JULY2025

TITANSOFTECH

EUROPE’STECHNOLOGYRENAISSANCE

Thisreportisintendedforprofessionalinvestorsonly;seethebackofthereportforimportantdisclosures.GPBullhound

CorporateFinanceLtdandGPBullhoundAssetManagementLimitedareauthorisedandregulatedbytheFinancialConduct

Authority.GPBullhoundIncisamemberofFINRA.GPBullhoundLuxembourgS.à.r.l.isregulatedbytheCSSFinLuxembourg.

2

3

Contents

04

THEVIEWFROMGPBULLHOUND

34

EXPERTVIEW

ClémentGalic,Unseenlabs

05

KEYTAKEAWAYS

06

14

17

CHAPTER1

StrongfundingenvironmentledbyAI-driveninnovation

EXPERTVIEWEfeCakarel,

MUBI

CHAPTER2

Growthequityinsights

37

41

CHAPTER4

Europe’snextgeneration

EXPERTVIEWS

JonBratseth,Vespa

EnriqueLizaso,RomanOrus

&SamMugel,Multiverse

EleanorLightbody,LuminanceMagnusHillestad,Sanity

WilliamZeqiri,Fresha

JohnnyWarstr?m,Mentimeter

25

CHAPTER3

Sectorspropellingagrowingfundingenvironment

44

DISCLAIMER

30

EXPERTVIEW

JasonWarner,Poolside

4THEVIEWFROMGPBULLHOUND

Theview

FROMGPBULLHOUND

MANISHMADHVANIManagingPartner,GPBullhound

Inlastyear’sreport,wewerewitnessingtheemergenceofanewerashapedbyAI-driveninnovation.Today,wecanconfidentlysaythiswaveismaterializingatfullscale.EuropehasdemonstrateditsabilitytobuildeverycomponentoftheAIvaluechain,raisemegaroundsforitsfoundersandreduceitsdependanceonoverseastechnology.

Fundinglevelshavestabilizedandarenowtrendingupwards.Afteraprolongedquietperiod,unicorncreationisontheriseonceagain.CompaniessuchasMistral,Poolside,andMultiversearesecuringhundredsofmillionsinfundingtodevelopproprietarytechnologieswithglobalscaleandimpact.

However,challengesremainontheliquidityfront.Ventureandgrowthinvestorsbackingthesetechbusinesseshavestruggledwithdistributionsoverthepastfewyears,astheIPOmarketturnedsilent.And2025willbenobetter,withmanyfoundersstillreluctanttopursuepubliclistings.Instead,largesecondaryfundingroundshavebeenorchestratedtoallowthoseearlyinvestorstoexit.StrategicacquirersarealsobecomingmoreactiveintheEuropeanscene,thoughtradesalesremainchallengingforbusinessesover>$5Bninvalue–albeitnotimpossible.

Weexpectabusyyearaheadintermsoftransactions.Largepoolsofcapitalareaccessible,andbothfinancialinvestorsandstrategicsareactivelylookingforthenextwaveofAIbreakthroughsthatwillshapethewayweliveandwork.

AUTHORS

MANISH

MADHVANI

ManagingPartner

ALESSANDROPICCIONE

Analyst

CARLOS

DELAESPERANZAPrincipal

ZEESHANALI

Associate

BullhoundcapitalGP.Bullhound

BullhoundcapitalGP.Bullhound

KEYTAKEAWAYS5

KeyTakeaways_

Techfinancial

marketshave

recoveredand

showresiliency

FundingforEuropeantechhasremainedatanaverageof€15Bnforovertwoyearsnow.Thisstabilizationat+50%higherlevelsthanbeforethe2021-22bullmarketconfirmsthatfinancialmarketsareactive,andthatcompaniesareraisingcashtoaccelerategrowthandinnovation.

TheEuropeantechecosystemcontinuestogrowinvalueyearafteryear,with17newunicornsaddedinthepastyearalone.

Megaroundsareseeingnew

horizons

Wehavealsoseenarecoveryinmegarounds(those>$50Minsize)sincethebullmarketdrop.Growthinvestorshaveacceleratedtheiractivityinthelastyear.Butontheexitside,Europeantechgiantsarehesitanttolistinpublicmarkets,thereforeextendingtheinvestmentholdingsperiods.Largeroundsofpurelysecondarieshavestartedtotakeplace,tobringliquiditytoearlyinvestors,andtoallownewgrowthinvestorstoaccessfastgrowingcompaniesaspre-IPOinvestors.

Europeasa

pioneerinAIdevelopment

EuropeanAIbusinesseshaveraisednearly€20Bninthelasttwelvemonthsalone.Whileinitiallymoreapplication-heavy,AIinfrastructureisnowtheleadingsub-sectorintermsoffundraising.CompanieslikeMistral,MultiverseComputingorIsomorphicLabsarebuildingnewstructuralelementstopowerAIanditsusecases,competingwithforeigninnovatorsandraisingunprecedentedfundingroundsfromglobalinvestors.EuropeisgainingsovereigntyandclaimingindependencefromoverseastechnologytopropelthisneweraofAIinnovation.

6CHAPTER1.EUROPEANTECHNOLOGYISBACKINTHEGAME

Europeantechnologyisbackinthegame_

StrongfundingenvironmentledbyAI-driveninnovation

FUNDINGLEVELSAREHEALTHYANDSTABLE

Overthepasttwoyears,anaverageof€15bnhasbeeninvestedeachquarterintoEuropeantechnology(includingIsrael),representinga50%increasecomparedtotheyearspriortothe2020–2022fundingfrenzy.

AnewwaveofAI-focusedmega-roundsreinforcesourconfidenceinacontinuedupwardtrendinfundingoverthenext24months,asEuropedemonstratesitscapacitytobuildglobalAIleaders.

UNICORNCREATIONISONTHERISEFORTHEFIRSTYEARSINCE2022

Afterasharpdropinunicorncreationfollowingthebullmarket,forthefirsttimesinceearly2022wecannowsaythatEuropeisproducingmore$1Bn+companiesthanitwasayearago.

With17newunicornsacross10differentgeographies—primarilyintheAIandsecuritysectors—Europenowcounts331billion-dollarcompanies,representing$1.4Trinvalue,a3xincreasefromjust5yearsago.

THEFIRST>$100BNEUROPEANTECHNOLOGYBUSINESSSINCESAP

InFebruary2025,SpotifymarkedamajormilestoneforEuropeantechnologybysurpassing$100Bninmarketcapitalization.

ThishighlightsEurope'sabilitytobuildgloballycompetitiveproductsthatthrivealongsidemajortechgiantsfromtheUSandAsia—whilestayingtruetotheirEuropeanfoundations.

BullhoundcapitalGP.Bullhound

EUROPEANTECHNOLOGYISBACKINTHEGAME7

AIfuellingastrongfundingenvironment

Overthepasttwoyears,anaverageof€15BnhasbeeninvestedeachquarterinEuropeantechnology(includingIsrael).Followingthefundingfrenzyof2020–2022,investmentactivityhasstabilizedatlevels~50%higherthanthoseseenbeforethebullrun.

InQ12025alone,Europeantechcompaniesraisedover€17Bn,continuinganupwardtrend.AsAI-ledinnovationaccelerates,Europeisemergingasacentralplayer,supportingourexpectationthatelevatedfundinglevelswillpersistintheyearsahead.

TOTALTECHVCFUNDINGINEUROPEANDISRAEL(€BN)

32.431.6

27.825.4

24.6

Average

20.6

18.9

19.6

17.2

16.315.4

16.9

15.714.7

16.2

14.7

13.8

13.213.0

12.0

11.1

10.6

10.8

9.910.0

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q12019202020212022202320242025

PRE-COVIDNORMALITY\\

TECHMARKETBULLRUN

THENEWNORMAL

Source:Pitchbook

BullhoundcapitalGP.Bullhound

8

EUROPEANTECHNOLOGYISBACKINTHEGAME

Europe’stechfactories

AIandsecurityhaveledunicorncreationoverthelastyear,withIsraelbeingintheleadwithfivenewunicornsworth$11.9Bn.

17newunicornswerecreatedinthelastyear,3morethanthesameperiodintheprioryear.Unicorncreationhasbeenmoregeographicallydistributedthanever,confirmingthegrowingmaturityofonceemergingtechnologymarkets.

1

5

$11.9bn

2

2

$4.0bn

2

$2.2bn

2

$2.0bn

3

1

$5.0bn

1

$2.9bn

1

$1.8bn

1

$1.2bn

1

$1.1bn

1

$1.0bn

Source:Pitchbook,pressreleases

Note:cut-offdateforinclusioninthereportasof15-May-2025

BullhoundcapitalGP.Bullhound

9

EUROPEANTECHNOLOGYISBACKINTHEGAME

Unicorncreationbackontrack

Europehascreated17newunicornsinthepast12months(1),withacombinedvalueof$34Bn.Thisisthefirstyearsince2022thatwe'veseenyear-on-yeargrowthinthismetricsincethebullmarketpeak.

Thewaveofunicorncreationfrom2020to2022wasdrivenbyinflatedmultiplesandacceleratedrevenuegrowth.Itwasfollowedbyaquieterperiod,ascompanieswithstrongfinancialschosetostayprivateandfocusonprofitability.

Wearenowseeinggrowth-stagefoundersreturntothemarket,onceagainreachingbillion-dollarvaluations.

NUMBERANDCUMULATIVEVALUATIONOFNEWBILLION-DOLLARCOMPANIES(MAYLTM(1))

$264bn

+55%

128

$130bn

$41bn

$34bn

$49bn$36bn

$22bn

58

33

24

23

17

14

2019202020212022202320242025

Source:Pitchbook,pressreleases

1)Cut-offdateasof15-May-2025

BullhoundcapitalGP.Bullhound

10EUROPEANTECHNOLOGYISBACKINTHEGAME

Continuouslygrowingtheecosystem

TheaccelerationinunicorncreationcomparedtothesameperiodlastyearhighlightstheresilienceoftheEuropeantechecosystem,despiteongoingglobalmacroeconomicinstability.PublicandprivatefundinginitiativeshavehelpedpositionEuropeasahubforthisneweraofAI-ledinnovation.

TheEuropeanecosystemhasgenerated$1.4Tninvaluefrom$1Bn+companies,mostofwhichremainprivatelyheld,showingthatEuropeanfoundersincreasinglyviewsuccessasnotsolelydefinedbyIPOsortradesales.

AGGREGATENUMBER&VALUATIONOFBILLION-DOLLARCOMPANIES

331

319

307

276

168

$1,373bn$1,231bn

$1,148bn

$1,064bn

115

$807bn

$421bn

202020212022202320242025

AGGREGATEVALUATIONOFBILLION-DOLLARCOMPANIESBYSTATUS

$163bn

$390bn

$820bn

$1,373bn

2025

PublicAcquiredPrivate

Source:Pitchbook,pressreleases

Note:dataasof15-May-2025

BullhoundcapitalGP.Bullhound

11

EUROPEANTECHNOLOGYISBACKINTHEGAME

Maturingecosystemwithimpressivevaluecreation

Europehasnowcreated331unicorns,ofwhich21havegonebeyondthe$10Bnvaluation.

Thisgroupof+$1Bndollarbusinesseshasmorethantripledinvalueoverthelastfiveyearsandthecombinedvaluationisnowatnearly$1.4Tn.

2015

2020

2025

Growth15/25

Growth20/25

$1BN+

COMPANIES

42

115

331

7.9x

2.9x

AGGREGATEVALUATION

$128bn

$421bn

$1,373bn

10.7x

3.3x

$10BN+

COMPANIES

0

8

21

2.6x

$5BN+

COMPANIES

7

25

75

10.7x

3.0x

Source:Pitchbook,pressreleases

BullhoundcapitalGP.Bullhound

12EUROPEANTECHNOLOGYISBACKINTHEGAME

Champion’sleague

Billion-dollarstables

TheUKandIsraelhavesolidifiedtheirpositionsastheregion’sleadingunicornhubs,withacombinedtotalof131unicorns.

Thisyear,Franceaddedtwonewunicorns,bringingitstotalto37,valuedat$91Bn.ItcontinuestobeakeydriverofAIunicorncreation,hometoglobalsuccessstorieslikeMistralandPoolside.

Numberof

billion-dollarcompanies

Cumulativevalue

New

Unicorns

Risingstars

Germanyalsomintedtwonewunicorns,reachingatotalof41.Swedencreatedonenewunicorn,andwhileitscountremainsmodest,thecumulativevalueofits$1Bn+companieshasreached$200Bn,largelydrivenbySpotify’ssuccess.

62

37

41

18

14

69

$277bn

$91bn

$148bn

$200bn

$27bn

$241bn

2

2

2

1

1

5

poolside

parloa

NEKO

hoelbeds

WEKA

Source:Pitchbook,pressreleases

BullhoundcapitalGP.Bullhound

13

EUROPEANTECHNOLOGYISBACKINTHEGAME

Spotifygoesbeyond$100Bninvalue

InFebruary2025,SpotifybecamethefirstEuropeantechcompanysinceSAPtoreach$100Bninvalue.ThisevidencesEurope’spotentialtocreategloballyleadingproductsthatsucceedagainstlargetechnologycompaniesfromtheUS.AmajormilestoneandmotivationforEuropeantechfounderswithglobalambitions.

Apr-19:Surpassed100millionsubscribers

Mar-21:AcquiredLocker

Feb-19–Mar-19:AcquiredpodcastcompaniesGimlet

Room,enteringtheliveaudiospace

Media,Anchor,andParcasttobecomealeading

podcastplatform

Feb-23:Surpassed200millionsubscribers

$140bn

$120bn

$100bn

$80bn

$60bn

$40bn

$20bn

-

THEJOURNEYTOWARDSA+$100BNMARKETCAP

Feb-25:Reportedfirstfullyearofprofitability

Nov-21:AcquiredFindaway,anaudiobookplatform,

diversifyingcontentofferingsbeyondmusicandpodcasts

MAY-18MAY-19MAY-20MAY-21MAY-22MAY-23MAY-24MAY-25

“PeopletalkabouttheAmericandream,butit’stimeforustobuildourEuropeandreamaswell.OurgoalforEuropeistohaveourownwinnerscreatingamazingproductsthatpeopleuseandlove.

Ifyoulookatwho’sleadingAIattheBigTechcompanies,you’llseeEuropeansatthehelm.ManyofthegreatestthinkersandinnovatorscomefromEurope.Wehavetobemindfulofnotlosingthem.”

DANIELEK

CO-FOUNDERANDCEO

KEYLESSONS

GETCREATIVEONBUSINESSMODEL

CX-FOCUSEDONUSERS

PRIORITISE

RUTHLESSLY

Usedacombinationof

freemium,socialengineeringandpartnershipswiththe

broaderindustrytounlockexplosivegrowth

Optimisedforspeedandsimplicity,makingSpotifyfeel"betterthanpiracy"

Focusedonthemostcriticalgoals,ensuringresources

werealignedtodrivegrowthandsuccess

Source:CapitalIQasat20thMay2025;SensorTower;GoldmanSachsInvestmentResearch,“FoundersForum”groupblogpost

BullhoundcapitalGP.Bullhound

14EXPERTVIEW:MUBI

Expertview

CO-FOUNDER&CEO|MUBI

Arthousefilmstreamingservice

"Knowexactlywhyyourcompanyexists,whatmakesitdifferent,andwhere

EFECAKAREL

it'sgoing.Investorsarebackingyourconvictionasmuchasyournumbers—

theywanttobelieveinyourmission."

HOWDIDYOUSTARTMUBIANDWHATINSPIREDYOU?

IstartedMUBIin2007becauseIwassittinginacaféinTokyoandwantedtowatchIntheMoodforLove.Isearchedeverywhereonlineandcouldn’tfindit.Thatsmallfrustrationlitabigspark—Irealizedthatwhiletechnologywasmakingiteasiertoaccesscontent,itwasn’thelpingpeoplediscovertrulygreatcinema.

Whatwasmissingwascuration.Asenseoftaste.Aspacethattreatedfilmsasart,notjustcontenttobescrolledpast.Iwantedtobuildaplaceforpeoplewholovecinema—wherefilmmakersarecelebrated,andeveryfilmfeelslikeitmatters.That’showMUBIwasborn:fromthesimplebeliefthatgreatcinemadeservesahome.

WHATWERETHEMOSTCHALLENGINGPERIODSALONGTHEWAY?HOWDIDYOUOVERCOMETHESEPERIODS?

Therehavebeenmanychallengingperiods—thefirst15yearswereespeciallydifficult.Ididn’tgotofilmschool,hadneverbeentoCannes,anddidn’tknowanyoneintheindustrywhenIstartedMUBI.ButIlovedfilms,andIknewhowtocode.

Buildingaglobalfilmbusinessfromtheoutside,withnoconnectionsortraditionalbackground,wasincrediblytough.Ontopofthat,raisingcapitalforastreamingplatformfocusedoninternationalandindependentcinemawasnoteasy.Mostinvestorsdidn’tbelievetherewasameaningfulmarketforit.ButIbelievedtherewasaglobalaudiencethatcareddeeplyaboutgreatfilms—andIwasdeterminedtoservethem.

Whatkeptmegoingwasperseverance.Iwasbuildingitbrickbybrick,yearafteryear,withthebeliefthatwewerelayingthefoundationforaskyscraper.Ittookalongtimetogainthetrustoftheindustryandearnourplaceinit.ButIneverlostsightofthevision.

Onlyinthepastfouryearshaseverythingreallystartedtocometogether.Butittookanextraordinaryamountofpatience,discipline,andbelieftogethere.

MUBIISAWINNINGDISRUPTORINANINDUSTRYWITHMANYINCUMBENTS.WHATWILLBETHEMAINCHALLENGESFORBROADERADOPTION?

Thebiggestchallenge—andalsoourgreatestopportunity—isscalingwithoutcompromisingourobsessionwithquality.Whenyoucaredeeplyaboutcuration,youcan’tjustopenthefloodgates.Wenowhavetheprivilegeofseeingalmosteveryprojectinourcategory,butweremainhighlyselective.That’sourpromise:

EXPERTVIEW:MUBI15

BullhoundcapitalGP.Bullhound

toofferonlythebest,mostmeaningfulcinema.Asweexpandglobally,maintainingthatsenseofintimacyandeditorialintegritywillbecriticaltoourbrand.

Anothermajorchallengeisattention.We’renotjustcompetingwithotherstreamingplatforms—we’recompetingwitheverythingontheinternet.Thekeyistokeepchampioninggreatstories,growingourbrand,anddeepeningourrelationshipwithourmembers.We’renotjustofferingfilms;we’rebuildingabroaderculturalexperiencearoundcinema.

Andfinally,there’sexecution.Idon’tthinkanycompanyinthespecialtyfilmspacehasgrownatthepacewehave—especiallyindistribution,wherewe’vehadtobuildcredibilityandtrustinrecordtime.Thestakeshavebeenhighfromthebeginning,andwe’verisentothechallengethankstooneofthemosttalentedandpassionateteamsintheindustry.

Lookingahead,we’refocusedondeepeningourpresenceinkeymarkets,continuingtogrowourproductionanddistributioncapabilities,andexpandingintonewformatsandstorytellingexperiences.Webelievethefutureofcinemaisn’tjustaboutaccess—it’saboutcontext,discovery,andcommunity.That’swhatMUBIisheretobuild.

WHATCHANGES/INITIATIVESDIDYOUIMPLEMENTOVERTHELAST24MONTHSTOHELPNAVIGATETHEMACROTURBULENCE?

Overthepasttwoyears,we’venavigatedavolatilemacroenvironment—inflation,shiftingconsumerbehavior,andaprolongedslowdowninthefundinglandscape.Ourresponsehasbeengroundedintwoprinciples:capitaldisciplineandstrategicdiversification.

WhileMUBIhasexperiencedrapidgrowth,we’vebeenequallyfocusedonbuildingafundamentallysoundbusiness.Thisisnotahigh-burn,growth-at-all-costsmodel.Werunaleanoperation,withclearpathstoprofitabilityacrossourverticals.Thatfinancialdisciplineiswhathasallowedustosustainandcompoundvalueovertime—inasectorthat’snotoriouslydifficulttoscale.

Onthecontentside,wede-riskedourcontentpipelinebyexpandingourproductionanddistributioncapabilities.Thatverticalintegrationgivesusgreatercontroloverinventory,improveduniteconomics,andstrongerpositioningacrossthevaluechain.Thesearmshavegrownsignificantlyandarenowcoregrowthlevers.

Meanwhile,wecontinuedtodeepenengagementwithourglobalaudiencethroughinvestmentsinhigh-marginbrandextensions:Notebook(editorial),MUBIPodcasts,MUBIEditions(publishing),andtheMUBIShop.Eachoftheseinitiativesstrengthensbrandaffinityanddrivesincrementalmonetizationbeyondstreaming.

Inshort,we’vespentthepast24monthsoptimizingforresilience,marginexpansion,andlong-termstrategicvalue—positioningMUBInotjustasastreamingplatform,butasaglobalculturalbrand.

AFTERSUCCESSFULLYRAISINGALARGEGROWTHROUND,WHATRECOMMENDATIONDOYOUHAVEFORFOUNDERSLOOKINGTORAISEMEGAROUNDSTODAY?

Startwithclarity.Knowexactlywhyyourcompanyexists,whatmakesitdifferent,andwhereit'sgoing.Investorsarebackingyourconvictionasmuchasyournumbers—theywanttobelieveinyourmission.

WHATKEYCOMPONENTSFORSUCCESSAREYOUFOCUSINGONNOWTOTAKEYOUTHROUGHTHENEXT24MONTHS?

First,continuedglobalexpansion.Whilewe'vemadestronginroadsintotheU.S.overthepastyear,ourstrategyremainsfocusedonbuildingatrulyglobalfilmbusiness—withlocaldepthandglobalreach.

16EXPERTVIEW:MUBI

BullhoundcapitalGP.Bullhound

Second,originalproductions.We'veseenearlysuccesshere—KellyReichardt’sTheMastermind,oneofourfirstfullyfinancedproductions,premieredinCompetitionatCannesthisyear.It'samajormilestoneforus,andwe’redoublingdownwithastrongpipelineofambitiousprojects.

Third,theevolutionoftheMUBIplatform.Wewanttobeseennotjustasastreamingservice,butasaglobalculturaldestinationforfilmlovers.Thatincludesexpandingtheatricaldistribution,investingineditorialandexperientialofferings,andbuildingmeaningfulwaysforpeopletoengagewithMUBIbeyondthescreen.Cinemaisadeeplysocialartform—andMUBIshouldreflectthat.

LONG-TERMVISION:WHATISNEXTFORMUBI?WHEREDOYOUWANTTOTAKETHEBUSINESS?

Ourvisionistobetheglobalhomeforgreatcinema.Thatmeansacquiring,producing,anddistributingthelargestshareoftheworld’smostexceptionalspecialtyfilmseachyear—allwhilepreservingthecuration,taste,anddiscoverythatdefineus.

WewantMUBItobethebrandsynonymouswithfilmcultureworldwide—apartofthedailylivesofpeoplewhocaredeeplyaboutcinema.

Overthenextdecade,we’llcontinueexpandingourslate,enteringnewmarkets,anddeepeningourimpactacrosseverypartofthefilmvaluechain.Butourmissionremainsconstant:toelevatecinema,championboldfilmmakers,andbringaudiencesclosertotheartformtheylove.

We’renotjustbuildingaplatform.We’rebuildingthefutureofcinema.

17

CHAPTER2.GROWTHEQUITYINSIGHTS

Growthequityinsights_

Amoreactiveenvironmentforgrowthinvestors,whoarebackinthegameafteraslowerperiod.

GROWTH-EQUITYINVESTMENTONTHERISE

Megaroundsdeclinedsharplyafterthebullmarket,asunicornfoundersstayedawayfromthefundingscene.However,wearenowseeingtheearlysignsofarebound,althoughonly38%oftoday’sEuropeanunicornshaveraisedequityroundssince2022.

ThemostactivefinancialsponsorsinEuropehavesteppeduptheiractivitycomparedtojustayearago,andsizeablepoolsofcapitalareonceagainavailabletosupportambitiousfounders.

IPOMARKETREMAINSQUIET,BUTTHEREAREOTHERLIQUIDITYROUTES

Europeantechcompanieshavebecomeincreasinglyhesitanttolist,drivenbymacroeconomicinstability,regulatoryscrutiny,andheightenedmarketvolatility.

Inresponse,manyofEurope’smostsuccessfultechfirmshaveturnedtoprivatemarketstoprovideliquidityforemployeesandearlyinvestors.Overthepastyear,we’veseenawaveofsignificantsecondarymegarounds,wherelargegrowthfundshavesteppedintoreplaceseed-stageinvestors,supportingthenextphaseofthesecompanies'growth.

GROWTHSTAGEM&AFROMSTRATEGICSISSTILLHERE

Over150Europeantechcompanieshavebeenacquiredinthelasttwelvemonthsforover$100Minvalue,asglobaltechnologygiantslookintoEurope’sinnovationscenetoenternewverticalsorsupplementtheiroffering.

FromsoftwareplayerssuchasSalesforceorNvidia,topaymentsgiantslikeVisaorMastercard,tradesaleshaveincreasedinimportanceforEuropeastheIPOmarkethasstored.

BullhoundcapitalGP.Bullhound

18GROWTHEQUITYINSIGHTS

Megaroundsontherise

Followingthebullmarketof2021and2022,megarounds(thoseexceeding$50M)declinedsharply.Manylargetechcompanieshadalreadyraisedsubstantialcapitalatattractivevaluationsandshiftedfocustowardexecutionandoperationalefficiency.

Inrecentquarters,however,weareseeingtheearlysignsofarebound.ThecommercialopportunitiesemergingfromAIhavepromptedfounderstoreturntothemarketinsearchofcapitaltofuelcontinuedinnovationandgrowth.Today,sizeablepoolsofcapitalarereadilyaccessible.

AGGREGATEVALUEOFMEGA-ROUNDS(€M)

22.3

19.5

16.4

14.4

14.1

11.6

11.6

10.7

10.09.1

7.7

7.6

7.8

7.2

6.9

7.0

5.9

5.9

6.3

4.5

4.73.8

3.9

4.3

3.4

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q12019202020212022202320242025

PRE-COVIDNORMALITY

〉TECHMARKETBULLRUN〉

THENEWNORMAL

Source:Pitchbook

BullhoundcapitalGP.Bullhound

19

GROWTHEQUITYINSIGHTS

Unicornsgraduallycomingoutofthestableandraisingnewfunding

Afterraisingatmulti-billionvaluationsduringthebullmarket,mostunicornshavestayedawayfromequityfunding,waryofdownroundsandexcessivedilution.Over90%securedsubstantialcashreservesatthetime,andmanyhavesincefocusedonreachingprofitabilityratherthanreturningtothefundingmarkets.

Butthisquietperiodisgraduallycomingtoanend.2024alreadysawaslightimprovementversustheprioryear,andfundingduringthefirstfivemonthsof2025isclosetotheamountforthefullyearof2023.

FUNDINGROUNDSFROMTODAY’SPRIVATEEUROPEANUNICORNS

182

€43.2bn

118

121

117

€25.6bn

51

53

€9.5bn

26

€7.5bn

€5.8bn

€6.8bn

€5.1bn

2019

2021

2022

2020

2023

2024

2025

(MAY-YTD)

Totalfunding(€bn)一Dealcount(#)

%oftoday’s

privateunicornsthatraised

55%

82%

53%

Onaggregate,over90%of

unicornsraisedin2021-22…

23%

24%

12%

…butonly38%haveraisedequityfundingsincethen

Source:Pitchbook,pressreleases

BullhoundcapitalGP.Bullhound

20GROWTHEQUITYINSIGHTS

Growthinvestorsbackinthegame

ThemostactivefinancialsponsorsintheEuropeantechscenehavesignificantlysteppeduptheiractivitycomparedtojustayearago.Severalfundsthathadpausednewinvestmentsfollowingtheendofthe2022bullrunarenowre-engagingwiththemarket.

Anewwaveof$50M+roundsisemerging,largelydrivenbyAIfoundersra