Using financing velocity to identify companies with momentum in the European tech scene.

Europe’s tech scene is booming to the tune of $5.7B in funding in 2014 up 78% YoY. With the funding and deal momentum, we looked at the pace at which early-stage startups were raising money between rounds, specifically from Seed to A and from A to B.

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We found that the median time between raising a Seed round and Series A increased YoY to 465 days (~15 months) in 2014. Time between Series A and Series B rounds also are up from their 2012 figures increasing from 504 in 2012 to 569 days between rounds in 2014 (~19 months). Both figures are significantly higher than their US counterparts, which were 349 days from Seed to A and 441 days from A to B in 2014.

 

Median A to B seedA Europe

One quick way to see if a company has momentum is to see if they’re Financing Velocity is high – in other words, were they able to quickly raise their next round of financing? The logic, of course, being that hot companies raise rounds quickly because investors want in on them as the result of traction (user/customer growth, revenues, etc).

Specifically we looked at companies which most quickly raised a Series A round after their seed round in Europe. The fast-raising companies include Azimo, a company disrupting Western Union and the remittances space, as well as BAT Household Services, a German version of TaskRabbit and Homejoy, which raised a $5M Series A less than 6 months after their Seed round.

The full list below.

Series A Stage European Tech Companies by Fastest Seed to A
Company Industry Country Series A Raised ($M) Select Investors
Seriously Digital Entertainment Gaming Finland 10 Daher Capital, Sunstone Capital, Upfront ventures
Purplebricks Real Estate United Kingdom 11.7 DN Capital
Flypay Payments United Kingdom 1.66 Entrée Capital
BAT Household Services Home Furnishings Germany 5 DN Capital, German Startups Group, Target Ventures
Azimo Payments United Kingdom 10 e.ventures, Frontier Investments Group, Greycroft Partners
Property Partner Real Estate United Kingdom 15.42 Octopus Ventures, Index Ventures, Seedcamp
Adbrain Advertising, Sales & Marketing United Kingdom 7.5 Notion Capital, Octopus Ventures
PrivateGriffe Marketplace Italy 3.45 Ad4Ventures, AngeLab, VAM Funds
Lesara Discount eCommerce Germany 7 Partech Ventures, Paua Ventures, Simile Venture Partners
ByHours Travel Spain 3.6 Caixa Capital Risc, Fons d’Enginyers, Axon Partners Group

 

In addition to looking at fast-raising Series A stage companies, we also looked at the Series B stage companies who made the leap from A to B quickest since 2014. This includes Netherlands-based payments company Adyen, which raised a massive $250M Series B round from Felicis Ventures, General Atlantic, Index Ventures and Temasek Holdings, as well as AirBnB alternative, Homestay Technologies. In fact, of the 10 companies, 4 have similar business models to successful US companies including Cabify (Uber/Lyft alternative), Deliveroo (Postmates), and Helpling (Handybook/Homejoy), in addition to Homestay.

Series B Stage European Tech Companies by Fastest A to B
Company Industry Country Series B Raised ($M) Select Investors
helpling Marketplace Germany 47 Kite Ventures; Lakestar; Lukasz Gadowski; Rocket Internet
KnCMiner Computer Hardware Sweden 15 Accel Partners; Creandum; GP BullHound Sidecar
Homestay Technologies Travel Ireland 3 Delta Partners; Enterprise Ireland
Cabify Travel (mobile) Spain 4 Black Vine; Seaya Ventures
Adyen Payments Netherlands 250 Felicis Ventures; General Atlantic; Index Ventures; Temasek Holdings
Deliveroo Food & Grocery United Kingdom 25 Accel Partners; Hoxton Ventures; Hummingbird Ventures; Index Ventures
Fuse Application & Data Integration Norway 2.8 Alliance Venture; Northzone Ventures
Vinted Apparel & Accessories Lithuania 27 Accel Partners; Insight Venture Partners
Cortexica Visual Systems Search United Kingdom 3.45 Imperial Innovations
GoCardless Payments United Kingdom 7 Accel Partners; Balderton Capital; Passion Capital

 

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Image credit: Taxcredits.org // Flickr