Tech Tour Growth 50 in conjunction with

The Tech Tour Growth 50 2016

1. All figures are in USD millions

2. Source: Tech Tour, Crunchbase, Pitch Book, Silverpeak, Go4Venture

What is the Tech Tour Growth 50?

For the second year running, through a combination of quantitative research and a qualitative selection process the Tech Tour, in conjunction with the International Venture Club and Silverpeak Technology Investment Banking, has identified a list of 50 of Europe’s fastest growing pre-exit investor backed companies.

The Tech Tour Growth 50 of 2016

The companies listed below deserve particular recognition as they made the list for the second running. The reason for the high turnover is that this year we decided to exclude "Unicorn" companies that have already achieved a €1 billion valuation and considerable profile, to give more room to the lesser well-known but yet deserving European tech companies.

Alfresco, Alien Vault, B2X Care Solutions, Calastone. Media, MedicAnimal, Mister Spex, Scytl, SoundCloud, WorldRemit.

This year’s Tech Tour Award winners have also been selected from the Tech Tour Growth 50. These can be seen here.

Why has the Tech Tour created the Tech Tour Growth 50?

European entrepreneurs, together with their venture capital backers, have long built great companies. The Tech Tour, founded in 1999, has championed European innovation by providing a place where entrepreneurs, investors and corporations can come together to ensure companies get the funding and support they need - to help them become global champions.

It is of course only natural that our attention is grabbed by the companies that make the big "exit". Sometimes it’s a public market listing, sometimes a well-publicized sale to a much larger company or simply because they have achieved the iconic "Unicorn" status. These success stories are undeniably important, however, they are just the tip of the iceberg.

Through the Tech Tour Growth 50 we put the spotlight on the rest of the European innovation portfolio - or to put it another way - identify the next set of European companies with the chance to make "unicorn" status.

The full analysis of The Tech Tour Growth 50 can seen on this presentation here and the underlying data here.

Some key points:

  • 32 companies are Tech Tour "alumni" presenting at past Tech Tour events to investors, with Octo Telematics pitching at The Italian Tech Tour as early as 2003.
  • The median year of incorporation was 2008, the first company founded in 1999 and the most recent in 2013
  • Collectively the TTG50 have raised over $3.7 billion of venture funding
  • The TTG50 have created over 9000 jobs since 2008
  • The TTG50 have over 2.5 million followers on Twitter
  • There are 277 investors currently backing the TTG50 companies

How did we get to the Tech Tour Group 50?

The Tech Tour using its own database, publically available data, proprietary insight from Silverpeak and the Go4Venture platform generated a long-list of 151 European companies that potentially met three of the four criteria below:

  • >€10mn in revenue
  • >€20mn in total funding
  • >€100mn valuation <€1billion valuation
  • >min revenue growth pa on average over the last 3 years (Dec 31st 2012 to Dec 31st 2015)
    • 80% for companies with €10-30mn in revenues
    • 50% for companies with €30-100mn in revenues

The selection committee then supplemented the list adding additional "wild card" companies based on the qualitative criteria below:

  • Innovation potential
  • Management Team
  • Pedigree (quality of backers, advisory board, past awards won and top sector listings)

Each selection committee member was then independently asked to generate their own Tech Tour Growth 50 list (i.e. they had fifty votes each).

There was a significant amount of consensus generating a short list of 64 companies.

These companies were then contacted by the Tech Tour and asked to qualify they met three of the four financial criteria. Some also supplied supplementary evidence and actual numbers.

Companies that confirmed they met the financial criteria and/or had received 6 or more votes were then included in the list. This gave 40 companies.

We then held two conference calls with the selection committee to discuss the remaining companies. Selection committee members advocated for individual companies based on the qualitative criteria. Representation from sectors other than internet and software, as well as geographical diversity were other factors considered.

Ultimately the decision on the final ten companies was with Jean-Michel Deligny, Managing Director, Silverpeak in his capacity as Chairman of the 2016 Selection Committee. There was a strong degree of consensus and no "executive decision" was required.

As this is a "meta" list covering a broad range of sectors and geographies, and no method is perfect, the Tech Tour Growth 50 companies are not ranked and are displayed in alphabetical order. Given the rigour of the process, and the quality of the selection committee, it is a significant enough achievement in itself to be a Tech Tour Growth 50 company.

How does this differ from 2015?

We believe this methodology improves on last year where there was just one round of voting on a pre-generated list of companies. The ability of the selection committee to add companies based on their own insight, and then justify this addition, we hope furthers our ambition to identify a broad range of European champions that may not necessarily be as well known outside of their own sector our country.

The 2016 Selection Committee

The 2016 Selection Committee was convened to deliver insight across a broad range of sectors and European countries. Leading venture capital firms from countries including the U.K., U.S., Germany, Belgium, Switzerland, France, Portugal and Russia.

The Tech Tour would like to thank all the selection committee for their time, insight and diligence in producing this year’s Tech Tour Growth 50. In particularly we would like to thank Jean-Michel and his team at Silverpeak for all their support.

We hope this list will prove a useful resource for all those interested in high-growth European companies. The Tech Tour Growth 50 is an ongoing project.