Advance Manufacturing Venture Capital Report FCF DeepTech Series
November 2020 EXECUTIVE SUMMARY
FCF OVERVIEW 0 ADVANCED MANUFACTURING VENTURE CAPITAL MARKET
ADVANCED MANUFACTURING IPO EXITS
ADVANCED MANUFACTURING M&A EXITS
2 FCF DeepTech Series
The ‘FCF DeepTech FCF DeepTech Series Series’ is a standardized set of FCF analyses and tracks the European funding trends within four main DeepTech verticals. Each quarter, one of the four verticals is examined reports, tracking individually. FCF defines 'DeepTech' companies as firms whose product or service offerings are based on heavy R&D, patent development, substantial European VC scientific advances and high-tech engineering, creating real technological innovations (in contrast to Internet-Platform companies applying 'state-of-the- funding trends within art' technology to transform a non-digital business model to a digital one) four main DeepTech verticals and can be used as a quick FCF DeepTech Verticals reference for investors, corporates CleanTech Internet of Things (IoT) Developers of technologies that seek to reduce the Companies that provide a product that is enabled with sensors and professionals environmental impact of human activities or to significantly and actuators, embedded in physical objects, and / or software reduce the amount of natural resources consumed through that uses this sensor data to improve the user experience or More advanced, such activities allows for sharing of this data with a network of other devices detailed and / or customized reports Advanced Manufacturing THIS REPORT Robotics are available upon Companies utilizing innovative and novel technologies to Automated or remote-controlled mechanical devices and improve products or processes related to manufacturing technology. This includes machinery programmed to perform request repetitive tasks, precision tasks and remote-operated movement or travel (e.g. UAVs, etc.)
Recipients Availability
The FCF DeepTech Series targets the following recipients: The FCF DeepTech Series is available on FCF’s website at 'https://www.fcf.de/de/research/' ■ Corporates / Executives ■ Family Offices / HNWIs ■ Institutional Investors ■ Advisors To recommend colleagues or fellow investors to be added to the ■ Venture Capital Investors mailing list, kindly send an email with the respective contact information If you have questions, comments or ideas, please do not hesitate to contact us
3 Q3 Vertical – Advanced Manufacturing
This edition of the Advanced Manufacturing Subsectors ‘FCF DeepTech Series’ focuses on The Advanced Manufacturing vertical features companies utilizing innovative and novel technologies to improve products or processes related to VC funding develop- manufacturing. This includes innovative machinery and autonomous robots that complete a larger part of the manufacturing process as well as sensors, ments within the software and IoT systems intended to make the production of goods more efficient and effective. The Advanced Manufacturing vertical has been further European Advanced divided into the following subsectors: Manufacturing vertical Additive Manufacturing Sensors and IoT Platforms The European Developer of solutions designed to deposit materials in given Provider of sensors and IoT systems intended to aid the Advanced geometrical shapes (e.g. 3D Printing). The subsector also automation of manufacturing processes or improve the Manufacturing includes providers of design and engineering solutions for performance of them. Potential uses include sensors that can additive manufacturing uses determine a machine’s maintenance needs vertical has been split into four main subsectors Robotic Automation Industrial Process Software (i) Additive Innovators that use robotic solutions to automate Designer of software intended to use artificial intelligence, manufacturing steps usually completed manually. Examples of machine learning and / or big data processing to identify Manufacturing, products include autonomous warehouse systems and inefficiencies within a manufacturing process and suggest (ii) Robotic industrial handling robots improvements Automation, (iii) Sensors and IoT Platforms, (iv) Industrial Selection of Companies Data Process Software The companies were selected based on the following criteria: All input data is provided by Pitchbook and S&P Capital IQ and has not been independently ■ Companies that have raised venture capital since 2015 verified by FCF. For additional information and ■ Company HQ located in Europe except Russia disclaimer, please refer to the last page ■ Company operating within the Advanced Manufacturing vertical
4 EXECUTIVE SUMMARY
FCF OVERVIEW 0 ADVANCED MANUFACTURING VENTURE CAPITAL MARKET
ADVANCED MANUFACTURING IPO EXITS
ADVANCED MANUFACTURING M&A EXITS
5 FCF Overview
FCF seeks to Who We Are Capital Markets Capabilities and Services provide its clients ■ Specialized Investment Bank and Financing Specialist ■ Venture capital ■ Private equity with financing Private / ■ Advising public and private small- / midcap companies Pre-IPO ■ Growth capital solutions ■ Advisor for structuring and placement of financing transactions: ■ Initial Public Offering pursued in tandem) (i) at the lowest (IPO) / Capital increase ■ Private investment in
Equity Public cost, − All instruments: Unbiased approach to all available corporate ■ Dual-track (IPO and Public Equity (PIPE) financing instruments (no product selling approach), allowing alternative transaction ■ Block trade (ii) with the highest for customized financing structures flexibility, ■ Receivables / Factoring / ■ Working capital / − All investors: Close and trusted relationships with senior Short-term Asset-backed securities Revolving credit facility (iii) in the shortest executives of virtually all relevant equity and debt investors Debt ■ Borrowing base / ■ Guarantees / Inventory Letter of credit period of time, − Fast process: Process management skills and direct / personal (iv) with the highest access to institutional debt and equity investors enable fast ■ Bank loan facility / ■ Promissory note Syndicated loans (Schuldscheindarlehen) closing proba- transactions Debt ■ Sale-and-lease-back / ■ Second lien / Long-term Leasing Subordinated loans bility, and with Debt ■ More than 100 transactions with a total placement volume in ■ Corporate bonds (public / ■ Venture debt (v) financing excess of EUR 4.0 billion since foundation in 2005 private placement) ■ Unitranches partners that ■ High yield / PIK bond ■ More than 15 professionals headquartered in Munich integrate well Hybrid ■ Mezzanine capital ■ Convertible bonds into their strategy Selected Transactions
European Investment Family Office Advisory European Investment Guarantee & Debt Syndicated Loan, Capital Increase and Round Extension Transaction Support Capital Increase Factoring Facility Investment in Acquisition Financing Bank Debt Facility & Acquisition Bank Debt Facility Facilities Factoring and Inventory Round Extension Financing Facilities Leasing
[confidential] [confidential] Advisor to AkrosA Hydrogenious LOHC Infrastructure Hydrogenious LOHC Doppstadt GSE Group Immunic AG Homegoods Company ROBART GmbH Vasopharm GmbH Synapticon GmbH KMP Holding GmbH Private Equity Technologies GmbH Company Technologies GmbH Familienholding GmbH Acquisition by Finexx GmbH & Co. KG ~ EUR 25m EUR 80m [confidential] [confidential] ~ EUR 20m EUR 17m EUR 80m > EUR 10m [confidential] > EUR 10m > EUR 15m October 2020 June 2020 February 2020 December 2019 November 2019 July 2019 July 2019 June 2019 June / January 2019 March 2019 December 2018 December 2018
Syndicated Loan European Investment European Investment European Investment European Investment Syndicated Loan Bilateral European Investment Bilateral Loan Facility Capital Increase Capital Increase Promissory Note Facility Bank Debt Facility Bank Debt Facility Bank Debt Facility Bank Debt Facility Facility Loan Facility Bank Debt Facility
[confidential] [confidential]
DSD – Duales System Business Service Leading Virtual Ziegler Holzindustrie Schnellecke Group KMP Holding GmbH censhare AG AMW GmbH Voxeljet AG numares AG MagForce AG Holding Biofrontera AG Provider Reality Company GmbH & Co. KG AG & Co. KG GmbH & Co. KG [confidential] > EUR 10m < EUR 10m EUR 25m EUR 25m EUR 25m EUR 11m EUR 35m EUR 70m EUR 55m EUR 30m EUR 20m April 2018 April 2018 April 2018 December 2017 December 2017 November 2017 November 2017 July 2017 July 2017 June 2017 June 2017 May 2017
6 FCF Facts & Figures
More than Close to More than More than # 1 15 100 100 4 bn financing advisor in investment banking years of aggregated, completed total volume of advised & Germany, purely focusing professionals investment banking / transactions closed transactions since on corporate financing financing experience 2005 transactions
More than More than Network 2000 25 120 Leading access to more than contacts to family offices international conferences articles and research advisor for financing 4000 international and ultra-high-net-worth organized papers published transactions with EIB in financial institutions individuals worldwide the DACH region
7 Case Study: ROBART GmbH EUR 9m European Investment Bank Growth Finance Facility
FCF advised Company Description Financing Options ROBART GmbH on ■ ROBART GmbH (ROBART) is the technology leader in the field of AI- ■ Up to the transaction, ROBART was financed with venture capital by a EUR 9m navigation systems for home appliance robots several blue chip venture capital / corporate venture firms development debt ■ The company develops innovative navigation solutions, combing AI ■ In order to accelerate growth, the company intended to raise further facility from the software, patented LIDAR technology and IoT services, enabling financing, especially to fund the expansion of its sales & marketing European intelligent robotic navigation and human-robot interaction efforts, working capital requirements and further R&D spending Investment Bank ■ ROBART’s products and services help its customers - blue-chip home ■ Equity financing with existing and new investors was considered but the appliance manufacturers - to accelerate the product development of combination of the amount required and the valuation obtainable would (EIB) to fund the intelligent robotic products have resulted in high dilution for the founders scale up of the ■ Customers can choose from development services, plug & play ■ The EIB financing provided the required funding: business navigation kits or entire private-label produced robotic products − Without dilution / valuation discussion ■ The company‘s expertise is planned to be rolled-out in other up-coming − In tranches tailored to the business liquidity needs fields of mobile Advanced Manufacturing (security, homecare, − Without cash interest during the term of the loan professional cleaning etc.) − With a five year term long enough to reach break-even ■ ROBART, located in Linz, Austria and branches in the US, China and Germany, was founded in 2009 and employs approx. 50 employees Key Financials Transaction Highlights
Revenue & EBIT (2018a - 2022e) (in EURm) >50
EIB Debt Facility
Venture Debt Equity
Financing partner with long-term horizon Flexible ROBART GmbH No cash interest during term No repayment
EUR 9m 2018a 2019e 2020e 2021e 2022e No dilution / no valuation event Valuation discussion February 2020 Revenue EBIT Lengthy application process Dilution
8 Case Study: Hydrogenious LOHC Technologies GmbH Capital Increase
FCF advised Company Description Investor Profiles Hydrogenious ■ Developer of a hydrogen storage technology designed to store Technologies GmbH hydrogen in Liquid Organic Hydrogen Carriers (LOHC) – the revolution and its shareholders in hydrogen storage and transport on the successful ■ Disruptor of the hydrogen logistics markets, enabling hydrogen to be AP Ventures, formerly part of Anglo Covestro is a major German company completion of a transported in a non-toxic, non-flammable and non-explosive state American Platinum, is a venture capital which produces specialty chemicals for capital increase ■ Innovator, capitalizing on the emerging megatrend of hydrogen mobility, firm backed amongst others by Anglo heat insulation foams and transparent (total volume €17m), enabling the efficient the transport and distribution of hydrogen to American Platinum, a major global polycarbonate plastics mining company further funding the Hydrogen Refueling Stations (HRS) scale up ■ Global leader in ‘next-generation’ mobile, ‘on-board’ LOHC technology ■ Key partners (e.g. Clariant, MAN, Sasol, United Hydrogen, etc.) have been brought onboard to support in the development / testing phase Mitsubishi Corporation is Japan's Vopak is the world's leading tank ■ Hydrogenious was founded in 2013 by Dr. Daniel Teichmann and Profs. largest trading company / conglomerate storage company that stores and Arlt, Schlücker and Wasserscheid in Erlangen, Germany. At present, and a member of the Mitsubishi handles various oil, chemicals, edible the company employs ~65 FTEs keiretsu oils and natural gas-related products
Key Financials Transaction Highlights
Net Sales (2018a – 2023e) ■ The Company mandated FCF to structure and place a €17m Series B (in EURm) financing round aimed at launching further commercial pilot projects and scaling up the technology >50 ■ FCF identified and approached a extensive list of relevant international venture capital, strategic and selected Family Office investors Capital Increase ■ Hydrogenious received strong interest from investors, securing a strong negotiating position in terms of valuation and contractual terms, all the while ensuring closing probabilities were maximized ■ Hydrogenious and FCF were able to secure the investment of three Hydrogenious LOHC new strategically valuable investors, in addition to a further commitment Technologies GmbH from its anchor investor AP Ventures, that offer new joint 2018p 2019e 2020e 2021e 2022e 2023e commercialization projects whilst providing substantial firepower in €17m future financing rounds Net Sales July 2019
9 Case Study: Synapticon GmbH ~ EUR 10m Capital Increase with Family Office
FCF advised Company Description Shareholdings (pre & post) Synapticon GmbH ■ Provider of motion control solutions for the Advanced Manufacturing and its shareholders industry, combining advanced software and electromechanics to deliver VC 2 VC 2 on the successful high performance servo drives (key electromechanical robotic motion Corporate 1 Corporate 1 completion of a control component) Founders Founders capital increase ■ Comprehensive product portfolio spanning servo drives, integrated VC 1 drive units and SoC (System on Chip) based on proprietary software VC 1 (total volume SOMANET and sold as either customized or off-the-shelf solutions ~ EUR 10m), further ■ Clients are blue chip Advanced Manufacturing and automation Family funding the machinery OEMs (KUKA, Comau, Schunk, etc.) as well as emerging Office 2 company’s Asian Advanced Manufacturing companies (New Investor) Family Office 1 successful growth ■ Acting as a one-stop supplier, the company offers turn-key solutions Family Office 1 strategy and global that drastically reduce the overall time-to-market commercialization ■ Founded in 2012, based in Schönaich, Germany, the company plans currently employs 50 people in four locations (Germany, Serbia, USA and China) Key Financials Transaction Highlights
Net Sales (2017a – 2022e) ■ Synapticon is the innovation leader in robotic motion control and is (in EURm) scaling its operations in order to further develop / commercialize its product portfolio >30 ■ To finance and realize its business strategy, Synapticon mandated FCF to structure a ~ EUR 10m financing round Capital Increase ■ FCF identified and approached a competitive list of relevant international venture capitalists as well as selected family offices ■ Synapticon received a high number of submitted LoIs, enabling a strong negotiating position with regards to valuation and contractual terms, while at the same time maximizing closing probability Synapticon GmbH ■ FCF and Synapticon were able to onboard a value-added family office 2017a 2018e 2019e 2020e 2021e 2022e as a new financing partner with strong industrial ‘know-how’ while also ~ EUR 10m securing pro-rata participation from the existing shareholders Net Sales January 2019
10 EXECUTIVE SUMMARY
FCF OVERVIEW 0 ADVANCED MANUFACTURING VENTURE CAPITAL MARKET
ADVANCED MANUFACTURING IPO EXITS
ADVANCED MANUFACTURING M&A EXITS
11 European AM – Venture Capital Facts & Figures
AM VC Market Advanced Manufacturing VC Market Advanced Manufacturing VC Market Venture-Backed as % of European VC Market Deal Volume and Deal Count by Subsectors (‘15 – ‘20*) M&A Exits (‘15 – ‘20*) (€m, ‘15 – ‘20*)
217 211 187 194 63,877 1.0% 15% Additive Deals (#627) 143 131 Manufacturing EUR 776m 115 100 86 Robotic Automation Total Deal Volume (L5Y) 92 65 44% 87 627 25% Deals Sensors and IoT Platforms
€180bn 2015 2016 2017 2018 2019 2020* Industrial Process 0.5% Software Volume (€1bn) (Q1-Q3) 16% 10 Deal Volume Deal Count Total Deal Count (L5Y)
Top 5 Targeted Countries Top 5 Targeted Countries Top 3 AM Companies Top 3 VC Investors IPO Exits by VC Deal Count (‘15 – ‘20*) by VC Deal Volume (‘15 – ‘20*) by VC Volume Raised (‘15 – ‘20*) by Deal Count (‘15 – ‘20*)
# Company HQ Vol. (€m) # Investors HQ Deal Count Rest of Europe 1 129 1 13 Rest of 19% 16% Europe 23% EUR 380m Total Deal Volume (L10Y) 41% 627 5% €1bn 2 95 2 13 Deals 17% Volume 23%
13% 13% 5% 5% 20% 3 45 3 12 11 Total Deal Count (L10Y) Top 3 Total 269 Top 3 Total 37
Source: PitchBook as of 30.09.2020, S&P Capital IQ as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020 12 European AM Venture Capital Market Development 2009 – 2020*, incl. Companies with AM-based Business Models**
€m # of Deals There has been an overall upward trend 350 250 in annual financing volumes since 2009, 5 Year Average Annual Deal peaking in 2019 with 300 a volume of €302m Volume (2015 – 2019): € 226m 200 Since 2015, the annual financing vo- 250 lumes have consis- tently been above the 10-year (‘10 – Volume of the mega 150 200 10 Year Average Annual Deal fundraise by Norsk ’19) average volume Volume (2010 – 2019): Titanium (€112m) of €131m per annum € 131m Average deal size 150 100 has increased over time, suggesting a maturing of the 100 industry 50 Unless deal activity increases signifi- 50 cantly in Q4 2020, the full year volume and deal count will 0 0 stagnate to / drop 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* below previous year (Q1-Q3) levels Ø Deal Ø €1.6m Ø €1.4m Ø €1.0m Ø €0.5m Ø €0.9m Ø €1.1m Ø €1.3m Ø €2.3m Ø €1.4m Ø €2.0m Ø €2.1m Ø €2.6m Vol*** Ø €1.3m**** European Deal Volume European Deal Count (incl. undis.)
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020, ** Rest of report includes developers and manufacturers of advanced manufacturing solutions only, *** Based on deals with disclosed volumes only, 13 **** Average deal volume, excluding the mega fundraise by Norsk Titanium (€112m) Top 5 Targeted European AM Countries (‘15 – ‘20*) – Part I by Deal Count
Since 2015, the UK Deal Count (incl. deals with undisclosed deal volumes) Total Deal Count has recorded the largest number of 50 Deals 56 Deals 71 Deals 83 Deals 72 Deals 40 Deals 372 Deals deals with a total of (thereof 30 with (thereof 30 with (thereof 36 with (thereof 51 with (thereof 43 with (thereof 26 with (thereof 216 with 117 VC funding disclosed volumes) disclosed volumes) disclosed volumes) disclosed volumes) disclosed volumes) disclosed volumes) disclosed volumes) rounds. Germany 33 117 and France complete 107 the Top 3 ranking with 107 and 80 26% deals, respectively 25 German and 24 Spanish companies 80 2 20 appear more 21 20 59% secretive in terms of 9 disclosing VC 4 18 17 17 17 36% funding volumes 16 16 16 (only 34% and 41% 15 5 of recorded deals, 13 4 7 9 3 6 12 6 respectively, have a 15 10 11 11 74% 10 35 disclosed volume) 22 33 compared to 64%, 5 8 4 8 17 7 3 5 67% and 74% for 10 16 33% 6 6 64% French, Belgian and 13 66% 12 5 5 12 4 12 41% 1 British companies, 10 10 10 2 4 6 5 9 3 2 3 3 respectively 7 7 7 7 2 4 6 2 67% 5 5 1 4 4 3 3 3 3 34% 2 2 2 2 2 1 2015 2016 2017 2018 2019 2020* ’15 – ’20* (Q1-Q3) (Q1-Q3) United Kingdom (undisc. volume) Germany (undisc. volume) France (undisc. volume) Spain (undisc. volume) Belgium (undisc. volume) United Kingdom (disc. volume) Germany (disc. volume) France (disc. volume) Spain (disc. volume) Belgium (disc. volume)
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020 14 Top 5 Targeted European AM Countries (‘15 – ‘20*) – Part II by Deal Volume
Germany leads the Deal Volume (in €m, excl. deals with undisclosed deal volumes) Total Deal Volume Top 5 Targeted Countries in terms of €83m €48m €64m €169m €145m €157m €665m 1 Volumes largely Total Volume of the Top 5 deal volume driven by Exotec Targeted Countries is largely (€227m) and is Solutions (FR €76m) driven by Germany (€227m) followed by France and France (€196m) (€196m), based on 100 250 227 78 196 disclosed deals 80 69 200 64 164 60 55 150 This is even though 47 45 33 only 41% of German 40 32 28 100 23 27 18 19 55 deals have disclosed 14 14 18 14 18 20 7 8 7 11 50 23 deal sizes, leaving 5 2 3 5 3 59% of deals with 0 0 2015 2016 2017 2018 2019 2020* '15 - '20* undisclosed (and (Q1-Q3) (Q1-Q3) therefore not United Kingdom Germany France Spain Belgium included) deal volumes Mean Deal Size (in €m, excl. deals with undisclosed deal volumes) Median Deal Size (in €m, excl. deals with undisclosed deal volumes) 1 1230 96 Despite being home country to the 2016 10 Overall Mean 5 Overall Median € 2.4m € 0.7m megadeal Norsk 8 4 Titanium (€112m dealvolume), 6 3 Norway does not 4 2 shop up in the Top 5 2 1 countries due to the one-off character of 0 0 2015 2016 2017 2018 2019 2020* 2015 2016 2017 2018 2019 2020* the deal and lack of (Q1-Q3) (Q1-Q3) other deals Ø €2.5m Ø 1.4m Ø €1.7m Ø €3.2m Ø €3.1m Ø €8.8m Med. €0.6m Med. 0.6m Med. €0.3m Med. €0.6m Med. €1.1m Med. €2.2m United Kingdom Germany France Spain Belgium United Kingdom Germany France Spain Belgium Annual Mean Overall Mean ‘15 – ’20* Annual Median Overall Median ‘15 – ’20*
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020 15 European AM Subsector Analysis (‘15 – ‘20*) by Deal Count & Volume
'Additive Deal Count (incl. deals with undisclosed deal volumes) Deal Count over Time (incl. deals with undisclosed deal volumes) Manufacturing' and ‘Sensors and IoT Platforms’ are the 15% two largest 60 Additive Manufacturing subsectors by deal 53 53 count, accounting for Robotic Automation 44 42 69% of the overall 44% 37 deal count 627 32 25% Deals Sensors and IoT 30 Platforms 24 26 26 ‘Additive 22 22 22 17 16 17 Manufacturing’ and Industrial Process 15 14 Software 11 10 12 11 11 ‘Robotic Automation’ are the largest sub- 16% sector by deal 2015 2016 2017 2018 2019 2020* volume, accounting (Q1-Q3) for 70% of the overall deal volume Deal Volume (excl. deals with undisclosed deal volumes) Mean Deal Size (in €m, excl. deals with undisclosed deal volumes)
After neglecting the 56 Robotic Automation 5.2 mega fundraises of 12% Deals Norsk Titanium, the Additive Manufacturing ‘Additive Manufac- Additive 165 turing’ subsector still 2.5 18% 41% Robotic Automation Manufacturing Deals accounts for 33% of €1bn the total deal volume Sensors and IoT Volume Platforms Industrial Process 53 2.2 Software Deals Industrial Process Software
Robotic Automation’s Additive Manufacturing’s total volume Sensors and IoT 89 29% 2.0 total volume is largely is largely driven by Norsk Titanium’s Platforms Deals driven by Exotec Solutions’ corporate rounds (€112m and €17m or 31% VC rounds (€76m, €15m and of Additive Manufacturing total volume) €4m or 33% of Robotic Automation total volume)
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020 16 European AM Stage Analysis (‘15 – ‘20*) by Deal Count
Accelerator-, Early Deal Type by Deal Count Investor Type by Deal Count (excl. deals with undisclosed investors) Stage VC- and Angel / Seed Rounds account for 73% of the overall deal 2% count within the 4% 1% European Advanced 2% Manufacturing 7% Venture Capital 10% Market, indicating 32% 11% that the market is 35% dominated by young companies 627 604 24% Deals Deals As the companies mature, their capital requirements will 11% 33% 6% increase, and the 17% 5% European Advanced Manufacturing Venture Capital Accelerator Round Later Stage VC Accelerator Corporate market will likely receive a larger Grant Corporate Round Government Private Equity share of the funds Angel / Seed Round Other Angel Family Office raised within the Early Stage VC Venture Capital Other greater European Venture Capital Market
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020 17 Note: Proportional attribution of deal count to investors participating in a transaction Quarterly AM Venture Capital Deal Count (‘15 – ’20*)
Looking at the Deal Count (incl. deals with undisclosed deal volumes) number of quarterly Advanced Manufacturing 50 2015 2016 2017 2018 2019 2020* venture capital On average 22 On average 22 On average 29 On average 36 On average 33 On average 22 transactions, a spike quarterly deals quarterly deals quarterly deals quarterly deals quarterly deals quarterly deals in deal count at the 45 beginning of each year, followed by 40 random variances throughout the rest of each year is 35 observable
While in 2019, 30 average quarterly number of deals was 25 slightly below the level of 2018, average quarterly 20 number of deals has dropped significantly 15 below the levels of previous years in 2020 (33% drop from 10 2019), suggesting that the Advanced Manufacturing 5 venture capital market has experi- 0 enced a COVID-19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 impact 2015 2015 2015 2015 2016 2016 2016 2016 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020 18 Top 10 European AM Deals (‘15 – ‘20*) by Deal Volume (Deals with Disclosed Volumes Only)
Norsk Titanium’s Norsk Titanium €112m Evrythng €23m Corporate** / 2016 4th round / 2017 corporate financing Empire State Development Advance Venture Partners, Atomico, BHLP, Bloc Ventures, Cisco Investments, Dawn Capital, Generation Ventures, round (€112m) leads 1. Subsector: Additive Manufacturing 6. the Top 10 ranking Samsung Venture Investment, Sway Ventures (9) Subsector: Sensors and IoT Platforms of European Advanced Manufac- turing deals since Exotec Solutions €76m Magazino €21m 2015 3rd round / 2020 2nd round / 2020 83North, Breega Capital, Iris Capital (3) European Investment Bank, Jungheinrich (2) Germany and 2. Subsector: Robotic Automation 7. Subsector: Robotic Automation France account for 1 10 60% of the deals in the Top 10 VC rounds in Europe by ProGlove €36m Magazino €20m 3rd round / 2019 deal count and for 5 Corporate** / 2018 53% by deal volume Bayern Kapital, Deutsche Invest Capital Partners, Summit Cellcom Resources, Fiege, Körber, Zalando (4) 3. Partners (3) 8. Subsector: Robotic Automation Subsector: Robotic Automation 6 ‘Robotic Automation’ is the most prevalent 2 Advanced 3 7 Manufacturing Prodways Group €25m 4 Konux €18m 9 8 th subsector in the Top Corporate / 2015 4 round / 2018 Fimalac Group, Groupe Gorgé (2) Alibaba Group, Green Bay Ventures, MIG AG, New 10, accounting for 4. Subsector: Additive Manufacturing 9. Enterprise Associates, Unternehmertum Venture Capital 50% of the Partners, Upbeat Ventures (6) Subsector: Sensors and IoT Platforms transactions by deal count and for 48% of the total volume in OnRobot €25m Norsk Titanium €17m the league table 3rd round / 2019 Corporate** / 2016 Bonnesen, Bøgh-Sørensen, European Investment Bank, Undisclosed Gundersen, Sandal, Vækstfonden (6) 5. 10. Subsector: Additive Manufacturing Subsector: Robotic Automation
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020; ** Corporate transactions include venture capital rounds financed solely by corporations (no change in control) 19 Annual Top 10 European Advanced Manufacturing Deals (’15 – ’17) by Deal Volume (Deals with Disclosed Volumes Only)
2015 (Top 10 account for 80% of annual deal volume) 2016 (Top 10 account for 86% of annual deal volume) 2017 (Top 10 account for 80% of annual deal volume)
Prodways Group €25m / Corporate** Norsk Titanium €112m / Corporate** Evrythng €23m / 4th round 1. Fimalac Group, Groupe Gorgé (2) Empire State Development (1) Advance Venture Partners, Atomico, BHLP, Bloc Ventures, Cisco Investments, Dawn Capital, Generation Ventures, Samsung Venture Investment, Sway Ventures (9) 3yourmind €11m / 1st round Norsk Titanium €17m / Corporate** 3yourmind €10m / 2nd round 2. AM Ventures (1) Undisclosed AM Ventures, Coparion, EIT Digital, EOSS Industries Holding, EVC Ventures, Impact51, TRUMPF Venture, Unternehmertum Venture Capital Partners (8) GridBeyond €10m / 4th round Konux €6m / 2nd round Luxexcel €8m / 4th round 3. Enterprise Ireland (1) Andreas Von Bechtolsheim, Deutsche Invest Capital Partners, MIG AG, Innovation Industries, KLA, Munich Venture Partners, PMV, SET New Enterprise Associates, UnternehmerTUM, +2 (7) Ventures (5)
Luxexcel €8m / 3rd round GridBeyond €4m / 5th round Konux €8m / 3rd round 4. Munich Venture Partners, Pear, SET Ventures (3) ACT Venture Capital, Dublin Business Innovation Centre, Enterprise Andreas Von Bechtolsheim, Green Bay Ventures, Lothar Stein, MIG AG, Ireland, Greencoat Capital (4) New Enterprise Associates, Unternehmertum Venture Capital Partners, Upbeat Ventures, Warren Weiss (8) BigRep €7m / 3rd round RB3D €4m / 2nd round 3D Hubs €6m / 3rd round 5. b-to-v Partners, KfW Group, Koehler Paper Group (3) ACE Management Equity Partner, Alto Invest, CIB Développement, Arthur Kosten, Balderton Capital, EQT Ventures, Michiel Dekkers, Inocap Gestion (4) Stichting DOEN (5)
Evrythng €7m / 3rd round Tellmeplus €4m / 5th round Mcor Technologies €5m / 3rd round 6. Advance Venture Partners, Atomico, BHLP, Cisco Investments, Dawn Mutuelle Assurance Commerçants et Industriels France, Runa Capital, Undisclosed Capital, Samsung Venture Investment, Vayner/RSE (7) Sferen Innovation, Siparex Group, Soridec, Ventech, XAnge Private Equity (7) TrendMiner €5m / 4th round RapidFit+ €4m / 2nd round Elmodis €5m / 2nd round 7. Fortino Capital Partners, Jurgen Ingels, LRM, PMV (4) Undisclosed Innovation Nest, Intel Capital, SET Ventures (3)
4Energy €3m / 5th round Biomodex €4m / 1st round ZYYX Labs €4m / 1st round 8. Undisclosed Innovation Capital, Inserm Transfert, Kima Ventures, LBO France (4) Almi Invest (1)
fos4X €2m / 3rd round Exotec Solutions €4m / 1st round GreenWaves Technologies €3m / 1st round 9. Bayern Kapital, Dr. Schulze Consulting und Holding, Falk Strascheg 360 Capital Partners, Breega Capital (2) Soitec (1) Holding, High-Tech Gründerfonds, Unternehmertum Venture Capital Partners (5) Photoneo €2m / 1st round Connit €3m / 1st round Blue Workforce €2m / Corporate** 10. Credo Ventures, Eduard Kucera, Juraj Ďuriš, Max Larin, Miroslav Trnka, Emertec Gestion, ENGIE New Ventures, Sainte-Lizaigne (3) Undisclosed Pavel Baudis, RSJ Investments (7)
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020, ** Corporate transactions include venture capital rounds financed solely by corporations (no change in control) 20 Annual Top 10 European Advanced Manufacturing Deals (’18 – ’20*) by Deal Volume (Deals with Disclosed Volumes Only)
2018 (Top 10 account for 65% of annual deal volume) 2019 (Top 10 account for 65% of annual deal volume) 2020* (Top 10 account for 77% of annual deal volume)
Magazino €20m / Corporate** ProGlove €36m / 3rd round Exotec Solutions €76m / 3rd round 1. Cellcom Resources, Fiege, Körber, Zalando (4) Bayern Kapital, Deutsche Invest Capital Partners, Summit Partners 83North, Breega Capital, Iris Capital (3) (3)
Konux €18m / 4th round OnRobot €25m / 3rd round Magazino €21m / 2nd round 2. Alibaba Group , Green Bay Ventures, MIG AG, New Enterprise Bonnesen, Bøgh-Sørensen, European Investment Bank, Gundersen, European Investment Bank, Jungheinrich (2) Associates, Unternehmertum Venture Capital Partners, Upbeat Ventures Sandal, Vækstfonden (6) (6) Exotec Solutions €15m / 2nd round 3D Hubs €16m / 4th round Voovio €15m / 3rd round 3. 360 Capital Partners, Breega Capital, Iris Capital (3) Arthur Kosten, Balderton Capital, Endeit Capital, EQT Ventures, Erik de Moira Capital Partners (1) Bruijn, Hearst Ventures (6)
Biomodex €13m / 2nd round arculus €15m / 1st round DyeMansion €12m / 3rd round 4. Idinvest Partners, InnovAllianz, Inserm Transfert, LBO France, Sofimac Atomico, La Famiglia, Visionaries Club (3) AM Ventures, b-to-v Partners, KGAL Group, Nordic Alpha Partners, Innovation (5) Unternehmertum Venture Capital Partners (5)
Luxexcel €12m / 5th round Evrythng €13m / 5th round GridBeyond €11m / 6th round 5. Innovation Industries, KLA, Munich Venture Partners, PMV, SET Fernbrook Capital Management LLC, Fuel Venture Capital, IDC Ventures ACT Venture Capital, EDP Energias de Portugal, Electricity Supply Ventures (5) (3) Board, Total Carbon Neutrality Ventures (4)
OxSyBio €11m / 2nd round CloudNC €10m / 5th round Nomagic €8m / 2nd round 6. IP Group, Parkwalk Advisors, Woodford Investment Management (3) Atomico, Elkstone Partners, Entrepreneur First, Episode 1 Ventures (4) Capnamic Ventures, DN Capital, Hoxton Ventures, Khosla Ventures, Manta Ray Ventures (5)
CloudNC €10m / 4th round GreenWaves Technologies €7m / 2nd round EnginZyme €6m / 1st round 7. Acequia Capital, Atomico, Entrepreneur First, Episode 1 Ventures, La Huami, Soitec (2) Sofinnova Partners (1) Famiglia, Tornig (6)
Konux €10m / 5th round IOTech Systems €7m / 3rd round 3yourmind €5m / 3rd round 8. Boundary Holding, Green Bay Ventures, Greg Papadopoulos, Johannes Dell Technologies Capital, Northstar Ventures, Scottish Enterprise, AM Ventures, Coparion, EnBW New Ventures, TRUMPF Venture, von Borries, Julia Schottenstein, Michael Baum, New Enterprise Société de Participation et de Gestion (4) Unternehmertum Venture Capital Partners (5) Associates, Soren Hein, Wei Cai, WestWave Capital (10) Andrew Alliance €9m / 2nd round Automata €6m / 2nd round TauGroup €5m / 1st round 9. Inpeco, Omega Fund, Rancilio Cube, Sam Eletr, Tecan Group, Waters ABB Technology Ventures, Entrepreneur First, Firstminute Capital, Altana (1) (6) Hardware Club, Hummingbird Ventures, LocalGlobe (6)
fos4X €8m / 4th round Shapr3D €5m / 2nd round 9T Labs €4m / 4th round Bayern Kapital, Equinor Ventures, Extorel, Falk Strascheg Holding, High- Creandum, Lifeline Ventures, Point Nine Capital (3) ESA BIC Switzerland, Investiere, Technology Fund, Wingman Ventures 10. Tech Gründerfonds, Unternehmertum Venture Capital Partners (6) (4)
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020, ** Corporate transactions include venture capital rounds financed solely by corporations (no change in control) 21 Top 10 German AM Deals (‘15 – ‘20*) by Deal Volume (Deals with Disclosed Volumes Only)
ProGlove’s 3rd finan- ProGlove €36m DyeMansion €12m Munich / 3rd round / 2019 Planegg / 3rd round / 2020 cing round (€36m) Bayern Kapital, Deutsche Invest Capital Partners, Summit AM Ventures, b-to-v Partners, KGAL Group, Nordic Alpha in 2019 leads the 1. Partners (3) 6. Partners, Unternehmertum Venture Capital Partners (5) Top 10 ranking of Subsector: Robotic Automation Subsector: Additive Manufacturing German Advanced Manufacturing deals since 2015. In total, Magazino €21m 3yourmind €11m ProGlove raised Munich / 2nd round / 2020 Berlin / 1st round / 2015 €45m since 2015, European Investment Bank, Jungheinrich (2) Berlin AM Ventures (1) which includes its 1st 2. Subsector: Robotic Automation 7 8 7. Subsector: Additive Manufacturing and 2nd round in ‘16 and ’18, respectively (€2m, €7m) Magazino €20m 3yourmind €10m Companies based in Munich / Corporate** / 2018 Berlin / 2nd round / 2017 Bavaria account for Cellcom Resources, Fiege, Körber, Zalando (4) AM Ventures, Coparion, EIT Digital, EOSS Industries 3. 8. Holding, EVC Ventures, Impact51, TRUMPF Venture, 80% of the deals in Subsector: Robotic Automation Unternehmertum Venture Capital Partners (8) the Top 10 Subsector: Additive Manufacturing
‘Robotic Automation’ and ‘Additive Konux €18m Konux €10m Munich / 4th round / 2018 5 Ingolstadt th Manufacturing’ Munich / 5 round / 2018 Alibaba Group, Green Bay Ventures, MIG AG, New Boundary Holding, Green Bay Ventures, Greg subsectors account 4. Enterprise Associates, Unternehmertum Venture Capital 9. Papadopoulos, Johannes von Borries, Julia Schottenstein, Partners, Upbeat Ventures (6) 1 2 3 Michael Baum, New Enterprise Associates, Soren Hein, Wei for 70% of the deal Munich Subsector: Sensors and IoT Platforms 4 9 10 Cai, WestWave Capital (10) count and 78% of Subsector: Sensors and IoT Platforms capital raised in the Planegg 6 Top 10 German arculus €15m fos4X €8m Advanced Ingolstadt / 1st round / 2019 Munich / 4th round / 2018 Manufacturing Deals Atomico, La Famiglia, Visionaries Club (3) Bayern Kapital, Equinor Ventures, Extorel, Falk Strascheg 5. Subsector: Robotic Automation 10. Holding, High-Tech Gründerfonds, Unternehmertum Venture Capital Partners (6) Subsector: Sensors and IoT Platforms
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020, ** Corporate transactions include venture capital rounds financed solely by corporations (no change in control) 22 Further German Advanced Manufacturing Deals (‘15 – ‘17)
2015 2016 2017
3dTrust Accelerator 3dTrust Accelerator Viscopic Accelerator 3yourmind Accelerator Airbus BizLab EIT Digital Kickstart Accelerator StartX
Cybus Accelerator 3yourmind Accelerator Viscopic Accelerator arculus Grant TechFounders EIT Digital TechFounders Horizon 2020
DyeMansion Seed Round 3yourmind Accelerator dp polar Corporate* AM Ventures FABulous Altana
DyeMansion Angel Round All3DP Early Stage VC drag&bot Accelerator Hans Langer Bayern Kapital, Deutsche Balaton, High-Tech TechFounders Gründerfonds
Konux Seed Round Cybus Seed Round DyeMansion Accelerator
Undisclosed Pfannenberg German Accelerator
Multiphoton Optics Early Stage VC Kiwigrid Grant Enscape Seed Round Bayern Kapital, Fraunhofer Venture, High-Tech Undisclosed Elmar Buschlinger, High-Tech Gründerfonds, Julian Gründerfonds, Moritz EsslingerSack & Kiesselbach Kappus, Lukas Hofmann, Michael Diehl
ProGlove Accelerator Emerging Implant Technologies Early Stage VC Escarda Technologies Accelerator TechFounders SHS Gesellschaft für Beteiligungsmanagement Digital Hub Bonn
ProGlove Accelerator ProGlove Accelerator gridX (GridBox) Accelerator Challenge Up! EIT Digital Gabor Cselle, TechFounders, Vito Ventures
Viscopic Accelerator ProGlove Seed Round Kiwigrid Corporate* TechFounders Bayern Kapital, GettyLab, Intel Capital Aqton, Innogy, LG Electronics
ThingOS Grant Kumovis Accelerator European Project MeSch ESA Business Incubation Centre Bavaria
Source: PitchBook as of 30.09.2020, FCF Equity Research * Corporate transactions include venture capital rounds financed solely by corporations (no change in control) 23 Further German Advanced Manufacturing Deals (‘17 – ‘18)
2017 2018
Material Machines Early Stage VC Aim3D Early Stage VC Datatroniq Accelerator Kumovis (3 transactions) Grant Straub Ventures Brose Group, High-Tech Gründerfonds, Mecklenburg- WeXelerate Munich Business Plan Competition Vorpommern
Multiphoton Optics Grant AiSight Accelerator drag&bot Accelerator Kumovis Accelerator
Fraunhofer Venture, High-Tech Gründerfonds SOSV Startup Autobahn Xpreneurs
ProGlove Accelerator All3DP Early Stage VC DyeMansion Later Stage VC ProGlove Early Stage VC German Accelerator Bayern Kapital, Baystartup, High-Tech Gründerfonds AM Ventures, b-to-v Partners, KGAL Group, Bayern Kapital, Deutsche Invest Capital Partners, DIC Unternehmertum Venture Capital Partners Asset, GettyLab, Intel Capital
Solify Accelerator AMendate Grant Erium Accelerator ProGlove Accelerator Fiware Accelerate TecUP Xpreneurs Atomleap High-Tech Accelerator, Station F
ThingOS Accelerator AMendate Accelerator German Bionic Systems Early Stage VC ProGlove Accelerator Plug and Play Tech Center Xpreneurs Join Capital, Storm Ventures Plug and Play Tech Center
Vemcon Early Stage VC arculus Accelerator gridX (GridBox) Early Stage VC sewts Accelerator Vector Venture Capital Startup Autobahn Coparion, Gabor Cselle, Innogy Ventures, Vito One Xpreneurs
Vemcon Accelerator BigRep Early Stage VC gridX (GridBox) Early Stage VC Viscopic Accelerator ESA Business Incubation Centre Bavaria BASF Venture Capital, Ey Ventures, Kloeckner Ventures, Innogy Innovation Hub ESA Business Incubation Centre Bavaria Körber
Yuanda Advanced Manufacturing Corporate* BIMsystems Early Stage VC innoSEP Seed Round Yuanda China Holdings BitStone Capital, Zech Group Bertram Projekt Invest
Cioplenu Seed Round innoSEP Accelerator 42CAP StartPort
Cybus Accelerator Kumovis Seed Round Startup Autobahn Ffilipa Venture Capital, High-Tech Gründerfonds
Source: PitchBook as of 30.09.2020, FCF Equity Research * Corporate transactions include venture capital rounds financed solely by corporations (no change in control) 24 Further German Advanced Manufacturing Deals (‘19 – ’20**)
2019 2020**
3yourmind Grant Multiphoton Optics Later Stage VC Additive Marking Accelerator European Regional Development Fund Bayern Kapital, Fraunhofer Venture, FTTF, High-Tech Xpreneurs Gründerfonds, Sack & Kiesselbach
Aeditive Early Stage VC Panda Early Stage VC Erium Seed Round Atlantic Labs High-Tech Gründerfonds, Innovationsstarter Bayern Kapital, High-Tech Gründerfonds, Sar Automation
AiSight Seed Round Smart Steel Technologies Seed Round Frequenz Seed Round SOSV LEA Partners 468 Capital
Cioplenu Seed Round SPREAD Early Stage VC Headmade Materials Early Stage VC 42CAP, Cherry Ventures, Christian Heinrich, Fabian La Famiglia b-to-v Partners Heinrich, Moritz Zimmermann
Cybus Early Stage VC Umeleon Accelerator Infinite Devices Early Stage VC b-to-v Partners Techstars bmp Ventures, BSC-Partner drag&bot Seed Round Viscopic Accelerator inmation Software Corporate* Camilla Zielinski, Speedinvest Plug and Play Tech Center, Startup Autobahn Emerson
Erium Accelerator Kumovis Early Stage VC ESA Business Incubation Centre Bavaria Ffilipa Venture Capital, High-Tech Gründerfonds, Renolit, Solvay Ventures
Erium Accelerator kyp.ai Early Stage VC TechFounders 42CAP, Business Angels
Escarda Technologies Corporate* Scansonic Holding gridX (GridBox) Accelerator German Accelerator
Source: PitchBook as of 30.09.2020, FCF Equity Research * Corporate transactions include venture capital rounds financed solely by corporations (no change in control) 25 ** Only includes deals from 01.01. – 30.09.2020 Most Active Investors in European AM Companies (‘15 – ‘20*) by Deal Count
The Top 15 investors by deal count made Deal Count: 13 Gov. Initiative Deal Count: 10 Accelerator Deal Count: 9 a total of 145 1. Deals: Kunak, GreenWaves Technologies, 3D 6. Deals: CloudNC (3), Automata, Metis Labs (2), 11. Deals: Konux (3), DyeMansion (2), 3yourmind (2), investments within Repo, OneWatt, AddiFab, Aerosint, Andiamo, EyePick, Semblr Technologies, Seyo, Automata fos4X (2) arculus, Fastree3D, Gravity Sketch, GridBeyond, the European Invent Medical, Wheel.me Advanced Manufacturing sector since 2015 Deal Count: 13 Gov. Initiative Deal Count: 10 Gov. Initative Deal Count: 8 Gov. Initiative Horizon 2020, an EU 2. Deals: fos4X (2), All3DP (2), Kumovis (2), Aim3D, 7. Deals: 3D Repo (3), 3dTrust, 3yourmind (2), 12. Deals: ZYYX Labs, Crosser Technologies (2), government initia- Panda, Enscape, Erium, Multiphoton Optics (3) CyberLightning, Eiratech Robotics, Nordic Ekkono Solutions (2), AIM Sweden, CombiQ, Automation Systems, ProGlove CBot tive, leads the ran- king, participating in 13 VC funding rounds Deal Count: 12 Gov. Initiative Deal Count: 10 Accelerator Deal Count: 7 Gov. Initiative 13 of the 15 most 3. Deals: 3D Repo (4), Wootzano, C Enterprise, 8. Deals: AddiFab, Barbara IoT, D&A Innovative 13. Deals: GridBeyond (2), CALT Dynamics (2), Wootzano, Additive Manufacturing Technologies, Systems, Ikustec, LINQcase, MESbook, Addilan, Eiratech Robotics, Sintermedical (2) active investors by AMFG, Inovo Robotics, IOTech Systems, Nordbo Robotics, TuMaker, Vixion Connected deal count are acce- Photocentric Machine lerators or govern- ment initiatives and mainly participated Deal Count: 11 Gov. Initiative Deal Count: 9 Accelerator Deal Count: 7 Accelerator in undisclosed deals 4. Deals: ProGlove (2), fos4X (2), ProGlove, All3DP 9. Deals: drag&bot, Erium, gridX (GridBox), 14. Deals: arculus, Arkite, Cybus, drag&bot, Holo- (2), Holo-Light, Erium, Multiphoton Optics (2) Alleantia, Cybus, Holo-Light, ProGlove, Viscopic Light, Twikit, Viscopic Only 1 out of the 15 (2) most active investors by deal count are from the US, while the rest are from Deal Count: 10 Accelerator Deal Count: 9 Accelerator Deal Count: 7 Europe 5. Deals: Gideon Brothers, Evrythng, Nomagic, 10. Deals: 3yourmind, Create it REAL, Dima 3D, 15. Deals: DyeMansion (3), 3yourmind (3), ProGlove, Semblr Technologies, Seyo, ThingOS, Growthobjects, idezo, MathFem, Museotechniki, Spectroplast Twikit, Viscopic, Wheel.me Optimus3D, Oral3D
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020 26 EXECUTIVE SUMMARY
FCF OVERVIEW 0 ADVANCED MANUFACTURING VENTURE CAPITAL MARKET
ADVANCED MANUFACTURING IPO EXITS
ADVANCED MANUFACTURING M&A EXITS
27 European Advanced Manufacturing IPO Market Overview (L10Y)
IPOs by Subsector Advanced Manufacturing IPOs (by Volume) Performance* and Issuance by Exchange** IPO Volume MCap Since IPO Date Company Exchange HQ (€m) (€m) IPO % Number of 2 116% IPOs IPOs SLM Solutions 08/05/2014 158.7 324.4 -47.6% Group AG 30% 1 10 02/04/2014 Materialise NV 70.4 412.0 257.1% 0% 50% IPOs IPOs Additive Manufacturing 20% 17/09/2013 voxeljet AG 61.8 328.1 -24.2% 3 -35% Robotic IPOs Automation 26/04/2017 Prodways Group SA 50.7 181.5 -68.1% Issuing Paris Sensors Volume 2% and IoT 3 7% Platforms 14/11/2017 Acconeer AB 15.1 39.9 -14.7% -47% IPOs Paris Industrial Process 25/09/2017 Adeunis SA 7.5 Software Paris 24.7 -73.6% €377m 1 -48% Volume IPOs Scape Technologies 21/11/2018 4.7 19.8 -0.2% 91% A/S
21/06/2011 Phenix Systems S.A. 3.5 Paris 16.4 n/a Price Range Hitech & Mean IPO Performance** Development 20/11/2017 2.7 13.8 -91.3% Wireless Sweden Holding AB 3 228%
Within 02/03/2017 Unibap AB 2.4 14.3 -0.5%2 157% 20% Range 2 103% Above 1 50% 10 Range 1 IPOs 0 30% Below Range -1 -6% -15% IPO IPO IPO Since YTD +1D +1M +3M IPO
Source: S&P Capital IQ as of 30.09.2020, PitchBook as of 30.09.2020, FCF Equity Research * Mean Performance since IPO **Only 8 of the 10 companies are still publicly traded 28 Top 10 Advanced Manufacturing IPO Exits (L10Y) by Issuing Volume
During the last 10 years, French and Paris Swedish advanced 2014 Issuing Volume 2017 Issuing Volume 1. Age at IPO: 8 years €158.7m 6. Age at IPO: 24 years €7.5m manufacturing Market Cap at IPO: €324.4m Market Cap at IPO: €24.7m companies have Subsector: Additive Manufacturing Subsector: Sensors and IoT Platforms dominated the Top 10 Advanced Manufacturing IPO Exits, making up Issuing Volume Issuing Volume 2014 2018 €70.4m 7. €4.7m 60% of the league 2. Age at IPO: 24 years Age at IPO: 14 years table Market Cap at IPO: €412.0m Market Cap at IPO: €19.8m Subsector: Additive Manufacturing Subsector: Robotic Automation 80% of the IPOs in the ranking took place on stock Paris exchanges in the Issuing Volume Issuing Volume 2013 8. 2011 companies’ respec- 3. Age at IPO: 14 years €61.8m Age at IPO: 11 years €3.5m tive home counties, Market Cap at IPO: €328.1m Market Cap at IPO: €16.4m suggesting a strong Subsector: Additive Manufacturing Subsector: Additive Manufacturing home bias within Advanced Manufac- Paris turing IPOs Issuing Volume 2017 2017 Issuing Volume 4. €50.7m 9. Age at IPO: 4 years Age at IPO: 8 years €2.7m Market Cap at IPO: €181.5m Market Cap at IPO: €13.8m Subsector: Additive Manufacturing Subsector: Sensors and IoT Platforms
2017 Issuing Volume 2017 Issuing Volume 5. Age at IPO: 6 years €15.1m 10. Age at IPO: 4 years €2.4m Market Cap at IPO: €39.9m Market Cap at IPO: €14.3m Subsector: Sensors and IoT Platforms Subsector: Robotic Automation
Source: S&P Capital IQ as of 30.09.2020, PitchBook as of 30.09.2020, FCF Equity Research 29 EXECUTIVE SUMMARY
FCF OVERVIEW 0 ADVANCED MANUFACTURING VENTURE CAPITAL MARKET
ADVANCED MANUFACTURING IPO EXITS
ADVANCED MANUFACTURING M&A EXITS
30 Overview of AM Venture-Backed M&A Exits (L5Y)
Number of M&A Exits by Subsector Number of M&A Exits over Time Top 5 Target Countries (# of M&A Exits)
4
Belgium Additive 3 11% 20% Manufacturing 11% 34% Sweden 40% Robotic Automation 10% 10 9 Denmark M&A Exits Sensors and IoT M&A Exits Platforms Finland 1 1 1 22% Industrial Process 30% Software 22% Ireland 0
2015 2016 2017 2018 2019 2020* (Q1-Q3)
Disclosed Volume of M&A Exits by Subsector Top 3 Acquirers by Volume (€m) Top 5 Acquirer Countries (# of M&A Exits) Volume # # Investor HQ (€m) Deals Target
5% United States Additive 1 475 1 13% Manufacturing Germany Robotic Automation 13% 37% 34% New Zealand €776m 2 254 1 8 Volume Sensors and IoT Acquisitions 61% Platforms 13% Ireland Industrial Process Software 3 35 1 25% Sweden
Total Top 3 Acquirers 764 3
Source: PitchBook as of 30.09.2020, FCF Equity Research * Only includes deals from 01.01. – 30.09.2020 31 Top 10 Venture-Backed AM M&A Exits (L5Y) by Purchase Price (by Employees if no Purchase Price Available)
GE’s €475m €475m n/a acquisition of Purchase Price Purchase Price Employees: 301 Employees: 30 Ascending 1. acquired by: 6. acquired by: Technologies leads Deal Year: 2016 Deal Year: 2017 the league table of Year Founded: 1997 Year Founded: 2000 Top 10 Advanced Manufacturing M&A €254m n/a Exits over the last Purchase Price Purchase Price five years acquired by: Employees: 150 Employees: 12 2. 7. acquired by: The Top 10 features Deal Year: 2015 Deal Year: 2017 four cross-continen- Year Founded: 2005 Year Founded: 2012 tal transactions, indicating that the €35m n/a European Advanced Purchase Price Purchase Price Manufacturing M&A Employees: 70 Employees: n/a 3. acquired by: 8. market is signifi- acquired by: cantly impacted by Deal Year: 2018 Deal Year: 2017 non-European Year Founded: 2008 Year Founded: 2008 acquirers n/a €12m Purchase Price With 50% of the Purchase Price Employees: n/a targets in the Top 10 Employees: n/a 4. acquired by: 9. acquired by: being from Nordic Deal Year: 2018 Deal Year: 2019 countries, Nordic Year Founded: 2011 Year Founded: 2005 advanced manufacturing firms n/a make up the largest n/a Purchase Price Purchase Price group of targets in Employees: 50 Employees: n/a acquired by: 10. the league table 5. acquired by: Deal Year: 2017 Deal Year: 2018 Year Founded: 2002 Year Founded: 2014
Source: PitchBook as of 30.09.2020, FCF Equity Research, 32 CONTACT DETAILS & DISCLAIMER
0
33 Contact Details & Disclaimer
FCF Fox Corporate Finance GmbH Disclaimer Maximilianstrasse 12-14 This document does not constitute an offer or invitation to purchase or subscribe 80539 Munich ▪ Germany for any securities, and neither this document nor anything contained herein shall Telephone +49 (89) 206 0409-0 form the basis of or may be relied upon in connection with any contract or Facsimile +49 (89) 206 0409-299 commitment whatsoever. No representation or warranty (express or implied) is [email protected] ▪ www.fcf.de made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither FCF nor any of its officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the Florian Theyermann Tristan Blümli Elijah Falk use of this document. By accepting this document you acknowledge that you will be solely responsible for your own assessment of the market and the market Director Vice President Analyst position of the Company and that you will conduct your own analysis and be P: +49 (89) 206 0409-124 P: +49 (89) 206 0409-140 P: +49 (89) 206 0409-132 solely responsible for forming your own view of the potential future performance M: +49 (172) 839 5737 M: +49 (172) 8395 716 M: +49 (172) 839 5746 of the Company's business. This document contains certain forward-looking [email protected] [email protected] [email protected] statements, including assumptions, opinions and views cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of the Company to differ materially from the estimations expressed or implied herein. FCF does not guarantee that the figures, assumptions and calculations underlying such historical and forward looking statements are free from errors nor does FCF accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.
© FCF Fox Corporate Finance GmbH 2020
34