The news is the Scaleup Dragon has definitely awoken. Since 2014 investments in tech scaleup in China has moved by order of magnitude. Though it is not yet at the US levels, China managed to distance Europe consistently pouring in the ecosystem large amounts of capital. The net result is China producing larger tech companies and approaching the US.
If we look at the numbers of the European startup ecosystem we, finally, spotted a sustained growth pattern. The efforts put in place in the last few years to support the startup ecosystems in Europe seem to finally pay off. The number of European scaleups have been growing consistently by 20% year after year on an average (+13% in 2018). This means Europe added about 1,400 new scaleups in 2018.
2019 is reportedly the year of well anticipated tech IPOs. Is this a resurge of what used to be the norm, or just a timing coincidence? Are IPOs a way for scaling up tech companies or just an exit for investors? To address these questions we analyzed the funding path of over 40 thousand tech scaleups across US, Europe, China, and Israel.
Large corporations are increasing their efforts to find innovative and disruptive technologies in the world’s most relevant technology hotspots, and through this search, they are branching out to locations with tight innovation ecosystems to engage with technology and talent. Silicon Valley and Israel are the most obvious innovation destinations.
In September 2018, together with Crunchbase, we published our Tech Startup M&As: 2018 Report, shedding some light over the main global M&A market trends. We’ve tracked about 22,000 startup exits worldwide, for a total deal value of about $1.2 trillion. After a strong increase in the 2016-2017 timeframe, we recorded a consolidation of both the number of global exits and deal value.