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.
European Tech Financings Slowing Down Even Before Brexit Effect, While M&A Activity Remains Unusually Strong
More entrepreneurs than ever are choosing to compete from Europe. 10 years ago most founders building international tech businesses would automatically move to the US.
AI Teams Being Acquired For Over $2m / Employee; Employee Value Often Far Greater Than Business Value
Twitter just paid $150m for 14-person Magic Pony, a UK-based AI visual search company barely anyone had heard of before the deal. At $10m+ per employee it marks a high water mark in AI for what is essentially a team acquisition.
We believe the just announced Microsoft/LinkedIn marriage can work, even if there are likely some very tough times ahead as both companies combine awkwardly.
Ad-tech or market-tech; call it what you will; the programmatic advertising and targeting industry has become a hugely complicated morass of 4,000 products, many with overlapping functionality and unclear benefits for end customers.
Venture capital investors across the US and Europe are failing to take full advantage of high-value “exit windows,” according to Magister’s 15-year analysis of VC and private equity (PE) exit activity. Our analysis suggests VCs are significantly better at investing than exiting.