The document discusses the startup ecosystem in the United Kingdom. It notes that the UK leads the EU in terms of $1 billion "unicorn" companies and startup funding. While UK venture capital investment dipped in 2016, possibly due to Brexit, the country remains a global technology hub and attracts significant investment from US investors. The UK also has many successful startup exits, strong university programs, supportive government policies, and a large talent pool of software developers and engineers, making it an attractive location for tech entrepreneurs and venture capital firms.

1. 1
frontline.vc
A GLOBAL PERSPECTIVE BROUGHT TO YOU BY:
Startups & Venture Capital
in the United Kingdom
The Global Startup Hub

2. @TROLSZEWSKI 2
The UK is the EU leader in $b+ tech co’s and startup funding
Gil Dibner Slideshare Presentations, GP Bullhound 2016 Unicorn Report
QUARTERLY FUNDING EX-
MEGA (€100m) ROUNDS
Quarterlyfundsraised($m)
0
5
9
14
18
3
6
10
18
# OF €1b+ STARTUPS
Q
3
2014
Q
4
2014
Q
1
2015
Q
2
2015
Q
3
2015
Q
4
2015
Q
1
2016
Q
2
2016
Q
3
2016
Q
4
2016
180
284
719
437
621
444
892
543 555
487
Sweden France Germany UK

3. @TROLSZEWSKI 3
$1.6b$1.7b
$4.3b
$5.1b
$6.2b
$7.1b
TRAILING 12 MONTHS OF VC
INVESTMENT (BY COUNTRY, EX-SV & SF)
Venture Pulse Q3 2016 CBInsights, US City Comparison Pitchbook, The Numbers Behind Europes Ecoystem, Pitchbook. Does not include San Fransisco or Silicon Valley
$3.5b
$4.6b
$9.37b
$11.2b
$17.6b
TOTAL EXIT VALUE SINCE 2010 (BY
CITY, EX-SV & SF)
USD
USD
A significant global technology hub
MassachusettsNew York Israel UK Germany Canada New York Los Angeles London Paris Berlin

4. @TROLSZEWSKI 4
2016 saw a dip in funding: is Brexit to blame?
€0b
€1.5b
€3b
€4.5b
€6b
2007 2008 2009 2010 2011 2012 2013 2014 2015 20162007 2008 2009 2010 2011 2012 2013 2014 2015 2016
386
423 427
596
741
987
1,244
1,496
1,382
936
Pitchbook 2016 Annual European Venture Capital Report
# DEALS CLOSED
DEAL VALUE
UK VC ACTIVITY

5. @TROLSZEWSKI 5
EU deal value is catching up to the UK across many regions2012
2013
2014
2015
2016
€3.2b
€3.8b
€3.2b
€1.3b€1.3b
UNITED KINGDOM
2012
2013
2014
2015
2016
€1.6b
€1b
€0.5b
€0.3b
€0.2b
SWEDEN
140%
CAG
R
TechNation 2017: Dealroom Perspective
2012
2013
2014
2015
2016
€2.7b
€1.5b
€0.8b
€0.6b
€0.5b
FRANCE
40%
CAG
R

6. @TROLSZEWSKI
London
Paris
Berlin
Stockholm
0 4.5 9 13.5 18
$2.3b
$5.8b
$3.7b
$11b
$1.8b
$1.3b
$9.6b
$17b
6
TOTAL VC FUNDS RAISED VS
INVESTED SINCE 2006
Venture Pulse Q3 2016 CBInsights, The Numbers Behind Europes Ecoystem, Pitchbook, The State of European Tech 2016
USD
Total Funds Raised
Total Funds Invested
Although talent and capital remain concentrated in the UK
London
New York
Paris
Madrid
Berlin
Amsterdam
Warsaw
Stockholm
Dublin 45,000
51,000
63,000
66,000
81,000
81,000
134,000
250,000
300,000
# OF SOFTWARE DEVELOPERS
A $6b FUNDING
SURPLUS

7. @TROLSZEWSKI 7Fund Flows in Europe, Dealroom (2015), Which funds are really investing in Europe?
And the UK is the leading destination for U.S. investors
€1.4b in rounds led by US
investors into UK companies

8. @TROLSZEWSKI
$1.5b
8
With 200 companies with $50m+ in funds raised
Crunchbase, Last Valuation, Authors Choice
$1.4b
$1.1b $1.0b
$500m $500m
$500m
$1.1b
$1.7b
$100m+ FUNDS RAISED $50m+ FUNDS RAISED
Last Valuation

9. @TROLSZEWSKI 9
And 200+ tech exits in the past 10 years!!
Crunchbase Pro (ex-MedTech, BioTech), Varied Sources, Authors choice
INFO SEC
£1.3b
$183m
$695m
$350m
E-COMMERCE
£4.1b
£3.9b
£700m
$160m
£350m
£200m
$525m
EDTECH
$752m
$527m
GAMING
$400m
$1b
$300m
PROPTECH
£640m
£100m
£1b
£3.7b
ENTERPRISE
£80m
£400m
$700m
$790m
HARDWARE
$2.4b
$367m
$310
$871m
MEDIA
£181
FINTECH
$5.5b
£850m
$118m
$700m
£1.1b
£4.8b
£700m
MARTECH & ADTECH
$325m
$176m
$200m
£154m
$1.2b
$550m
TRAVEL
$170m
$404m
CONSUMER TECH
$250m
$1b
$150m
$280m
GAMBLING
$1b
$4.9b
£1.4b

10. 10
Ecosystem

11. @TROLSZEWSKI 11
The UK has the highest concentration of capital in EuropeVitruvian
Balderton
Octopus
IndexGrowth
AccelLondon
Atomico
SEP
draperesprit
Kreos
Kennet
Amaedus
Advent
OxfordScience
Baird
OxfordCapital
EightRoads
DNCapital
Imperial
BGF
Notion
Amadeus
MMC
Frog
Advent
Dawn
Santander
Mosaic
Passion
Piton
Pentech
Felix
IQCapital
Frontline
Parwalk
110120115120122125130140160180200200
270293300300300315
366390
450470490
530
600
750
1,150
1,270
1,400
1,500
1,600
1,700
2,150
2,970
TotalFundsRaisedorSimilar($m)
Based off of Crunchbase data or company website: Balderton, Octopus, Northstar, SEP, Advent, draperesprit
Funds domiciled in the UK or
primarily do business there
Funds domiciled in the UK or
primarily do businesses there

12. @TROLSZEWSKI 12
Investors at every stage, even debt
Seed Series A - B Late Stage
Note: approximation, many investors participate across different stagesAuthors choice
Debt
LocalGlobe

13. @TROLSZEWSKI
Tracy Dorée
Russell Buckley
Leila Rastegar Zegna
13
Who to know at the seed stage
Pietro Bezza
Bill Earner
Sitar Teli
xx
Saul Klein
Robin Klein
Ophelia Brown
lifellineventures.com
@lifelineventures
William McQuillan
Thomas Olszewski
Steve Collins
Hussein Kanji
Rob Kniaz
Eileen Burbidge
Robert Dighero
Stefan Glaenzer
Joe Charlesworth
Georgia Taylor Foster
Andre De Haes
Alex Brunicki
Reshma Sohoni
Carlos Eduardo Espinal
LocalGlobe
Authors choice

14. @TROLSZEWSKI 14
Who to know in later stages
Niklas Zennström
Mattias Ljungman
Nenad Marovac
Steve Schlenker
Thomas Rubens
Suranga Chandratillake
Bernard Liautaud
Martin Mignot
Jan Hammer
Dominique Vidal
Philippe Botteri
Fred Destin
Sonali De Rycker
Hans Otterling
Michiel Kotting
Jeppe Zink
Stephen Chandler
Jos White
Chris Tottman
Andrin Bachmann
Greg Lockwood
Helen Clark
Mike Chalfen
Simon Levene
Toby Coppel
Authors choice

15. @TROLSZEWSKI 15
The UK is unique in Europe for its large late stage funds
Fund IV
$430m
(2009)
Fund V
$305m
(2014)
Growth III
$706m
(2015)
Early Stage VIII
$550m (2016)
London V
$500m
(2016)
Growth IV
$1.5b
(2016)
Growth II
€500m
(2011)
Early Stage VII
$550m (2014)
Growth I
€400
(2008)
Early Stage VI
$350m (2012)
London IV
$475m
(2013)
Growth III
$1b
(2014)
London III
$525
(2008)
Growth II
$875m
(2011)
Fund III
$550m
(2006)
Fund III
$476m
(2013)
Fund IV
$765m
(2017)
Fund II
$165m
(2010)
Authors choice

16. CVCs have become active as well
16
Funds Focus Areas
Angel style
Enterprise cloud solutions
Health and wellbeing
Healthcare,AI, robotics, transport, cyber security, and agriculture
Life Science
Insurance, accident and health, asset management
CBinsights The 2016 Global CVC Report
Independent VC of Santander bank
Media and technology
Enterprise software
Enterprise software, FinTech, InsurTech,Travel, Health,Auto

17. And many great accelerators
17
Accelerators % Stake Comments
6%
6-8%
7%
n/a
Investment
€20+100k
€15k
€75k
Variable
Authors Choice
- - FinTech innovation lab
Diversified
FinTech + Insurtech
Diversified + FinTech
Deep tech
- Diversified-

18. 18
The United Kingdom

19. @TROLSZEWSKI
UK GDP is top 5% globally,
#1 in Internet as a % of GDP
19
Strengths
World-class universities
Supportive government: visa
program, tax incentives
The most plentiful early-
stage capital in Europe
Global leader in per capita e-
commerce and ad spend
Top 3 global customer base
for enterprise &
infrastructure tech
12 Reasons to be excited about London via LocalGlobe

20. @TROLSZEWSKI
Macro: Falling housing
prices, weak currency, rising
costs of goods
20
Challenges
Brexit creates an uncertain
regulatory environment
High cost of living
US-based startups selling
into Europe are often larger
and well-funded
Tight immigration policies
To achieve global scale
companies must expand to
the US or Asia

21. @TROLSZEWSKI 21
London
£1 = €1.15 London Berlin
Population 8.6m 3.5m
1 Bedroom Flat £17001
€7001
Beer £4.501
€3.001
Avg Salary £48,0004
€40,0002
Avg Software
Engineer Salary
£56,0005
€50,0003
London named world's most expensive city in
which to live and work - Telegraph
Numeo, , Salary Survey in Berlin, 3
Berlin Software Engineer Average Salary, Metro Salaries4
, Balderton EU Talent Landscape5
SHOREDITCH, EAST LONDON
THE UK’s TECH CENTRE

22. 22
Companies

23. @TROLSZEWSKI
Fashion - Food - Home goods
Lending - Wealth Management - Banking
Bookings - Luxury Rentals
23
Four sectors where UK startups have succeeded
FinTech
Infrastructure - Deep tech - Big data
Enterprise
eCommerce Travel

24. @TROLSZEWSKI 24
FinTech
CEO & Co-Founder
Samir Desai
Formerly Olivant, BCG, Lazard
University of Oxford
Founder & Chairman
Errol Damelin
Formerly Supply Chain Connect
U. of Cape Town, Boston U.
Linkedin Information, Crunchbase
Short term
consumer
loans
EU’s leading
SMB lender

25. @TROLSZEWSKI 25
Enterprise
Linkedin Information, Crunchbase
Founder & CEO
Demis Hassabis
Formerly Elixir Studios
PhD UCL, BA Cambridge
Acquired
for £400m
Founder & President
Lance Uggla
Formerly TD, CIBC
London School of Economics
$5.5b IPO
Derivatives
valuation
and pricing

26. @TROLSZEWSKI 26
eCommerce
CEO & Co-Founder
Ning Li
Formerly MYFAB, Rothschild & Co
MSc HEC Paris
CEO & Co-Founder
José Neves
Formerly PLATFORME
B.A. Universidade do Porto
LinkedIn Information, Crunchbase
Game development studio
Furniture
direct to
consumer
Curated
fashion

27. @TROLSZEWSKI 27
Travel
Gareth Williams
CEO & Co-Founder
Formerly M&S, Nations Bank
BS University of Manchester
LinkedIn Information, Crunchbase
Acquired
for $1.7b
Evan Frank
CEO & Co-Founder
Formerly iwantBOX.com
BA University of Michigan
Discover new music
Flight &
hotel
booking
Acquired
for $170m
Rent luxury
homes

28. @TROLSZEWSKI 28
Early-stage companies to watch in 2017
Brand ambassador software
Authors choice
Small business invoicing solution
Payment cards Anti-money laundering
Automatic code testing
Media monitoring
Energy equipment marketplace
Banking for businesses
Social network for auto enthusiasts
eCommerce API
Banking APIs
Sales paperwork automation
Marketing orchestration
Prototyping toolSatellite drone airborne images Card based PFM

29. 29
Conclusion

30. @TROLSZEWSKI 30
Predictions for 2017
As the UK economy takes a
blow, funds expand to
Germany and France
Accelerators move
upmarket, writing larger
checks at seed stage
Passporting restrictions
make it difficult for UK funds
to fundraise on the continent
Exits of Deliveroo, Funding
Circle, and Farfetch fuel
market growth
Germany challenges the UK
as the leading destination
for startups and VC
UK CVCs become more
active investing in startups

31. @TROLSZEWSKI 31
Twitter Medium Quora

32. @TROLSZEWSKI 32
in THE NORDICS
in GERMANY
IRELAND
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AND THANKS TO 100K+ VIEWERS WHO VIEWED THE ORIGINAL IRISH TECH STARTUP GUIDE
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33. @TROLSZEWSKI 33
CHECK OUTTHE REST OF THE FRONTLINE LIBRARY!

34. @TROLSZEWSKI 34
Source Links
Online Content
GP Bullhound 2016 Unicorn Report
The Numbers Behind Europe’s VC Ecosystem
2016 European Venture Capital Report
Gil Dibner Slideshare Presentations
CBinsights: Venture Pulse Q3 2016
Pitchbook: US City Comparison
Pitchbook 2016 Annual Venture Capital Report
TechNation 2017: Dealroom Perspective
Atomico: State of European Venture Capital
Fund Flows in Europe, Dealroom (2015)
Which funds are really investing in Europe?
12 Reasons to be excited about London
CBinsights The 2016 Global CVC Report
Balderton EU Talent Landscape

35. @TROLSZEWSKI 35
Slide 7 - US Investors
Selection of investors actively investing in the UK
Slide 8 - $50m / $100m funds raised
Discretionary selection of companies with $50m+ / $100m
funds raised (via crunchbase)
Slide 9 - Exits
Discretionary selection of exits
Slide 11- Funds in the UK
UK funds with $100m+ in funds raised
HQ’d in the UK or that primarily do business there
Index Growth Fund included to represent high volume of UK
based transactions
Slide 12 - Investors by stage
Discretionary selection of investors by stage
Slide 13 - Who do know
Discretionary selection of 3 investors per fund
If funds have many partners, GPs selected
Otherwise based on tenure
Slide 15 - Fund progression
Most recent 3 funds of large funds active in the UK
Slide 17 - CVCs
Discretionary selection + Cbinsights top 7
Slide 17 - Accelerators
Discretionary selection
Slide 22 - Companies
Authors choice
We have tried our best to
include relevant companies
and investors in each section
For omissions, misprints or
corrections please contact
thomas@frontline.vc

36. 36
Appendix

37. @TROLSZEWSKI 37
Fund list including <$100m fundsVitruvian
Balderton
Octopus
AccelLondon
Atomico
SEP
draperesprit
Kreos
Kennet
Amaedus
Advent
OxfordScience
Baird
OxfordCapital
EightRoads
DNCapital
Imperial
BGF
Notion
Amadeus
MMC
Frog
Advent
Dawn
Santander
Mosaic
Passion
Piton
Pentech
Felix
IQCapital
Frontline
Parwalk
edenventures
WhiteStar
EF
Anthemis
Episode1
GPBullhound
Hoxton
Seedcamp
Backed
Connect
Playfair
ForceOverMass
253034354047606070707098110110115120122125130140160180200200
270293300300300315
366390
450470490
530
600
750
1,150
1,270
1,400
1,500
1,700
2,150
2,970
Balderton, Octopus, Northstar, SEP2, Advent1, draperesprit
TotalFundsRaisedorSimilar(£1m)
1Latest Fund, 2Estimate, 3Evergreen. Cruchbase data is used unless otherwise noted.
Funds domiciled in the UK or
primarily do business there
Funds domiciled in the UK or
primarily do businesses there

38. @TROLSZEWSKI 38
€400m
Nordics
Fund Flows in Europe, Dealroom (2015), Which funds are really investing in Europe?
UK funds are a source of funds for the rest of Europe
€700m DACH
rounds lead
by UK funds
€250m
France
LocalGlobe