Technology breakthroughs often focus on new operating systems or major semiconductor developments. But one of the most significant yet under-reported trends is for technology companies to try to 'leapfrog' each other with 'over-the-top' technologies.
Europe is much further behind the US in late stage tech investing than it appears. Late stage tech funding is far behind the US, and surprisingly over ⅓ of funding rounds in Europe target non-tech e-commerce or marketplace businesses.
Europe’s start-up ecosystem has grown by leaps and bounds in the last decade. Yet it risks being stalled by the lack of later stage financing for Europe’s tech industry, which has hardly budged in five years.
European tech can benefit hugely from Asian investors refocusing away from the US. We think 2017 will be a watershed year for Asian investment into European tech.
Perversely we think the most active ‘European’ destination will be the UK.
European technology has come of age in 2016, according to M&A advisory firm Magister Advisors’ annual review of the European technology M&A and investment landscape. Total M&A deal value has more than doubled in Europe in the last 12 months to $127.2BN.
Surprisingly, Payment Service Providers. It must be the hardest job in tech to raise money for a new social network. Facebook and Google together now command 2/3 of all new mobile ad spend, the life blood of any social network, leaving little room for anyone else.
The European technology industry has come of age in 2016, according to a recent Magister analysis. Unprecedented M&A interest from Asian buyers, together with a strong IPO market for the best European tech businesses, has driven a surge in “blockbuster” deals (greater than $5B+ in value).
Because China’s premier Xi Jinping loves football (soccer) local billionaires are falling over themselves buying European clubs. He must also love technology, judging by Chinese behaviour towards European technology companies.
A Magister Advisors poll of the fastest-growing UK tech companies suggests half the key talent on average is British, 30% EU and 20% further afield. So Brexit’s uncertainty now demands half the UK’s best tech talent to rethink if they want to, or can, stay and perform.
As Twitter dips below its IPO price, the business needs to execute a strategy urgently that utility platform to a real product business. At $25 a share, Twitter would be worth materially more to a larger business that can accelerate its product and feature innovation. An acquisition, in the absence of that innovation, would appear far more likely today than six months ago.