State of the Dutch Tech Startup & VC Landscape (September 2016) Brought to you by What’s happening in The Netherlands? Introduction Notable players Winning Sectors Growing pains Opportunities Conclusion Appendix 2 Many new Tech* VC funds have been raised in The Netherlands More than €1 bln raised in the last 12 months €m *funds that invest in ICT/Software companies 3 Source: Company websites, Press clippings Which has led to better upstream funding options for startups Incubators / Crowdfunding Seed / early-stage Growth-stage Later-stage Accelerators platforms Note: approximation, many investors participate across different stages 4 And more growth capital, also from international investors Top funding rounds 2015 (w/ investor origin) Top funding rounds 2016 (Jan - Sep) €m €m Source: Dealroom.co, StartupJuncture (*estimates) 5 The Dutch government has stepped up support for startups New regulations in favor of tech entrepreneurs and investors: ● StartupDelta organisation put in place to coordinate support for startups ● Expansion of the ‘Seed Capital Arrangement’ for matching investment capital of private seed funds ● New Dutch Startup VISA for international talent ● Exemption from obligatory minimum (taxed) salary for startup founders ● €50 mln additional investment in SME innovation loans & subsidies ● Support for tech job education & matching 6 And a host of new co-working spaces have emerged 7 Giving a big boost to the Dutch startup ecosystem Source: StartupDelta 8 Who are the notable players? 9 Top Incubators & Accelerators in The Netherlands Founded: 2005 Founded: 2009 Founded: 2010 Founded: 2011 Based in: Delft Based in: Utrecht Based in: Amsterdam Based in: Amsterdam Awarded #4 Europe’s Top Awarded #6 Europe’s Top Awarded: Best Awarded: ‘Most University Incubator University Incubator Accelerator of The Innovative Ecosystem’ 2015 2015 Europas 2014 2015 Alumni examples: Alumni examples: Alumni examples: Alumni examples: ● Ampelmann ● Distimo ● SendCloud ● Wercker ● Senz ● Snappcar ● Undagrid ● Peerby ● Epyon ● Raildata ● iLost ● Deskbookers ● LocalSensor ● 3D Hubs 10 Active Angel Investors in The Netherlands Arthur Kosten Marcel Beemsterboer Laurens Groenendijk Maarten Beucker Andrea Co-founder Founder Co-founder bookingportal, former Vakantieveilingen.nl Just-Eat.com, Co-founder TTY, CMO Booking.com Treatwell.com 2ehands.be Invested in a.o.: Invested in a.o.: Invested in a.o.: Invested in a.o.: ● Catawiki ● 3D hubs ● Zoef ● TheNextCloset ● Festicket ● Deskbookers ● Fixico ● Zeef ● Deskbookers ● Treatwell ● Miinto ● Adgoji ● 3D hubs ● Catawiki ● Fleet Logistics ● Nouncy angel.co/arthur-kosten angel.co/marcel-beemst angel.co/laurens-groe angel.co/beuck erboer nendijk *See appendix for longlist of Dutch angels 11 Most active VC’s in The Netherlands seed/early-stage growth-stage later stage (<€2m) (€>10m) # of deals in average the last 12 deal size months (€m) Source: dealroom.co (Sep. 2016) 12 *See appendix for a longlist of Dutch Tech VC’s Who to know: Patrick de Zeeuw Oscar Kneppers @patrickdezeeuw Boris Veldhuijzen van Zanten @oscarkneppers Co-Founder StartupBootcamp @boris Founder Rockstart Co-founder TheNextWeb Ton van ‘t Noordende @noordende Johan van Mil @johanvanmil Floris van Alkemade Partner at Keadyn @florisva Angel Island, StartupFest Partner at Peak Capital Founder of Mailmedia, Adatus Partner at HENQ Invest Robert Jan Galema @robertjangalema Alexander Ribbink Kees Koolen Partner at INKEF Partner at KEEN Venture Partners @keeskoolen former COO TomTom, Prime Ventures Partner at EQT Ventures former CEO Booking.com 13 Winning Sectors 14 Strong Hubs support the eco-system Rotterdam / Delft / Amsterdam Eindhoven TheHague / Leiden Universities: University of Amsterdam, Universities: Technical University Universities: Technical University Delft, Free University (VU) Eindhoven, Design Academy Leiden University, Erasmus University Rotterdam Incubators & accelerators: Rockstart, Incubators & accelerators: Startupbootcamp, Ace Venturelab HighTechXL Incubators & accelerators: Yes!Delft, ESA BIC, PortXL, World Startup Factory Co-working spaces: Science Park, Co-working spaces: High Tech Campus, B.Amsterdam, WeWork, TSO, TQ Strijp-S, Tribes Co-working spaces: CIC Rotterdam, RDM, ECE Campus, Hague Security Delta Campus Corporate HQs: ING, ABNAMRO, Philips, Corporate HQs: Ahold, TomTom, Booking, Cisco, Netflix, Philips Lighting, NXP, ASML, Intel, VDL, Corporate HQs: Shell, Unilever, KPN, Uber Here Aegon, Eneco, Siemens Investors: Peak Capital, Henq Investors: Brightmove, BOM Investors: Keadyn, KPN Ventures, Prime Ventures, Endeit, HPE Growth InnovationQuarter Capital, Holland Venture 15 After Electronics and Pharma, Dutch startups are creating successes in six digital segments Electronics/ Online Travel Media, marketing & Software development Semiconductors advertising ● Booking.com ● Elastic ● ASML ● VakantieVeilingen ● Zoomin.tv ● GitLab ● NXP ● Zoover ● WeTransfer ● Mendix ● TomTom ● Travelbird ● TheNextWeb ● Cloud9 ● Improve Digital ● Appmachine Ecommerce / ● DQ&A ● Metrixlab Pharma/BioTech marketplaces 3D printing ● ● Crucell Bol.com Fintech ● ● Acerta Pharma Takeaway.com ● Shapeways ● ● Dezima Pharma Coolblue ● Bibit ● Ultimaker ● Catawiki ● Adyen ● 3Dhubs ● Treatwell ● Bux ● Snappcar 16 Internet Exits Fintech Travel Social App machin Ecommerce Nimbuzz e Marketing/Advertising/Media $250m Software development Adyen Zoover €42m Fonq Seo €1bln+ Shop Booking.c Album Im- om printer prove Metrix €65m Digital $133m lab Treat- €170m well €34m Ned- Stat €37m Takeaway.com €0.7bln+ Tridion Bol. Zoom Bibit €69m com Vakantie in.tv (planned IPO) €90m €45m €350m Veilingen Hyves €95m €40m 17 Growing pains 18 Structural investment level has yet to grow beyond €100m/Q Total investments in Dutch tech startups/scaleups €m Catawiki Coolblue Source: StartupJuncture, press clippings 19 And the startup investment level is still lagging top EU countries Total startup investments €m Source: EY, Statistica, NL: StartupJuncture 20 Challenges Small home market Relatively small talent pool of software developers Fragmentation of innovation ecosystem across many cities Limited scale-up experience being re-invested (‘no paypal mafia’) Difficult to retain top talent vs. US / Silicon Valley salaries and funding Lower level of growth (series B/C/D) VC funding available vs. larger EU countries Limited local exit options: small IPO market, small corporate M&A market 21 Opportunities 22 Strengths Highly educated population with strong engineering and business talent from top universities such as Delft, Eindhoven, Twente and Rotterdam Excellent logistical infrastructure, including mainports: Port of Rotterdam, Schiphol Airport, Amsterdam Internet Exchange, High Tech Campus Eindhoven Attractive business environment, with strong corporate law system, flexible company incorporation and governance and favourable tax regimes Large number of corporates actively investing in tech talent and companies: Philips, Shell, ING, KLM, Aegon, Ahold, Unilever, Randstad, KPN, ASML, TomTom, Booking, Adyen, Uber English speaking, internationally oriented business community; easy migration for high-skilled workers Very high quality of living, rated best in the world Highly digitally connected market, adopting new products quickly; testbed for international success 23 Amsterdam has become one of the leading startup hubs in Europe Best Tech Hubs to Live in Best Startup Locations Most High-Tech Cities in the World Favorite EU Startup Hubs Expert Market, June 2015 European Digital City Index, Techinsider, July 2016 ESI-Startup Heatmap, (European selection) Oct. 2015 (European selection) Sep. 2016 1. Berlin 1. London 1. London 1. Berlin 2. Tel Aviv 2. Amsterdam 2. Amsterdam (#10 globally) 2. London 3. Amsterdam (#8 3. Stockholm 3. Berlin 3. Amsterdam globally) 4. Helsinki 4. Munich 4. Barcelona 4. Paris 5. Copenhagen 5. Moscow 5. Lisbon Best Startup Ecosystems Europe’s Biggest Startup Compass.co, July 2015 Hubs (European selection) EU-startups, June 2016 1. Tel Aviv 1. London 2. London 2. Berlin 3. Berlin 3. Paris 4. Paris 4. Amsterdam 5. Moscow 5. Barcelona 6. Amsterdam (#19 globally) Source: EU knowledge Economy Index 24 What to expect when you close a deal in The Netherlands 1. Pre-seed investment from Accelerator 2. Seed funding from local angels Accelerator takes 6-8% for €15-25k First time founders raise €200k-€300k at €1-2m valuation Including businesses with and without traction, also ex-accelerator companies 3. Extend financing with crowdfunding 4. Early-stage funding by ‘RVO Seed campaign arrangement’ funds Attractive startups can attract from €200k Startups with early traction can raise up to €2mln of convertible loan financing at €300k-€3mln from a range of private seed attractive terms (especially p2p: Peerby, funds, with investment capital matched by Plugify, Snappcar) public funding 25 Conclusion 26 Takeaways ● 6th largest economy of Europe, with Amsterdam as key hub; most international, most digitally connected, best logistical infrastructure, highest labour productivity, highest quality of living, lowest corruption. ● Relatively small home market, but more leading-edge with a population that is relatively quick to adapt new products and services. Startups have to think internationally from the start. ● Dutch VC funding has been focused more on hightech and biotech and the funding environment for digital tech was relatively weak; top digital tech teams moved to the US for larger funding and market opportunities. ● The Dutch startup ecosystem is now coming of