GP. Bullhound：2022年科技巨頭報(bào)告（EN）

Contents

04THEVIEWFROMGPBULLHOUND

05KEYTAKEAWAYS

06EUROPESOARSTONEWHEIGHTS

16EXPERTVIEW

NikStoronsky,Revolut

20SECTORINSIGHTS

26EXPERTVIEW

Jean-CharlesSamuelian-Werve,Alan

27EXPERTVIEW

Fran?oisBitouzet&JulieRanty,VivaTech

28EUROPE’SNEXTGENERATION

33EXPERTVIEW

2022Contenders

36GROWTHEQUITYALMOST70%OFFUNDRAISINGLANDSCAPE

38EXPERTVIEW

RodolpheArdant,Spendesk

42THEBATTLETO$50BN

46EUROPE'SUNICORNS

55METHODOLOGY&

ABOUTGPBULLHOUND

56DISCLAIMER

THEVIEWFROMGPBULLHOUND

Theview

FROMGPBULLHOUND

AlthoughEurope’sUnicornpartyisslowing,thesituationisnotasdoomandgloomasheadlineswouldsuggest.

Activitypersistsandfoundersthatreactquicklyanddecisivelywillbeabletoseizeuniqueopportunities.

Onceagain,wecelebratetheEuropeantechnologyecosystem’smilestoneachievements.Reachingacumulative

valuecreationofover$1tn,andgivingbirthtoasmanynewUnicornsinoneyearasthelastthree.However,asthe

focusshiftsfromgrowthtoprofitability,wewillguidefoundersandentrepreneursonhowtoremainresilientinbear

marketsandemergestrongerfromeconomicdownturns.

MANISHMADHVANI,GPBULLHOUNDMANAGINGPARTNER

AUTHORS

MANISHMADHVANIManagingPartner

JENNIFERELLER

VicePresident,Insights

JULIENLéZéAnalyst

ALONKUPERMAN

Partner

CARLOSDELAESPERANZA

Principal

MARIALAZAREVA

Analyst,

Insights

ADAMPAGE

VicePresident

JUDYSHING

Associate

IRYNAKESARCHUK

Intern

4

THEVIEWFROMGPBULLHOUND

Keytakeaways

THEEUROPEANC.$260BNYOY

ECOSYSTEMREACHEDANEWMILESTONE,UPBY

MOREBUTCREATIONSLOWING

INONEYEARTHANTHELASTTHREECOMBINED,

THETOPTHREESOME$530BN,HALFTHEVALUEOFALL

UNICORNGROWERSACCOUNTFOR

UNICORNSINEUROPE

DOWNBYC.50%INQ22022,ASOFTIMEOF

WRITING,BUTRETURNINGTOPRE-PANDEMICAVERAGE

GROWTHINVESTORS

OFTHEEUROPEANFUNDINGLANDSCAPE;ONLY18%

PUBLICEQUITYINVESTORSATRISKNEAR-TERM

ARETHELION'SSHARE

FROMALTERNATIVE/

IPOSHAVEDWINDLEDTOJUST

ONEIN2022YTDFROM18IN2021;BIGTECHACQUISITIONHISTORY

SUGGESTSHEALTHYM&AAHEAD

COMBINED,94NEWBILLION-DOLLAR

COMPANIESINTHESEDOMINANTSUBSECTORS,C.75%OFEUROPE’SNEW

UNICORNS.WITHINTHIS,SUBSECTORSCYBERSECURITYANDINSURTECHARE

INTHESPOTLIGHT

WITHTHEPUBLICMARKETCORRECTION,NO

EUROPEANCOMPANIESEXCEEDEDTHE$50BNMARK,BUTMULTIPLEFINTECHS

CHARGINGFORWARD

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasat16May2022

5

CHAPTER1

Europesoarstonewheights

CAUTIONWARRANTEDASMARKETSADJUST

125newbillion-dollarcompanies,moreinoneyearthaninthelastthreecombined,withthecumulativevalueupby3xYoY

ThestaggeringpaceofUnicorncreationin

2021wasdrivenbyrecord-lowinterestrates

andsignificantdrypowderpost-pandemic

Sinceourfirstreportin2014,thenumberofUnicornshasincreasedbyc.10xandtheecosystem’saggregatevaluebyc.12x

Theecosystemisworth$1.1tn,with

283companiesvaluedatover$1bn

TheNasdaqhascorrectedby30%,withnumeroussharepricesdownby70-80%,andprivatemarketvaluationsarelikelytoconvergewithpublicmarkets

Asalternative/publicequityfundsretreatandgrowthfundslengthenfunddeploymentcycles,fundraisingislikelytoremainmutednear-term

Withactivityslowing,thosethatactquicklyanddecisivelycanseizeuniqueopportunities–seeourguideonhowtostayresilient

IPOshavedeclinedfrom18in2021toonly

onein2022YTD;weexpectthistobe

offsetbysolidM&A,especiallyconsidering

historicalBigTechacquisitionpace

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasat16May2022

6

EUROPESOARSTONEWHEIGHTS

Thelingoandjourneyto$50bn

AREFRESHONTHETERMINOLOGYFOROURREPORT

GPBullhoundclassifiesthecompaniesfeaturedintheTitansofTechreportintofourkeycategories:Titans,Decacorns,

Unicorns,andContenders,basedontheirmarketvaluation

Allcompaniesfeaturedinthisreportwerefoundedin2000orlater

CLASSIFICATIONOFCOMPANIESBYVALUATION

Note:Forfullmethodology,pleaseseetheendofthisreport

7

CHAPTER1

Europebreaksthrough$1tnmark

FROMTAILWINDSTOHEADWINDS,WHATLIESAHEAD

SinceourfirstTitansofTechreportin2014,thenumberofEuropeanbillion-dollarcompanieshasincreasedbyc.10xandtheecosystem’saggregatevaluationbyc.12xtoc.$1.1tn

ThenumberofUnicornsisupbyc.2xsinceMay2021,withanaccelerationinmega-roundsandIPOs,buttheoverallgrowthoftheecosystemhasslowedaspublicmarketsrotatefromgrowthtovaluestocks

Withuncertaintyaboutinflation,interestrates,andwar,investorfocusisshiftingtocompanieswithnear-termcertainty–thosemakingmoneytoday

Expectcontinuedheadwindsasinflationspikesto40-yearhigh;growthcompaniesarelikelytobehithardestasinvestorsnowlookforthosethatgeneratecashtoday

Wehavebeenherebefore;history

showsthatthisisanopportunity

torepositionforthefuture

landscapeandcontinuebuilding

categoryleaders

EUROPEANTECHECOSYSTEMGROWTHSINCE2014

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasof16May2022

8

EUROPESOARSTONEWHEIGHTS

Recordactivityin2022

BUTCAUTIONWARRANTED

Arecord125newUnicornshavebeenmintedinthepastyear,drivenbysignificantcapitalinflowsand

mega-roundactivity;however,fundraisingactivityisslowingasmarketvolatilitycausesinvestorsto

pausewhiletheEuropeantechecosystementersanewphaseinitsjourney

Withlong-terminterestrateexpectationsrisingandpublicmarketvaluationscorrecting,theoverallgrowthoftheEuropeantechecosystemisalsoslowing–growthinvestorsaretakingtheircuesfrom

publicmarkets,andprivatemarketvaluationsarecomingunderpressure

AGGREGATENUMBER&VALUATIONOFBILLION-DOLLARCOMPANIES

AGGREGATEVALUATIONOFBILLION-DOLLARCOMPANIESBYSTATUS

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasat16May2022

9

to

feellimitedeffectfrom

energy-linkedinflationand

mustkeepdeploying

BigTechandotherlarge

corporateshave

afteryearsof

growthandsolidifying

balancesheets

Publicmarketstradingatverylowmultiplesmakemajorpublic-to-privatetransactionsstillattractive

despiteincreasinginterestrates

CHAPTER1

Timeforconsolidation

ALTHOUGHIPOACTIVITYHASCOMETOAHALTWITHONLY

ONELISTINGTHISYEARVERSUS18IN2021…

…THEM&AMARKETCOULDREMAINACTIVEANDLEADTOCONSOLIDATION

Intheaftermathofeveryfinancialcrisis,BigTech(1)wereactiveintheM&Amarkettoacquiretargets

Well-financedcompaniescantakeadvantageoftoday'sdownturntoacquiredistressedcompanies,acquirecompetitorstoconsolidatethemarket,ordouble-downtoemergefromthecrisisstronger

YEARLYNUMBEROFACQUISITIONSBYBIGTECH

All-timehighindrypowderforprivateequityin

early2022

Privatemarketvaluationsfallinginlinewithpublicmeantacticalopportunities,marketconsolidation,

andbolt-onacquisitionsforportfoliocompanies

Source:CapitalIQ,Preqin,pressreleases,GPBullhoundanalysis.Note:1)BigTechincludesAlphabet,A,Apple,MetaPlatforms,Microsoft,andNetflix

10

EUROPESOARSTONEWHEIGHTS

125newUnicorns,

morethanthelastthreeyearscombined

RECORDACTIVITY,BUTFUNDRAISINGPACESLOWING

NUMBERANDCUMULATIVEVALUATIONOFNEWBILLION-DOLLARCOMPANIES

NEWENTRANTSBYSECTOR

KEYFACTS

AccelerationYoYcumulativevalue

IncreasingaveragevaluationofnewUnicorns

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasat16May2022

11

CHAPTER1

Capitalreduction,butstillatpre-pandemiclevels

MARKETSADJUSTINGTOEXPECTATIONS

Atthetimeofwriting,fundraisingactivityhasslowedsignificantlyfrom2021,whichmaycontinueasprivatemarketslikelyadjustinlinewithpublicmarkets

Thefundraisinghighsof2021weredrivenbyrecord-lowinterestratesandsignificantdrypowderpost-pandemic,

resultinginacceleratedfunddeploymentcyclesalongsidegrowinginterestinprivatemarketsfromalternative/public

equityfunds

Asalternative/publicequityfundsretreatandgrowthfundslengthenfunddeploymentcycles,weexpectfundraising

activitytoremainmutednear-term.However,datahighlightsthatthereisstillcapitalavailableforcategoryleadersand

thatwearereturningtohistoricallevelsoffunding

NUMBEROF$50M+FUNDINGROUNDS

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:1)Q2notcompleteandcapturesuntil9June2022

12

EUROPESOARSTHENEWHEIGHTS

Wehavebeenherebefore

HOWTONAVIGATEMARKETTURBULENCEANDREMAINRESILIENT

GPBullhound’sguidetosurvivingbearmarketsshowsfoundershowtocomeoutofeconomicdownturnsstronger.Thefundraisingbarwillberaised,butinvestorswillstillbackleaderswithstrongKPIs

Whileshockwavesarebeingfeltbybusinessesallover,rememberthatpreviousdownturnshaveservedaslaunchpadsforsomeoftheworld’smosticonictechcompanies

1

POSITION

COMPANY

EARLY

AND

BE

READY

TO

ACT

FAST

,topupnow,ifpossible,andberealisticonvaluation

andmakecutstoensurerunway

fromhyper-growthmindsetto

profitablegrowth

Focusengineeringeffortsoncriticalroadmapitems

Focusonnear-termROI,cutineffectivespend

Focusonrealleadswithnear-termprobabilityofclosing

Berealisticonvaluation,dilutionmaybekeytosurvival

Exploreallpotentialsources

offundingbeyondequity24monthsofrunway

newstartalentasmarketcools

asotherscutspend

onthehorizonasmarketconsolidates

2

FUNDRAISING

STILL

POSSIBLE,BUT

INVESTORS

ZOOMING

IN

ON

KPIS

3

FOUNDED

DURING

ECONOMIC

DOWNTURNS,HOW

ICONIC

COMPANIES

BATTLED

THE

BEAR

13

BEAGILE

OFFERSOLUTIONS

SEIZEOPPORTUNITIES

Farfetchcreatedanewretailmodelforluxuryfashion–onethatistechnology-enabledbutdoesn’trelyonowningstock–buildingnetworkeffectsonbothsupplyanddemand.

TwoweeksafterFarfetchlaunched,LehmanBrotherscollapsed,triggeringtheGreatRecession.Sellingonlinein2008wasn’tcommonbutasfashionboutiquesfeltadropinlocalbusiness,theylookedfornewwaystosell,andFarfetchofferedthemtheopportunitytonavigatetheturbulenceofthattime.

KNOW

YOUR

BEST

GRABANOPPORTUNITY

BUILDTRUST

CUSTOMERS

Airbnbisoneofthefewcompaniesbuiltduringarecession,becomingabillion-dollarcompanybecauseoftheparadigmshiftbroughtalongbytheeconomiccrisisof2007-09itself.Withmillionsofpeopleleftmoney-strapped,hostingtravellersintheirhomesinexchangeforrentbecamelucrativeformanylandlords.Travellersalsoneededaffordableoptionstohotels.

Airbnbwassetapartfromitscompetitorsbyitsabilitytobuildtrustthroughitsreviewfunction,whichallowedittocuratebetterexperiencesforpeopleonbothsidesofthebooking.Also,oneofAirbnb’sinvestors,PaulGraham,tolditsthreefounderstotraveltoNewYorkandmeeteverysinglehostinthecityoverafour-weekperiodtogatherfeedbackandimprovetheirexperienceonline.

CHAPTER1

SELECTSTORIES

MAKEYOURDATAWORKFORYOU

QUICKLYSPOTCHANGINGMARKETNEEDS

CREATENEWBUSINESSSTREAMS

Intheearly2000s,MailChimpwasprofitable,hadastrongcustomerbase,andhadaccesstovaluableuserpricingdata,workingwithlargecorporateclientswithyearlyretainers.

WhentheGreatRecessionhit,withthedatatounderstandhowitsusersreactedtotheirpricing,Mailchimplauncheda‘freemium’businesstoSMEs,tobringemailmarketingtothemasses.Oneyearlater,itsuserbasehadgrownby500%.TheprivatecompanywasacquiredbyIntuitfor$12bnin2021.

CREATESUPPLYBEFOREDEMAND

MAKETHEMOSTOUTOFYOURCASH

RETHINKYOURBUSINESS

MODEL

Raisingcapitalafterthedot-comcrashwasdifficult.Outsystemswastryingtoreachamarketthatdidn’thavedemandforitsproductyet–itarrived12yearsbefore.Needingtoconvincetheclientofthevaluetheproductwouldbringandchangeinvestoropinion,aftermorethan40pitchesPauloRosado,OutSystemsCEO,managedtosecureitsfirst€1m.

Duetomarketconditionsatthetime,OutSystemswasn’tabletoraise€3m18monthsafterthefirstfundraise,asoriginallyplanned.

Thismeantreinventingtheproductandfinancialmodel.WithaclientmakinginternalapplicationsusingOutSystems,Rosadopivotedtowardssellingitasasolutionformakingapplications.Thisbroughtmoreclientsandthecompanyreachedbreakeven.

14

EUROPESOARSTONEWHEIGHTS

StrongtailwindsinSoftwareandFintech

EUROPEANBILLION-DOLLARCOMPANIES,BYSECTOR

Ridingonrobustgrowthsince2020,EnterpriseSoftwareandFintechnowaccountforovertwo-thirdsofallEuropeanbillion-dollarcompanies

InvestorappetiteforB2Bsoftwareisincreasingondigitaltransformationworldwide,andEuropeisnowaglobalFintechhub,propelledbyfinancialservicesexpertise,availabilityofcapital,andchangingregulationslikeOpenBanking

ThecontinuedgrowthinMarketplaces,Entertainment&E-commercehasalsobeendrivenbytheaccelerationofdigitaladoptionthroughouttheCovid-19pandemic

NUMBEROFEUROPEANBILLION-DOLLARCOMPANIESBYSECTOR

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;excludingpubliccompanieswithvaluationsbelow$1bnasof16May2022

15

R

EXPERTVIEW:REVOLUT

Expertview

NIKSTORONSKY,

REVOLUT

CO-FOUNDERANDCEO

evolutstartedoutwithasimplequestion:“Isthereawaytooffertravelerslow-costaccesstoforeignexchange?”IhadworkedforbothLehmanBrothersandCreditSuisseandnoticedthatbusinesstravelandFXfeeswerecostingthousandsofdollarsa

year.Sotogetherwithmyco-founderandourCTO,VladYatsenko,welaunchedRevolutintheUnitedKingdom,hopingtobuildaproductthatwouldtrulydisruptthechannelscontrolledbythelegacybanks.Revoluthascontinuedtogrow,andsevenyearslaterwe

arenowstrivingtobecometheworld’sfirsttrulyglobalfinancialservicessuper-app.

WhenRevolutlaunchedin2015,weofferedmoneytransfersandexchanges.Asthecompanygrew,sodidourvision,andwebecamefocusedonbuildinga

sustainabledigitalalternativetotraditionalbigbanks.Westartedaddingotherproductsandtoday,retailandbusinesscustomersaroundtheworldusedozensofinnovativeRevolutproductstomakemorethan150milliontransactionsamonth.

Wewanttoenableourcustomerstomanagealltheirfinancialneedsina

singleappthatisfarcheaperandeasiertousethanitscompetitors.To

achievethat,weaimtocreateaglobaldigitalbankandall-inclusiveapplicationthatgoeswaybeyondtraditionalfinancialservices.

Inourearlydays,wefacedthesamechallengesthatmoststartupscomeacross.Scalingabusinessishardandtherearenever-endingproblemstosolve.ImadenearlyeverymistakeaCEOcouldmakeandamstillmakingmistakes.Butthatishowyoulearn,andifyoutrynottomaketoomanynewmistakeswhilecorrectingtheoldones,youovercomethesechallengesquickly.

Wewanttokeepgrowing,bothintermsofnumbersofcustomersandmarkets.Wenowserve18millioncustomersacrosstheUK,Europe,US,Australia,Japan,andSingaporeandwewillsoonlaunchtheRevolutappinIndia,Mexico,andBrazil.Wewantpeopleallovertheworldtobeabletoopenanaccountinafewminutes,atanytime,andaccesstheservicestheyneedtomanagetheirmoney.

Wearebuildingafinancialsuperappthatoffershighlypersonalisedproducts

coveringpeople’sdiversefinancialneeds.Infiveto10yearsRevolutwillbe

theone-stopshopforallthefinancialproductsthatpeoplereallyneedso

thatanythingconcerningmoneywillbejustatapaway.Thistakestimeand

patience,butweareconfidentthatRevolutwillcontinuetoberenownedfor

itsdiverseproductofferingintheyearstocome.

Oneofthethingsthatexcitesusinthefintechspaceisblockchain

technology.Everytimetherehasbeenaninnovationinfinancialmarkets,

therehasbeenaspikeinactivity,andblockchainisnodifferent.Blockchain

isanotherhugeinnovationthatallowsordinarypeopletodowhattheywant

withtheirmoney.Theycantransfer,borrow,plan,andissuetokens–there

aresomanypossibilities.

Lookingforward,ourfocusisnotonif,whenorwherewewillIPO.Rightnow,wearefocusedonachievingprofitability,buildingnewproducts,andprovidingbetterandcheaperservicestoserveourgrowingcustomerbase.

NAVIGATINGADOWNTURN

"It’sbeensaidmanytimesbefore,butit’ssoimportanttostayfocusedonwhatyouandyourcompany

aretryingtoachieve.Therewillalwaysbenaysayersandasyougrowsodoesthescrutiny,bothinthe

bullandthebearmarkets.Butifyoubelieveinyourproductandtrustyourprocesses,thedownturns

soonpassandyou’llbeastrongerleaderforit."

16

EUROPESOARSTONEWHEIGHTS

Champions'league

BILLION-DOLLARSTABLES

TheUKhasregainedtheleadfromSwedenbyvalue,adding22newUnicornsandsolidifyingitsplaceasEurope’sFintechfactory;Israelnowleadstheleaguewith60billion-dollarcompanies

SwedenandtheNetherlandshavecumulativevaluesmoreconcentratedinfewercompaniesthanothergeographies

andarehamperedbythefallinpublicmarketvaluations,butavailablefundingintheregionsshouldcontinuetohelp

createtomorrow'stechleaders

TheFrenchecosystemhasseenanaccelerationwith16newUnicornsinthepastyear,includingmanycompaniesthathavenowbecomeEuropeanhouseholdnames

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasof16May2022

17

CHAPTER1

Europe’stechfactories

NEWUNICORNSINTHELAST12MONTHS

Israeltakesgold,adding27newbillion-dollarcompanieswithacumulativevalueofc.$60bn–itsexpertiseinEnterpriseSoftwaresaw23newUnicornswithaleantowardsCybersecurity,whereitreignswithsix

TheUKwinssilver,with22newUnicornsforacumulativevalueofc.$41bn,strengtheningitspositionasEurope’s

Fintechfactory(14newUnicorns)

Francesecuresthirdplace,withthehighestgrowthinEurope,creating16newUnicornsspreadacrosseachverticalwecoverinthisreport

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasof16May2022

18

EUROPESOARSTONEWHEIGHTS

GermanytakesfourthinthecumulativevalueofnewUnicorns,with13companiesreachingthecovetedstatus

TheNetherlandsandTurkeyhavecreatedmorethan$40bninvaluecombined,drivenbyDecacornsMiroandTrendyol

AcrossEurope,countriessuchasSpain,IrelandandEstoniahavesolidifiedtheirstartupecosystemswhileothercountriessuchasItalysawtheirfirstUnicorns,andareleadingthewayforfuturevisionaries

$20BN+VALUECREATED

$5BN+VALUECREATED

$1BN+VALUECREATED

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasof16May2022

19

CHAPTER2

Sectorinsights

WorldwidedigitaltransformationisdrivinginvestorappetiteforB2Bsoftware

Europe,particularlyLondon,isnowaglobalFintechhub,propelledbyfinancialservicesexpertise,availabilityofcapital,andchangingregulationlikeOpenBanking

Thesesectorsproduced94newbillion-

dollarcompaniesorc.75%ofEurope’s

newUnicornscombinedLTM

EnterpriseSoftwareagaintakespole

positionfornewUnicorns,butFintechis

inpursuitwith118%growthinnewbillion-

dollarcompaniesinthelastyear

Cybersecuritysetforsignificantinvestmentintonext-generationleadersonsurgingthreats

Insurtech,ripefordisruption,accountedfor18%ofFintech’snewbillion-dollarentrants

Thesetwoverticalscreated14Unicornsworthover$22bncombined

Cheq,Claroty,DevoTechnology,NonameSecurity,Pentera,SaltSecurity,andTransmitSecurity

Alan,Accelerant,At-Bay,

ManyPets,Marshmallow,ShiftTechnology,

andTractable

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasat16May2022

20

SECTORINSIGHTS

EnterpriseSoftwareisthriving

MOSTACTIVESECTORFORNEWBILLION-DOLLARCOMPANIES

Overthelastyear,55newbillion-dollarEnterpriseSoftwarecompanieswereborn

(now43%ofallUnicornsinEurope)

Cybersecurity,vitalforenterprisesandgovernments,isseeingalong-terminvestorviewonsurgingthreatsthatis

likelytointensifyastheworldgrappleswithdigitaltransformationsecurityneeds

SPLITOFNEWBILLION-DOLLARENTERPRISESOFTWARECOMPANIES,BYNUMBER

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasof16May2022

21

“Kaseyaransomware

attackimpacting

companiesaroundthe

world”

“MeatgiantJBSpays

$11minransomto

resolvecyber-attack”

CHAPTER2

Cybersecuritydominates

NEVER-ENDINGWAVEOFCYBERTHREATSMAKINGHEADLINES

Thegeneralspikeincyber-crimedrovemajorinterestindefencemethodsagainstattacksacrosstheentiremarket,especiallygiventhesurgeofhighlypublicisedattackse.g.ColonialPipeline,Kaseya,NSOGroup,andJBS

Astechnologybecomesmoreembeddedintocompanies,morevulnerabilitieswillsurface,leadingtomoreattacksandahigherperceivedthreatlevel

Weexpectmoreinvestmentinthespace-Cybersecuritycompaniesaccountedforsevenofthe55EnterpriseSoftware

Unicornsin2022(worth$10.6bn)

RECORD-BREAKINGINCREASEINNEWLY-DEVELOPEDMALWAREAPPLICATIONSGLOBALLY(MILLIONS)(1)

“HackersbreachedColonial

Pipelineusingcompromised

password”

SIGNIFICANTINVESTMENTINTONEXTGENERATIONCYBERSECURITYLEADERS;

SEVENNEWEUROPEANBILLION-DOLLARCOMPANIES

Security(3)

API

Security(5)

Identity&

Access

Security(1)

Prevention(2)

Security(4)

Cloud

Fraud

IoT

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,Statista,pressreleases,CBInsights,Bloomberg,BBC,FoxNews,TechCrunch,Guardian,SALT,andGPBullhoundanalysis.Note:1)Identify&AccessSecurity:managementofdigitalidentities;2)FraudPrevention:protectingpaidmarketing,on-siteconversionfrombotsandinvalidusers;3)IoTSecurity:protectionusedtosecureinternet-connectedornetwork-baseddevices;4)CloudSecurity:tools,dataandinfrastructurethatprotectcloud-basedproducts;and5)APISecurity:protectssoftwareapplicationcodeanddataagainstcyberthreats.

22

1billionrecordsprotected,and1,000attackspreventedperday

SECTORINSIGHTS

APIATTACKSUP7XINLAST12MONTHS

Anapplicationprogramminginterface(API)isatypeofsoftwareinterfacethatoffersaservicetootherpiecesof

softwareandisessentialforbusinessinnovation,butsecurityrisksaremultiplyingatunprecedentedscopeand

scaleasthetechnologytomanageAPIshasnotkeptpacewithusage

Followingaseriesofhigh-profilesecurityincidentsstemmingfromAPIvulnerabilities,thissub-segmentofcybersecurityhasbeenpushedintothelimelight

BusinessisboomingforcategoryleadersinAPIsecurity;disruptorsinEurope,suchasSALTandNoname,haveraisedlargemega-roundstotacklethechallenge

EXPONENTIALGROWTHINAVERAGENUMBERRECENTHIGH-PROFILEAPISECURITY

OFAPISPERCUSTOMERINCIDENTS

SALTANDNONAMEEUROPEANCATEGORYLEADERSIN2022TOHELP

PROTECTAPISFROMATTACKS&DATABREACHES

Industry’sonlypatentedsolutionthat

leveragesMLandAItoautomaticallyand

continuouslyidentifyandprotectAPIs

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,Statista,pressreleases,CBInsights,Bloomberg,BBC,FoxNews,TechCrunch,Guardian,SALT,andGPBullhoundanalysis.Note:1)Identify&AccessSecurity:managementofdigitalidentities;2)FraudPrevention:protectingpaidmarketing,on-siteconversionfrombotsandinvalidusers;3)IoTSecurity:protectionusedtosecureinternet-connectedornetwork-baseddevices;4)CloudSecurity:tools,dataandinfrastructurethatprotectcloud-basedproducts;and5)APISecurity:protectssoftwareapplicationcodeanddataagainstcyberthreats.

23

CHAPTER2

EuropeisaFintechepicentre

DRIVENBYINCREASEINFUNDINGANDREGULATORYCHANGE

Thirty-ninenewbillion-dollarFintechcompanieshaveemergedinthepastyear,makingup25%ofallUnicornsinEurope

TheregulatoryenvironmentandspecificallytheintroductionofOpenBankingacrossEuropeisdrivinginnovationandcompetition;legacyfinancialinstitutions’marketdominanceiseroding

2022isseeingaboominthenumberofInsurtechbillion-dollarcompanies,accountingfor18%ofnewFintechentrants

SPLITOFNEWBILLION-DOLLARFINTECHCOMPANIESBYNUMBER

Source:CapitalIQ,Mergermarket,Pitchbook,Crunchbase,pressreleases,andGPBullhoundanalysis.Note:Cut-offdateforinclusioninreport31March2022;valuationscorrectasof16May2022

24

SECTORINSIGHTS

EuropedoublingdownonInsurtech

INNOVATORSEATINGINTOMARKETSHAREOFLEGACYINCUMBENTS

Insurtech,atrillion-dollarindustrydominatedbylegacyplayersandpractices,isripefordisruption–

companiesinourcohortincreasedby2xinthelast12months,withsevenreachingthebillion-dollar

markforanaggregatevalueofover$12bn

Disruptorshavebeenfocusedoninnovatingdistributionandthecustomerexperience,suchasea