UK achieves more tech exits than any other European country, with IPOs and acquisitions worth $40bn. Another bumper year for VC investment in UK tech with $7.9bn raised in 2018, ahead of Germany ($4.6bn), France ($4.4bn) and Israel ($3.4bn). Europe closes gap on US in terms of sales and IPOs in 2018. Landmark UK flotations include Farfetch, Funding Circle, Orchard Therapeutics.

1. Prepared for Tech Nation and the Government’s Digital Economy Council by Dealroom.co
Another bumper year for UK tech as 2018 draws
to a close with the UK leading on both VC
investment and exits
December 2018

2. Summary
Source: Dealroom. See methodology page for more info.
1. Figure anticipated by 31 Dec based on Jan-Nov annualised. 2
Record exits of
VC-backed
companies in UK
▪ 2018 was an extraordinarily successful year for European venture and tech, with $107 billion in
exits (a sale or an IPO) of European venture-backed companies.
▪ The UK saw $40 billion in exits from venture-backed companies, during 2018 - higher than any
other European country. Significant UK exits included Farfetch, Funding Circle, FNZ and Zoopla.
European exits
near US levels
▪ Europe closed the gap on the US in terms of exits of venture backed companies in 2018: the whole
of Europe saw acquisitions and IPOs of venture-backed companies worth $107 billion compared
with $136 billion in the USA.
Another bumper
year for VC
investment in UK
▪ UK startups raised $7.9 billion(1) in 2018, almost matching the record levels set in 2017
▪ While 2017 was skewed by a few mega rounds, 2018 shows distributed growth across the
ecosystem with a higher number of total rounds

3. The UK has seen more exits of VC backed tech companies
than any other European country in 2018
Exits of VC backed companies in 2018
Italy, France, Germany
Netherlands
Sweden
United Kingdom
3Source: Dealroom.co

4. The UK consistently created the most tech exits in the past
five years
Exits of VC & growth equity backed companies in 2013 - 2018
4Source: Dealroom.co

5. Europe, led by the UK, nearly matched the USA in terms of
exits of VC-backed companies, with deals worth $107 billion
5
Exits of VC backed companies in 2018
Source: Dealroom.co. Total value of exits of all companies that have been venture backed at any stage in their life cycle.
Excludes secondary transactions and biotech

6. Venture capital investment

7. The UK continues its strong momentum, with startups
raising $7.9 billion in 2018
Venture capital funding by country location 2018E
7Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants. Based on Jan-Nov data.

8. Number of rounds
(> $2M)
UK venture capital investment in $ billions
Top-10 largest
rounds alone
accounted for
$1.6 billion in
2018
The rest of the
VC rounds
accounted for
$6.3 billion in
2018
#1 round The Hut Group ($ 132M) Immunocore ($ 320M) Deliveroo ($ 275M) Improbable ($ 502M) Greensill ($ 250M)
#2 round Adaptimmune ($ 105M) Reward Gateway ($ 158M) Skyscanner ($ 169M) Farfetch ($ 397M) Revolut ($ 250M)
#3 round Powa Technologies ($ 80M) Funding Circle ($ 150M) Oxford Nanopore Technologies ($ 127M) Deliveroo ($ 385M) Graphcore ($ 200M)
#4 round Cell Medica ($ 66M) Mereo Biopharma ($ 119M) Farfetch ($ 110M) Truphone ($ 337M) Atom Bank ($ 197M)
#5 round Virtus ($ 66M) Atom Bank ($ 108M) Kymab ($ 100M) TransferWise ($ 281M) AWAL ($ 150M)
#6 round Farfetch ($ 66M) WorldRemit ($ 100M) Sabio ($ 66M) Gryphon Group Holdings ($ 238M) Orchard Therapeutics ($ 150M)
#7 round Funding Circle ($ 65M) Deliveroo ($ 100M) Darktrace ($ 65M) OakNorth Bank ($ 204M) Oxford Nanopore Technologies ($ 132M)
#8 round Intelligent Energy ($ 63M) BenevolentAI ($ 100M) Starling Bank ($ 64M) The Hut Group ($ 165M) BenevolentAI ($ 116M)
#9 round NuCana ($ 57M) Oxford Nanopore Technologies ($ 92M) Student.com ($ 61M) Gigaclear ($ 136M) Monzo ($ 112M)
#10 round Huddle ($ 51M) OakNorth Bank ($ 87M) F2G ($ 61M) Orchard Therapeutics ($ 110M) Culture Trip ($ 80M)
Top 10 $ 0.8B $ 1.3B $ 1.1B $ 2.7B $ 1.6B
Fundamentals in 2018 are looking strong: $6.3 billion
invested, even when the top ten largest rounds are excluded
8Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.

9. UK startups raised $7.9 billion in 2018, almost matching 2017
the previous all-time record …
9Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.

10. Venture capital investment in UK by round size
… but where 2017 was skewed by a few mega rounds, 2018
shows growth in investment across each stage
$250M $250M
$200M $194M
$104M $100M
$100M $80M
Top UK rounds in 2018
10Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.

11. Not only by amount invested, but also by number of
venture capital rounds, the UK continued its lead
Cumulative number of rounds Jan-Nov ‘18Cumulative amount invested by country Jan-Nov ‘18
11Source: Dealroom.co. Excludes buyouts, secondary transactions, debt, ICOs, lending capital, grants.

12. Methodology & additional information
12

13. Source: Dealroom.co.
Methodology & definitions
13
Venture capital
investments
and exits
▪ Investment numbers refer to venture capital investment rounds such as seed, series A, B, C, late stage and growth equity rounds. It excludes debt or other non-
equity funding, lending capital, grants and ICOs
▪ Buyouts, M&A and IPOs are treated as exits: they are excluded from funding data, but included in exit data
▪ Exits include sale of a company via acquisition or IPO. A company is deemed venture-backed if it received institutional investment any any point in its life-cycle.
In some cases, the initial venture capital investors had already realised their investment prior to the larger exit counted in this report
▪ Number of rounds are often shown excluding rounds below $2 million. This is done to eliminate the effect of delayed reporting of smaller rounds
▪ 2018E estimate is based on Jan-Nov 2018 actual data, annualised
What is a tech
company?
▪ Companies included in the analysis are innovative, tech-driven businesses. Industries include software, ecommerce, online marketplaces, hardware, ICT
infrastructure. The full industry and business model taxonomy can be found online via app.dealroom.co/heatmaps/funding/industries
▪ Increasingly, innovative models are scaling offline or via hybrid online-retail models. Examples are beer brand Brewdog which innovated distribution and
marketing, by leveraging viral marketing and crowdfunding to build a brand, and Metro Bank, a retail-first challenger bank
▪ This report focuses on companies from the post-internet age. Excluded are companies founded by corporates (e.g. WorldPay) and before 1990 (e.g. Travelport)
How is data
collected?
▪ Dealroom’s proprietary database and software aggregate data from multiple sources including processing of public news-flow, data feeds, web scraping, crowd-
sourced contributions (verified by Dealroom) and manual research
▪ Data is verified and curated with an extensive manual process, augmented by data processing
▪ Most underlying data from the report is available online. For more info please visit dealroom.co or contact support@dealroom.co

14. Realised unicorns: 46 Unrealised unicorns: 16 Future unicorns: 54
Overview of UK unicorns
Source: Dealroom.co 14

15. Major tech IPOs & acquisitions in UK in 2018
15
NAME ACQUIROR SELLER INDUSTRY LOCATION TRANSACTION EXIT VALUE
Farfetch
Online luxury fashion retail platform
--
Advent Venture Partners
e.ventures
Index Ventures
…
Fashion London
$ 855 m
IPO
$ 5.8 b
Sky Betting & Gaming (1)
Leading operators in the UK’s online betting and gaming market
The Stars Group
Sky
CVC Capital Partners
Gaming
Sports
Leeds
$ 4.7 b
ACQUISITION
$ 4.7 b
Zoopla
Property website for the British residential market
Silver Lake Partners
Atlas Venture
LocalGlobe
Octopus Investments
…
Real Estate London
$ 2.9 b
ACQUISITION
$ 2.9 b
FNZ
Wealth management platforms for financial advisers and direct
customers
Generation Investment
Management
Caisse de dépôt et
placement du Québec
HIG Capital
General Atlantic
Fintech
Enterprise Software
Edinburgh
$ 2.2 b
ACQUISITION
$ 2.2 b
Funding Circle
Peer-to-peer business loans
--
Index Ventures, Accel
Partners, Unique Square
Ventures, Blackrock
Fintech London
$ 390 m
IPO
$ 2.0 b
Callcredit
Provider of consumer information management and direct marketing
services
TransUnion
Vitruvian Partners
GTCR
Fintech
Enterprise Software
Leeds
$ 1.8 b
ACQUISITION
$ 1.8 b
Esure Group
Leading provider of insurance products
Bain Capital
Penta Investments
Penta Capital
Souter Investments
Fintech Reigate
$ 1.6 b
BUYOUT
$ 1.6 b
CRF Health
Provider of patient-centric technology solutions
Genstar Capital Vitruvian Partners
Health
Enterprise Software
London
$ 1.1 b
ACQUISITION
$ 1.1 b
Clear Score Technology
Making clear the confusing world of credit
Experian
Lead Edge Capital
QED Investors
Brightbridge Ventures
Fintech London
$ 385 m
ACQUISITION
$ 385 m
NewVoiceMedia
Provider of cloud technology for sales and service teams
Vonage
Salesforce Ventures
Bessemer Venture Partners
Highland Capital Partners
Marketing
Enterprise Software
Basingstoke
$ 350 m
ACQUISITION
$ 350 m
Go to online data »
Source: Dealroom.co
1. Founded in 1999 as Sports Internet Group and initially acquired by BSkyB in 2000.

16. Major tech IPOs & acquisitions in Europe & Israel in 2018
NAME ACQUIROR SELLER INDUSTRY LOCATION TRANSACTION EXIT VALUE
Spotify
Music streaming software
--
Accel Partners, Goldman
Sachs, Lakestar, Fidelity, GP
Bullhound
…
Music Stockholm
$ 9.2 b
IPO
$ 29.5 b
Adyen
Leading global payments company
--
Index Ventures
Felicis Ventures
General Atlantic
…
Fintech Amsterdam
$ 1.0 b
IPO
$ 7.8 b
Farfetch
Online luxury fashion retail platform
--
Advent Venture Partners
e.ventures
Index Ventures
…
Fashion London
$ 855 m
IPO
$ 5.8 b
Yoox Net-a-Porter
Global Internet retailing partner for leading fashion & design brands
Richemont
360 Capital Partners
Balderton Capital
Net-a-Porter
Alabbar Enterprises
Fashion Milan
$ 3.0 b
ACQUISITION
$ 5.5 b
Sky Betting & Gaming
Leading operators in the UK’s online betting and gaming market
The Stars Group
Sky
CVC Capital Partners
Gaming
Sports
Leeds
$ 4.7 b
ACQUISITION
$ 4.7 b
Avast Software
Cybersecurity products for businesses and consumers
--
Summit Partners
CVC Capital Partners Security Prague
$ 192 m
IPO
$ 3.1 b
Zoopla
Property website for the British residential market
Silver Lake Partners
Atlas Venture
LocalGlobe
Octopus Investments
…
Real Estate London
$ 2.9 b
ACQUISITION
$ 2.9 b
Elastic
Self-managed and SaaS software for search, security and analytics
--
Benchmark
Data Collective
New Enterprise Associates
…
Developer tools Amsterdam
$ 252 m
IPO
$ 2.5 b
SUSE
Provider of an Enterprise Linux distribution software
EQT Partners Novell Developer tools Nuremberg
$ 2.5 b
ACQUISITION
$ 2.5 b
iZettle
Secure and easy mobile payment solutions
PayPal
Creandum, Index Ventures,
Intel Capital, Northzone,
83North
Payments Stockholm
$ 2.2 b
ACQUISITION
$ 2.2 b
Go to online data »
16Source: Dealroom.co

17. Major tech IPOs & acquisitions in the United States in 2018
NAME ACQUIROR SELLER INDUSTRY LOCATION TRANSACTION EXIT VALUE
Dropbox
File hosting service allowing customers to share and store files online
--
Y Combinator, Goldman
Sachs, Blackrock, Accel
Partners
…
Enterprise Software San Francisco
$ 756 m
IPO
$ 9.2 b
Qualtrics
Allows customers to create surveys and capture customer data
SAP
Accel Partners
Sequoia Capital
Insight Venture Partners
Enterprise Software Utah
$ 8.0 b
ACQUISITION
$ 8.0 b
GitHub
Best place to share code with other people.
Microsoft
Andreessen Horowitz
SV Angel
Thrive Capital
…
Enterprise Software San Francisco
$ 7.5 b
ACQUISITION
$ 7.5 b
Arris Group
Delivers cable and telecom equipment to cable operators
CommScope SOSV Telecom Georgia
$ 7.4 b
ACQUISITION
$ 7.4 b
MuleSoft
Developer tools providing connectivity between applications and data
Salesforce
Andreessen Horowitz
SV Angel, Thrive Capital
Sequoia Capital
…
Enterprise Software San Francisco
$ 6.5 b
ACQUISITION
$ 6.5 b
Marketo
Marketing automation software
Adobe Systems
InterWest Partners
Battery Ventures
Vista Equity Partners
…
Marketing / Enterprise
Software
San Mateo
$ 4.8 b
ACQUISITION
$ 4.8 b
DocuSign
Electronic signatures and online documents
--
Ignition Partners, Sigma,
Partners, Accel, Bain Capital
Ventures, Wellington
…
Legal / Enterprise
Software
San Francisco
$ 629 m
IPO
$ 4.5 b
GreenSky
Leading company in consumer finance marketplace
--
TPG Capital, ICONIQ Capital,
Wellington, Pacific
Investments
…
Fintech Atlanta
$ 874 m
IPO
$ 4.4 b
Pivotal
Providing digital transformation technology and services
--
VMware
General Electric (GE)
Microsoft
…
Marketing / Enterprise
Software
San Francisco
$ 555 m
IPO
$ 3.9 b
Pandora
Internet radio and recommendation services
--
Walden Venture Capital
Labrador Ventures
Selby Venture Capital
…
Music / Media Oakland
$ 3.5 b
ACQUISITION
$ 3.5 b
Go to online data »
17Source: Dealroom.co

18. About Dealroom.co
Source: Dealroom.co
1. Verified rounds excluding secondary, ICOs, debt and other non-equity rounds.
The most comprehensive European data sourceTrusted by world-leading clients
■ Dealroom is a global company information database & research firm
■ Its software, database and bespoke research enable its clients to stay at
the forefront of innovation, discover promising companies and identify
strategic opportunities
■ Among its clients are world-leading strategy consulting firms, investment
banks, multinationals, technology firms, venture capital & buyout firms and
governments
Number of European VC rounds tracked in 2017 (1)
Not disclosed in official report
Selected publishers of Dealroom data
Selected Dealroom clients
Europe’s most comprehensive database of promising
companies and investment
Growth metrics like product usage, funding and valuation
momentum (web, iOS, Android)
Track team size, background, composition and growth
Discover potential unicorns, long before others do
Industry taxonomy and database structure designed for
innovative technology startups & scaleups
Stay at forefront of innovation and investment trends
18

19. Tech Nation - The UK Network for Ambitious Tech Entrepreneurs
Tech Nation empowers ambitious tech entrepreneurs to scale faster through digital entrepreneurship skills, a visa scheme for
exceptional talent, building networks and connections, and by championing the UK’s digital sector through data, stories and media
campaigns.
Founded in 2011 as Tech City, Tech Nation’s programmes cater for businesses of all growth stages, from initial idea and early
stages (The Digital Business Academy, Founders’ Network and Rising Stars), right through to the mid and late stages (Upscale and
Future Fifty). It also recently launched its first ever sector-specific programme, for fintech companies, with more in the pipeline.
Some of the UK's biggest tech success stories have taken part in Tech Nation's growth programmes, from Just Eat, Deliveroo, Not
On The High Street, and Skyscanner, to Farfetch, Unruly, Zoopla and Darktrace. Check out all alumni companies.
www.technation.io Twitter @TechNation #WeAreTechNation