附近上门

In 2020 the global market has seen a significant increase in valuations to private and public cloud companies. , a longtime partner at in London who invests in cloud applications and security companies, charts this expansion for European companies in report.

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鈥淭he entire amount invested in private cloud companies in Europe and Israel in 2020 has grown close to 30% so far to $9-9.5 billion, which is nearly half the $20 billion invested in US-born cloud companies,鈥� said Botteri in the latest report on European cloud companies.

Botteri attributes this growth to Europe’s leadership in artificial intelligence in math, science and data, along with the increase in the number of ecosystems across Europe that are attracting startups, which in turn impact one another.

Accel鈥檚 London office earlier this year celebrated its 20th anniversary and the firm has been front and center through Europe鈥檚 rise as a startup hub.

Key findings

• Two European software companies were valued at more than $10 billion in July this year.
  • , now headquartered in New York, was valued over $10 billion.
  • 狈辞谤飞补测鈥檚 was acquired with a total valuation above $12 billion.
• There are 100 companies to watch on Accels Euroscape cloud list, with , up from 13 a year ago.
• A founded in Europe and Israel is worth over $100 billion.

From consumer to cloud

Botteri built a cloud-investing profile in the early days of cloud at in the U.S. When he moved to Accel, London in 2011, there was very little happening in software at the time.

For the first three years in Europe, Botteri鈥檚 investments were in marketplace companies like and 鈥攎ore internet than software–Botteri told 附近上门 News. His first software investments were in in 2014, and then and .

鈥淓urope had created some leading consumer companies like and from 2010 to 2015, and then moved into the era of software from 2016 to 2020,鈥� said Botteri.

mirror this progress. Between 2011 and 2015, Accel made 14 software investments in seven cities, and from 2016 to 2020, 35 investments in 20 cities. The investment amount rose from $150 million to $740 million when comparing these two time periods.

This rise in European cloud companies follows through in global revenue predictions. According to the report, the global cloud applications market has increased to $100 billion in 2020 and is estimated to grow to $1 trillion by 2025.

European ecosystems

Botteri said that Europe was already very connected, and is now even more international due to the rise in remote work sparked by the COVID-19 pandemic. Europe鈥檚 time zones make it easier for people to hire in neighboring countries.

鈥淭here is a lot more mobility between these hubs than people think,鈥� Botteri said. 鈥淵ou’ll see a company in Paris with engineers from Portugal, from Spain, from the U.K., even from the U.S.鈥�

Many global software companies founded in Europe and Israel create U.S. headquarters while retaining R&D in Europe. 鈥淔or every dollar spent globally on software, 50 cents are spent in the U.S. You can’t be a global software company and not have significant market share in the U.S.,鈥� he said.

For Botteri, it really depends on the sector and the market being addressed on whether to have a U.S. headquarters or not. The includes 19 companies鈥攁ll listed on the 鈥攃ollectively valued at $48.4 billion. Of these companies, 10 are headquartered in the U.S.

The most highly valued companies, which were all founded in Europe and Israel, include New York-headquartered robotic process automation company valued at $10.2 billion, London-based online payment solution at $5.5 billion, and customer cloud communications company based in Amsterdam and customer-engagement platform headquartered in San Francisco, each valued at $3 billion.

Security company , based in London, raised its Series A in March 2018 and reached a unicorn valuation at its Series C within two years. And live virtual-events platform , also based in London, which raised a Series A earlier this year, was most recently valued at $2.1 billion in November.

Just a year ago, the 2019 Champions league of 13 companies were valued collectively at $19.5 billion. Now, the new Champions league list of 19 companies for 2020 are valued at $48.4 billion, more than double the valuation of the 2019 list.