Study Technological and Digital Sectors Barcelona Sectoral Observatory

Transcription

1 Study Technological and Digital Sectors Barcelona 2014 Sectoral Observatory

2 2 Index Foreword 3 Executive Summary 4 Facts & Figures - start-ups/companies 7 Facts & Figures - revenue 13 Facts & Figures - funding 16 Analysis of necessities 20 To Sum it up 22 Conclusions 24 Method 26 Acknowledgements 28

3 Foreword BARCELONA TECH CITY, previously Ecommerce&Tech Barcelona, through its Sectoral Observatory, has conducted the first ever study on internet and mobile companies in Barcelona. This study aims to render an overview of the sector's current state, corresponding to the end of the fiscal year 2014, through a series of facts & figures about the sector. Those are frequently updated to enable assessing the evolution and the impact of internet and mobile companies in Barcelona. The present study digests the main figures based on the combination of criteria defined by the Observatory, to measure the hiring of professionals, the revenue, the international presence, the project phase and the financing phase of participating companies. hub, especially in Southern Europe. The results of that study showed the impact of the top 20 tech companies in Barcelona in terms of recruitment (5,000 professionals), conjoint revenue figures (over 2bn) and international presence (over 40 countries). We would like to thank all companies who had the will and the patience to participate in that study, which was the first step to assess the sector's activity in Barcelona. We hope that you will find this first study on Barcelona's technological sector interesting. In addition, both start-up and established companies were asked what their priorities and preferences were in terms of factors deemed crucial for the success of internationally known technological hubs such as Berlin, London or Tel Aviv. The study is based on the first report on Barcelona's digital sector by Manuel Matés (Necotium) published in 2012, in which he underlines Barcelona's potential as an international technological (1) "Barcelona E-Commerce: Un cluster líder en el Sur de Europa" Profesor Manuel Matés, Març

4 Executive Summary 4

5 Executive Summary 2014 Revenue 6bn Recruitment 9,500 professionals International presence Over 50 countries Average age of the sector s companies and start-ups 4,8 years Activity on international markets 60% of surveyed companies Start-ups created in % of surveyed companies 5

6 Facts & Figures 6

7 7 Start-ups & Companies

8 8 Facts & Figures Age start-ups and companies Average 4,8 years 49% The aver age age of participating start-ups and companies is 4.8 years. 4 9 % o f t h e m w e r e created before % of star t-ups and companies included in the sample were created between 2013 and % 14% 9% 9% Before

9 Facts & Figures Business model: Clients B2B B2B 41% 41% B2B/C 33% There is a majority of B2B business models in terms of client relations - nearly 41% - f o l l o w e d b y a m o d e l combining business-tobusiness and business-toconsumer, which reaches 33%. B2C 26% Finally, nearly 26% of survey participants had a business-toconsumer model 9

10 10 Facts & Figures Sectors Media 29% Media Software Ecommerce 18% 24% 29% Travel & leisure Social Networking 4% 9% Gaming 3% Mhealth/Ehealth 3% The media sector, which includes video, music, adtech, and content creators among others, is the most present one, with 29% of the sample. Software, e-commerce and travel & leisure also are the remaining predominant sectors among surveyed companies. Edtech 2% Fintech 2% Hardware 1% Telecom 1% Others 5%

11 Facts & Figures Participation in incubator or accelerator programmes 33% of surveyed start-ups have taken part in one of them Here are entities, organisations and programmes indicated in which said start-ups participated in: AntaiVentureBuilders Barcelona Activa (Growth Academy w/iese; MIT) Barclays Accelerator (Powered TechStars) BStartUp10 Conector Startup Accelerator EGI Group Fundación Inlea Grupo Intercom Imagine K12 (USA) Incube Incubio Investment Readiness Program (UK) Salle Technova BCN Seedrocket Startupbootcamp (ALE) UAB - Parc de Recerca Wayra 11

12 Facts & Figures International presence 60% 60% of surveyed companies declare themselves active outside of Spain. UK France Italy Mexico USA Colombia Brazil Germany 29% 28% 25% 25% 24% 35% 34% 34% Major European markets are: The United Kingdom (35%), France (34%), and Italy (34%), followed from a distance by markets such as Germany (25%), the Netherlands (23%) and Nordic countries (22%). Netherlands Chile NC Belgium Argentina 22% 22% 20% 18% 17% The activity of Barcelona's start-ups and companies in America are concentrated in the USA (29%), Brazil (27%), Colombia (27%) and Chile (23%) and, at a lesser degree, Argentina (18%). Ireland Singapore Russia China 7% Japan 7% Korea 6% 14% 14% 13% 12

13 Revenue 13

14 Business phase: Seed to Revenue Facts & Figures 83% In development / project ready 17% of surveyed start-ups have a revenue Under 100K 100K - 500K 14% 21% For the 2014 fiscal year, among star t-ups and companies in revenue phase, 21% of surveyed companies had a revenue lower than 100,000, while 30% of them reached that amount. Between 1M and 10M. 13% of them had a revenue higher than 10M. Approximately 17% of surveyed companies were in the seed phase, in the preparation phase or in the project launching phase. 500K - 1M 5% 1M - 3M 14% 3M - 10M 16% Over 10M 13% 14

15 Facts & Figures Relation between business model and revenue B2C companies and start-ups turn over 92% B2C B2B 5% B2B/C 3% 92% of the total for all surveyed companies Companies and start-ups with a B2C business model turn over 92% of all sampled companies' conjoint revenue. Companies with a B2B or B2B/B2C model, despite being a majority, turn over 8% of the total. 15

16 Funding 16

17 Facts & Figures Funding 52% of surveyed companies have received BA-VC funding Friends, Fools & Family Business Angels 20% 30% In terms of funding mix received by companies and start-ups, Business Angels are a majority, followed by VC and FFF with respectively 22% and 20%. Venture Capital Public loans (ENISA, CDTI, ICF,...) 22% 39% In terms of debt-based funding, public loans (ENISA, CDTI, ICF) are the most common debt organisation used by companies, with a percentage as high as 39%, followed by bank funding with 17% Banks 17% International investors Some of the most frequent countries of origin are USA, France, UK, Italy, Switzerland, Belgium and Austria. Other 4% 17

18 Valued professional profiles 60% Facts & Figures programmers and developers - most valued profile Developers / Programmers Marketing 48% 60% Sales 5% According to 60% of surveyed companies' responses, the most valued profile is developers/ programmers. The second most valued profile (48%) is marketing professionals. Business Development 1% 18

19 Facts & Figures Most valued executive profiles CEO 6% 21% CIO 4% Chief Technological Oficer CTO 21% In terms of executive profiles, the most valued ones are Chief Technical Officer (21%), Chief Marketing Officer (18%) and at a lesser degree, Chief Operating Officer (7%). CMO COO 7% 18% CDO 1% 19

20 Analysis of necessities 20

21 Facts & Figures Analysis of necessities Access to talent 4,39 Talent Press and Advertisement Suitable legal and fiscal environment Hiring international talents 3,25 3,13 3,56 Companies valued some of the criteria deemed crucial in the establishment of internationally known technological hubs (London, Berlin...) According to them, access to talent is the most important necessity, followed by access to press and advertising, and a legal and fiscal environment adapted to start-ups and tech companies Regulatory environment 3,13 Access to technological partners 3,08 Access to funding 2,99 Access to infrastructures 2,85 Mentors and Smart Money 2,69 Access to Administration 2,64 Marks form 0 to 5 21

22 To Sum it up 22

23 To Sum it up 1. The total revenue has risen to 6bn (Study1 by Prof. Matés published in bn). 2. The number of professionals hired by tech companies based in Barcelona has reached 9,500 (compared with 5,000 according to the 2012 study). This soar was fuelled by the organic growth of established projects as well as the increasing number of entrepreneurs building their personal projects and creating new startups. 3. Overview of start-ups and tech companies in Barcelona A young sector Average age of start-ups and companies in the sector: 4.8 years 19% of companies were created in 2014 Business models mostly focussing on B2B or B2B/B2C A substantial part of the sector's conjoint revenue comes from major B2C players in the hub (92% of conjoint revenue) Main activity sectors: Media - including Video, Music, Digital marketing agencies, Advertising technologies, Content creation and more -, Software, e- Commerce and itravel&leisure. 33% have participated in a public or private incubator/accelerator programme 4. Barcelona's start-ups on global markets 60% of surveyed companies are present on international markets Presence in over 50 countries Major regions Europe: UK, France Italy America: Mexico, USA, Colombia and Brazil Africa: South Africa Asia: Singapore, Japan, China Oceania: Australia 5. Funding Capital investment 52% of the sample's companies and start-ups received funding from Business Angels and Venture Capital companies Debt-based funding 39% of surveyed companies received funding from public support programmes (ENISA, CDTI, ICF, ) Growth and capitalisation: Companies from the sector have entered the MCE Spanish stock exchange (Edreams-Odigeo), and others (Only-Apartments) chose the MAB alternative stock exchange market, an alternative way of achieving capitalisation 6. Talent Most valued professional profiles are developers/programmers - which is the most valued profile - and marketing professionals. In terms of executive profiles: CTO and CMO are the most valued profiles 7. Analysis of necessities Surveyed companies prioritize Access to qualified talent Access to press and advertising, Legal and fiscal environments adapted to the sector's characteristics Possibility to hire international talents easily. (1) "Barcelona E-Commerce: Un cluster líder en el Sur de Europa" Profesor Manuel Matés, Març

24 Conclusions 24

25 Conclusions Since the first figures, which were the base for the development of BARCELONA TECH CITY - previously Ecommerce&Tech Barcelona - were published in 2012, the sector has experienced positive evolution, both in terms of conjoint revenue - from 2bn to 6bn - and of recruitment of professionals by companies and start-ups based in the city from to or international development. In the last few years, the city was able to highlight the Mobile World Congress in exceptional dimensions, to attract large-scale international projects such as EBay Enterprises, Rakuten, king.com, Schibsted Media Group and Airbnb, and to keep fuelling the growth of a hub housing companies like Edreams-Odigeo, Privalia, Atrapalo, Trovit, Grup Intercom and Scytl, established start-ups such as SocialPoint, Akamon, TradeInn, bodas.net, and other more recent ones such as Kantox, Miscota, Holaluz, Tiendeo and Marfeel. Through the sector's evolution in the last few years, it has been made clear that its growth is based on two major pillars: talent and investment. Start-ups and companies of the tech sector are scalable, fast-growing organisations, which have a considerable need for qualified human resources. Data collected for the study confirms that the number of professionals hired by companies in the sector has risen in a spectacular way, and the access to qualified talents is the most valued business necessity among the sector's companies. In terms of funding, the local hub already has established VC firms such as Nauta Capital, Active Venture Par tners and Inveready Technology Investment Group, venture capital funds such as CaixaCapitalRisk, Angel funds like Antai BA, Cabiedes & Partners, Necotium, Sputnik, 101 Start-Ups and investor networks such as BANC, ESADE BAN, EIX Technova, IESE, Keiretsu, Seed Rocket. Also, we shouldn't forget that companies such as Privalia, Scytl and SocialPoint, with the support of said local investors, were able to attract prestigious international investors to Barcelona. Sales made by Barcelona's companies to international companies are just another sign of the sector's growth in the last few years - Duscksboard/NewRelic; Data Republic/KantarMedia; PasswordBank/Symantec; Icebergs/Pinterest; Wuaki.tv/Rakuten; Anuntis/ Schibsted; Polymita/RedHat and, more recently, Trovit/Next, Zyncro/Rio Paranà, SitMobile/Soprano and rounds closed recently by SocialPoint ( 48m), Scytl ( 104m 2014) and stock exchange market entries - MCE -(Edreams Odigeo). Themix offered by Barcelona for tech companies is attractive. In addition to the city's world-famous lifestyle, we have noticed positive evolution of criteria deemed crucial to the expansion of internationally known technological hubs such as London, Berlin, or more recently, New York City: support from the administration, leading initiatives (Mobile World Capital for example), public and private incubators and accelerators (SeedRocket, Conector ), first-class business schools and universities, VC firms and business angels investing in local projects, and business service firms (enablers) specializing in entrepreneurship. However, we must keep in mind that there still is a long way to go. Access to talent, attracting investors, companies and international talents to the city, improving administrative processes, adapting legal and fiscal environments, funding, regulator y environments, are challenges to face with determination in order to keep fuelling the city's tech sector. Nonetheless, based on facts & figures stated in this report, we think that the sector is on the right path to make Barcelona the number one tech hub in Southern Europe. We just need to stay determined and bet even more of our efforts on this sector. 25

26 Method 26

27 Method The present study is based on digital and tech start-ups and companies active in Barcelona. To develop this study, companies developing and providing products or services through the Internet or using mobile technologies were regarded as companies or start-ups from the digital and tech sector. This definition includes companies developing platforms and tools for web and mobile services. Therefore, companies that are part of the sample belong to the following groups: media, software, e-commerce, travel&leisure, social networking, gaming, mhealth, edtech, fintech, hardware, telecom and services. The study is mostly based on data collected during the 2014 Sectoral Survey2 designed by the BARCELONA TECH CITY Sectoral Observatory. The survey, which aims to be a continuous, evolving study of the hub's activity, thrives to find the main activity criteria for start-ups and established companies based in Barcelona, which form the city's hub. Data was collected thanks to public information sources and interviews with companies. 150 companies participated in the study's sample, and the collected data such as revenue and number of employees corresponds to the fiscal year As collecting information is a difficult process, some company data were estimated based on public information sources and interviews. It is possible that companies and start-ups likely to have participated in the study turn out to not have taken part in it. For the next instances, we invite and encourage them to be a part of the company sample building Barcelona's tech hub. The present study was coordinated by Professor Manuel Matés and the CEO of BARCELONA TECH CITY, Miquel Martí. with the participation of the members of the Association's Sectoral Observatory. 2 BARCELONA TECH CITY: Enquesta Sectorial 2014: goo.gl/g2hypc 27

28 Acknowledgements Barcelona Tech City Global partners Barcelona Tech City Corporate partners With the special suport from 28

29 BARCELONA TECH CITY C/ Escoles Pies, Barcelona Tel: BCNTECHCITY