroom x Sifted event mindblowing for me. But just remember that raising money is a bit like Ireland in the 90’s — no divorces allowed.” Bay Area topped out in 2014

Cumulative number unicorns and $1B+ companies “Peak Bay Area was in 2014.” in the US. If you were to start a company today, where would be the Peak Bay Area ? most beneficial place to found in the interest of the “The meme right now is that the pandemic has finally company’s long-term success? kicked the Bay Area off its pedestal.… But the reality for us 30 44 58 83 126 182 217 262 395 518 666 853 and our portfolio is that the Bay Area’s share of companies 2020 in our portfolio has been declining for seven years. 100% San Francisco Bay Area 41.6% 90% “Following the 2008 financial crash, the region was both ▊Rest New York 13.5% Los Angeles substantially cheaper and had a strong corps of technical 80% 13.5% 10.1% talent. But by the mid-2010s, the stresses and pressures Seattle 70% Other: A major city inside of the US 9% of the rising cost of living became widely known, it became ▊Boston * Other: A major city outside of the US 6% much harder to compete against Big Tech companies on Distributed or remote from Day 1 6% recruiting and so this trend began reversing as companies 60% ▊New York began spreading out. By 2018, fewer than half of our 50% companies in the fund beginning that year were based in 2021 Northern California.“ 40% 42.1% 30% 28.4% ▊Bay Area 6.8% Kim-Mai Cutler 20% New York 6.8% 4.6% Initialized Capital 10% 3.4% 3.4%

2.3% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1.1% Page / 33 Source: Dealroom.co | *Greater Boston Region. 1.1%

Distributed or remote % of unicorns from Bay Area (dealroom.co data) San Francisco Bay Area ▊ Cumulative unicorns Austin ▊ New unicorns per year Other: A major city outside of the US 70% Los Angeles Other: A major city inside of the US Denver 60% Miami Seattle

50%

40%

30%

20%

10%

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 [top USA hubs by (future) unicorns]

Unicorns

Bay Area 322 New York 82 Boston Metro 41 Future Unicorns Los Angeles 20 Bay Area 545 Seattle 16 New York 192 Austin 12 Boston Metro 167 84 San Diego 10 Los Angeles San Diego 60 Chicago 10 Austin 33 8 Atlanta Chicago 31 Bellevue 8 Seattle 24 Denver 4 Atlanta 21 Washington 4 Houston 10 Salt Lake City 4 Dallas 9 Wauchula 9 Wauchula 3 Philadelphia 9 Houston 2 Durham 9 Boulder 2 Denver 8 Minneapolis 2 Washington 8 Santa Barbara 2 Pittsburgh 7 Columbus 2 Boulder 6 Nashville 5 Lexington 1 Lexington 5 Nashville 1 Minneapolis 4 1 Dallas Bellevue 4 Philadelphia 1 Salt Lake City 4 Pittsburgh 1 Columbus 4 Durham 0 Santa Barbara 4

By number of future unicorns, New York and Boston together are getting close to Silicon Valley size. The center of gravity is shifting away from Bay Area.

Unicorns and $1B+ exits * Future unicorns *

1.7x 1,000

Denver (28) Chicago(29) Atlanta (29) Seattle (30) 594 Washington DC (31) Austin (36) Greater Los Angeles (66) 1.2x 461 San Diego (68) Top-3 cities are 392 already as large as Bay Greater Boston Region (195) New Jersey (15) Area. New York and Salt Lake City (16) Austin (16) Boston cluster cover Chicago (21) Seattle (28) roughly same travel Greater Los Angeles (54) area as Bay Area. New York City (219) Greater Boston Region (61) New York city (113) Bay Area Rest of USA Bay Area Rest of USA

Page / 34 Source: Dealroom.co | * number of startups founded since 1990 that reached $1B+ valuation or $250M-$1B for future unicorns.

82 41 20 16 12 10 10 8 Tech workers are scattering across the US.

Believe the hype? Miami and Houston are the US metros with largest migration "It used to be that you waited until 10 to 15 years changes for software and IT workers. into your career and then you could make a choice about where you wanted to live. Now it's like, oh

Market area Year-over-year percent change yeah, I came to California for a year, now I can go be where I want to be. (Joseph Woodbury)” Miami-Fort Lauderdale 15.4% Houston 10.4% “Pandemic moves are redistributing coveted tech Dallas-Fort Worth 8.6% workers more evenly across the country after Philadelphia 8.1% being so heavily concentrated in just a handful of Los Angeles 6.5% cities for years. Atlanta 2.9%

Denver, Colorado 0.5% “This is also expected to help spread wealth, job Chicago -5.1% Austin -8.0% opportunities and startup creation in new places.”

Washington D.C. / Baltimore -9.6%

Boston -9.7% Kim Hart

Seattle -17.2% Axios article “COVID-19 scatters tech

New York City -18.2% hubs for young talent”

San Francisco Bay Area -35.8%

Page / 35 Analysis comparing metro areas’ inflow-outflow ratio based on LinkedIn users’ profile location changes from March 2020 - February 2021 vs. March 2019 - February 2020 (via Axios)

Data: LinkedIn Chart: Michelle McGhee/Axios  = fastest growing hubs according to LinkedIn Workforce Insights

Houston, TX Seattle, WA Washington DC Atlanta, GA Chicago Santa Barbara, CA Minneapolis, MN Tampa, FL Bay Area 3.9x Miami metro 3.7x Denver, CO 3.3x Austin, TX 3.2x Connecticut 3.0x Charlotte, NC 2.5x Phoenix, AZ 2.5x Nashville, TN 2.0x Columbus, OH 2.0x Cleveland, OH 2.0x Columbia, SC 1.0x Unicorn cities in the US St. Louis, MO 1.0x Grand Rapids, MI 1.0x Buffalo, NY 1.0x Bend, OR 1.0x Growth: increase in number of Unicorns >300 Bellevue data is usually included in Seattle (it is the town Kansas City 1.0x >100 >50 >10 >5 >2 1 across the river and often incl as an extension of Seattle) it is Morehead, KY 1.0x since 2015 unicorns Orlando, FL 1.0x where all the rich microsoft people live. I would not include Albuquerque, NM 1.0x Salt Lake City, UT 16.0x this seperately as it will be confusing to americans. seattle Pittsburgh, PA 1.0x New Jersey 15.0x Portland, OR 1.0x San Diego, CA 14.0x Seattle metro area it is reffered to: seattle, belvue and tacoma, : Lexington, KY 1.0x Philadelphia, PA 10.0x https://en.wikipedia.org/wiki/Seattle_metropolitan_area Indianapolis, IN 1.0x Las Vegas, NV 1.0x Greater Los Angeles 6.8x Portland Greater Boston Region 6.1x need to specify which Columbus; I assume Ohio? not known Dallas, TX 6.0x Bend enough to just include city. Raleigh-Durham 6.0x Minneapolis Detroit, MI 6.0x Greater Boston Buffalo New York City 5.4x Grand Rapids [Number of Unicorn + FU per US hub and growth (2016-now)] Connecticut Chicago Detroit New York City Salt Lake City Cleveland Bay area New Jersey Pittsburgh Denver Columbus Philadelphia Indianapolis Washington DC Density: number of unicorns per 1M Las Vegas Kansas City St. Louis Morehead inhabitants Lexington Santa barbara Raleigh-Durham Nashville Albuquerque Charlotte Bay Area 50.3 Greater Los angeles San Diego Phoenix Austin, TX 16.0 Atlanta Columbia

New York City 13.6 Dallas Salt Lake City, UT 13.3 Greater Boston Region 13.3 Austin Santa Barbara, CA 8.0 Houston Orlando Seattle, WA 7.0 Tampa Miami Raleigh-Durham 4.3 San Diego, CA 4.2 Denver, CO 3.4

Page / 36 Source: Dealroom.co https://docs.google.com/spreadsheets/d/1OfbQvJrt60X3JzNC722SpuC7nyiHyuOGB_zQbjby0tc/edit?ts= 60bf5465#gid=0

Utah is the fastest growing state in the US when it comes to Unicorn creation.

Unicorns and $1B+ exits in Utah “Utah is one of the most entrepreneurial states in the US, and this is a major factor in our status as the fastest growing economy in the US. Startups help us grow now and create cornerstones of our economy in the future. Qualtrics, Merit Medical, and Black Diamond Equipment were once startups in Utah. Startups from outside the state add to this growth engine, “Utah's culture is its secret 16x sauce. Founded by bold, and we welcome the talent, diversity, and capital principled, industrious, and they are able to bring with them and to attract.”

courageous pioneers, that spirit “Utah has outstanding social cohesion. Our lives on in our state.” government, community, and business leaders compromise and collaborate and are kind and David Carlebach civil. They believe in the One Utah Roadmap Vice President where the state's success benefits everyone.” 1x International Investment World Trade Center Utah

2014 2015 2016 2017 2018 2019 2020 2021

Page / 37 Source: Dealroom.co https://fd.nl/achtergrond/1383907/-syf1cayznUAM?utm_medium=social&utm_source=linkedin&utm_campaign=earned&utm_content=20210531 Talent from the city’s local universities and colleges is Programs devoted to supporting minority another advantage in the ecosystem, especially with entrepreneurs. the presence of Historically Black Colleges and 21% van de tech werkers is er zwart, tegen slechts 2% in Silicon Valley. Universities (HCBUs) like Morehouse College, Spelman Programs: College and Clark-Atlanta University. Programs like sdsd Invest Atlanta’s Students2Startups, which provides subsidized internships for college students to local Incubators: Atlanta startups, and efforts with the City’s workforce The Women’s Entrepreneurship Initiative (WEI), development arm, WorkSource Atlanta, helps train up powered by Invest Atlanta tech talent and fuel these diverse tech talent pipelines. Russell Center for Innovation and Entrepreneurship (RCIE) “Atlanta’s competitive edge is its diversity” Atlanta Tech Village (ATV) Advanced Technology Development Center (ATDC) The Gathering Spot “Talent from the city’s local universities and colleges “The city features many programs devoted to is another advantage in the ecosystem, especially supporting minority entrepreneurs. The Women’s Entrepreneurs and ecosystem leaders: with the presence of Historically Black Colleges and Entrepreneurship Initiative (WEI), powered by Invest Paul Judge of Pindrop Universities (HCBUs) like Morehouse College, Spelman Atlanta, is believed to be the only city-funded Jewel Burks Solomon of Google for Startups College and Clark-Atlanta University. Programs like incubator for women in the nation. Other incubators, Joey Womack of Goodie Nation Nathan Regan Lexie Newhouse Invest Atlanta’s Students2Startups, which provides accelerators and coworking spaces like the Russell Senior Vice President, Innovation & Entrepreneurship subsidized internships for college students to local Center for Innovation and Entrepreneurship (RCIE), Institutions: Economic Development Program Manager Atlanta startups, and efforts with the City’s workforce Atlanta Tech Village (ATV), Advanced Technology Invest Atlanta Invest Atlanta Invest Atlanta development arm, WorkSource Atlanta, helps train up Development Center (ATDC) and The Gathering Spot The Mayor’s Office of International Affairs tech talent and fuel these diverse tech talent pipelines. play a significant role in fostering community and Metro Atlanta Chamber of Commerce providing access to technical assistance and capital Georgia Department of Economic Development and “Atlanta’s , tech industry accounts for 12.5% of the across the city. Entrepreneurs and ecosystem leaders city’s economy. Announcements such as Microsoft and like Paul Judge of Pindrop, Jewel Burks Solomon of Partners: Airbnb making the move to Atlanta continue to pop up Percentage of tech workers Google for Startups and Joey Womack of Goodie La French Tech across the city with new offices and opportunities. Nation truly power these programs and partnerships. Toulouse What continues to attract both homegrown startups that are African American. As many global tech hubs recognize, there must be a Toronto and transplants is access to capital, talent, programs (source: Center for American Progress) collaborate effort and succinct vision across all facets and corporations. of the ecosystem. 21% “With 22% of residents living below the poverty line, “Atlanta’s entrepreneurial tech ecosystem reaches access to capital for minority entrepreneurs is a far beyond the city. Through partnerships among challenge, particularly due to a lack of generational Invest Atlanta, The Mayor’s Office of International wealth among African American families. This is key Affairs, Metro Atlanta Chamber of Commerce, Georgia for startups, where many source their first rounds of Department of Economic Development and others, funding from friends and family. Atlanta continues to Atlanta continues to compete and collaborate with prioritize access to capital for black and brown 2% neighboring tech hubs. Most recently, Atlanta was communities through institutions like the Fearless officially named a ‘La French Tech’ Hub by France’s Fund and Zane Venture Fund, in addition to Invest Ministry of Economy, Finance and Recovery, for instance.” Atlanta’s low-interest loan programs. Atlanta USA average Houston Orlando

Susan Davenport Sherry Gutch Chief Economic Development Officer VP Innovation Greater Houston Partnership Orlando Economic Partnership

“We are America’s most diverse city with one in four “Orlando’s innovation economy launched with the country’s Houstonians born outside the U.S. Because of this global space race and has not slowed down since man landed on the spirit and entrepreneurial outlook, we’re not a place moon. From simulation and defense to autonomous vehicle where folks will get in your way, but rather understand technology, the diverse industries that make up Orlando’s that as each Houston company, start-up, etc. succeeds, collaborative businesses community foster an innovation-driven we all get a little bit better.” environment helps the region lead the nation emerging technologies and experiential entertainment.”

Notable tech companies: Notable tech companies:

Page / 39 Source: Dealroom.co Analyze the data online

Fastest growing by funding is San Diego and Boston Fastest growing hubs in the US. Growth (2021E vs. 2016)

Growth (2016-today) San Diego 5.3x Boston Metro 5.1x Salt Lake City 4.5x Denver 4.5x Atlanta 4.3x Seattle 4.0x Bellevue 3.9x New York 3.7x Columbus 3.4x Los Angeles 3.3x Bay Area 3.3x Pittsburgh 3.2x Austin 3.0x Houston 3.0x Nashville 2.8x Santa Barbara 2.7x Chicago 2.7x Minneapolis 2.7x Philadelphia 2.6x Lexington 2.2x Dallas 2.1x Washington 1.8x Boulder 1.6x Durham 1.5x Wauchula 1.1x

Page / 40 Page / 40 Source: Dealroom.co

Funding by top tier hub in the US 2015-2020 VC Investment 2015 2016 2017 2018 2019 2020 CAGR San Diego 5.3x Boston Metro 5.1x Bay area $ 38.4B $ 25.5B $ 30.8B $ 52.5B $ 49.8B $ 54.2B 7% Salt Lake City 4.5x New York $ 8.9B $ 11.0B $ 15.9B $ 16.8B $ 15.6B $ 15.1B 11% Denver 4.5x Atlanta 4.3x Boston Area $ 6.0B $ 5.2B $ 7.5B $ 11.8B $ 9.1B $ 11.8B 15% 4.0x Seattle Los Angeles $ 5.4B $ 5.3B $ 4.2B $ 7.2B $ 8.0B $ 10.2B 14% Bellevue 3.9x New York 3.7x San Diego $ 1.2B $ 1.4B $ 1.2B $ 3.5B $ 2.3B $ 4.8B 32% Columbus 3.4x Los Angeles 3.3x Seattle $ 1.3B $ 1.0B $ 1.3B $ 1.7B $ 1.9B $ 3.9B 25% Bay Area 3.3x Austin $ 2.0B $ 1.0B $ 1.2B $ 1.3B $ 1.9B $ 2.2B 1% Pittsburgh 3.2x Austin 3.0x Chicago $ 1.2B $ 1.0B $ 1.7B $ 1.8B $ 1.3B $ 2.2B 12% 3.0x Houston Atlanta $ 0.5B $ 0.4B $ 0.6B $ 0.8B $ 1.1B $ 1.6B 28% Nashville 2.8x Santa Barbara 2.7x Houston $ 1.2B $ 1.4B $ 0.4B $ 0.4B $ 1.0B $ 0.4B -19% Chicago 2.7x Minneapolis 2.7x Dallas $ 0.3B $ 1.1B $ 0.4B $ 0.6B $ 1.4B $ 0.8B 19% Philadelphia 2.6x Pittsburgh $ 0.1B $ 0.1B $ 1.2B $ 0.1B $ 0.2B $ 2.8B 81% Lexington 2.2x Dallas 2.1x Denver $ 1.2B $ 0.4B $ 0.4B $ 0.7B $ 0.4B $ 1.1B -2%

Washington 1.8x Arlington $ 0.6B $ 1.3B $ 0.1B $ 0.1B $ 1.4B $ 0.3B -13% Boulder 1.6x Durham 1.5x Washington $ 0.5B $ 0.3B $ 0.6B $ 1.1B $ 0.5B $ 0.7B 4% 1.1x Wauchula Cary $ 0.0B $ 0.0B $ 0.0B $ 1.3B $ 0.0B $ 1.8B 120% Philadelphia $ 0.1B $ 0.2B $ 0.1B $ 0.4B $ 1.5B $ 0.7B 42% Minneapolis $ 0.3B $ 0.3B $ 0.3B $ 0.6B $ 0.9B $ 0.8B 25% Gardena $ 0.0B $ 0.0B $ 0.0B $ 2.0B $ 0.8B $ 0.0B 84% Boulder $ 0.2B $ 0.2B $ 0.2B $ 1.1B $ 0.5B $ 0.5B 24% Density: unicorn per 1M inhabitants (Density)

San Diego 5.3x Unicorn cities in Europe Boston Metro 5.1x Salt Lake City 4.5x Growth: increase in number of Unicorns Denver 4.5x since 2015 Atlanta 4.3x Mo i Rana

Paris 10.5x Munich 5.5x Manchester 5.0x Stockholm 4.5x Amsterdam 4.3x Helsinki Saint Moscow Oslo Petersburg Madrid 4.0x 70+ Stockholm Berlin 3.8x Nedre Vats Tallinn Borås

18-21 Edinburgh Riga Glasgow Copenhagen Malmö Copenhagen 0 8 Peterborough Vilnius 10+ Manchester Paris 2 21 Fastest growing new Unicorn Cities, London Amsterdam Hamburg Berlin Berlin 5 19 Dublin Münster Poznań Warsaw Interactive Investor, Wejo, Autostore and Freyr 2015-2021 Stockholm 4 18 5+ Amsterdam/Randstad 4 16 Zurich (Metro) +7 Prague 1-5 ParisLuxembourg Munich Copenhagen +4 Oslo +4 Stuttgart Vienna Basel Zurich Hamburg +4 Lausanne Malmö +3 Milan Vienna +3 Grenoble Dublin +3 Lausanne +3 Milan +3 Barcelona Madrid

Page / 41 Source: Dealroom.co

London

Paris Berlin

Amsterdam / Randstad Stockholm (Greater) Zurich Munich Øresund

Northwest England (Manchester, Liverpool) Yorkshire Ruhr Area South-East NL Amsterdam Joël Dori VC investment Startup Liaison StartupAmsterdam €2.5B €2.3B +13.6x €2.0B “The City of Amsterdam, along with private stakeholders, is actively engaged in creating a local ecosystem that facilitates the rapid growth of €1.5B startups and increases the business sector’s commitment to social

€1.0B responsibility and inclusiveness. Startups are attracted to the city because it’s a city with a large talent pool, great infrastructure, ease of €0.5B doing business and a high quality of life. Amsterdam is a pocket-sized world city, providing the best of both worlds: a buzzing business culture and a high level of connectedness. Everybody is just one bike-ride away.” H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enterprise value (companies founded after 1990) Number startup jobs €208B _ Home grown €200B _ Foriegn 77K* 65K €150B

€100B

€50B 2017 2019

2016 2018 2020 2010 2012 2014 2021 » Explore Amsterdam’s Startup Ecosystem Page / 42 Page / 42 Source: Dealroom.co | *Startup jobs in Amsterdam - 2020 Madrid VC investment Eduardo Díaz Sánchez €0.4B +4.1x Head of Unit €0.4B Fundación madrid

€0.3B “In few years the Madrid Region has become a consolidated

€0.2B ecosystem and one of the largest startup centers in Europe, thanks to its intrinsic capacity to unite the action of investors, companies,

€0.1B facilitators, university and research centers, renowned business schools, ... with a diverse business vision, led by many national and international young talents. Madrid exports talent and cooperates H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 with other places, but also attracts many entrepreneurs from other 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 parts of the world.” Enterprise value (companies founded after 1990) €14.5B €15B “The coming years will be vital for the world and the Madrid Region trusts startups as innovation driver to achieve the objectives and Number startup jobs challenges related to sustainable development, digitization, health, _ Home grown 70K €10B the sharing economy, … but also the recovery of sectors such as _ Foriegn tourism or transport. Technologies, i.e. artificial intelligence, medtech, 60K big data, ... and Madrid strong and diverse startup ecosystem has €5B much to offer in this context.”

» Explore the Madrid Startup Ecosystem 2010 2012 2014 2016 2018 2020 2021

PagePage / /43 43 Source: Dealroom.co 2017 2020 London Janet Coyle VC investment Managing Director Business Growth €10B €9.2B London & Partners +2.2x €8B ”London has the “finance” of New York, the “tech” of Silicon Valley and €6B the policymakers of Washington, all within a 15 minute journey by tube. These factors make London one of the world’s most connected global tech €4B hubs in the world, with all the necessary ingredients for startups to succeed, from investors to world-class universities and talent to €2B policymakers – this is our secret sauce.”

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 “London is an outward looking, diverse global city that continues to build 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 strong relationships with tech hubs across Europe and around the world. It Enterprise value (companies founded after 1990) is fundamental for global tech hubs to work together, to share expertise €438B and knowledge, and to drive forward progress and innovation. Working in

€400B collaboration with cities in Europe allows Europe to continue to compete on Number startup jobs the global stage, with the likes of the US and China. Europe had a record _ Home grown 70K €300B year for VC investment last year, and global investors are increasingly _ Foriegn interested in what is going on across the pond from the traditional tech hub 60K €200B in Silicon Valley. There is a lot that European tech is bringing to the table and we are very excited for the future of London and Europe’s thriving tech €100B scene.”

2010 2012 2014 2016 2018 2020 2021 » Explore the UK Startup Ecosystem

PagePage / /44 44 Source: Dealroom.co 2017 2020 Berlin Norbert Herrmann VC investment Startup Affairs €4.1B

€4B Berliner Senatsverwaltung für +4.4x Wirtschaft, Energie und Betriebe

€3B “Looking at automotive and Mittelstand you will find well €2B performing regions outside of Berlin. However, looking at e.g. the overall unemployment rate there is room for additional progress.

€1B This is where the innovative startup ecosystem was and still is playing an important role to make Berlin shine and move ahead.”

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 “There are so many ingredients in the Berlin secret sauce, two 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 important ones are: Berlin is epicentre and melting pot for Enterprise value (companies founded after 1990) innovators and creatives from all over the world. They come and join €145B €150B the Berlin movement because Berlin is a lovable, diverse and always changing environment. Also, Berlin has a startup history, beginning Number startup jobs with Alando, StudiVZ, gate5 and others. The former founders grew _ Home grown 70K €100B to now be established as important players, educators and investors _ Foriegn in today's ecosystem.” 60K

€50B

» Explore the Berlin Ecosystem 2010 2012 2014 2016 2018 2020 2021 Page / 45 2017 2020 Page / 45 Source: Dealroom.co Paris

VC investment Anne Gousset €3.2B Deputy Director General €3B +2.1x Paris&Co

€2B Number of new unicorns ▊ London “Innovative start-ups actively contribute to the economic and ▊ Berlin sustainable development of the territory. Through their concrete ▊ Pairs 337 €1B solutions, they respond to major urban challenges: improving the daily lives of citizens, solving the needs of businesses, communities, 279 or public services. Also creating jobs, they are helping to transform a

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 more inclusive and resilient city!” 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Enterprise value (companies founded after 1990) “It is a combination of public and private investments to reduce risks €99B at launch and then guarantee a good take-off ramp, combining real €100B estate, capital, engineering, visibility. All addressed by a significant number of private and public operators engaged in the development 110 €80B 70K of these startups. An effective mix of practical tools, skills and

€60B business opportunity creation that leads to a sustainability rate of 80% at 5 years of the companies supported, vs 50% at the national €40B level.”

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 €20B » Explore France’s Tech ecosystem 2010 2012 2014 2016 2018 2020 2021 Page / 46 2020 Page / 46 Source: Dealroom.co Cologne Porto Switzerland

Gil Baxpehler Daniela Monteiro Nicolas Bürer Startup Unit Cologne Head of Entrepreneurship Managing Director KölnBusiness Porto Digital digitalswitzerland

“Cologne needs startups if it wants to continue “Startups bring dynamism and innovation to the city “For Switzerland's future competitiveness, it is its path of economic growth. Startups are a big and the region. They also address the big challenges important to bring forth innovations and economic driver and will secure a big portion of our society faces. Even if a big amount of startups successfully master digital transformation. The jobs in the future. It also ensures there is always that survive are unable to scale their growth, the true value of startups, and this does not only innovation coming into various markets and small portion that does, the scaleups, tends to make apply to Switzerland, lies in doing just that, in companies are able to develop as well as to keep a very relevant contribution to competitiveness in driving technological and digital innovation, the region. Once startups become scaleups, they the markets lively. rethinking markets and existing business tend to make a very relevant contribution to patterns, and finding new solutions to "old" innovation, economy and they have a big impact in We have a massive industry over here and the so problems. Successful startups not only society. The integration of scaleups in an called “Mittelstand” but they can’t find all the strengthen a country's innovative power, but also entrepreneurial ecosystem promotes a set of solutions themselves and need help with their positive effects, direct and indirect. These create jobs. They also serve as role models for digitization efforts. Last, startups are also a good companies generate high qualified jobs, others and encourage them to set up ventures. example how to deal with failure or bad decision competitiveness, which has a consequence in Switzerland is home to one of the most modern, by trying again and looking for solutions rather aggregate productivity, leading to more most developed and fastest growing startup than giving up.” opportunities that result in a better quality of live ecosystems in the world.” for all.”

» Cologne Startup Ecosystem » Porto Startup Ecosystem » Swiss Startup Ecosystem

Page / 47 Unicorn cities in Asia Growth: increase in number of Unicorns since 2015

Nanjing 10.0x Hong Kong 8.0x Guangzhou 7.0x Tokyo 7.0x Seoul 6.5x Mumbai 5.0x Jakarta 5.0x Suzhou 4.9x Beijing 4.8x Almaty Shanghai 4.8x Beijing Seoul Bengaluru 4.7x Singapore 4.5x Tokyo Guangyuan Zhengzhou Qingdao Wuhan Chengdu Shanghai Density: number of unicorns per 1M Guiyang Changsha inhabitants New Delhi Shenzhen Taipei Ningde Beijing 5.3 100+ Guangzhou Singapore 3.0 Mumbai Hong Kong Shanghai 2.4 Pune Bengaluru Hangzhou 2.0 Thane Chennai Bangkok 15+ Manilla Shenzhen 1.7 Bengaluru 1.7 Seoul 1.3 10+ Hong Kong 1.1 Singapore Dubai 0.6 Tokyo 0.5 5+ Jakarta 0.5 Suzhou 0.5 1-4 Guangzhou 0.5 Jakarta

Page / 48 Source: Dealroom.co Unicorns per 1m inhabitants

Israel 9M 3.8 Singapore 5.7M 3 Sweden 10.2M 2.1

Switzerland 8.6M 1.5 Hong Kong 7.5M 1.2

Netherlands 17.5M 1.1

United States 328M 0.9 Singapore 5.7M 3 China (Mainland) 1.4B 0.2 Victoria, Australia 6.7M 2.7 United Kingdom 67M 0.1

Beijing Megalopolis Jing-Jin-Ji 112M 1 Shanghai Megalopolis Yangtze River Delta 140M 0.8

Shenzhen-Guangdong Pearl River Delta (excl. HK) 62M 0.6

Singapore: a tech ecosystem that has the best of all worlds doesn’t exi… Singapore’s secret sauce has two key ingredients. These two ingredients make Singapore an innovation Singapore has benefited tremendously from flywheel, where different players come together to startups. Startups inject new ideas and ways of Unicorns per 1m inhabitants propel purposeful ideas from concept to impact. working into cities, offer exciting careers and help to The first ingredient is forward-thinking policies that support innovation. Startups need live environments 9M make cities more liveable. From embedding tech Israel 3.8 to test and scale their innovations. Singapore is like a into spaces and turning them into smart homes and giant sandbox with multiple tech trials implemented at 5.7M offices to using autonomous robots to deliver different parts of the island. The MAS FinTech Singapore 3.0 10.2M groceries. Regulatory Sandbox enables financial institutions and FinTech players to experiment with new financial Sweden 2.1 8.6M Yong Cong CHOY products or services. Autonomous vehicles have been The Nongsa D-Town is an example of how tested on actual roads for years. 7.5M Regional Vice President (Europe) collaboration and competition can coexist. 1.5 The second ingredient is encouraging collaboration. Switzerland Singapore Economic Development Nicknamed “the Digital Bridge between Singapore Singapore is actively bringing startups and corporates 17.5M Board and Indonesia”, D-Town allows Singapore-based Hong Kong 1.2 together through a variety of platforms be it 328M innovation calls, corporate accelerators or companies to hire Indonesia’s pool of young tech consortiums. For startups in Europe that are keen to 25.4M As a small nation with no natural resources, talent and access the Indonesian market. Netherlands 1.1 work with top Asian enterprises, the Singapore Europe

Singapore has always strived to remain open and Innovation Pitch Forum (SEIPF) is not to be missed. In 1.4B collaborative. Even before the rise of digital tech, Scale-ups looking to internationalise often look to United States 0.9 the 2020 run, 198 submissions were received, and 67M Singapore had established links with other Singapore as a “scale-up launchpad” where they there were more than 100 follow-ups from 16 corporates with 42 startups. innovation hubs in the world. Tech has “shrunk” the Australia can tap into Southeast Asia’s huge market and 0.8 Compared to some tech hubs, Singapore’s tech world. Therefore, it is imperative for Singapore to be access talent. Companies like Zoom, Endava, Palo IT ecosystem is young but we are starting to see how it is well-connected with other global tech hubs and be and Bytedance are leveraging Singapore’s tech China 0.2 bearing fruit. With exits and IPOs of unicorns such as a key node in that network. ecosystem to grow their business. Revolut Sea, which is the world’s best performing stock in 2020 and Grab, which is anticipated to be valued at amassed 77,000 customers in less than two years United Kingdom 0.1 US$39.6 billion (S$52.6 billion) after its Spac listing in after establishing their SEA business in Singapore. July 2021, Singapore is at a value inflection point in the growth of its tech ecosystem. The experienced class of Page / 49 Source: Dealroom.co investors, entrepreneurs, mentors, and tech talent, that have shaped the Singapore tech ecosystem are now ready to fuel the next generation of startups. This cycle of exits and reinvestment signals the next stage of Singapore’s journey as a tech ecosystem.

"Yong Cong CHOY, Regional Vice President (Europe), Singapore Ecomomic Development Board

Q: Why do cities need startups? Historically, startups - or high-risk ventures - have been engines of growth for cities and have even brought about systemic waves of economic change. In the early 1800s, New Bedford, MA was the hub for risky whaling ventures, where the concept of venture capital and the incentives of investors, agents, and crew were aligned, creating an entirely new asset class and still forms the basis of how new technologies are funded and fuelled today. Further on, people remember Samuel Slater’s “transfer” of British cotton textile tech to the US, but it was the same vehicle of high-risk ventures that Slater and his investors rode on, bringing about the industrialisation of Rhode Island, and eventually the USA. Today, startups and its surrounding enablers still perform the same role, bringing new technology, growth, and economic change to cities. This very trend is happening in Singapore, where startups inject new ideas and ways of working into cities, offer exciting careers to city dwellers and frequently help to make cities a more liveable place. Singapore as a city-state has benefitted tremendously from the work of startups. From embedding tech into spaces and turning them into smart homes and offices to using autonomous robots to deliver groceries, tech developed by startups in Singapore have helped make the city the top place in Asia to live in. Cities and startups also share a symbiotic relationship. To thrive, startups need cities that provide a conducive environment that offers three things. One, a strong network of public and private investors that can offer ample funding and mentorship. Two, a base of tech talent across seniority and expertise. Three, stability, security and varied lifestyle offerings, so that familial needs and personal aspirations can also be met.

Q: How does Singapore balance competition and collaboration with other global tech hubs? As a small nation with no natural resources, Singapore has always strived to remain open and collaborative. Even before the rise of digital tech, Singapore had established links with other innovation hubs in the world, such as Israel through the Singapore Israel Industrial Research and Development Foundation (SIIRD), which started in 1997. Fast forward to today, tech is evolving at such a rapid pace and it just makes sense to work with others rather than try to come up with everything alone. Tech has also “shrunk” the world. Businesses and talent are able to communicate and move around quickly, bringing their ideas, products and services across markets. Therefore, it is imperative for Singapore to be well-connected with other global tech hubs and be a key node in that network.

The Nongsa D-Town is an example of how collaboration and competition can coexist in the same space and how nations can work together to leverage each other’s strengths. Nicknamed “the Digital Bridge between Singapore and Indonesia”, D-Town allows Singapore-based companies to hire Indonesia’s pool of young tech talent and access the Indonesian market. There are hopes that these tech talents would pick up skills from their stints in D-Town and bring back knowledge and opportunities to other parts of Indonesia.

Singapore has also established a range of international innovation programmes to enable cross-border joint technology development. Singapore-based companies can work with companies in Shanghai, Germany, France and 14 countries in the EUREKA network to co-develop technologies in areas with the potential for global impact such as biopharmaceutical & life sciences, smart cities development, and urban solutions & sustainability.

Scale-ups which started up in other tech hubs and looking to internationalise often look to Singapore as a “scale-up launchpad” where they can tap into a growing pool of customers in Southeast Asia, access talent, and develop new tech, products, and services to enter other APAC markets. Tech giants, scale-ups and startups hailing from across the globe like Zoom, Endava, Palo IT and Bytedance are leveraging Singapore’s tech ecosystem to grow their business. In the case of fintech Revolut, it amassed 77,000 customers in less than two years after establishing their SEA business in Singapore.

Q: What is Singapore's ""secret sauce"" to building its ecosystem? Singapore’s secret sauce has two key ingredients. These two ingredients make Singapore an innovation flywheel, where different players come together to propel purposeful ideas from concept to impact. The first ingredient is forward-thinking policies that support innovation. Startups need live environments to test and scale their innovations. Singapore is like a giant sandbox with multiple tech trials implemented at different parts of the island. The MAS FinTech Regulatory Sandbox enables financial institutions and FinTech players to experiment with new financial products or services. Autonomous vehicles have been tested on actual roads for years. The second ingredient is encouraging collaboration. Singapore is actively bringing startups and corporates together through a variety of platforms be it innovation calls, corporate accelerators or consortiums. For startups in Europe that are keen to work with top Asian enterprises, the Singapore Europe Innovation Pitch Forum (SEIPF) is not to be missed. In the 2020 run, 198 submissions were received, and there were more than 100 follow-ups from 16 corporates with 42 startups. Compared to some tech hubs, Singapore’s tech ecosystem is young but we are starting to see how it is bearing fruit. With exits and IPOs of unicorns such as Sea, which is the world’s best performing stock in 2020 and Grab, which is anticipated to be valued at US$39.6 billion (S$52.6 billion) after its Spac listing in July 2021, Singapore is at a value inflection point in the growth of its tech ecosystem. The experienced class of investors, entrepreneurs, mentors, and tech talent, that have shaped the Singapore tech ecosystem are now ready to fuel the next generation of startups. This cycle of exits and reinvestment signals the next stage of Singapore’s journey as a tech ecosystem.

" Unicorn cities in Oceania

Melbourne 14 Sydney 6 Wellington 1

Oceania Australia & New Zealand Melbourne, Victoria VC funding since 2015 San Diego 5.3x VC investment Boston Metro 5.1x Funding into startups in Oceania, 2015-2021 €2.0B Salt Lake City 4.5x €1.7B Denver 4.5x XX Australia XX Other countries XX Projected (2021) Atlanta 4.3x +1.5x $4b €1.5B Sydney, NSW Wellington, NZ €1.1B Xero €1.0B $3.5b

$3b €0.5B

$2.5b $2.4b H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 $2b $2b $1.9b Enterprise value (companies founded after 1990)

€200B €185B $1.5b $1.4b

$1.1b €150B $1b $0.9b $0.8b

€100B $500m

€50B

2015 2016 2017 2018 2019 2020 2021*

2010 2012 2014 2016 2018 2020 2021

Page / 50 Source: Dealroom.co Page / 50

VC funding since 2015

San Diego 5.3x Boston Metro 5.1x Salt Lake City 4.5x Denver 4.5x Atlanta 4.3x “Many of the 16 unicorns and their founders that have been created in Melbourne, Australia in the last 10 years are generous with their time and experience. This culture of collaboration and a united vision for success is undoubtedly making our startup ecosystem stronger.”

“In 2020 the Victorian Government invested “Startups play a valuable role in Combined enterprise value of startups created $110.5 million via LaunchVic to activate since 1990 in Victoria (incl Melbourne) Victoria’s economy by creating early-stage startup investments; support programs that grow more scaleups; and drive jobs and helping to drive Victoria’s $45B awareness and advocacy for the local startup economy forward. Job growth in sector. The work that is underway in Victoria the startup sector was 11% in with regard to early-stage investment is comparison to Victoria’s economy foundational and will dramatically alter the startup ecosystem in the next 5 to 10 years. as a whole at 3.1% over the last 3 $29B $15B “As Victoria’s startup agency, LaunchVic’s years, Dealroom.co’s report $10B experience of the sector is one that harbours a showed.” culture of giving back and knowledge sharing. $6B $3B “Many of the 18 unicorns and their founders $2B that have been created in Melbourne, $1B Australia in the last 10 years are generous $825M with their time and experience. This culture of $641M $654M collaboration and a united vision for success is $367M Dr Kate Cornick undoubtedly making our startup ecosystem

CEO stronger.” LaunchVic 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 » Explore Victoria’s Tech ecosystem

Page / 51 Source: Dealroom.co

https://findingstartups.launchvic.or g/companies.startups/f/launch_ye ar_min/anyof_2000/regions/anyof _Victoria%20State?showStats=YEA R&statsType=combined_value Number of Unicorns

Sao Paulo 14 https://app.dealroom.co/companies. Mexico City 3 startups/f/slug_locations/anyof_~lati Belo Horizonte 2 Curtiba 2 n_america~?companyEmployees& Montevideo 1 Bogota 1 showStats=YEAR&sort=-valuation& statsType=combined_value Unicorn cities in Latin America >10 >5 >2 1

Latin America

VC investment €8B €7.7B

+5.5x €6B Mexico City / Mexico €4B

€2B €1.4B Bogotá / Colombia

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Belo Horizonte / Brazil

Enterprise value (companies founded after 1990) €246B €250B São Paulo / Brazil

€200B

€150B

€100B Curitiba / Brazil

€50B Montevideo / Uruguay

2010 2012 2014 2016 2018 2020 2021

PagePage / /52 52 Source: Dealroom.co

Latin America

VC funding since 2015

Brazil €13.1B Mexico €3.5B Colombia €2.9B Argentina €0.7B Cayman Islands €0.6B Panama €0.4B Uruguay €0.3B Costa Rica €0.3B Chile €0.3B Peru €0.1B since 2015 Israel 3199 Turkey 985 United Arab Emirates 991 Egypt 368 Saudi Arabia 188 Morocco 180 Lebanon 117 Jordan 108 Iran 118 Bahrain 78 Tunisia 68 Kuwait 55 Qatar 32 Algeria 17 ▉ Initial Contact Oman 15 Number of unicorns ▉ Proposal Israel 38 ▉ Signed Iraq 17 Turkey 2 ▉ Launched Yemen 8 UAE 2 Saudi Arabia 1 Libya 7 Egypt 1 Syria 7 Palestine 2 Western

Sahara* Middle East and North Africa VC investment

€8B Turkey / Israel / Tel-Aviv €7B XXX (excl. Israel) Istanbul +2.6x >30 >2 >1 €6B San Diego 5.3x Boston Metro 5.1x Salt Lake City 4.5x €4B Denver 4.5x Atlanta 4.3x €3B YoY Growth, total funding into startups by country, 2020-2021 €2B Turkey 18.6x Qatar 5.3x Jordan 4.6x H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 Saudi Arabia 3.2xMobileye Wix SolarEdge ironSource Lightricks 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 UAE 2.6xMonday.com Mellanox LivePerson Ree Automotive OrCam Egypt 2.4x Habana WIZ Mazor Robotics INFINIDAT Riskified Israel 2.2x NextSilicon NeuroRx Gett PlayTika JoyTunes Enterprise value (companies founded after 1990) Morocco 1.4x ForeScout Otonomo Innoviz Insightec Earnix Kuwait 0.6x Conduit Moon Active Fundtech Valens Playtech €300B €275B NeuroDerm NSO Hailo Drivenets Aqua Security Cato Networks Bringg Nayax

€200B

€100B

Egypt / Cairo Saudi Arabia / Riyadh UAE / Dubai

2010 2012 2014 2016 2018 2020 2021

Page / 53 Source: Dealroom.co

VC Activity into startups 2015-2021, MENA excl. VC Funding into startups 2015-2021, Israel ($) Israel($)

$1b $1b

$500m $500m TO UPDATE TO UPDATE

2015 2016 2017 2018 2019 2020 YTD* 2015 2016 2017 2018 2019 2020 YTD* https://app.dealroom.co/companies. startups/f/slug_locations/anyof_afric https://app.dealroom.co/companies. a?companyEmployees&showStats startups/f/slug_locations/anyof_afric =YEAR&sort=-valuation&statsType a?companyEmployees&showStats =YEAR&sort=-valuation&statsType ▉ Initial Contact =combined_value ▉ Proposal =combined_value ▉ Signed >1 ▉ Launched >100 >50 >10 >5 >2 1 unicorns

Sub-saharan Africa Ghana Nigeria

VC investment Ghana Nigeria €800M €785M +3.2x Unicorn: [Chipper logo] Unicorns: Opay, Interswitch, Jumia Notable startups: [...] Notable startups: [...] VC funding since ‘15: VC funding since ‘15: €600M $241m over 49 rounds, $1.9b over 204 rounds, incl. $104m over 13 rounds in 2021, YTD. incl. $474m over 34 rounds in 2021, YTD. €400M

€245M €200M

H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Enterprise value (companies founded after 1990)

€25B €21B

€20B

€15B

€10B South Africa

South Africa €5B Prosus Notable startups: [...] 2010 2012 2014 2016 2018 2020 2021 VC funding since ‘15: $931m over 272 rounds, PagePage / /54 54 Source: Dealroom.co incl. $175m over 31 rounds in 2021, YTD.

https://app.dealroom.co/unicorns/f/slug_locations/anyof_africa/ta gs/allof_verified%20unicorns%20and%20%241b%20exits New unicorns Hub Region Country since 2020

Bay area USA and Canada United States 131

New York USA and Canada United States 70

Los Angeles USA and Canada United States 22

London Europe United Kingdom 20

Beijing Asia China 19

Boston metro USA and Canada United States 18

Tel Aviv Asia Israel 13

Chicago USA and Canada United States 10

Salt Lake City USA and Canada United States 10

Paris Europe France 9

New unicorns Hub Region Country since 2020

London Europe United Kingdom 20

Paris Europe France 9

Berlin Europe Germany 7

Munich Europe Germany 6

Stockholm Europe Sweden 5

Amsterdam Europe Netherlands 4

Oslo Europe Norway 3

Malmö Europe Sweden 3

Vienna Europe Austria 2

Helsinki Europe Finland 2

Fastest growing by funding is San Diego and Boston Compare & benchmark startup ecosystems.

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