2021 - ascri.org

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2021 SURVEYVenture Capital & Private Equity activity in Spain

Private Equityand Venture Capital:Part of the solution

Venture Capital & Private Equity activity in SpainVenture Capital & Private Equity activity in Spain

SURVEYVenture Capital & Private Equity activityin Spain

2021

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CUBIERTA-INFORME-2021.pdf 2 15/4/21 9:51

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Venture Capital & Private Equity in Spain

Survey 2021

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THIS REPORT HAS BEEN PREPARED BY Ángela Alférez (ASCRI Research Director).

Data obtained with collected in collaboration José Martí Pellón (Professor of Financial Economics at the Complutense University of Madrid) and Marcos Salas de la Hera (Partner of webcapitalriesgo).

All Rights Reserved ASCRI ® 2021The total or partial reproduction of the document, or its computer treatment, is not allowed transmission in any way or by any means, whether electronic, by photocopy, by registration or other methods, without prior and writ-ten permission of the copyright holder.

Methodological NoteASCRI has been preparing statistics on the Venture Capital & Private Equity sector in collaboration with webcapitalriesgo since 1987. The statistics published by the Association are intended to capture all of the activities of both domestic and international Venture Capital and Private Equity GPs (investment -through equity or quasi-equity-, fundraising and divestment) in Spanish companies with the aim of providing reliable data to the market, media, and government agencies and institutions. The information is collected on a confidential basis directly from the management companies themselves, whether ASCRI members or not. All information is collected through EDC (European Data Collective), the technological platform implemented by the main European Venture Capital and Private Equity Associations. This platform ensures a consistent methodology to guarantee the data on European Venture Capital and Private Equity is as complete and uniform as possible.Currently, ASCRI/webcapitalriesgo directly monitors more than 250 domestic and international management companies through the European EDC Platform.

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ASCRI is the association that brings together Venture Capital

& Private Equity firms in Spain, as well as their investors,

including insurance companies and pension funds. The

members of ASCRI make mid- to long-term investments

in unlisted companies, from start ups to consolidated

companies, providing not only stable financing through

equity, but also innovation and management support.

The Association's mission is to connect the players in the

industry in Spain, representing their interests before the

Government, media and public opinion, both nationally

and internationally, through alliances and synergies

in Europe and Latin America. Its objectives include

establishing an appropriate regulatory framework for

the sector and communicating the positive impact of its

activities on the industrial fabric and job creation. As a

participant in the UN Global Compact, one of ASCRI's main

objectives is to promote the sustainability of its members

and their investee companies. ASCRI also aims to promote

professional development through training programs and

to actively raise awareness through the publication of

statistical reports and economic and social impact studies,

which show the added value contributed by this sector.

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IndexSurvey 2021

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Index

Introduction 7

Differencial values Private Equity & Venture Capital 8

Summary of 2020 11

Fundraising 16

Investment in Private Equity & Venture Capital 20

Middle Market Investments 25

Large Market. The International GP in Spain 28

Venture Capital 31

Divestment 36

Portfolio 38

2020 Main Transactions 40

Statistical appendix 46

The race for sustainability: Challenges and opportunities for the sector

62

General Partners included in this survery 66

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"Spain remains an attractive market"

“W e are leaving behind 2020, a very complicated year that affected thousands of companies from a wide range of

sectors. The portfolio companies of our sector have been better able to weather the crisis and the Venture Capital & Private Equity industry has proven to be a source of resistance and competitiveness for their portfolios."

“2020 has been a difficult year, but we will not let it stop us from advocating for the key role that Venture Capital & Private Equity should play in the recovery of businesses. Venture Capital and Private Equity have tried to keep the workforces of their investee companies, offering them the liquidity and instruments needed to weather the recession.

The data published in this report supports the efforts made by GPs: in 2020, Venture Capital and Private Equity firms invested €6,275M, a significant figure considering the lack of megadeals and large transactions, in a record high number of transactions (838). Of these transactions, 672 were early stage investments by Venture Capital funds. This was one of the leading segments last year next to international investors, accounting for 80% of total volume invested. This weight represented by international investors shows the continued attractiveness of the Spanish market and trust in Spanish industry.”

“Private management companies raised €2,134.6M, in line with the 2018 record high, with the majority raised by domestic private management companies: Limited Partners (LPs) maintain their commitment and trust in the management of local firms. In this regard, ASCRI continues to promote the potential of Venture Capital and Private Equity for insurance companies and pension funds in Spain, one of the largest demands in the sector identified in the “Measures for Transformation of SMEs and Startups” report.”

“To date, the sector holds €38,000M under management, an amount that ensures operations will continue and that there is abundant capital available to continue carrying out transactions and strengthening our business fabric, both for startups and more mature SMEs.”

“ASCRI continues to support Spanish companies, responding to their financing needs, supporting them in their management and contributing to job creation. We are greatly appreciative for Diana Capital's continued support in preparing this report, which we hope will be of interest to you."

Aquilino PeñaChairman ASCRI /Founding Partner Kibo Ventures

José ZudaireASCRI Managing Director

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Venture Capital & Private Equity Differentiating ValuesThrough its Venture Capital and Private Equity Economic and Social Impact study on Middle Market Investments in Spain, published in 2018, ASCRI studied the impact of

Venture Capital and Private Equity in 186 companies and confirmed the following conclusions:

Venture Capital and Private Equity is one of the basic pillars of financing for small and medium-sized companies, acting as an essential complement to bank financing.

Capital injections are complemented by strong business development support. Venture Capital and Private Equity firms are not limited merely to financing, but also offer the experience of their teams to: (1) offer strategic advising, (2) establish credibility with third parties, (3) help increase the professionalism of management teams, (4) provide an external business focus, and (5) convey best practices from other sectors.

Venture Capital & Private Equity has proven a key tool for driving the growth of companies and making companies more competitive. Venture Capital & Private Equity contributes to this growth in two ways: (1) driving growth in sales, turnover and EBITDA; and (2) in build-up transactions, ensuring continued growth in size through the acquisition of other companies, reducing sector fragmentation.

Companies backed by Venture Capital & Private Equity create more jobs, and this job creation persists over time. Looking at a broader time horizon, through 2015, the 186 companies that received Venture Capital & Private Equity investments increased their workforce by 27,485 workers, representing an aggregate increase of 30%, compared to the 2,000 jobs lost in the control group (-2.8% aggregate).

1. Alternate Financing

2. Added Value

3. Business Consolidation

4. Job Creation

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Venture Capital & Private Equity Differentiating ValuesThe capital injection and business management support provided by the Venture Capital & Private Equity strengthened growth of the portfolio companies. In individual terms, each portfolio company increased sales by 17.1 million within three years from the investment, compared to 1.5 million for the control group companies. If the analysis is extended through 2015, this difference between investee and control group companies increases to 12.2 million euros per company.

Venture Capital & Private Equity funding of companies improves their ability to turn a profit. The 186 Venture Capital & Private Equity portfolio companies increase their EBITDA by the third year of the investment, by €294 million, at an average rate of 7% per annum. On the other hand, the control group experienced losses of €200 million (-6.4% YoY average).

Venture Capital & Private Equity funding multiplies the investment in its portfolio companies, driving production increases. In aggregate terms, total assets of companies receiving Venture Capital & Private Equity funding increased by €4,460 million in the third year after receiving the investment, representing annual growth of 7%, more than 4 percentage points above the control group (2.8% per annum).

Venture Capital & Private Equity supports management which contributes to increased value, mitigating the effects of recessions through the investment and searching for new markets in which to grow. A total 61 companies received Venture Capital & Private Equity funding in the middle market following the start of the crisis in 2009. Turnover of companies backed by Venture Capital & Private Equity grew by €23.7M at the end of three years, compared to €3.3M per control group company, representing 7 times more growth on average.

Venture Capital & Private Equity investment in the middle market is primarily centered on the other services sector (80 companies) and industry (53 companies). The remainder of the investments were distributed between the commerce (24 companies), commodities and supply (15 companies) and ICT (14 companies) sectors.

5. Acceleration of Business Growth

6. Improved Corporate Profits

7. Promoting Investment

8. Support for Distressed Companies

9. Impact in Various Sectors

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ASCRI GlobalAt ASCRI we have a clear commitment to promote the inter-national area.

To do this, we continue to develop initiatives such as:

- The MoU or collaboration agreement with the counter-part associations of other countries, ABVCAP, ACVC, AIFI, Amexcap, APCRI, Arcap, ColCapital, France Invest, IATI, IDB / LAB, LAVCA, LPEA and PECAP with whom we are in continuous communication.

- LinkedIn site created specifically for the members of the MoU and that allows exchanging ideas, information, formu-lating queries and supporting business development bet-ween the member countries.

- Participation in international events, such as congresses or events, in which ASCRI has an active presence with the aim of developing the Spanish Venture Capital and Private Equi-ty sector, such as IPEM in Cannes, the Pacific Alliance, EVPA Annual Conference, Invest Europe Venture Capital Forum, Invest Europe investor's Forum or the annual congresses of the associations that are part of the MoU.

The MoU continues to expand its members: 2020 we've wel-comed Portugal (APCRI, Portuguese PRivate Equity Asocia-tion).

On 354 you will find expanded information on each of the MoU member Associations.

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Summary of 2020

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Summary of 2020

Second best figure on record for investment in Spain by Venture Capital & Private Equity GPs Despite the change in scenario caused by the global health crisis, a total of €6,257M was invested in Spanish companies.

Record high number of investments1 made in SpainWith 838 investments closed.

Spanish SMEs were the main recipient of Venture Capital and Private Equity investmentInvestments were made in 578 companies, 90% of which were SMEs.

International GPs continued their commitment to Spanish companiesInternational GPs contributed 75% of investment volume for the year. Record high number of investments in Spain (192).

Middle Market reached record highs in terms of volume and number of investmentsWith €2,581M across 92 investments. The role of international GPs stood out thanks to their intense activity in this segment and their role in driving this segment to record highs.

Venture Capital investment reached a record high for the second consecutive yearAll-time high in volume invested with a total investment of €833M in 433 Spanish start ups.

Domestic investors (LPs) were the main source of new capital for Spanish funds in both Venture Capital and Private EquitySpanish family offices stood out in their support of Venture Capital and Private Equity as an asset class.

Dry powder has maintained similar levels to those seen in recent yearsApproximately €4,081 million in equity available for investment, a long way from the 2008 record high (€6,000 million).

Record high in volume of funds managedA total of €38,053M, with international GPs representing 64%.

1 The number of investments as published in this report is calculated from the investor perspective, meaning that some investee companies may be double counted in the case of syndicated investments by Venture Capital and Private Equity firms. This explains why the number of investments does not match the number of investee companies.

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Investment in 2020

Fundraising in 2020

-26.4% vs, 2019

+10.3%vs, 2019

-33%vs, 2019

€6,275.2M Equity investment

838 investmentsin 578 companies (90% SMEs)

€7.5MAverage investment round size

+ 11% vs, 2019

+ 18%vs, 2019

+1.5%vs, 2019

€2,134.6M Spanish Private Equity &

Venture Capital Funds

1,324.8Spanish Private Equity funds

€809.7MSpanish Venture Capital funds

Record high in fundraising of Venture Capital GPs for the second consecutive year

Investment and Fundraising vs. GDP

2018 2019 20202016 20172014 20150

3,000

1,000

2,000€2,135M€2,142M

Third best figure on record for investment Record high number of investments closed

Investment Number of investments

Investment in Spain / GDP (%) Domestic Funds Raised / GDP (%)Fundraising

2018 2019 20202016 20172014 20150

900

439

838

600

300

2019 20202017 201820152014 20160

8,000

6,000

10,000

€2.745M

€6.275M

4,000

2,000

2018 2019 20202017201620152014

0.21%0.18%0.20%0.17%0.21%

0.16%0.25%

0.26% 0.22%0.32%

0.43%0.50%

0.69%0.56%

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Divestment in 2020

Portfolio in 2020

-45.5% vs, 2019

-49.7%vs, 2019

+6.8%vs, 2019

€1.623M Divestment (at price cost)

€1.385MDivestment in Private Equity

€238MDivestment in Venture Capital

€1,171.1MAndalucía

€394.1MAragón

€6,525.3MCataluña

€16,474.1MCdad, de Madrid

€2,105.2MCdad, Valenciana

€214.6MExtremadura

€949.4MGalicia

€451MLa Rioja

€800.4MNavarra

€1,483.2MPaís Vasco

€214.2MMurcia

€65.8MCantabria

€427.6MCastilla la Mancha

€406.8MCastilla y León

€186.3MAsturias

€1,594.2MBaleares

€55.5MCanarias

Downturn in portfolio turnover

2018 2019 20202016 20172014 20150

600

300 302

416

2019 20202017 201820152014 20160

6,000

5,000

€1,623M

€5,048M

4,000

3,000

2,000

1,000

Divestment Number of divestments

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Private Equity and Venture Capital industry in Spain

Employment

448,800 employees in the portfolio companies of Venture Capital and Private Equity GPs, all headquartered in Spain.

Footprint

2,796 investee companies of Venture Capital and Private Equity GPs, distributed across the various regions of Spain.

Momentum

90% of investee companies are small or medium-sized companies (SMEs).

TechnologyIT, Communications and Life Sciences led Venture Capital and Private Equity investments in 2020.

Scale

€29,583Min equity investments in 2,874 Spanish companies over the last five years.

Dimension

€38,053M funds under management (24,241 of international GPs).

Innovation

Barcelona and Madridtwo entrepreneurial and innovative hubs known worldwide.

Double-digit returns

18%average rate of return in Spanish funds divested by Venture Capital and Private Equity2.

Activity

464 Venture Capital and Private Equity GPs have a portfolio in Spain, 292 of which are international GPs.

2 This figure refers to the public fund of funds, Fond ICO Global, as obtained from the “Venture Capital and Private Equity's Potential for Insurers and Pension Funds in Spain” study. Published by ASCRI and BCG. January 2021.

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Fundraising1 remained strong despite the new environment. With the outbreak of the health crisis in Europe during the second quarter of

the year and the subsequent closing of borders, there were several months of substantial uncertainty that affected many activities, including fundraising worldwide. However, the reopening and reactivation of certain economic sectors in the second half of the year, combined with the continued presence of those market conditions that have shaped this variable in recent years –as discussed in past reports, these conditions include abundant liquidity, attractiveness of Venture Capital and Private Equity as an asset for investors2 (LPs) and the support from the public sector through various programs, of which the FOND – ICO Global fund of funds, managed by Axis/ICO, and the European Investment Fund (EIF) stand out– drove growth in this variable in 2020.

New funds raised by private Private Equity and Venture Capital firms in Spain in 2020 exceeded €2,134.6M, rep-resenting an 11% increase from 2019 (€1,920M). Including new funds for public entities (€170.9M), new funds raised for the sector totaled €2,305.5.M (+5.2% from 2019).

Approximately 60 Venture Capital & Private Equity firms (“VC&PEs”) headed the raising or extension of funds by private domestic firms. A majority of new funds raised focused again on the middle market investment segment. In terms of the number of firms that increased funds, those aimed at funding start ups stood out (45 in total). As is the case globally, although at a different scale, a significant

part of funds raised are being concentrated in a small number of funds (approximately 56% of new funds raised were invested in seven funds, all of them above €80M). Fundraising by experienced market operators continues to lead. The following Private Equity vehicles, inter alia, stood out3: GPF Capital III (final closing of €300M) of GPF Capital, MCH Iberian Capital Fund V (first closing of €250M) of MCH Private Equity Investment, Oquendo IV (first closing) of Oquendo Capital, PHI Fund III (final closing of €80M) of PHI Industrial, Suma Capital Growth Fund II (final closing of €125M) of Suma Capital, as well as the first fund of Queka Real Partners, among others. Several funds were launched and closed to finance start ups, including, Nauta Tech Invest V (first closing) of Nauta, Seaya Ventures III (first closing of €84M) of Seaya Ventures, Samaipata II Capital (first closing, with a fund target of €100M) of Samaipata, JME Ventures III (final closing of €60M) of JME Ventures, K Fund II (first closing, with a fund target of €70M) of K Fund, Kibo Ventures Fund III (first closing, with a fund target of €100M) of Kibo Ventures, TBF I (€30M) of Think Bigger Capital, Ysios Biofund III (first closing of €155M, with a fund target of €200M) of Ysios Capital, 4Founders Capital II (first closing, with a fund target of €40M) of 4Founders Capital and Inveready Venture Finance (€50M) of Inveready, as well as numerous undisclosed capital extensions in Venture Capital & Private Equity vehicles. Regarding impact investing, several firms of this category have announced their first closings of investment vehicles: Q Impact, Bolsa Social Impacto, Global Social Impact and Ship2B (Ship2B

1 The fundraising variable analyzed in this chapter includes all new funds raised by Spanish Private Equity and Venture Capital firms during the fiscal year analyzed in the report (2019). The target of these funds raised is direct investment in unlisted companies. Infrastructure funds, real estate funds, funds of funds, secondary funds of funds, corporate bond funds and accelerator, incubator and business angel funds are not included in these statistics.

2 This chapter includes the following types of investors: Pension funds, financial institutions, family offices, public sector, funds of funds, insurers or corporate investors.3 Only those funds that have been disclosed are referred to herein..

New funds raised by type of entity (GP)

Source: ASCRI / webcapitalriesgo

Domestic private entity Domestic public entity

3,000

2,000

1,000

0

€ Mi

llion

s

2009 201220112010 201520142013 2018 2019 202020172016

Fundraising

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Ventures), as well as an extension of the Creas fund, totaling an aggregate of funds for impact investment of €88M.

In 2020, funds raised by private domestic Private Equity GPs totaled €1,324.8M (€1,122.5M in 2019), whereas Venture Capital GPs totaled €809.7M (€797.7M in 2019), a record high for the second consecutive year for the GPs operating in this segment.

An estimated €4,080.8M in dry powder is currently available for investment by private domestic GPs (+4.6% from 2019), thanks to the intense fundraising activity in 2020, albeit still far from the record-high of 2008 (€6,000M). The capacity of the Spanish market to absorb available funds (the annual investment in recent years in Spanish companies has been between €6,000M and €8,000M), together with the need for channeling equity into SMEs during this new stage of the economic cycle, highlights the continued need for fundraising in the Spanish market.

At the global level,4 the recession caused by the health crisis did not have a particularly negative impact on fundraising. In 2020, this variable totaled €600,000M,5 representing a 14% decrease from 2019 (third best figure on record following 2017 and 2018). Investors (LPs) directed their interest in particular towards consolidated GPs with a focus on Europe, as is the case of CVC Capital Partners, who raised the largest fund for Europe (€21,300M) and the second largest in the industry (behind Blackstone, with €21,993M). Looking ahead to 2021, 89% of investors (LPs) planned to maintain or increase their allocations to Private Equity and Venture Capital, largely due to the strong returns they have received from this asset within a macro framework of expansionary policies with low interest rates, which penalizes fixed income assets, as well as high market volatility. Funds available for investment by Venture Capital & Private Equity GPs globally have been growing since 2012, reaching a record high of circa €2 trillion in 2020.

4 Data from “2021 Prequin Global Private Equity & Venture Capital Report”.5 The fundraising figure reported by Prequin includes other alternative investments as well as Private Equity and Venture Capital funds, unlike the methodology applied by ASCRI and other

European Associations, which solely follow the activity of Private Equity and Venture Capital funds.6 According to the National Institute of Statistics, Spain's gross domestic product in 2020 fell by 11% from 2019.

Investment decreased with respect to GDP. Given the decrease in investment in 2020, and despite the decline in Spanish GDP, funds invested as a percentage of GDP6 was 0.56%, a decrease of 12 p.p. compared to 2019, a record high year in terms of investment. Nevertheless, for the third consecutive year this indicator was above the European average (0.52%, according to Invest Europe), albeit still far from such countries as Norway (0.95% of investment as a percentage of GDP) and the United Kingdom (0.90%) who led the European ranking with respect to this variable in 2020. Venture Capital and Private Equity fundraising in relation to GDP grew 3 p.p., which placed this variable at 0.21% in 2020.

Fundraising and investments as a percentage of GDP

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

0.63%

0.84%

0.42%

0.21%

0.00%

Investment in Spain / GDP (%) National funds collected / GDP (%)Source: INE, ASCRI / webcapitalriesgo

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Fundraising

For the second consecutive year, domestic investors (LPs) were the main source of new resources for the

Spanish Venture Capital & Private Equity sector. In terms of the contribution of new funds to

private domestic Venture Capital and Private Equity vehicles in 2020, by geographic origin Spanish investors stood out, contributing 70% of total funds raised (€2,134.6M). In absolute terms, the volume invested by domestic LPs grew by 24% compared to 2019, whereas international investors

Family of!ces become the primary investor (LP) in total funds raised by domestic private entities. As regards

capital raised by Spanish private VC&PEs, by type of investor (LP), family offices led new capital contributions, accounting for 43.2% of the €2,134.5M raised in 2020. Specifically, Spanish family offices committed €840.8M compared to €80.7M by international family offices, reflecting the renewed interest in this asset (in the last four years, Spanish family offices have contributed around 22% of new funds raised), making them the leading LP in funds raised by Spanish GPs. This is followed by the public sector,7 including FOND-ICO Global8 (investment vehicle for VC&PE funds managed by Axis Participaciones Empresariales/ICO) and the European Investment Fund (EIF),9 representing 17.8% (€380.4M) of funds contributed. Funds of Funds committed €214.9M. Corporations or non-financial companies were the fourth largest provider of funds, representing 7.4%. Domestic companies also stood out in this category, making a capital injection

of €135.2M to new funds raised, compared to €22.2M contributed by international corporations. Mimicking other asset managers (6.4% of total), pension funds were the sixth largest contributor, accounting for 4.5% of total new funds raised. For the first time, domestic pension funds recorded high participation rates in this asset class, contributing €75.5M10 of the €96.5M provided by this type of investor in 2020. Nonetheless, the contribution of domestic pension funds in Spanish VC&PE vehicles is still far from their international peers, with average annual contributions between 15% and 30%11 of total funds raised at the European level. Insurance companies committed just 2.5% of the total, with domestic insurance companies making the largest contribution totaling €52.8M of the total €53.4M contributed by this type of investor in 2020.

Government agencies were the main contributor (33.9%) of new funds raised for Venture Capital vehicles in 2020 (€809.7M), followed by family offices (31%).

60%

50%

30%

40%

20%

10%

0%

6%2%2% 4%6%6%

1.9% 0%6%

2%3%8%

34%

13%15%

1%

31%

2%

50%

Fami

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Sove

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wea

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Othe

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Instit

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Private Equity Funds Venture Capital Funds

New funds raised by Spanish private VC&PEs in 2020, by type of investor (LP)

7 This category includes public funding aimed at funds raised by domestic private entities.8 In 2020, Fond-ICO Global contributed €119M to VC&PE vehicles. Fond-ICO Global has approved commitments of €2,266M across 108 funds since its launch, through thirteen calls.9 Following the methodology of the other European Associations, the EIF contributions were included as public sector.10 This figure can be explained by the high contributions of two pension funds in two middle market vehicles.11 El peso de los fondos de pensiones en el total de recursos captados en 2019 por vehículos de Capital Privado europeos fue del 29%, posicionándose como el principal proveedor de

recursos. Fuente: "European Private Equity Activity 2019", publicado por Invest Europe en mayo 2020.

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Spanish SMEs grew and consolidated its position as the main recipient of capital raised by Spanish private

entities.12 Specifically, in 2020, buyouts accounted for 42.3% of intended application of new funds raised, compared to 26.2% in 2019. Investments directed towards financing startups (seed, start up and late stage ventures) accounted for the second highest application of new funds (35.6%). This is due to the continued closings of domestic Venture Capital funds, nearly all of which are on their second and third generation. However, an ongoing challenge for the Spanish market is the fact that Spanish Venture Capital GPs are raising larger funds that provide them with the capacity to finance the last stages of Spanish start ups (late stage ventures), rounds that are currently

being led by international Venture Capital GPs, as their funds are generally much larger.


2020 2019

Early Stages(Venture Capital)

Growth Capital

Leveraged Buyouts

Other

0% 20% 10% 30% 40% 50% 60%

73.32.0

75.521 52.8

0.7 17.8

197.1135.2

22.2

840.8

80.7

209.1 171.3

21.0- 35.899.9 70.7

7.7

400

600500

700800900

300200

0100

€ Mi

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Fami

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Insura

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Finan

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Pens

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Domestic LPs International LPs

New funds raised by Spanish private VC&PEs entities according to geographic breakdown of investor (LP) in 2020

12 This data is developed based on the answers provided by respondent firms to the question “Intended application of new funds raised,” and some of said firms are managing broad market funds.

Intended application of new funds raised by Spanish private VC&PEs entities in 2020

provide €623.6M, a decrease of 27% from the prior year in terms of their commitments in domestic Venture Capital & Private Equity GPs. The mobility restrictions in place during the first months of 2020 largely explain this decrease in the participation of international investors. A majority of the funds from international investors came from Europe, totaling 23% (mainly from Luxembourg, France, Italy and

Germany), followed by the United States with 5%. Broken down by asset type, Spanish investors were the main source of new funds raised by Venture Capital vehicles, contributing €620M of the €809.7M recorded. In terms of Private Equity vehicles, domestic investors also stood out, providing 67% of total funds raised by these strategies (€1,324.8M).

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Second best figure on record for Venture Capital and Private Equity investment in Spanish companies in 2020. Despite a difficult

economic environment due to the outbreak of the health crisis, Venture Capital and Private Equity investments1 in Spain in 2020 totaled €6,275.2M,2 the third best figure on record. Nevertheless, this investment volume represents a 26.4% decrease from 2019 (€8,526.9M), a record year for Venture Capital and Private Equity investment in Spain. 69% of total volume was allocated to new investments, the same as in 2019. The remaining 31% (€1,921.2M) was allocated to follow ons.

A comparison between the two main segments of this sector shows that Private Equity investment totaled €5,442.2MM (-30.3% from 2019) across 166 investments. Venture Capital investment totaled €833M (+6.3% from 2019) across 672 investments.

The bunching effect of Venture Capital and Private Equity on many of its transactions, given that the equity provided by Venture Capital and Private Equity firms3 is accompanied by the financing of other investors, is referred to as the (total) transaction value.4 In 2020, this figure totaled €12,857.6M (-13.6% from 2019), of which €11,582.8M were Private Equity investments (€5,442.2M in equity + €6,140.6M co-investment and debt) and €1,274.9M were Venture Capital investments (€833M in equity + €441.9M co-investment).

The decreased investment volume in 2020 can be explained by the fewer number of transactions in the large market5 (equity investments over €100M per transaction), a segment headed by international funds. In contrast, the record highs recorded in the middle market6 (equity investments between €10M–€100M) and Venture Capital7 segments drove the good investment activity in 2020, with intense activity by international funds in both segments.

The cycle change caused by the global pandemic had a disparate impact on the Venture Capital and Private Equity sector throughout 2020. In the first half of the year investment volume totaled €1,561.5M (-64% from the first half of 2019), as the focus of activity at that time was specifically on managing portfolio companies with a view to mitigating the consequences of the global economic slowdown. In the second half of the year, in an environment with fewer mobility restrictions compared to the first half, a majority of the year’s investment activity took place, totaling €4,713.7M (+13.7% YoY), thanks in large part to the sustained prevalence in 2020 of certain market conditions, such as investor appetite (with significant available funds for investment), numerous investment opportunities in Spanish companies presenting an attractive offer and access to credit (particularly private), in addition to the decreased uncertainty and lack of visibility in terms of company valuation, which were defenitive factors in the first months of the year

Investment by type of entity (GP)

Investment

1 This chapter analyzes investment in terms of equity contributions by domestic (public and private) and international Venture Capital and Private Equity general (GPs) in Spanish companies. Therefore, investments made by Spanish firms outside of Spain, which totaled €266M across 128 investments in 2020, are not included. Likewise, investments made by infrastructure funds, real estate funds, funds of funds, corporate bond funds and accelerator, incubator and business angel funds are not included.

2 All figures in this report are provided in millions of euros (“€M”).3 The terms fund, manager (GP - General Partner) and Venture Capital and Private Equity Firm (VC&PE) are used indistinctly in this report to refer to Venture Capital and Private Equity

operators.4 Equity invested by Venture Capital and Private Equity GPs plus investments made by co-investors (institutional investors, Limited Partners (LPs), management teams, corporations,

shareholders, etc.) and, in the case of leveraged transactions, debt provided by the banks and/or alternative debt.5 For further information, please refer to the section: “Large Market. The International GP in Spain” of this report. 6 For further information, please refer to the section: “Middle Market” of this report.7 For further information, please refer to the section: “Venture Capital” of this report.


International GP Domestic private GP Domestic public GP

Number of investments

€ M

illio

ns

2018 2019 2020201720162015201420132012201120102009

4,0005,0006,0007,0008,0009,000

3,0002,0001,000

0

21

Leveraged transactions9 represented 40% of total annual investment thanks to large and middle market activity. Venture Capital

reached a record high by investment volume, for the second consecutive year, and also reached a record high by number of investments. Investment by stage of the investee company, by volume, followed a similar pattern to that seen in recent years in which leveraged transactions stand out over other categories, totaling €2,453.8M in 2020, representing 39% of the total. Buyouts transactions fell significantly from 68 in 2019 to 49 in 2020. This decrease in buyouts can be explained in part by the lower banking activity directed at this type of corporate transactions, although there is a broad range of alternative

financing available through direct lending funds that are increasingly active in the Spanish market. International funds invested a total of €1,940.5M in buyouts, across 26 transactions (compared to €5,976.4M and 31 investments in 2019). This decrease in volume is primarily due to the lower number of large investments (>€100M in equity) closed by these funds, as only 3 of the 8 investments were buyouts, whereas 18 of the 19 large transactions closed in 2019 were buyouts. Domestic Private Equity GPs reduced their investment in buyouts to €513.3M across 23 investments (compared to €903.8M in 37 investments in 2019). The “other” category10 came in second thanks to several large equity investments over €100M relating to the purchase of listed shares (MásMóvil).

8 The number of investments as published in this report is calculated from the investor perspective, meaning that some investee companies may be double counted in the case of syndicated investments by Venture Capital and Private Equity firms.

9 Investments in mature companies using equity and external debt to acquire an interest in the company. Also referred to as LBO, MBO (buyouts) or MBI.10 The “other” category includes private investment in public equity (PIPE), restructuring, reorientation and refinancing transactions

A determining factor in the expansion of Venture Capital and Private Equity in recent years has been the activity of international funds, whose presence in Spain has continued to grow each year thanks to the attractiveness of the domestic market, the asset opportunities it offers in relevant sectors such as healthcare, education, technology, renewable energies and the food industry, and to excellent management teams with a corporate culture, all in a context of significant global investor appetite. The presence of these funds in the Spanish market started in the 90s with a clear investment focus on investing in consolidated companies. However, in recent years, not only has their activity increased in terms of volume, but also by types of transactions, including funding of companies from the initial to mature stages. Following the trend of previous years, the activity of international funds in the large market segment stands out, having invested €2,882M in 8 transactions. In 2020, international funds invested a total of €4,701.4M (second best figure on record following 2019), representing 75% of total annual investment, and closed a total of 192 investments, a record high for the eighth consecutive year. Yet again, the increased activity of international funds in the Venture Capital sector is also noteworthy, reaching a new record high in the number of investments made in Spanish start ups, with a total of 136, 20 of which were in seed capital, a stage that saw virtually no activity from international funds prior to 2020.

Furthermore, domestic private Venture Capital and Private Equity firms (hereinafter, “GPs”) invested a total of €1,474.1M (-30% from 2019) across 528 investments (+16 from 2019) a record high. As in recent years, investment contributions were supported by the momentum of the middle market. Meanwhile, private domestic Venture Capital funds stood out in terms of number of investments closed each year. Direct investment activity by domestic public GPs decreased to €99.8M (-22% YoY), allocated to 118 investments (-30.5% from 2019). Likewise, the public sector continued supporting Venture Capital and Private Equity through its investment activity (as Limited Partner or “LP”) both in Private Equity and Venture Capital vehicles, as further explained in the "Fundraising" section of this report.

A total of 578 Spanish companies (90% SMEs) received Venture Capital & Private Equity funding in 2020. Regarding the number

of investments in 2020, a record high of 838 investments8 in 578 companies was recorded as well. The proportion of new investments to expansions of previous investments has maintained basically the same ratio since 2014. Specifically, 59.9% of investments were directed towards companies that, until 2020, had never received Venture Capital or Private Equity investments. Between 2015 and 2020, the Venture Capital and Private Equity sector has funded approximately 3,293 companies, approximately 90% of which are SMEs.

22

L ife Sciences17 reached a record high in number of investments, and the Communications and IT sectors were the

primary recipients of Venture Capital and Private Equity financing. Regarding sectors,18 Communications received 25.5% of funds invested, in transactions including MásMóvil (largest equity transaction in the history of the sector in Spain), Evolutio, Nice People at work and Excom Telecom Group, among others, followed

by IT (25.2%), in transactions including Idealista, Freepik, Paack, Jobandtalen and Signaturit Solutions, among others. These were followed in distant positions by: Leisure (9.4%), in transactions including Hotelbeds, Áreas and Goiko; Consumer Goods (8.7%), in transactions including Angulas Aguinaga, Salto Systems, Iberfrasa and Laboratorios Almond, among others; and Industrial Products and Services (7.6%), including companies such as Maxam Europe, GTT, Papresa and Imaweb.

The financing of growth in mature companies (growth capital11), with €926M invested, reached a record high since the beginning of the previous recession. International investors stood out for their recent increased presence in this category, with €373M invested in 22 investments, compared to €145.7M in 14 investments in 2019. In total, 94 growth capital investments were closed, far from levels seen between 2007-2008, years that saw around 160 investments p.a. A majority of these transactions were carried out by domestic entities (72 investments). [A list of the main growth capital and buyout investments is provided in pages 41, 42, 43].

Investment in startups through Venture Capital GPs reached a record high (€833M) for the second consecutive year (+6.3% from 2019).

By number of investments, companies in start up stages (Venture Capital) received the most investments with 672 closed (87% of total), setting a record high for the sixth consecutive year. A total of 203 investments were recorded in other early stage12, followed by 199 investments in start up13, late stage venture14 (151 investments) and seed15 (119) stages. For a detailed analysis of investments in the seed, start up, other early stage and late stage venture stages see Chapter 6, on Venture Capital. The remaining investee companies, by number, belong to the replacement16 (9 investments) and other (14 investments) categories.

Investment

11 Funding of growth in mature companies only through equity or capital.12 Other early stage: refers to follow-on rounds or Series B/C investments in startups.13 Investment in start ups: first round of investment in companies with early sales but negative EBITDA14 Late stage venture: Investment in growth companies with positive sales and EBITDA15 Seed: Investment in companies without sales16 Buying a minority stake from an existing shareholder of the investee company.17 Encompasses the Healthcare and Biotechnology sectors18 See page 60 of this report for a description of the activities included in each sector.

Stage distribution of Venture Capital & Private Equity investments


Seed Start-up + other early

stages Late stage venture

Growth LBO/MBO/

MBI/LBU Other

1,000

3,000

5,000

7,000

9,000

0

€ Mi

llions

2014 2015 2016 2017 2019 20202018

23

Madrid led Venture Capital & Private Equity investment with 60% of total investment in 2020. The geographic

distribution of the Venture Capital and Private Equity investments highlights the wide disparity between the various regions of Spain when it comes to attracting investment. Madrid stood out with 59.6% of total investment in Spain, followed by Catalonia (10.3%), Balearic Islands (7.6%), the Basque Country (5.7%) and Andalusia (5.2%). In the case of Madrid the Idealista, MásMóvil, Maxam, Evolutio, Auxadi, GTT, Nace, Cepsa, IMF Business School and Fertiberia Group transactions were crucial; in Catalonia, the Palex Medical, Paack, Signaturit Solutions, Áreas and Terrats Medical transactions stood out, in the Balearic Islands, the Hotelbeds transaction, among others, in the Basque Country Angulas Aguinaga, Salto Systems, Papresa, Nuzoa, Ugarteburu and Voovio Technologies, and in Andalusia those in Freepik, Surexport, AGQ and Alsur.

Regarding number of investments by region, Catalonia topped the ranking, as has been the case since 2010, with

249 investments, followed by Madrid (226), Community of Valencia (75), the Basque Country (65) and Navarre (46).


Volume invested by region in 2020

2.3%0.3% 5.7%

0.7%

2.1%10.3%0.4%

0.2%0.8%

59.6%

3.1%

1.3%5.2%

7.6%

0.0%

0.1%

0.4%

By number of companies, the IT sector ranked first (352 investments, representing 42% of the total 838 investee companies in 2020), followed by Healthcare (11.6% of total),

Biotechnology (8% of total) Consumer Goods (7% of total) and Industrial Products and Services (6.2% of total).


Private Equity & Venture Capital investments (amount) by sector in 2020

5%0% 10% 15% 20%

Industrial Products & Services

Productos de consumoLeisure

Energy & Natural ResourcesFinancial Services

Communications

BiotechnologyConstruction

Agriculture

Health relatedOthers Services

Computer related

30%25%

24

Investment

Venture Capital and Private Equity activity in Spain primarily focused on financing SMEs. Investments in SMEs are dominating the

Spanish market. Of the 838 investments made in Spain by PE&VCs in 2020, 670 were made in SMEs with fewer than 100 employees.

According to transaction size, business finance below €1M ranked first (with 59.4% in 2020), while 24.2% of the companies received between €1 and 5 million, 4.4% between €5 and 10 million, 5.9% between €10 and 25 million and 5% between €25 and 100 million. The rest (1%) relates to transactions of more than 100 million.

Among these segments, the €1M–€2.5M segment (145 investments, record high) and the lower middle market segment (investments between €5 and €10M) stood out, continuing the intense activity of recent years with a total of 37 investments.

The decrease in large transactions resulted in a lower average amount per investment, which fell to €7.5M in 2020 (the average in 2019 was €11M). As regards companies, each of the 586 investee companies received an average of €10.8M in Venture Capital and Private Equity financing in 2020, compared to €14.5M in 2019.

Venture Capital & Private Equity investments (number) by company size in 2020


Venture Capital Private Equity

0% 20% 40% 60% 80%

100%

0 to 99 employees

100 to 199 employees

200 to 499 employees

More than 500 employees

25

Middle market investments

Volumen Nº investments

2015 2017 2018 2019 20202016201420132012201120102009

€ Mi

llion

s

0

1,000

2,000

3,000

30 30 33 23 12 29 50 51 56 63 75 75 deals


Middle Market

Record high in the Spanish middle market1

for the second consecutive year. The new scenario marked by the global pandemic did not

cause a slowdown in middle market activity, which reached a new record high in 2020, by both volume and number of investments. Driving factors in the gradual recovery of this investment segment in recent years include the availability of funds to several Spanish middle market GPs, thanks to intense fundraising for establishing new investment vehicles, coupled with the investor appetite of domestic and international funds. In 2020, the total amount invested in this market segment was €2,581M (compared to €2,069.8M in 2019), representing 41% of total investment in Venture Capital and Private Equity in Spain (€6,275.2M) compared to 26% in 2019. 92 investments were made in mid-sized companies, compared to 75 in 2019.

78.4% of invested capital was directed towards companies that had previously never received financing from any Venture Capital or Private Equity GPs (10 p.p. less than 2019). Regarding the number of investments, the proportion of new investments was somewhat lower than 2019: of the 92

investments closed, 70 were in new companies for Venture Capital and Private Equity GPs, compared to 75 investments closed in 2019, of which 65 were in new companies.

Intense activity of international firms in the middle market drove these investments to record levels. Domestic funds have traditionally led

the middle market segment in Spain. However, in 2020, international GPs increased their activity in this type of transaction to never-before-seen levels in Spain, thanks to their shifting investment focus from larger companies to mid-caps, which is a niche market in Spain that presents many opportunities within the current environment characterized by high competition for quality assets. In 2020, these funds invested €1,516.4M (+108% from 2019) in 47 investments (25 investments more than 2019). Of the 47 investments made in this segment in Spain, for the first time, their activity in financing late stage venture (9 investments) and growth capital (12 investments) stood out. Meanwhile, domestic funds invested a total of €1,064.8M (-20.6% from 2019) in middle market transactions across 45 investments (8 less than 2019).

1 Investments in mid-sized companies, with equity contributions between €10M and €100M.

26

Investment by transaction size followed a very similar pattern to that seen in recent years. The largest number of investments were made in the €25–50M equity investment range, accounting for 29 investments, 16 of which were made by international funds. This was followed by the €10–15M tranche, accounting for 24 investments this past year, 16 of which were led by domestic GPs.

The middle market has been one of the most active segments since 2015, when the economy began to recover from the previous crisis. Since then, successive annual record highs have been achieved both by volume and number of transactions, without the change in cycle caused by the current pandemic causing any slowdown in momentum. In fact, following the months of lockdown when Venture Capital and Private Equity firms were focused on preserving

the continuity of investee companies by providing liquidity, stability and management support, an intense reactivation has been seen thanks to the availability of funds by the majority of GPs, access to accompanying debt (in particular, credits) and investor appetite, especially by international funds. Likewise, from the supply side, the attractiveness of Spanish mid-caps (in particular those in counter-cyclical sectors), most of which have experience from previous crises and good management teams, has been decisive. In the new current scenario, in which funding (and equity in particular) will need to be mobilized towards companies to support them in the face of the crisis or to respond to their growth needs, Venture Capital and Private Equity, as an expert in long-term investment in the real economy, will be crucial.

Middle market investments by size of investment

2017 2018 2019 2020

600

400

200

0

€ Mi

llion

s

10 to 15 15 to 20 20 to 25 25 to 50 50 to 75 75 to 100


27

Stage distribution of middle market investments

Leveraged transactions represented 53% of total middle market investments2. The availability of accompanying credit, including both

bank and alternative financing (such as corporate bond funds), has led to similar numbers in terms of LBOs in the middle market, from 40 in 2019 to 38 in 2020, totaling €1,359.7M in 2020 (€1,262.3M in 2019). As for Growth Capital, 33 investments were completed (10 more than 2019), recording a total volume of €776.9M. Venture Capital accounted for 14 investments (record high), totaling €242.8M (+12% from 2019). As regards GPs, international funds investing in the middle market focused primarily on buyouts (€875M across 21 transactions). Domestic funds distributed their investments between buyouts (€484.6M across 17 transactions) and growth capital (€428.3M across 21 transactions).

[A list of the main middle market transactions is provided in page 42 and 43.]

As regards sectors3, the middle market has historically focused on traditional industries. The Consumer Goods sector received the highest investment volume (€510.5M; 19.8% of total), followed by IT (€361.3M; 14% of total), thanks to the commitment of international funds to growing startups, Other Services (€283.7M; 11% of total), Industrial Products and Services (€257.8M; 10% of total) and Financial Services (€223.6M; 8.7%).

The following stand out in the sector distribution by number of investments: Consumer Goods (20 investments), IT (18), Industrial Products and Services (8), Financial Services (7), Healthcare (6) and Energy / Natural Resources (5).

2,000

3,000

1,000

0

€ Mi

llion

s

2016

2017

2018

2019

Seed Start-up + other early

stages Late stage venture

Growth LBO/MBO/MBI/LBU Others

2 Investments in mature companies using equity and external debt to acquire an interest in the company. Also referred to as leveraged transactions, MBO (buyouts) or MBI.3 See page 60 of this report for a description of the activities included in each sector.

28

Investments by international entities in Spain (by size of investment)

2014 2016 2017 2018 2019 20202015201320122011201020090

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

€ Mi

llion

s

Nº in

vest

men

ts

20181614121086420

2

54

67

9

4

9

139

19

8


Investments > 100M€ Investments < 100M€ Nº inv. > 100M€

Large Market. The International GP in Spain

International funds led the large market in Spain. After three consecutive years of record highs, large transactions (>€100M in equity1, also known as

megadeals) in 2020 decreased from 2019, falling from an average of approximately 60% of total Venture Capital and Private Equity investments in Spanish companies in recent years to 46% (€2,882M). This decrease in large transactions can be explained in part by the operational difficulties faced as a result of the new scenario, lack of visibility and uncertainty in terms of assessing these types of targets. Following the trend of previous years, international firms led this type of investment thanks to their investment capacity, made possible by the size of the funds they manage, and which enables them to take on large investments.

In 2020 8 large transactions were closed in 5 companies: EQT (Idealista), Cinven, Providence Equity and KKR (MásMóvil)2, CPPIB, Cinven and EQT (Hotelbeds), Rhone Capital (Maxam) and EQT (Freepik). Of these eight transactions, three were public to private,3 following one

of the hallmark trends of 2019 at the global level. In 2020, average equity or capital invested per transaction in this segment totaled €748M compared to €448 in 2019.

L Investment of international Venture Capital and Private Equity GPs in Spain: second highest on record behind the all-time high

reached in 2019. The strength and recovery of the Spanish economy following the previous financial crisis has attracted Venture Capital and Private Equity investments by international firms, which are increasingly discovering Spain as an attractive market for investment opportunities and which, coupled with investor appetite, has resulted in four consecutive years of record high investments by international Venture Capital and Private Equity GPs in Spanish companies. In 2020, despite the new environment caused by the global health crisis and the entry into force of Royal Decree-Law 8/2020 and 11/2020, amending the regulations on foreign investments,4 international Venture Capital and Private Equity firms continued to focus on

1 All investment amounts published by ASCRI refer to the equity or capital invested.2 Largest equity transaction in the history of this sector in Spain.3 Market volatility combined with the abundant market liquidity has favored Public to Private transactions.4 From March 2020, when Royal Decree-Law 8/2020 and 11/2020, amending the foreign investment regime, entered into force, through March 2021, inquiries were received from

nearly 520 international investors regarding operations and requests for authorization by the Ministry of Industry. Of these, most requests were approved under the simplified procedure, only 26 required approval by the Council of Ministers and one investment had to meet certain conditions in order to receive final approval.

TRANSACTIONS CLOSED IN THE SPANISH LARGE MARKET

2017 2018 2019CVC Capital Partners (CLH), Hellman & Friedman (Allfunds Bank), Eurazeo (Iberchem), BC Partners (Pronovias), Providence (NACE), Lone Star (Esmalglass), Trilantic Partners (Grupo Pacha), CVC Capital Partners y PAI Management (Cortefiel), Rakuten (Cabify) CVC Capital Partners (Vitalia Home) y Warburg Pincus (Acceltya)

CVC Capital Partners (Gas Natural), Blackstone (Cirsa), Cinven (Ufinet Latam), Orient Hontai Capital (Imagina Media Audiovisual), Towerbrook Capital Partners, (Aernnova), Ardian, (Grupo Monbake), The Carlyle Group (Unideco (Codorniu Raventós), Cinven (Plantas de Navarra) e ICG (Suanfarma)

The Carlyle Group (Cepsa), CPPIB y Bridgepoint (Dorna Sports), Permira Asesores (Universidad Europea de Madrid), PAI Management (Areas), Rhone Capital, (Maxam), ICG, (Konecta), EQT Partners (Ingenomix), Advent International (Vitaldent), CVC (Alfonso X El Sabio), KKR (Telepizza), KKR (Grupo Alvic), Bridgepoint (Miya Water), Providence (Masmovil), Investindustrial (Neolith), The Carlyle Group (Jeanologia), Investindustrial (Natra), Platinum Equity (Iberconsa), Vista Equity (Accelya)

29

Spain, with investments reaching the second highest figure on record, investing a total of €4,701.3M in Spanish companies (compared to €6,714.5M in 2019), representing 74% of total Venture Capital and Private Equity investment in Spain. Of this amount, €2,882M were in megadeals, €1,516.4M were middle market transactions (equity investments between €10M and €100M) –a record high investment in middle market transactions by international managers–, and the rest (€303M) were transactions involving equity investments of less than €10M. As a sign of the confidence in the Spanish economy, the number of companies financed by international funds has increased steadily in recent years, setting annual highs each year since 2013. In 2020, these funds closed a total of 192 investments (55 above the record high of 2019), 118 of which were new investments (61.5%) and 74 extensions (38.5%), maintaining the percentages recorded in 2019.

In terms of volume, investments by international managers in Spain in 2020 were distributed across leveraged

transactions5 (€1,940.5M) and "other”6 (€1,935M) due to various equity investments over €100M relating to the purchase of listed shares (MásMóvil). By number of transactions, recent years have shown a growing interest of international venture capital funds in investing in Spanish start-ups, and in 2020, a new all time high was reached in number of transactions by this type of investor in this segment (136 investments), with the "late stage venture" category standing out as receiving the largest number of investments (53) compared to the other categories. Likewise, their investment in the seed stage stood out, totaling 20 investments compared to previous years in which no more than 3 seed stage investments were closed each year.

The number of international Venture Capital and Private Equity firms operating in Spain grew from 25 in 2006 to 2927 in 2020.

5 Investments in mature companies using equity and external debt to acquire an interest in the company. Also referred to as LBO, MBO (buyouts) or MBI.6 The “other” category includes private investment in public equity (PIPE), restructuring, reorientation and refinancing transactions.7 A list of the international VC&PEs with activity in Spain is provided at the end of this report.

Number of international entities investing in Spain (by size of funds managed)

Large GPs - manage or advise on more than €150M Medium GPs - manage or advise on between €50 - €150M Small GPs - manage or advise on less than €50M

2014 2016 2017 2018 2019 2020201520132012201120102009

Nº o

f ent

ities

105090130170210250

240 292

205182

157132

9884

61534641

!"#$%&'()*+ !"#$,*)-'('+ !"#$.*/0*1'+

30

Leveraged transactions led in international funds' portfolios. In 2020, the international funds companies portfolios[1] totaled €24,240.6M in 487

investments. Investment of international Venture Capital and Private Equity funds in Spain has been traditionally directed at consolidated companies, as evidenced by the composition of these funds' portfolios: 69.5% of volume is invested in consolidated companies through buyout transactions, 11.9% in other transactions,[2] 9.4% in startups and other early Venture Capital stages and 9.3% in companies in replacement and growth stages. However, more than 310 of the 487 portfolio investments were

made in Venture Capital, reflecting the interest in the Spanish entrepreneurial ecosystem.

Regarding sectors,[3] Other Services (21.1%), Energy / Natural Resources (12.8%), IT (12.4%), Consumer Goods (11.5%), Communications (9.7%), Financial Services (6.0%) and Industrial Products and Services (5.4%) were the sectors that accumulate the highest investment levels. By number, the 487 portfolio investments are primarily centered on IT (225 investments), followed by Healthcare (46), Consumer Goods (39), Other Services (36) and Biotechnology (28).

[1] Value (at price cost) of all investee companies managed.[2] The “other” category includes restructuring, reorientation and refinancing transactions.[3] See page 60 of this report for a description of the activities included in each sector.

Portfolio of international GPs in Spain by sectoral distribution (by volume) in 2020

Computer related 12.4%

Leisure 5.3%

Financial Services 6.0%

Other Services 21.1%

Energy/Natural Resources 12.8%

Transport 2.7%

Consumer related Products 11.5%

Health related 4,9%

Industrial Productos & Services 5.4%

Communications 9.7%

Number of investments by International GPs

Seed Start-up Other early stage Later stage venture Growth LBO Other Total

2018 3 16 43 22 9 22 2 117

2019 3 19 37 32 14 31 1 137

2020 20 14 49 53 22 26 8 192

31

Performance of Venture Capital Key Performance Indicators

• Record year for Venture Capital investment in Spanish start ups for the second consecutive year with a total investment of €833M.2 The numerous funding rounds for start ups in more advanced stages (Series B or “other early stage” and Series C or “late stage venture”) largely explain this year’s positive results.

• Momentum for the innovation ecosystem: 672 Venture Capital investments were made (record high) to fund 433 Spanish start ups, the third best figure on record following 2018 (459 start ups) and 2017 (449 start ups).

• A total of 18 start ups received investment rounds above €10M, the best figure on record, breaking the previous record from 2019 (12 start ups).

• Activity in the €1M - €5M investment range grew, contributing to the support of projects with scaling potential: in 2020, 168 investments3 were made totaling €333.8M, doubling the figures from five years ago (€161M in 81 investments in 2016).

• Record high investment by private domestic Venture Capital firms. New funds raised by these firms in recent years has enabled them to drive the funding of innovation in Spain. In 2020, €312M was invested

in 433 investments, a record high for both variables. Over 80% of investments were made to support companies in the earliest stages.

• Public Venture Capital firms continue to recover their direct investment activity in start ups, doubling the investment volume recorded in 2019. Their investment activity was particularly focused on the IT and life sciences sectors.

• Despite the new environment caused by the global pandemic, international Venture Capital funds have maintained their interest in the Spanish innovative ecosystem and, in fact, their investments in start ups reached a record high in investment volume (€452.4M), in number of investments (136 in 83 start ups) and in number of GPs who made at least one investment in a Spanish start up (98 compared to 68 in 2019), clearly reflecting the attractiveness of the Spanish market globally. In addition to the usual rounds for start ups in more advanced stages, international VC&PEs also invested in numerous early stage projects, a change from their previous investment trajectory in Spain.

• The maturity being reached by certain start ups headquartered in Madrid has led to over 60% of late stage investments in 2020 being made in this region.

MAIN CONCLUSIONS FOR 20201

1 All statistical data on the Venture Capital sector is available on pages 54 and 55. 2 METHODOLOGICAL NOTE: The statistical data provided by ASCRI/webcapitalriesgo on investment has been calculated on the basis of actual payments (equity and quasi-equity) made

by domestic and international Venture Capital and Corporate Venture firms to companies headquartered in Spain. This criterion differs from that used by other sources who account for investments in terms of future committed capital plus the equity received by the start up, regardless of the type of investor, a variable that we refer to as “transaction value.” All figures are provided in millions of euros.

3 The number of investments published in this report is calculated from the perspective of the funds, meaning that some investee companies may be double counted in the case of syndicated investments.

Venture Capital

Fundraising Investment Divestment

Fundraising DivestmentInvestment international VC Investment domestic private VC Investment domestic public VC

2018 2019 2020201620150

100200300400500600700

900800

0

100

200

300

400

500

2017 2018 2019 202020162015 2017 2018 2019 202020162015 20170

100200300400500600700800900

€ Mi

llions

€ Mi

llions

€ Mi

llions

32

Venture Capital

Summary of Venture Capital investment in Spanish start ups in 2020

4 A total of 433 companies received funding in 2020, 45 of which were co-invested by domestic and international funds.5 The number of investments accounts for each of the investment decisions made by the funds, such that a company may receive several investments at a time (funding round) if the

investment has been syndicated by several investors.

2020 DOMESTIC INTERNATIONAL

Corporate VC (Investment) €18.6M €34.3M

Private VC (Investment) €293.5M €418.1M

Public VC (Investment) €68.5M -

Active Investors (2020) 89 98

Total Investment €380.7M €452.4M

No. of Investments 536 136

Start Ups Invested 3954 83

Avg. Round (€M) €1M €5.5M

Avg. Ticket (€M) Investments €0.7M €3.3M

VENTURE CAPITAL ACTIVITY IN 2020

All-time high in volume invested by Venture Capital funds in Spanish start ups for the second consecutive year,

driving investments in more advanced stage projects. Venture Capital funds (89 domestic and 98 international entities) invested a total of €833M in Spanish companies in 2020, a 15.4% increase from 2019 (€721.9M), an all-time high. The scenario caused by the global pandemic raised concerns about the impact on investment across all types of companies, including start ups. However, although Venture Capital GPs placed a particular focus on guaranteeing the survival of their portfolio of investee companies during the first half of the year —in response to the need for acceleration of the digitalization processes of companies and support for health-related activities— support for technological

start ups grew, many of which are increasingly reaching a significant degree of consolidation that requires larger funding rounds. In 2020, a total of 18 start ups received funding in excess of €10M (6 more than in 2019), a record high. Most of these larger rounds were syndicated by international Venture Capital funds, as is becoming the norm in the Spanish market. By number of investments5, in 2020, there was again a shift towards higher tickets, in particular in the €1M–€2.5M (127 investments in 2020 compared to 91 in 2019) and €2.5M–€5M (41 investments in 2020, beating the 2019 record high) segments, resulting from the growing entrepreneurial ecosystem. International Venture Capital GPs continue to focus their investments on Spain, attracted by the ecosystem and its start ups, becoming a key player thanks to its participation in stages that require higher funding, although they are

• Venture Capital investment in terms of GDP grew, reaching 0.07% and surpassing the percentage recorded in 2019 (0.06%).

• Regarding the impact of Venture Capital investment in terms of its ability to drive funding from other co-investors towards start ups, i.e. transaction

value, defined as the sum of total equity invested by Venture Capital GPs (€833M) plus investments made by co-investors (such as LPs, management teams, corporations, etc., and which totaled €441.9M), in 2020, this variable broke €1,274.9M (+8.2% from 2019; €1,177.8M).

33

also increasingly active in the funding of Spanish start ups in earlier stages. As a sign of the attractiveness of the Spanish market, 98 international GPs made at least one Venture Capital investment in Spain, compared to 68 in 2019. In 2020, investment of these funds totaled €452.4M (+2% from 2019) (5 times the investment level of 10 years ago), the best figure on record, across 136 investments in 83 companies6 (30 more than in 2019, an all-time high).

As at the end of 2020, 198 of the approximately 292 international entities with Spanish portfolio companies were Venture Capital firms. At the national level, the sector had close to 113 firms investing in Venture Capital,7 75 of which were dedicated exclusively to Venture Capital and 6 of which were public.

Record high Venture Capital investment by domestic funds. Since 2016, new funds raised by private firms (many of which are already

on their third and fourth generation funds), together with increased leeway in the budgets of public institutions for direct investments, has driven the investment activity of domestic Venture Capital firms to new highs. In particular, domestic entities increased their investment in Spanish start ups to €380.7M (36.6% from the €278.7M invested in 2019). This volume was distributed across 536 investments, 80% for amounts below one million euros, which ensures support to the Spanish innovation ecosystem.

Venture Capital investments focused specifically on supporting the portfolio. In 2020, the funding and support of start ups was

particularly aimed at driving growth in portfolio companies, providing liquidity and ensuring their continuity, although several new projects were also promoted, which gave new life to the Spanish entrepreneurial ecosystem. In 2020, a total of 672 Venture Capital investments were made in 433 companies, of which 219 start ups received new Venture Capital funding (50 companies less than in 2019). Capital injections in 214 companies were used to support the portfolio (+32% vs. 2019, a 5-year high). As regards Venture Capital funds that channeled capital to new investments,

a total of €174.7M was invested, while €658.3M were directed at extensions and follow ons of portfolio companies.

The maturity of the ecosystem shifts investment towards larger rounds. In the last five years, start ups receiving larger investment

rounds have been gaining in prevalence over start ups receiving equity investments of less than €1M. Specifically, in 2020, 66% of start ups received investment rounds of less than €1M in equity, compared to 75% in 2019. This highlights the health of the innovation ecosystem in which new projects continue to receive funding for implementation, while the more mature start ups are also able to access funds to boost their growth.

Investments in more advanced stage projects increased, with record high investment in emerging projects. In 2020, the trend of recent

years was consolidated, in which the funding of start ups in more advanced stages with the potential to reach a global scale continues to receive the highest investment volume as a result of the growing need of start ups for equity. Specifically, late stage venture8 in 2020 received a total investment of €376.8M (second best figure on record behind 2019). This amount was distributed across 67 companies, 19 of which received Venture Capital funding for the first time (15 less than in 2019). Unlike previous years, by investment stage, investments in Series B or “other early stage9” reached a record-high with €281M in 119 start ups, strengthening Spanish start ups that are in the growth process but not yet turning a profit. In addition, for the first time, seed stage10 totaled €79.9M in investments (+284% from 2019), a record high, in 89 start ups, strengthening the selection of opportunities.

This distribution of investment, where all start ups regardless of stage obtain financing, strengthens the ecosystem. As is becoming the norm, international funds focused on financing start ups in their more mature stages, whereas private domestic funds focused on financing start ups in their earliest stages.

6 45 of these 83 start ups receiving investment were co-investments between domestic and international Venture Capital funds.7 Venture Capital and Private Equity firms with an investment focus on Venture Capital and that have portfolios in which seed, startup, other early stage and late stage venture account

for at least half of the portfolio.8 Late Stage Venture: Investment in growth companies with positive sales and EBITDA 9 Other Early Stage: refers to follow-on rounds or Series B/C investments in start ups10 Seed Stage: Investment in companies without sales

34

Venture Capital

Private Venture Capital GPs led investment. By type of entity, the significance of investment fell, primarily, in (domestic and international) private

entities as is becoming the norm, totaling €764.5M in investments in 2020 (91% of total volume invested), as compared to €68.5M in investments by public funds (best figure on record since the recovery from the last financial crisis started), across 103 investments (-20.8% from 2019). As mentioned in other reports, since the start of the 2008 financial crisis, public agencies, and in particular regional public agencies, have been reducing their direct investment activity, due in part to lower budget availability. However, in 2020, investment by public institutions recovered, particularly in the funding of new projects (€57M), and maintained its activity in sustaining projects in portfolio (€11.2M). At the same time, their role in funding SMEs and Spanish start ups has been carried out in recent years indirectly through the funds of funds programs launched by ICO (FOND-ICO Global, managed by Axis), the Catalonian Institute of Finance (Instituto Catalá de Finances - ICF) Cofides, and once again CDTI, having recently restored its fund of funds instrument, which channel funds to private domestic Venture Capital funds. In 2020, the public sector,

in its role as an investor (LP) in domestic Venture Capital funds,11 was again the main contributor with €274.8M,12 the best figure since statistics on this figure were first prepared. Undoubtedly, the new scenario caused by the pandemic will place the public sector as a main focus in the recovery of the industrial fabric, and its role will be crucial not only in direct investment but also as a catalyst of funding for the new Venture Capital funds, and therefore in the indirect funding of start ups, strengthening the public-private collaboration that this new situation demands.

In 2020, the most active private domestic investors (by number of investments) in Spain were, inter alia: Inveready, Encomenda, Clave Mayor, Banco Sabadell (through Sabadell Venture Capital and Bstart up), Easo Ventures, K Fund, JME Ventures and Seed Rocket 4Founders, among others. In the public sector: CDTI, main driving force for public investment by number and volume, Sodena, Sodical, Vigo Activo and Seed Capital Bizkaia. As regards international funds, the following stood out by number of investments: Speedinvest, Target Global, Endeavor, FJ Labs, Amadeus Capital Partners, Atómico, DN Capital, Milano Investment Partners, Partech Ventures and TA Ventures.

Volume

Milli

ons €

300350400450500

250200150100

International VC Domestic Private VC Domestic Public VC

Seed Startup Other early stages Late stage venture

050

Nº of

inve

stmen

ts

400450500

350300250

Seed Startup Other early stages Late stage venture

050

100150

200

International VC Domestic Private VC Domestic Public VC

Number of Investments

Investment by company stage in 2020 (by type of entity)

11 Details on Venture Capital fundraising are provided in the "Fundraising” chapter of this report.12 Following the methodology of the other European Associations, the EIF contributions were included in the public sector.

35

Venture Capital investment (volume) by sector

Thou

sand

s €

0100,000200,000300,000400,000500,000600,000700,000800,000900,000

Industrial & Others

Life Sciences

ICT

Digital

109,35065,362

324,247

2015

49,335

62,65963,469

245,423

2016

62,309

71,43591,769

307,577

2017

66,890

116,52478,380

243,03567,524

2018118,921121,403409,02572,509

270,667170,255256,161135,965

2019 2020


ICT and Digital accounted for 63% of investment. In 2020, the sector distribution of investments followed a very similar pattern to that seen over the last five years,

driven by the new scenario in which there is a particular commitment to digitalization and health, among other areas. Specifically, a total of €526.8M was invested in 239 companies related to the ICT, Digital and Consumer sectors (the financing rounds raised by Jobandtalent, Logtrust and Paack were decisive). International funds stood out as contributing more than 77% of their investments (€351.4M) to information technology start ups. Investment in the industrial sector, totaling €170.3M (highest number

in 5 years), grew by 40% from 2019, funding more than 108 companies. In the last few years, start ups operating in the Life Sciences sector have been attracting investments from both domestic and international Corporate Venture and Venture Capital funds, resulting in the sector recording successive all-time highs during the last five years. Exactly, in 2020, record highs were recorded both in volume and number of start ups: €136M (+87.5% from 2019) in 84 start ups (32 more than in 2019). The majority of investments were made by private domestic Venture Capital funds (€39M), thanks to the available liquidity of specialized GPs.

Barcelona and Madrid, Venture Capital hubs. With a total investment of €348.7M in start ups based in Madrid and €276.4M in start ups in Catalonia in

2020, these two regions continue to position themselves as innovation and entrepreneurship hubs, jointly representing 75% of total Venture Capital investment, and thus standing out from other regions. Investment in late stage venture start ups explains the high volume in Madrid (55 late stage start ups that received €224.8M), as happened in Catalonia in 2019. Other smaller hubs continued their significant role, including the Autonomous Community of Valencia (€96M) and the Basque Country (€32.6M invested in the region). Catalonia led by number of start ups funded (138 start ups), followed by Madrid (98), the Basque Country (39), the Community of Valencia (37), Castille-León (30) and Navarre (26). Details on the distribution of investments by stage of development in each region is provided on pages 54 and 55 of the statistical annex.

2020 has revealed the strength of the Spanish entrepreneurial ecosystem,13 showcasing its ability to generate new innovative

projects and to consolidate these projects in the growth stage. These projects are attracting the interest of both local and international investors, who despite mobility restrictions have continued to support Spanish start ups. There is no doubt that the current situation has highlighted the need to promote and accelerate technology, especially in areas related to digitalization, health and sustainability, which strengthens investment in start ups. It is for this reason that having an attractive and competitive legal and tax framework for our market is key, namely one that promotes the investment of Venture Capital funds and international corporations, as key actors in the funding of the Spanish innovation ecosystem and its projections globally, a requirement for the success of start ups.

13 According to the Atomico State of European Tech 2020 report, Spain continues to be among the countries preferred by European technology companies seeking to internationalize by opening a second headquarters, ranking as the sixth most popular destination worldwide, surpassed only by the US, Germany, United Kingdom, Australia and Singapore.

36

Divestment by type of entity (GP)


International GP Domestic private GP Domestic public GP

6,0005,0004,0003,0002,0001,000

0

€ Mi

llion

s

2015 2016 2017 2018 2019 2020201420132012201120102009

Divestments

1 The divestment activity covered in this section refers to all domestic (public and private) and international Venture Capital and Private Equity firms that have divested in companies headquartered in Spain, and all divestment statistics are provided at price cost in millions of Euros. As in the rest of this report, divestments made by infrastructure funds, real estate funds, funds of funds, corporate bond funds and accelerator, incubator and business angel funds are not included.

Portfolio turnover saw a downturn. The Venture Capital and Private Equity variable most affected by the health crisis were divestments. In

2020, the sales of investee companies (at price cost)1 across all Venture Capital and Private Equity firms totaled €1,623M, representing a 45.5% decrease from the volume recorded in 2019, and the lowest level since 2013. In total, 302 divestments were made compared to 337 in 2019.

The driving factors behind this downturn include: the fact that much of the activity during the first half of the year was focused on managing portfolio companies with a view to mitigating the consequences of the global economic slowdown; the restraint adopted in response to the uncertainty caused by the development of the pandemic, which has in some cases caused the suspension of sales processes initiated prior to the outbreak of COVID-19; as well as lower visibility caused by this scenario in terms of company valuation. As we gain more perspective on the situation caused by the pandemic, some exits are expected to be reactivated, in particular in those companies linked to sectors that were less impacted by the current situation. To the contrary, portfolio companies positioned in sectors affected by the pandemic will lengthen their investment period and readjust their strategy.

85% of divestment volumes arose from Private Equity transactions (€1,385M) and 75% of divestments were made in Venture Capital transactions.

By type of entity, divestment was led by international GPs with €1,005.5M (-56% from 2019) in 24 divestments (25 less than 2019). On the other hand, private domestic GPs completed divestments totaling €561.3M (-5% from 2019) in 186 divestments (+24% from 2019). Public domestic funds also reduced exits from portfolio companies, divesting €88.7M in 138 divestments in 2019 and €56.4M in 92 divestments in 2020.

The sector with the highest divestment levels in 2020 was IT (104 exits), followed by Consumer Goods (34), Industrial Products and Services (30) and Healthcare (22). By volume divested, the following sectors stood out: Industrial Products and Services with €491M (30% of total), followed by Consumer Goods with €370M (23%), IT with €277.7 (17%), Communications with €174.9M (10.8%) and Energy and Natural Resources with €160.7M (9.9%).

The average holding period for the portfolio was 5 years (in terms of total divestments), down from 6 years in 2019. This temporary decrease is a response to normalization of the investment and divestment process developed by Venture Capital and Private Equity, once nearly all of the historical portfolio from the previous crisis has been sold.

Some of the main divestments in the Private Equity sector in 2020 were headed by, inter alia, Eurazeo in Iberchem; KKR in Grupo Gallardo; Providence in MásMóvil; Bridgepoint in Miya Water; Apax Partners

37

Divestment at cost by exit route


4,000

3,000

2,000

1,000

0

€ Mi

llion

s

2016 2018 2019 2020

2017

The most commonly used divestment method in 2020 (by volume) was Trade Sale (55.8%). This was followed by Secondary Buyout

(SBO) (17%) and Share Sale after IPO (10.8%) due to the MásMóvil transaction. The factors mentioned in past reports, such as volatility, the intrinsic complexity of the process for preparing an IPO, which entails burdensome requirements, as well as high global liquidity, largely explain why this method for exiting portfolio companies is little-used by Venture Capital and Private Equity. In this context, the COVID-related restrictions are an additional

factor contributing to the halt in use of this divestment mechanism.

In terms of volume, Write Offs increased in relation to 2019 from €52.5M to €139.4M in 2020. However, this number is still small when compared to 2015 (€392M). By number of transactions, only 54 divestments were classified as Write Offs, one of the lowest figures of the last five years.

By number of transactions, the primary divestment method was Loan Repayment (43%), followed by Trade Sale (24.2%) and Write Off (17.9%).

in Idealista; Atitlan Grupo, GED and Oquendo Capital in GTT; Artá Capital in Ros Roca Environment; Abac Capital in Metalcaucho; Black Toro in Farggi Menorquina; MCH in Lenitudes; Miura Private Equity in Tiendanimal and ProA Capital in Ibermática. The following Venture Capital divestments stood out: Vulcan Capital, SAP Ventures, Vy Capital, Adams Street Partners, Industry Ventures, Balderton Capital, Riva y García and Nauta Capital in Scytl; Greycroft, Spark Capital, e. ventures and Expon Capital

in Verse; 360 Capital, Bonsai Partners, Sabadell Venture Capital, Bbooster Ventures, Nero Ventures, BStartup in Signaturit; Kibo Ventures Partners, Caixa Capital Risc in Vilynx; Inveready Asset Management and Fides Capital in MásMóvil; Bullnet Capital in Códice SW; Columbus Venture Partners in Viralgen Vector Core; CRB Inverbío in Health in Code; Caixa Capital Risc in Iproteos; Iberdrola Ventures-Perseo in AlgaEnergy and Enagas Corporate Venture in Bioengas, among others.

Trade Sale Secondary buy out Stock market Loan Repayment Others Buyback Write off

38

Portfolio

The Venture Capital and Private Equity sector has a total of 3,567 investee companies in Spain valued at €33,518.9M. The

portfolio, at price cost, of the Venture Capital and Private Equity firms (hereinafter, VC&PEs) operating in Spain totaled €33,518.9M as of 31 December 2020. This includes the investee companies of 172 domestic entities and 292 international entities, 94 of which have on-going activity in Spain. The significant increase in portfolio value in 2020, at price cost –up from €28,867M in the previous year– can be explained by the intense investment activity in recent years, compared to a slowdown in divestments, once the closing of the cycle of funds created before the

crisis was completed. International VC&PEs accounted for 72.3% of the portfolio, private domestic VC&PEs for 24.2% and public ones for 3.5%. This amount does not include an outstanding cumulative portfolio of €430M in loans from Enisa and other regional organizations.

The portfolio of investees in Spain for the aforementioned domestic and international Venture Capital & Private Equity operators as a whole totaled 3,567 companies at the end of 2020. After excluding the investments syndicated between several operators, the total portfolio was estimated to consist of 2,796 companies. 3,902 companies backed by Enisa and/or a similar regional organization should be added to this figure.

Portfolio at price cost of Venture Capital &Private Equity in Spain

2016 2017 2018 2019 202020152014201320122011201020090

5,000 10,000 15,000

20,000 25,000 30,000 35,000

€ Mi

llion

s


International GPDomestic Private GPDomestic Public GP

39

The average investment at cost of the domestic and international VC&PEs in each investee company was estimated at €9.4M at the end of 2020, rising to €12M if the investments of several operators in the same firm are added up. However, there is a noticeable difference between the average per company investment at the end of 2020 recorded for international VC&PEs (approx. €49.8M) and for private domestic VC&PEs (€4.2M).

The average length of time that companies remain in the portfolio of domestic and international VC&PEs is 4.7 years.

With the 302 additional investee companies in 2020, including syndicated investments by several investors in a single company, the historic portfolio of the firms backed by domestic and international VC&PEs since 1972 is estimated

at 7,241 companies. Firms backed by Enisa and other similar entities that have not yet received Venture Capital/Private Equity should be added to this figure.

In aggregate employment terms, the outstanding portfolio of the domestic and international VC&PEs totaled 448,800

workers at the end of 2020, compared to 440,400 in 2019, with an average of 161 workers per company. Employment in the portfolio companies of Enisa and/or other regional organizations added another 46,300 at the end of 2020.

Employment in new investee companies in 2020 was estimated at 21,400 workers, with an average of 71 workers for each new company added.

Impact of Venture Capital & Private Equity in Spain

Employees in portfolio companiesEmployees in initial investments Cummulative number of investee firms


2017 2018 2019 202020162015201420132012201120100

100

200

300

400

500

600

Empl

oyee

s (th

oose

nds)

Num

bers

of c

ompa

nies

0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000

40

2020 Main transactions

41

Source: ASCRI/webcapitalriesgoNote: Infrastructure, real estate and financial sector not included.

2020 LARGE TRANSACTIONS IN SPAIN WITH EQUITY INVESTMENT > €100M

TARGET PRIVATE EQUITY FIRM TYPE OF DEAL INDUSTRY TYPE OF PRIVATEEQUITY FIRM

Idealista EQT Internet Buyout International

MásMovilCinven, Providence Equity, KKR

Communications: Carriers

PIPE International

HotelBeds CPPIB, Cinven, EQT Leisure Rescue/Turnaround International

Maxam Rhône CapitalIndustrial Products and Services

Buyout International

Freepik EQT Internet Buyout International


42

MIDDLE MARKET DEALS CLOSED AND PUBLISHED IN 2020


Campus Training Investindustrial Buyout Other Services International

Palex Medical Ergon, Ardian, Corpfin Buyout Healthcare: Instruments/Equipment International + Domestic

Evolutio Portobello Capital, Oquendo Buyout Communications: Other Domestic

MasterD KKR Buyout Other Services International

Angulas Aguinaga Portobello Capital, PAI Management Buyout Consumer goods: Other Domestic +

International

Audix Contables & Consultores Inflexion Growth Financial Services International

GTT AnaCap Buyout Industrial Products and Services International

Nace Providence Buyout Other Services International

Cepsa The Carlyle Group Buyout Energy International

Surexport Alantra Private Equity, Oquendo Buyout Agriculture Domestic

Antonio Llusar y Cía MCH Private Equity Growth Agriculture Domestic

Salto Systems Alantra Private Equity, Florac, Sofina, Peninsula Capital Growth Consumer goods: Other Domestic +

International

IMF Business School Capza Buyout Financial Services International

Papresa Quantum Capital Parnters Buyout Industrial Products and Services International

Fertiberia Group Triton Partners Buyout Chemicals/Plastics/Materials International

Imaweb 2000 Providence Equity Growth Industrial Products and Services International

Digital Talent Magnum Capital Buyout Other Services Domestic

Productos Sur MCH Private Equity Growth Industrial Products and Services Domestic

Acek Tikehau Buyout Energy International

Molecor Tecnología MCH Private Equity Growth Construction Domestic

Iberfrasa Abac Capital Growth Consumer goods: Other Domestic

Laboratorios Almond Nazca Capital Growth Consumer goods: Other Domestic

Health in Code Alantra Private Equity Growth Biotechnology/Genetic Engineering Domestic

AGQ Portobello Capital, Oquendo Buyout Biotechnology/Genetic Engineering Domestic

Alsur Acon, Quarza, Oquendo Buyout Consumer goods: Other International + Domestic

Signaturit Solutions Providence Growth Internet International

Alnut DeA Capital Buyout Consumer goods: Other International

Salesland Acon Buyout Other Services International

Peris Costumes GPF Capital Growth Industrial Products and Services Domestic

Formaspack Qualitas Growth Consumer goods: Other Domestic

STI Norland Aurica Capital Desarrollo Growth Energy Domestic

Nuzoa Abac Capital Buyout Healthcare: Pharmaceuticals Domestic


43

MIDDLE MARKET DEALS CLOSED AND PUBLISHED IN 2020

Source: ASCRI/webcapitalriesgo


Terrats Medical Miura Partners Growth Healthcare: Instruments/Equipment Domestic

Araven GED Iberian Private Equity Buyout Industrial Products and Services Domestic

Goi Travel Moira Capital Partners Growth Transportation Domestic

Comess Group GED Iberian Private Equity Growth Consumer goods: Retail Domestic

UFASA JZ International Buyout Financial Services International

Ugarteburu Portobello Capital Buyout Other Production Domestic

Self Trade Bank Warburg Pincus Growth Financial Services International

Grupo Evidenze GED Iberian Private Equity Growth Healthcare: Medical Care Domestic

Pepe Jeans L Capital Asia Turnaround Consumer goods: Other International

Samy Road Aurica Capital Desarrollo Growth IT: Services Domestic

Filmin Nazca Capital Growth Internet Domestic

Soluciones Técnicas del Metal Nexxus Buyout Consumer goods: Other Domestic

Engineered Fire Piping Talde Buyout Consumer goods: Other Domestic

Nice People at Work Suma Capital Replacement capital Communications: Hardware Domestic

Ekon Oakley Capital Buyout IT: Software International

Axess Network Solutions Cofides Growth Communications: Hardware Domestic

Excom Telecom Group Formentor Capital Growth Communications: Carriers Domestic

Grand Vision Optics Ver Sport Formentor Capital Growth Consumer goods: Other Domestic

TCI Cutting MCH Private Equity Growth Other Production Domestic

Eurocebollas Nazca Capital Growth Consumer goods: Other Domestic

Hotels & Resorts Blue Sea Portobello Capital Buyout Leisure Domestic

Symborg MCH Private Equity Growth Biotechnology/Genetic Engineering Domestic

44

SOME OF THE MAIN VENTURE CAPITAL1 INVESTMENTS CLOSED IN 2020

TARGET VENTURE CAPITAL FIRM TYPE OF DEAL INDUSTRY TYPE OF VENTURECAPITAL FIRM

Jobandtalent

Kibo Ventures, Aldea Ventures, Quadrille Capital, Atomico, DN Capital, FJ Labs, Infravia Capital Partners

Later Stage Venture InternetDomestic / International

LogtrustInsight Venture Partners, Bessemer Venture Partners, Georgian

Later Stage Venture Software International

PaackFuse Venture Partners, Bregal Milestone, RPS Ventures, Rider Global

Later Stage Venture Internet International

WallboxIberdrola Ventures - Perseo, Seaya Ventures, Endeavor

Other Early Stage EnergyDomestic / International

4iQAdara Ventures, Theventure.city, C5 Capital, Trident Capital, Benhamou Global Ventures

Later Stage Venture SoftwareDomestic / International

Ona TherapeuticsAsabys Partners, Ysios Capital Partners, Alta Life Sciences, FUND+, Bpifrance

Seed BiotechnologyDomestic / International

JeffAll Iron Ventures, Mundi Ventures, Angels Capital, CDTI, Clave Mayor, FJ Labs, Adventure

Later Stage Venture Other servicesDomestic / International

Agile Content Inveready Later Stage Venture Software Domestic

Scale Gas Solutions Enagas Corporate Venture Other Early Stage Energy Domestic

Onna Nauta Capital, Atomico, Dawn Capital, Slack Fund

Other Early Stage SoftwareDomestic / International

Glovo Idinvest Partners Later stage venture Internet International

Voovio Moira Capital Partners Other early stage Software Domestic

FactorialK Fund, Creandum, Point Nine Capital, CRV

Other early stage SoftwareDomestic / International

Copado Insight Venture Partners, SalesForce Ventures, Lead Edge Capital

Later stage venture Software International

Sanifit

Healthequity, Caixa Capital Risc, Ysios Capital Partners, CDTI, Gilde Healthcare Partners, Edmond de Rothschild

Other early stage Pharmaceutical productsDomestic / International

ColvinSamaipata, P101, Milano Investment Partners

Other early stage InternetDomestic / International

Savana Seaya Ventures, Cathay Other early stage Medical CareDomestic / International

The Hotels Network (THN)SeedRocket 4Founders, Elaia Partners

Later stage ventureIndustrial Products and Services

Domestic / International

Smart Protection

Nauta Capital, Swanlaab, JME Venture Capital, Bankinter Capital Riesgo, CDTI, Telefónica/Wayra, Knight Capital

Later stage venture SoftwareDomestic / Interna-tional

Belvo Founders Fund, Kaszek Ventures

Other early stage Software International

1 Investments closed in Spain by international and domestic Venture Capital firms



45

1 Investments closed in Spain by international and domestic Venture Capital firms


SOME OF THE MAIN VENTURE CAPITAL1 INVESTMENTS CLOSED IN 2020

TARGET VENTURE CAPITAL FIRM TYPE OF DEAL INDUSTRY TYPE OF VENTURECAPITAL FIRM

MedLumics

Caixa Capital Risc, Asabys Partners, CDTI, Innogest Capital, Edmond de Rothschild, VI Partners

Other early stage BiotechnologyDomestic / International

Maskokotas Ona Capital, Milano Investment Partners

Other early stage Other servicesDomestic / International

PeptomycHealthequity, Alta Life Sciences, CDTI

Other early stage Biotechnology Domestic

Bipi Toyota AI Ventures, Adevinta Ventures

Other early stage Internet International

Clarity AI Kibo Ventures, Seaya Ventures, Mundi Ventures

Start-up Internet Domestic

Continuum SecuritySwanlaab, JME Venture Capital, Sonae Ventures, Paladin Capital Group, 360 Capital

Later stage ventureIndustrial Products and Services


Quibim

Clave Mayor, Adara Ventures, Apex Capital Partners, Partech Ventures, Amadeus Capital Partners, Crista Galli Ventures

Other early stage Healthcare: Instruments/Equipment


MIORA Seaya Ventures, DilaCapital Other early stage InternetDomestic / International

Accure Therapeutics CDTI, Alta Life Sciences Seed Biotechnology Domestic

46

Statistical appendix2020

47

*As foundations and donations among others.

Statistical appendixFUNDRAISING

AMOUNT (M€)

TYPE OF VC&PE ENTITY (GP) 2017 2018 2019 2020

Domestic private entity 1,865.2 2,178.0 1,920.2 2,134.6

Domestic public entity 172.9 197.9 270.8 170.9

TOTAL 2,038.2 2,375.9 2,191 2,305.5

TYPE OF LP Domestic private entity 2017 2018 2019 2020

Financial institutions 168.9 154.6 65.7 75.3

Pension funds 372.5 241.4 94.6 96.5

Insurance Companies 114.2 212.8 111.5 53.4

Fund of funds 462.5 555.9 491.5 214.9

Corporate investors 66.3 65.4 206.2 157.5

Family office 260.0 485.2 558.5 921.5

Government agencies 285.0 151.7 293.5 380.4

Academic institutions 1.0 78.5 20.0 -

Sovereign wealth funds - 100.0 - 21.0

Other asset managers 60.1 61.0 34.9 135.7

Others* 74.8 71.4 44.0 78.4

Total 1,865.2 2,178.0 1,920.2 2,134.6

TYPE OF LP IN 2020Domestic private entity Private Equity Venture Capital Total

Financial institutions 24.6 50.7 75.3

Pension funds 83.5 13.0 96.5

Insurance Companies 33.5 19.9 53.4

Fund of funds 204.4 10.6 214.9

Corporate investors 54.2 103.2 157.5

Family office 668.9 252.6 921.5

Government agencies 105.6 274.8 380.4

Sovereign wealth funds 21.0 0.0 21.0

Other asset managers 85.8 49.9 135.7

Others* 43.4 35.0 78.4

TOTAL 1,324.9 809.7 2,134.6

GEOGRAPHIC BREAKDOWN OF TYPE OF LP IN 2020Domestic private entity Domestic LPs International LPs Total

Financial institutions 73.3 2.0 75.3

Pension funds 75.5 21.0 96.5

Insurance Companies 52.8 0.7 53.4

Fund of funds 17.8 197.1 214.9

Corporate investors 135.2 22.2 157.5

Family office 840.8 80.7 921.5

Government agencies 209.1 171.3 380.4

Sovereign wealth funds 0.0 21.0 21.0

Other asset managers 35.8 99.9 135.7

Others* 70.7 7.7 78.4

Total 1,511.0 623.6 2,134.6

48

BY SIZE OF FUNDS UNDER MANAGMENTInternational Entity Domestic Entity All Entities

2019 2020 2019 2020 2019 2020

Large entities (>150 m.) 225 249 27 26 252 275

Medium entities (between 50 y 150 m.) 12 40 45 47 57 87

Small institutions (<50 m) 3 3 94 99 97 102

TOTAL 240 292 166 172 406 464

Statistical appendixNEW FUNDS RAISED

AMOUNT (M€)

LOCATION LP Domestic private entity 2017 2018 2019 2020

Spain 784.1 699.8 1,066.7 1,511.0

Other European countries 796.2 1,091.0 720.0 491.3

United States 80.3 181.0 121.3 107.9

Asia 5.0 100.1 7.7 -

Canada 95.0 0.0 0.0 -

Others 104.7 106.1 4.4 24.4

TOTAL 1,865.2 2,178.0 1,920.2 2,134.6

FUNDS UNDER MANAGEMENTAMOUNT (M€)

BY TYPE OF ENTITY (GP) 2017 2018 2019 2020


Domestic public entity 2,205.7 975.8 2,316.4 1,274.2

International entity 12,193.4 15,898.2 20,554.8 24,240.6

TOTAL 25,196.7 27,489.5 35,229.8 38,052.9

DRY POWDER2017 2018 2019 2020


Domestic public entity 115.2 38.6 55.3 112

TOTAL 4,211.5 4,500.1 3,956.6 4,192.8

NUMBER OF ENTITIESBY TYPE OF GP 2017 2018 2019 2020

International entity 182 205 240 292

Domestic private entity 141 137 144 151

Domestic public entity 19 19 22 21

TOTAL 342 361 406 464

49

1 VC = Venture Capital2 PE = Private Equity

INVESTMENTAMOUNT (M€)


International VC1 308.1 259.9 443.2 452.4

Domestic Private VC 185.2 227.8 239.8 312.1

Domestic Public VC 44.4 17.8 38.9 68.5

TOTAL 537.7 505.5 721.9 833.0

International PE2 3,282.7 4,322.3 6,271.3 4,249.0

Domestic Private PE 1,081.0 1,148.7 1,444.4 1,162.0

Domestic Public PE 56.5 36.8 89.3 31.2

TOTAL 4,420.2 5,507.9 7,805.0 5,442.2

International Entity (VC + PE) 3,590.8 4,582.2 6,714.5 4,701.4

Domestic Private Entity (VC + PE) 1,266.2 1,376.5 1,684.2 1,474.1

Domestic Public Entity (VC + PE) 100.9 54.6 128.2 99.8

TOTAL 4,957.9 6,013.4 8,526.9 6,275.3

NEW FOLLOW ONS

New investments 4,128.2 5,098.4 6,467.6 4,354.1

Follow ons investments 829.7 915.0 2,059.3 1,921.2

TOTAL 4,957.9 6,013.4 8,526.9 6,275.3

STAGE OF DEVELOPMENT

Seed 21.7 24.3 20.8 79.9

Startup 101.9 126.9 120.3 94.8

Other early stages 163.7 215.6 187.6 281.6

Late stage venture 250.3 138.7 393.1 376.8

Growth 590.3 658.7 647.8 926.0

Replacement 765.3 105.2 100.3 114.4

LBO/MBO/MBI/LBU 2,984.2 3,589.0 6,880.2 2,453.8

Others 80.5 1,155.0 176.7 1,948.0

TOTAL 4,957.9 6,013.4 8,526.9 6,275.2

INDUSTRY

Computer related 380.0 382.9 619.8 1,584.1

Other Electronic related 1.9 0.9 2.1 2.1

Industrial Products & Services 257.0 146.1 879.0 476.4

Consumer-related Products 866.3 818.3 1,016.4 546.0

Agriculture 4.7 205.8 360.4 142.8

Energy 175.4 1,197.3 1,556.2 202.2

Chemistry & Materials 236.7 10.6 29.8 42.1

Construction 44.5 67.3 24.6 51.5

Health related 301.3 441.9 452.0 264.9

Leisure 91.1 151.2 667.5 587.3

Communications 72.9 1,031.0 166.3 1,599.0

Biotechnology 42.9 37.7 348.9 127.6

Industrial Automation 0.0 0.0 0.0 0.0

Financial Services 658.4 8.2 120.3 233.6

Other Services 798.0 960.5 2,160.7 336.2

Others 32.0 0.0 0.2 0.0

Transportation 679.8 40.8 105.0 40.0

Other Manufacturing 314.9 512.9 17.9 39.4

TOTAL 4,957.9 6,013.4 8,526.9 6,275.2

50

INVESTMENTAMOUNT (M€)

REGION 2017 2018 2019 2020

Andalucía 58.7 159.5 388.9 324.9

Aragón 155.3 11.2 30.9 129.2

Asturias 36.1 13.8 7.2 18.4

Baleares 455.5 13.6 43.7 479.5

Canarias 3.8 27.3 21.6 0.0

Cantabria 0.0 0.0 1.0 25.1

Castilla-La Mancha 54.8 18.4 13.9 49.1

Castilla-León 45.7 137.2 106.1 26.5

Cataluña 1,040.5 1,756.1 1,065.5 645.8

Cdad. de Madrid 2,457.1 2,439.1 5,387.1 3,740.1

Cdad. Valenciana 232.7 232.1 784.2 194.0

Extremadura 3.9 20.9 38.4 9.9

Galicia 43.0 66.0 222.2 145.5

La Rioja 16.9 180.8 109.9 5.6

Murcia 308.3 36.4 13.9 81.9

Navarra 31.7 434.1 116.9 45.1

País Vasco 14.0 466.9 175.5 354.6

Ceuta/ Melilla 0.0 0.0 0.0 0.0

TOTAL 4,957.9 6,013.4 8,526.9 6,275.2

SIZE OF INVESTMENT

0 - 0,25 € millions 26.3 27.3 26.2 28.8

0,25 - 0,5 € millions 22.2 28.7 29.5 34.1

0,5 - 1 € millions 59.2 59.6 56.9 84.1

1 - 2.5 € millions 144.4 154.9 172.6 219.2

2.5 - 5 € millions 156.2 118.1 170.9 195.7

5 -10 € millions 231.8 303.2 281.2 250.1

10 - 15 € millions 150.0 218.3 238.7 289.1

15 - 20 € millions 177.2 229.3 152.1 302.4

20 - 25 € millions 266.6 192.5 200.7 179.0

25 - 50 € millions 559.9 525.6 986.9 937.2

50 - 75 € millions 67.4 312.2 491.5 471.7

75 - 100 € millions 177.4 80.0 0.0 401.7

More than 100 € million 2,919.3 3,763.7 5,719.8 2,882.0

TOTAL 4,957.9 6,013.4 8,526.9 6,275.2

Between 10 and 100 € million 1,398.5 1,557.8 2,069.9 2,581.1

COMPANY SIZE Private Equity Venture Capital All

0 to 9 employees 35.6 175.9 211.5

10 to 19 employees 4.1 110.2 114.3

20 to 99 employees 582.8 312.1 894.8

100 to 199 employees 446.9 156.5 603.4

200 to 499 employees 826.1 62.9 889.0

500 to 999 employees 2,744.9 0.1 2,745.0

1,000 to 4,999 employees 291.7 15.3 307.1

More than 5,000 employees 510.1 0.0 510.1

TOTAL 5,442.2 833.0 6,275.2

51

INVESTMENTNUMBER OF INVESTMENTS


Internacional VC 63 84 91 136

Domestic Private VC 345 397 367 433

Domestic Public VC 152 107 130 103

TOTAL 560 588 588 672

Internacional PE 31 33 46 56

Domestic Private PE 107 106 86 95

Domestic Public PE 17 13 40 15

TOTAL 155 152 172 166

International Entity (VC + PE) 94 117 137 192

Domestic Private Entity (VC + PE) 452 503 453 528

Domestic Public Entity (VC + PE) 169 120 170 118

TOTAL 715 740 760 838

NEW - FOLLOW ONS

New Investments 463 475 462 502

Follow ons investments 252 265 298 336

TOTAL 715 740 760 838

STAGE OF DEVELOPMENTSTAGE OF DEVELOPMENT

Seed 123 97 75 119

Startup 202 231 204 199

Other early stages 151 178 196 203

Late stage venture 84 82 113 151

Expansion 92 96 90 94

Replacement 10 5 6 9

LBO/MBO/MBI/LBU 46 47 68 49

Others 7 4 8 14

TOTAL 715 740 760 838

INDUSTRY

Computer related 286 318 306 352

Other Electronic related 6 6 5 5

Industrial Products & Services 53 51 67 52

Consumer-related Products 75 75 75 59

Agriculture 18 21 18 13

Energy 38 30 21 34

Chemistry & Materials 20 15 21 15

Construction 11 8 6 7

Health related 56 59 62 97

Leisure 10 16 18 24

Communications 20 17 15 26

Biotechnology 45 43 47 67

Industrial Automation 0 0 0

Financial Services 10 10 13 27

Other Services 43 46 60 32

Others 3 0 1 0

Transportation 10 8 15 14

Other manufacturing 11 17 10 14

TOTAL 715 740 760 838

52

INVESTMENTNUMBER OF INVESTMENTS

REGION 2017 2018 2019 2020

Andalucía 15 17 20 36

Aragón 11 5 9 9

Asturias 33 17 13 11

Baleares 17 10 14 13

Canarias 1 1 4 0

Cantabria 0 0 2 2

Castilla-La Mancha 5 5 3 8

Castilla-León 23 48 51 41

Cataluña 213 220 226 249

Cdad. de Madrid 148 164 171 226

Cdad. Valenciana 32 57 53 75

Extremadura 3 5 5 4

Galicia 85 46 37 42

La Rioja 9 8 4 3

Murcia 11 9 8 8

Navarra 41 44 36 46

País Vasco 68 84 104 65

Ceuta/ Melilla 0 0 0 0

TOTAL 715 740 760 838

SIZE OF INVESTMENT

0 - 0,25 € millions 313 314 282 273

0,25 - 0,5 € millions 67 87 86 101

0,5 - 1 € millions 92 89 88 124

1 - 2,5 € millions 94 99 116 145

2,5 - 5 € millions 46 36 51 58

5 -10 € millions 34 43 43 37

10 - 15 € millions 13 18 20 24

15 - 20 € millions 10 14 9 18

20 - 25 € millions 12 9 9 8

25 - 50 € millions 18 16 28 29

50 - 75 € millions 1 5 9 8

75 - 100 € millions 2 1 0 5

More than 100 € million 13 9 19 8

TOTAL 715 740 760 838

Between 10 and 100 € million 56 63 75 92

COMPANY SIZE Private Equity Venture Capital Total

0 to 9 employees 7 308 315

10 to 19 employees 3 110 113

20 to 99 employees 57 185 242

100 to 199 employees 33 49 82

200 to 499 employees 26 18 44

500 to 999 employees 25 1 26

1,000 to 4,999 employees 11 1 12

More than 5,000 employees 4 0 4

TOTAL 166 672 838

53

TYPE OF INVESTMENT BY REGION IN 2020Number of investments

Seed Start-upOther eraly

stages

Late Stage

VentureGrowth Replace-

mentLBO / MBO /

MBI / LBUOthers Total

Andalucía 8 3 3 10 2 0 9 1 36

Aragón 1 0 0 5 1 0 2 0 9

Asturias 0 4 3 2 0 1 1 0 11

Baleares 1 2 6 0 0 0 1 3 13

Canarias 0 0 0 0 0 0 0 0 0

Cantabria 0 0 1 0 1 0 0 0 2

Castilla-La Mancha 0 2 3 0 1 1 1 0 8

Castilla-León 12 12 5 3 9 0 0 0 41

Cataluña 43 65 68 40 18 4 7 4 249

Comunidad de Madrid 21 44 49 55 32 1 19 5 226

Comunidad Valenciana 10 17 24 18 5 0 1 0 75

Extremadura 0 1 1 0 2 0 0 0 4

Galicia 6 12 13 2 7 0 2 0 42

La Rioja 0 2 0 0 1 0 0 0 3

Murcia 0 0 3 2 3 0 0 0 8

Navarra 7 6 13 12 7 0 0 1 46

País Vasco 10 29 11 2 5 2 6 0 65

Ceuta/ Melilla 0 0 0 0 0 0 0 0 0

TOTAL 119 199 203 151 94 9 49 14 838

TYPE OF INVESTMENT BY REGION IN 2020Amount (M€)

Seed Start-upOther eraly

stages

Late Stage

VentureGrowth Replace-

mentLBO / MBO /

MBI / LBUOthers Total

Andalucía 3.0 0.9 1.3 7.5 5.8 0.0 306.2 0.2 324.9

Aragón 0.1 0.0 0.0 6.4 25.0 0.0 97.7 0.0 129.2

Asturias 0.0 1.2 0.5 0.5 0.0 0.5 15.7 0.0 18.4

Baleares 0.1 1.3 11.5 0.0 0.0 0.0 10.0 456.7 479.5

Canarias 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Cantabria 0.0 0.0 0.3 0.0 24.9 0.0 0.0 0.0 25.1

Castilla-La Mancha 0.0 0.8 4.4 0.0 1.5 30.0 12.4 0.0 49.1

Castilla-León 2.6 4.7 3.2 4.3 11.7 0.0 0.0 0.0 26.5

Cataluña 52.1 34.8 95.8 93.7 135.5 35.1 178.5 20.3 645.8

Comunidad de Madrid 8.2 30.4 85.3 224.8 409.9 5.0 1507.6 1468.8 3740.1

Comunidad Valenciana 7.3 8.7 52.1 28.0 72.6 0.0 25.4 0.0 194.0

Extremadura 0.0 0.5 0.5 0.0 8.9 0.0 0.0 0.0 9.9

Galicia 1.8 1.9 2.0 1.0 53.9 0.0 84.8 0.0 145.5

La Rioja 0.0 0.5 0.0 0.0 5.0 0.0 0.0 0.0 5.6

Murcia 0.0 0.0 3.2 3.8 74.9 0.0 0.0 0.0 81.9

Navarra 2.3 0.4 1.4 6.3 32.7 0.0 0.0 2.0 45.1

País Vasco 2.5 8.7 20.0 0.4 63.8 43.8 215.4 0.0 354.6

Ceuta/ Melilla 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

TOTAL 79.9 94.8 281.6 376.8 926.0 114.4 2,453.8 1,948.0 6,275.2

54

INVESTMENTAMOUNT (€M)

TYPE OF GP 2015 2016 2017 2018 2019 2020Internacional VC 401.3 256.0 308.1 259.9 443.2 452.4

Domestic Private VC 119.9 150.3 185.2 227.8 239.8 312.1

Domestic Public VC 27.0 27.5 44.4 17.8 38.9 68.5

TOTAL 548.2 433.8 537.7 505.5 721.9 833.1STAGE OF DEVELOPMENTSeed 18.5 14.7 21.7 24.3 20.8 79.9

Start-up 167.6 76.6 101.9 126.9 120.9 94.8

Other early stage 134.1 151.0 163.7 215.6 187.0 281.6

Later stage venture 228.0 191.5 250.3 138.7 393.1 376.8

TOTAL 548.2 433.8 537.6 505.5 721.8 833.0SIZE0 - 0.25 M€ 22.4 21.7 24.1 26.4 24.7 26.7

0.25 - 0.5 M€ 16.2 27.5 20.2 26.8 28.4 31.8

0.5 - 1 M€ 45.5 40.2 52.8 51.2 50.1 80.0

1 - 2.5 M€ 83.6 92.2 108.5 111.0 132.5 189.4

2.5 - 5 M€ 64.2 69.2 70.5 86.7 130.4 144.3

5 - 10 M€ 49.6 29.4 101.4 145.4 140.6 117.9

10 - 15 M€ 28.3 10.0 33.7 26.0 37.4 71.7

15 - 20 M€ 34.8 0.0 17.5 32.0 30.5 82.4

20 - 25 M€ 0.0 0.0 0.0 0.0 0.0 0.0

25 - 50 M€ 114.8 37.5 0.0 0.0 32.0 88.8

50 - 75 M€ 0.0 0.0 0.0 0.0 115.3 0.0

75 - 100 M€ 89.1 0.0 0.0 0.0 0.0 0.0

More than 100 M€ 0.0 106.2 109.0 0.0 0.0 0.0

TOTAL 548.5 433.9 537.7 505.5 721.9 833.0INDUSTRYLife Sciences 49.3 62.3 66.9 67.5 72.5 136.0

Digital & Consumer 324.2 245.4 307.6 243.0 409.0 256.2

Industry and others 65.4 63.5 91.8 78.4 121.4 170.3

TIC 109.4 62.7 71.4 116.5 118.9 270.7

TOTAL 548.3 433.9 537.7 505.5 721.9 833.0REGIONSAndalucía 7.2 4.6 4.2 1.1 2.7 12.8

Aragón 0.1 0.6 2.2 1.2 1.1 6.5

Asturias 1.6 2.1 7.2 1.4 2.3 2.2

Baleares 10.3 23.2 11.7 11.3 24.3 12.8

Canarias 0.1 0.0 0.0 0.0 0.8 0.0

Cantabria 0.0 0.0 0.0 0.0 1.0 0.3

Castilla-La Mancha 4.8 3.0 1.8 4.0 2.2 5.2

Castilla-León 2.7 12.0 25.9 24.5 14.8 14.8

Cataluña 342.4 144.3 201.8 228.8 385.1 276.4

Cdad. de Madrid 129.6 195.6 236.0 170.1 209.6 348.7

NUMBER OF INVESTMENTS*

2015 2016 2017 2018 2019 202073 43 63 84 91 136

293 338 345 397 367 433

107 108 152 107 130 103

473* 489* 560* 588* 588* 672*

NUMBER START UPS

66 82 118 95 71 89

117 156 177 193 172 158

69 107 104 110 123 119

66 47 50 61 65 67

318 392 449 459 431 433

202 213 263 254 214 169

30 50 36 67 61 63

35 56 61 48 50 54

24 50 59 51 58 79

12 13 13 18 22 30

5 3 8 12 14 20

4 2 3 1 6 5

2 2 2 5 1 6

2 1 1 0 2 2

0 1 2 3 2 3

0 0 0 0 0 2

1 0 0 0 0 0

1 1 1 0 1 0

318 392 449 459 431 433

51 56 60 54 52 84

129 142 148 156 141 113

75 113 127 137 133 108

88 79 114 112 105 126

343 390 449 459 431 431

16 8 7 6 7 14

2 2 5 4 5 2

9 12 28 9 7 9

4 4 6 5 2 4

2 1 0 0 1 0

0 0 0 0 1 1

21 4 3 4 1 5

7 18 16 24 27 30

88 105 115 125 129 138

63 64 77 91 89 98

Venture Capital

* The number of investments as published in this report is calculated from the investor perspective, meaning that some investee companies may be double counted in the case of syndicated investments by Venture Capital and Private Equity firms. This explains why the number of investments does not match the number of investee companies.

55

FUNDRAISINGAMOUNT (€M)

TYPE OF LP 2015 2016 2017 2018 2019 2020Financial institutions 37.9 110.0 6.0 9.7 60.2 50.7

Pension funds 23.6 15.0 9.9 15.9 13.7 13.0

Insurance Companies 6.0 16.7 6.4 2.5 79.3 19.9

Fund of funds 26.1 98.4 45.6 21.7 122.2 10.6

Corporate investors 40.2 30.5 27.6 27.1 108.1 103.2

Family office 75.4 179.3 84.2 89.0 284.8 252.6

Government agencies 82.0 98.3 79.1 11.1 111.1 274.8

Academic institutions 1.0 - - - - -

Other Asset Managers 0.0 - - - - 49.9

Others 14.1 20.8 25.0 6.0 18.3 35.0

TOTAL 306.5 569.0 283.6 182.9 797.7 809.7

DIVESTMENTAMOUNT (€M)

EXIT WAY 2015 2016 2017 2018 2019 2020Owner/manager buy-back 41.8 27.2 24.5 14.7 39.2 7.7

Sale to PE & VCs 11.5 97.2 0.0 29.3 0.9 9.8

Trade sale 15.7 204.8 46.9 107.9 67.7 70.9

Stock Market 0.2 1.4 0.2 5.6 0.7 8.9

Write-offs 30.7 23.5 28.4 42.5 23.5 129.2

Repayment of loans 8.6 8.2 8.8 11.2 14.4 11.1

Others 6.3 1.5 4.4 2.1 76.7 1.0

TOTAL 114.8 363.8 113.2 213.3 223.1 238.6STAGE OF DEVELOPMENTSeed 11.3 9.9 38.2 24.6 17.9 16.5

Start-up 62.9 116.6 18.7 92.7 41.1 53.8

Other early stage 19.5 25.7 8.9 60.1 51.4 57.8

Late stage venture 21.0 211.7 47.4 35.8 112.7 110.2

TOTAL 114.7 363.8 113.2 213.2 223.1 238.2

NUMBER OF DIVESTMENTS

2015 2016 2017 2018 2019 202038 36 18 23 19 8

6 4 0 4 3 15

17 39 19 53 40 50

3 4 3 8 1 6

70 36 15 52 44 46

133 87 67 77 109 102

14 22 8 3 9 1

281 228 130 220 225 228

117 86 52 84 83 82

113 88 40 77 94 82

36 40 17 36 24 32

15 14 21 23 24 31

281 228 130 220 225 227

AMOUNT (€M)

REGIONS 2015 2016 2017 2018 2019 2020Cdad. Valenciana 20.1 4.7 3.6 31.9 16.2 96.1

Extremadura 8.0 1.7 3.9 0.5 0.3 1.0

Galicia 4.8 10.8 17.7 5.4 13.6 6.8

La Rioja 0.3 0.1 0.3 0.2 0.0 0.5

Murcia 0.4 3.9 0.6 3.6 4.7 7.0

Navarra 6.0 14.7 13.8 6.2 9.9 10.4

País Vasco 10.1 12.7 7.1 15.2 33.3 31.6

Ceuta/Melilla 0.0 0.0 0.0 0.0 0.0 0.0

TOTAL 548.3 433.9 537.7 505.5 721.9 833.0

NUMBER START UPS

2015 2016 2017 2018 2019 202016 32 23 38 28 37

9 2 3 1 2 2

26 46 55 37 20 24

1 1 4 3 1 2

3 6 7 6 3 2

15 36 37 31 23 26

36 51 63 75 85 39

0 0 0 0 0 0

318 392 449 459 431 433

56

DIVESTMENTAMOUNT (M€)


International Entity (VC + PE) 2,650.3 967.6 2,294.8 1,005.5

Domestic Private Entity (VC + PE) 798.3 1,044.8 593.8 561.3


TOTAL 3,483.9 2,039.3 2,977.3 1,623.2

CONCEPTS

Final Divestments 2,836.5 1,468.8 1,977.5 1,396.7

Partial Divestments 647.4 570.5 999.9 226.5

TOTAL 3,483.9 2,039.3 2,977.3 1,623.2


Seed 38.2 24.6 17.9 16.5

Start-up 18.7 92.7 41.1 53.8

Other early stage 8.9 60.1 51.4 57.8

Later stage venture 60.9 35.8 112.7 110.2

Growth 570.9 440.2 683.2 378.8

Replacement 7.5 394.9 122.5 93.9

LBO/MBO/MBI/LBU 2,752.9 930.2 1,870.1 577.3

Others 26.0 60.8 78.4 335.0

TOTAL 3,483.9 2,039.3 2,977.3 1,623.2

EXIT WAY

Owner/manager buy-back 170.7 341.6 310.6 35.0

Sale to PE & VCs 594.4 686.0 984.8 275.5

Trade sale 1,522.8 538.7 840.2 906.3

Stock Market 426.8 244.1 281.1 174.8

Write-offs 186.5 63.4 52.5 139.4

Repayment of loans 304.2 44.0 392.7 76.8

Others 278.4 121.5 115.3 15.5

TOTAL 3,483.9 2,039.3 2,977.3 1,623.2

INDUSTRY

Computer related 255.5 90.0 342.9 277.7


Industrial Products & Services 260.0 136.3 491.1 491.0

Consumer-related Products 439.6 613.1 330.1 370.9

Agriculture 5.2 12.9 45.8 19.7

Energy 389.5 110.6 281.5 160.7


Construction 38.2 5.5 30.3 24.5

Health related 896.5 86.7 259.3 27.9

Leisure 208.5 76.3 13.9 5.0

Communications 321.8 653.9 360.3 174.9

Biotechnology 10.9 15.6 74.2 16.3


Financial Services 64.4 0.0 3.0 2.5

Other Services 561.3 54.0 546.0 13.2

Others 24.2 6.2 2.0 0.0

Transportation 0.0 57.6 79.6 30.0


TOTAL 3,483.9 2,039.2 2,977.3 1,623.2

57

DIVESTMENTNUMBER DIVESTMENTS



Domestic Private Entity (VC + PE) 144 222 150 186


TOTAL 243 321 337 302

CONCEPTS

Final Divestments 157 227 184 160

Partial Divestments 86 94 153 142

TOTAL 243 321 337 302


Seed 52 84 83 82

Start-up 40 77 94 82

Other early stage 17 36 24 32

Later stage venture 23 23 24 31

Expansion 63 60 62 49

Replacement 2 7 4 4

LBO/MBO/MBI/LBU 43 23 34 14

Others 3 11 12 8

TOTAL 243 321 337 302

EXIT WAY

Owner/manager buy-back 43 45 35 13

Sale to PE & VCs 14 16 20 21

Trade sale 50 83 76 73

Stock Market 6 10 7 8

Write-offs 24 59 54 54

Repayment of loans 91 97 139 130

Others 15 11 6 3

TOTAL 243 321 337 302

INDUSTRY

Computer related 69 115 89 104





Energy 11 14 17 16




Leisure 5 7 6 6



Industrial Automation - 0 0 0



Others 2 3 1 0

Transportation - 8 7 2

Other Manufacturing 5 6 12 11

TOTAL 243 321 337 302

58

PORTFOLIOAMOUNT (M€)


International Entity (VC + PE) 12,193.4 15,898.2 20,554.8 24,240.6

Domestic Private Entity (VC + PE) 5,815.5 6,155.0 7,317.2 8,116.1

Domestic Public Entity (VC + PE) 904.2 937.3 994.9 1,162.2

TOTAL 18,913.2 22,990.4 28,866.9 33,518.9

INDUSTRY

Computer related 1,917.6 2,088.8 2,598.4 3,917.2


Industrial Products & Services 2,472.0 2,281.3 2,475.2 2,463.7

Consumer-related Products 3,293.0 3,457.5 4,235.7 4,675.6

Agriculture 161.9 354.7 669.5 787.2

Energy 927.3 2,111.0 3,647.5 3,664.1


Construction 584.8 650.6 645.1 672.1

Health related 1,231.6 1,585.3 1,819.0 2,050.2

Leisure 822.3 893.3 1,546.8 1,740.4

Communications 1,073.7 1,536.1 1,329.6 2,759.2

Biotechnology 273.1 296.6 583.1 696.5


Financial Services 926.9 1,122.8 1,244.1 1,491.2

Other Services 2,874.8 3,808.4 5,401.9 6,118.2

Others 60.5 55.9 55.9 55.9

Transportation 868.7 857.3 901.6 911.6


TOTAL 18,913.2 22,990.4 28,866.9 33,518.9

REGION

Andalucía 592.8 490.2 877.4 1,171.1

Aragón 238.3 248.2 277.1 394.1

Asturias 237.4 208.4 172.4 186.3

Baleares 1,216.0 1,229.6 1,114.7 1,594.2

Canarias 7.2 34.5 55.5 55.5

Cantabria 56.0 48.1 45.6 65.8

Castilla-La Mancha 363.3 367.2 378.5 427.6

Castilla-León 216.4 339.8 397.8 406.8

Cataluña 4,628.6 5,672.8 6,230.3 6,525.3

Cdad. de Madrid 7,284.2 9,286.7 13,255.6 16,474.1

Cdad. Valenciana 957.5 1,357.7 1,951.1 2,105.2

Extremadura 452.6 470.1 493.0 214.6

Galicia 628.7 636.7 817.5 949.4

La Rioja 250.5 427.5 454.0 451.0

Murcia 371.3 407.6 406.7 214.2

Navarra 367.5 287.3 760.7 800.4

País Vasco 1,044.9 1,478.0 1,179.0 1,483.2

Ceuta/ Melilla 0.0 0.0 0.0 0.0

TOTAL 18,913.2 22,990.4 28,866.9 33,518.9

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PORTFOLIONUMBER



Domestic Private Entity (VC + PE) 1,463 1,621 1,788 1,920

Domestic Public Entity (VC + PE) 915 966 1,045 1,160

TOTAL 2,644 2,893 3,202 3,567

INDUSTRY

Computer related 910 1,020 1,154 1,302





Energy 138 151 157 173




Leisure 69 72 79 88



Industrial Automation 20 19 18 17



Others 19 17 17 16

Transportation 34 31 38 47

Other Manufacturing 48 57 61 67

TOTAL 2,644 2,893 3,202 3,567

REGION

Andalucía 187 186 196 226

Aragón 39 42 47 47

Asturias 114 113 120 126

Baleares 33 34 38 42

Canarias 8 9 11 11

Cantabria 9 8 7 6

Castilla-La Mancha 72 75 75 80

Castilla-León 84 108 139 157

Cataluña 659 696 782 888

Cdad. de Madrid 425 492 566 666

Cdad. Valenciana 149 184 207 251

Extremadura 115 109 98 96

Galicia 286 304 319 321

La Rioja 22 27 27 24

Murcia 28 35 32 36

Navarra 116 123 135 150

País Vasco 298 348 403 440

Ceuta / Melilla 0 0 0 0

TOTAL 2,644 2,893 3,202 3,567

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INDUSTRY DESCRIPTION

IT: Hardware Production and/or distribution of computer equipment (computers. printers. scanners. sound recognition. etc,)

IT: Internet Browsers. web portals. design or maintenance of web pages

IT: Semiconductors Semiconductors. transistors

IT: Software Production and/or distribution of software (operating systems. programs. developments. etc,)

IT: Services Data processing. maintenance of computer equipment. IT systems consulting and/or training

Other Electronic Batteries. fiber optics. analytical and scientific instruments

Industrial Products and Services Industrial machinery and equipment. industrial services. recycling and anti-pollution equipment

Consumer Goods: Retail Retail distribution of consumer goods and services. excluding leisure goods and services

Consumer Goods: Other Production and supply of consumer goods

Agriculture Agricultural crops. animal farming. fishing. forestry operations

Energy Exploration. extraction and production of gas and oil. coal products. energy conservation. alternative energies

Chemicals/Plastics/Materials Chemical products for agriculture. plastics. materials. adhesives. enclosures

Construction Construction materials. construction services. prefabricated buildings

Healthcare: Instruments/Equipment Production of technologically advanced diagnostic and therapeutic treatment systems. related services

Healthcare: Medical Care Health institutions. management of hospitals and clinics. help for the disabled. basic supplies

Healthcare: Pharmaceuticals Development. production and supply of medicines

Leisure Leisure and hospitality related products and services

Communications: Hardware Data and voice transmission equipment. equipment for cable networks. mobile telephony and satellite

Communications: Carriers Cable. mobile and satellite telephone operators

Communications: Other Radio and TV broadcasters. media companies. publishing houses

Biotechnology/Genetic Engineering Agricultural and animal biotechnology. industrial biotechnology. equipment for biotechnology research

Industrial Automation/Robotics Industrial measurement equipment. process control equipment. robotics. mechanical vision equipment. computerized control of machinery

Financial Services Banking. insurance. real estate services. stock brokerage

Other Services Engineering services. advertising and public relations. distribution. import and export. consulting (excluding IT consulting)

Other (Specify) Mining. electrical. conglomerates

Transportation Airlines. railways. buses. airport transport services. mail and parcel services

Other Production Office furniture. plumbing supplies

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The transition to a more sustainable economy is currently one of society’s leading challenges, one of the cornerstones

of the global political agenda and one of the areas receiving the greatest attention from regulators and financial market participants, including banks, funds and investors.

The data show that society’s interest in “responsible investing” and “sustainable finance” has increased considerably in recent years. In fact, in a survey administered last year by Herbert Smith Freehills to 232 clients in the banking sector, 92% of respondents completely or strongly agreed that loans connected to and investments in environmental, social and corporate governance (ESG) factors presented a significant opportunity for their organizations.

On the other hand, there is growing evidence that suggests that portfolios incorporating ESG investments may provide greater risk-adjusted returns for investors.1

Investment strategies with a more sophisticated ESG risk management as well as companies with stronger ESG features showed greater resilience during the COVID-19 period. For this reason, it should be expected moving forward that closer and greater attention will be paid to ESG issues, both during the post-COVID-19 recovery and in the mid- and long-term, both by investors and asset managers, with a particular demand for greater transparency and corporate responsibility in this area.

In effect, the implementation by investors and asset managers of ESG strategies is a huge challenge due to the lack of a unified interpretation and standard methodology for assessing risks on a relative basis, combined with the lack of high-quality data on corporate ESG performance (making it difficult to make standardized comparisons). In fact, according to a [recent] State Street2 study, over two-

thirds of institutional investors surveyed indicated that greater transparency in company’s ESG reports would be the best way to improve the integration of ESG policies/strategies globally.

This growing interest is also reflected in the new legislative measures being adopted in different countries, with Europe still leading the way, and which require the asset management industry to take into account social, environmental and governance benefits when making their investment decisions.

Within the framework of the Action Plan: Financing Sustainable Growth published by the European Commission in 2018 (referred to as the “Action Plan on Sustainable Finance”) and the European Green Deal, presented by the European Commission in 2019 as a tool for guiding European growth towards a “circular economy with climate neutrality,” an ambitious European sustainable finance strategy has emerged, aimed at diverting capital flows towards investments that take ESG factors into account. Under this umbrella, financial market participants are expected to be able to direct capital flows towards sustainable investments.

Thus, in addition to societal expectations and the potential for greater financial returns, we are also seeing a wave of ESG-related European Union regulations, arising in large part out of the abovementioned European Green Deal and the Action Plan on Sustainable Finance, and which require investors and asset managers to address ESG risks in their investment decisions and to provide detailed information on the ESG credentials of their financial products and portfolios. The two key regulations –from the perspective of both the investor and the asset manager–, which were enacted in implementation of the Action Plan on Sustainable Finance, are the Taxonomy Regulation3 and the Disclosure Regulation4.

Iria Calviño, Partner at Herbert Smith Freehills. Leonie Timmers, Senior Associate at Herbert Smith Freehills.


1 By way of example, an analysis by BlackRock in May 2020 suggests that companies with the highest ESG ratings performed better than other companies during the turmoil experienced in the first quarter of 2020, and that investments with strong sustainability profiles are “better positioned to resist adverse conditions” in the period of recovery and once we have overcome the crisis caused by the pandemic. In 2019, Amundi completed a study addressing the impact of ESG factors on portfolio returns. In the words of Vincent Mortier, Group Deputy CIO of Amundi: “Our investigation confirms that integrating ESG has a tangible impact on the performance of equities in Europe and North America. By promoting a first-class ESG focus, investors can benefit from an investment strategy that improves long-term portfolio performance.” In addition, AXA IM built a portfolio at the end of 2020 that included shares in companies with the highest (internal) sustainability scores (between 8 and 10) to compare with a portfolio of stocks with the lowest scores (between 0 and 2). The profitability of the former was 16.8 p.p. higher than the latter during the first months of the pandemic.

2 US consulting firm specializing in ESG.3 Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending

Regulation (EU) 2019/2088.4 Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial services sector.

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The Disclosure Regulation –the first regulation passed based on the Plan on Sustainable Finance– is primarily aimed at requiring financial market participants and financial advisors to publicly disclose specific information on how they address the integration of sustainability risks5 and analyze the principal adverse impacts on sustainability (also known as PAIs). In other words, this Disclosure Regulation includes detailed reporting obligations on the integration of sustainability risks in investment decisions and in the risk management framework, as well as obligations to report on any negative sustainability impacts that investment decisions or investment advising may have, and which must be published on the website together with the pre-contractual information both at the institution and product level.

The transparency sought with this Disclosure Regulation (as one of the cornerstones of the Plan on Sustainable Finance) will raise investor awareness on the sustainability risks and potential adverse impacts involved in their investments. This will also make it possible to distinguish between products that promote environmental or social aspects (“light green”) and those that have a sustainable investment objective (“dark green”), with the latter being considered “more sustainable.”

It is true that this is a complex regulation and many of its aspects are subject to regulatory implementation, which will lead to major complexities in their future application.

The Taxonomy Regulation was approved by the European Parliament on 18 June 2020 and entered into force on 12 July, although it will not be applied until January 2022.

As noted, the ultimate goal of the Plan on Sustainable Finance and the European Green Deal is to encourage the financial sector to direct their investment flows towards companies that are engaged in more sustainable activities, or that are in transition towards more sustainable activities, with a view to making the EU -neutral by 2050 and allowing the EU to meet its climate change targets. In order to accomplish this, precisely what the EU needs is for investors to divert a larger portion of their equity towards “sustainable” projects and companies. In light of

this need, the Taxonomy Regulation is specifically aimed at establishing the criteria for determining whether a given economic activity is considered environmentally sustainable for the purposes of determining the level of environmental sustainability of an investment.

Thus, the EU taxonomy is developed to combat greenwashing and help investors objectively identify what is or is not sustainable. The EU taxonomy offers a common language –a dictionary– that investors and companies can use to identify investment opportunities in projects and economic activities that make a substantial contribution to climate and environmental goals. In short, the Taxonomy Regulation establishes the criteria for determining whether an economic activity is sustainable from an environmental perspective, for the purposes of determining the environmental sustainability level of each investment.

The Taxonomy Regulation also introduces new reporting obligations for financial market participants (e.g. asset managers) that supplement existing sustainability reporting obligations identified in the Disclosure Regulation, and which entered into effect on 10 March 2021.

Finally, the Taxonomy Regulation also introduces new reporting obligations for certain companies, which complement the reporting obligations provided for in the Non-Financial Reporting and Diversity Directive,6 currently under review.

In short, the Taxonomy Regulation is a key piece of legislation that will without a doubt contribute to the implementation of the European Green Deal; however, this regulation is complex and there are still many questions relating to interpretation in its implementation, which will be resolved as implemented by the delegated acts.

Nevertheless, as described above, the Disclosure and Taxonomy Regulations are yet another element within the legislative landscape arising out of the implementation of the Action Plan on Sustainable Finance and through which investors will now have to “navigate.”

Iria Calviño, Partner at Herbert Smith Freehills. Leonie Timmers, Senior Associate at Herbert Smith Freehills.


5 Defined as “any environmental, social or governance event or status that, if occurring, could have a real or potential material negative impact on the value of the investment.”6 Directive (EU) 2014/95 of the European Parliament and of the Council of 22 October 2014 as regards disclosure of non-financial and diversity information by certain large undertakings

and groups.

64

Thus, these will be followed by level 2 enactments implementing both regulations and adding additional sections implementing the Action Plan, which will also be connected with the revision of MiFID II, the UCITS Directive and the AIFMD Directive, as well including sustainable product offerings in the suitability tests. For all the foregoing reasons, financial market participants should be prepared for the application of the Taxonomy Regulation, review of the above-mentioned directives, effective implementation of the sustainability finance strategy, the Non-Financial Reporting and Diversity Directive, etc. – without a doubt, a highly complex legal and technical challenge.

In fact, very recently, on 21 April, the European Commission adopted a new package of general measures aimed at directing more investment flows towards sustainable activities across the European Union. In particular:

ii(i) the College of Commissioners of the European Union reached a political agreement on the text of the delegated climate taxonomy act; in addition,

i(ii) the Commission presented a proposed Directive on sustainability reporting by companies; and, finally,

(iii) the Commission [proposed] an amendment to six delegated acts in the area of investment and insurance advising, fiduciary duties and product stewardship and governance.

The European sustainability targets and the drive to improve regulations in this area have led European governments to enact their own domestic ESG regulations. For example, Germany recently adopted a national law on mandatory due diligence relating to human rights, which introduces

fines for companies that acquire pieces or materials abroad from suppliers that do not meet minimum environmental and human rights standards. The European Commission is already following this same course.

Furthermore, in Spain, it is worth noting the recent approval by the Congress of the Climate Change Bill (8 April 2021), as well as the recently published Law 5/2021, of 12 April, modifying the amended and restated text of the Spanish Capital Corporations Law approved by Royal Legislative Decree 1/2010, of 2 July (LSC - Ley de Sociedades de Capital), and other financial rules, as relates to encouraging long-term shareholder engagement in listed companies (Spanish Official Gazette (BOE) of 13 April 2021). This regulation, among other things, requires that undertakings for collective investment, closed-end collective investment undertakings and private equity and venture capital firms (Instituciones de Inversión Colectiva or IIC in spanish regulation) develop and publish a strategy for engagement with their investee companies, explaining how these strategies will contribute to long-term sustainability of said companies, and which clearly highlights this regulatory trend.

It is clear that there are reputational, financial and commercial reasons for investors and asset managers to adopt an explicit defined position on ESG and the role this plays in its investment decision making processes. In doing so, they should be aware of their legal obligations, which is without a doubt a significant challenge. Despite the difficulties, many European companies and financial institutions are proactively advancing and, in many cases, anticipating both the complex regulatory framework and the preferences of investors and consumers; however, it is also clear that there is still a long way to go...

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I. DOMESTIC PRIVATE VENTURE CAPITAL & PRIVATE EQUITY ENTITIES (S.C.R)

1. Abacnest2. All Iron Ventures3. Amadeus Ventures4. Angels Capital S.L.5. Atitlan Grupo Empresarial, S.L 6. Bankia Fintech7. Bonsai Venture Capital8. BStartup9. Caja Burgos, Fundación Bancaria

10. Collins Capital Desarrollo S.C.R.-PYME, S.A.11. Compas Private Equity12. Corporación Empresarial de Extremadura, S.A.13. Creas Impacto, FESE, SA14. Easo Ventures S.C.R., S.A.15. Enagas Corporate Venture16. Fides Capital, S.C.R, S.A.17. FIT Inversión en Talento SCR de Régimen

Simplificado S.L.18. Gat Technology Tecnología, Telecomunicaciones y

Movilidad19. GoHub Ventures20. Grupo Intercom de Capital, S.C.R, S.A.21. Iberdrola Ventures - Perseo22. Healthequity SCR, de Régimen Simplificado S.A.23. Indes Capital24. Innocells25. Integra Capital S.C.R, S.A.26. Investing Profit Wisely27. Landon Investments Sociedad de Capital Riesgo de

Régimen Simplicado28. Mutua Madrileña29. Murcia Emprende Sociedad de Capital Riesgo, S.A.30. Navarra Iniciativas Empresariales, S.A (Genera)31. Nero Ventures32. Onza Venture Capital Investments Régimen

Simplificado S.A.33. Prosegur Tech Ventures34. Quarza Inversiones, S.A.35. Red Eléctrica y de Telecomunicaciones, Innovación y

Tecnología36. Repsol Energy Ventures37. Ricari, Desarrollo de Inversiones Riojanas S.A.

38. Sinensis Seed Capital SCR, S.A39. Santander Innoventures40. SeedRocket 4Founders Capital S.A, S.C.R-Pyme41. Segtech Ventures (Prosegur)42. Telefónica Ventures43. Thalassa Capital Investments S.C.R, S.A.44. Torreal, S.C.R, S.A.45. Unirisco Galicia S.C.R, S.A.46. Univen Capital, S.A, S.C.R. de Régimen Común47. Up Capital48. Vigo Activo, S.C.R. de Régimen Simplificado, S.A.

II. DOMESTIC PUBLIC VENTURE CAPITAL & PRIVATE EQUITY ENTITIES (S.C.R)

1. CDTI, SICC2. INVERTEC (Societat Catalana d'Inversió en Empreses

de Base Tecnològica, S.A.)3. Sadim Inversiones4. SEPI Desarrollo Empresarial, S.A. (SEPIDES)5. Sociedad de Desarrollo de las Comarcas Mineras,

S.A (SODECO)6. Sociedad de Desarrollo Económico de Canarias, S.A.

(SODECAN)7. Sociedad de Desarrollo de Navarra, SA (SODENA)8. Sociedad para el Desarrollo Industrial de Aragón,

S.A. (SODIAR)9. Sociedad para el Desarrollo Industrial de Castilla-La

Mancha, S.A. (SODICAMAN)10. Sociedad para el Desarrollo Industrial de

Extremadura, S.A. (SODIEX)11. Sociedad Regional de Promoción del Pdo. de

Asturias, S.A. (SRP)12. Soria Futuro, S.A.13. Start Up Capital Navarra

III. DOMESTIC PRIVATE VENTURE CAPITAL & PRIVATE EQUITY ENTITIES (S.G.E.C.R.)

1. Abac Capital2. Active Venture Partners, S.G.E.I.C, S.A.3. Adara Ventures4. Addquity Growth Capital, S.A.5. Alantra Private Equity S.G.E.I.C, S.A.6. Alma Mundi Ventures, S.G.E.I.C, S.A.7. Alta Life Sciences8. Alter Capital Desarrollo S.G.E.I.C, S.A.

General Partners included in this survey

67

9. Ambar Capital y Expansión S.G.E.I.C S.A.10. Artá Capital S.G.E.I.C, S.A.11. Asabys Partners12. Athos Capital, S.G.E.I.C, S.A.13. Atlas Capital Private Equity S.G.E.I.C, S.A.14. Aurica Capital Desarrollo, S.G.E.I.C, S.A.U.15. Avet Ventures S.G.E.I.C, S.A.16. Axón Capital e Inversiones S.G.E.I.C, S.A.17. Bankinter Capital Riesgo, S.G.E.I.C. (Intergestora)18. Baring Private Equity Partners España, S.A.19. Beable Capital S.G.E.I.C, S.A. 20. Bewater Asset Management S.G.E.I.C S.A.21. Big Sur Ventures, S.G.E.I.C., S.A.22. Black Toro Capital Partners LLP23. Bolsa Social Impacto, FESE24. Bullnet Gestión, S.G.E.I.C, S.A.25. Caixa Capital Risc S.G.E.I.C, S.A.26. Clave Mayor S.G.E.I.C, S.A.27. Columbus Venture Partners, S.G.E.I.C., S.A.28. Corpfin Capital Asesores, S.A, S.G.E.I.C.29. CRB Inverbío S.G.E.I.C.30. CVP Asset Management, S.G.E.I.C, S.A.31. Decenes Mecenes S.G.E.I.C, S.A.32. Diana Capital, S.G.E.I.C, S.A.33. Eland Private Equity S.G.E.I.C, S.A34. Encomenda Smart Capital35. Endurance Equity Partners, S.G.E.I.C, S.A.36. Espiga Capital Gestión S.G.E.I.C, S.A37. Faraday Venture Capital, SGEIC, S.A.38. Finaves39. Formentor Capital40. Gala Capital Desarrollo41. Gawa Capital Partners SGEIC, S.A.42. GED Iberian Private Equity, S.G.E.I.C, S.A.43. Global Social Impact Investments, SGIIC44. GPF Capital45. GVC Gaesco46. Hiperion Capital Management, S.G.E.I.C, S.A. 47. Inveready Technology Investment Group48. JB Capital Markets, S.V., S.A.49. JME Venture Capital, S.G.E.I.C, S.A. (antes Fundación

Entrecanales)50. Kanoar Ventures, S.G.E.I.C, S.A.

51. Kibo Ventures Partners52. Magnum Industrial Partners53. MCH Private Equity, S.A.54. Meridia Capital Partners, S.G.E.I.C, S.A.55. Miura Partners56. Moira Capital Partners, S.G.E.I.C, S.A.57. Nauta Capital VC Partners58. Nazca Capital, S.G.E.C.R, S.A.59. Nekko Capital, S.G.E.I.C, S.A.60. Neotec Capital Riesgo61. Nexxus Iberia, S.G.E.I.C, S.A.62. Nina Capital SGEIC, S.A.63. Ona Capital64. Oquendo Capital65. PHI Industrial Acquisitions 66. Portobello Capital Gestión, S.G.E.I.C, S.A.67. Proa Capital S.G.E.I.C, S.A.68. Qualitas Equity Partners69. Realza Capital. S.G.E.I.C, S.A.70. Renertia Investment Company S.G.E.I.C, S.A.71. Riva y García Gestión, S.A.72. Sabadell Venture Capital73. Samaipata Ventures74. Santander Private Equity S.G.E.I.C. 75. Seaya Ventures76. SES Iberia Private Equity, S.A.77. Sherpa Capital, S.G.E.I.C, S.A.78. Ship2B Ventures, SGEIC, S.A79. SI Capital R&S I S.A, S.C.R. de Régimen Simplificado80. Swanlaab Venture Factory, S.G.E.I.C, S.A.81. Suma Capital, S.G.E.I.C, S.A.82. Taiga Mistral de Inversiones83. Talde Gestión S.G.E.I.C, S.A.84. Telegraph Hill Capital85. Thesan Capital86. The Valley Venture Capital, SGEIC SA87. Think Bigger Capital, SGEIC SA88. Torsa Capital, S.G.E.I.C, S.A.89. Uninvest, S.G.E.I.C, S.A.90. Venturcap91. Victoria Venture Capital92. Ysios Capital Partners, S.G.E.I.C, S.A.

General Partners included in this survey

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IV. DOMESTIC PUBLIC VENTURE CAPITAL & PRIVATE EQUITY ENTITIES (S.G.E.C.R)

1. Ade Gestión Sodical S.G.E.I.C, S.A.2. AXIS Participaciones Empresariales, S.G.E.I.C, S.A.3. COFIDES4. Extremadura Avante Inversiones (antes Sociedad de

Fomento Industrial de Extremadura)5. Gestión de Capital Riesgo del País Vasco, S.G.E.I.C,

S.A.6. Innova Venture, SGEIC, SA (antes Invercaria Gestión)7. Institut Català de Finances Capital, S.G.E.I.C, S. A.8. Seed Capital de Bizkaia, S.G.E.I.C, S.A.9. XesGalicia, S.G.E.I.C, S.A.

V. INTERNATIONAL VENTURE CAPITAL & PRIVATE EQUITY ENTITIES WITH OFFICE IN SPAIN

1. Acon Southern Europe Advisory2. Ardian3. Advent International Advisory, S.L.4. Aurelius 5. Bridgepoint6. Capza7. Cinven 8. Charme Capital Partners S.G.R, S.P.A. 9. CVC Capital Partners Limited

10. DeA Capital S.p.A.11. Demeter Partners12. EQT Partners13. Ergon Capital 14. Harvard Investment Group Capital (HIG)15. Impact Partners16. Intermediate Capital Group (ICG)17. Investindustrial Advisors, S.A.18. JZ International19. Kohlberg Kravis Roberts (KKR) 20. MBO Partenaires21. PAI Partners22. Permira Asesores23. Riverside España Partners, S.L. 24. The Carlyle Group España, S.L.25. Tikehau IM26. Theventure.city

VI. INTERNATIONAL VENTURE CAPITAL & PRIVATE EQUITY FIRMS WITHOUT OFFICE IN SPAIN (RECURRENT ACTIVITY)

1. 14W2. Accel Partners3. Andera Partners (antes Edmon de Rothschild)4. Apax Partners España, S.A.5. Atómico6. Bain Capital 7. Balderton Capital8. BC Partners9. Bertelsmann SE & Co

10. Breega11. Canada Pension Plan Investment Board (CPPIB)12. Cathay 13. CCMP Capital Advisors14. Cerberus Capital15. Digital Sky Technologies16. Eight Road Ventures 17. Elaia Partners18. Entrée Capital19. Eurazeo 20. FUND+ 21. FJ Labs 22. Forbion Capital Partners23. General Atlantic24. Gilde Healthcare Partners25. GP Bullhound Asset Management 26. Greycroft27. Holtzbrinck 28. Idinvest Partners29. Index Ventures30. Innogest Capital 31. Insight Venture Partners32. Institutional Venture Partners33. Investcorp34. Kleiner Perkins C&B35. Korelya Capital 36. Kurma Partners37. Lakestar38. L Catternon Europe 39. London Venture Partners40. Mangrove41. Maveron

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42. Milano Investment Partners (MIP) 43. Naspers Limited44. New Enterprise Associates45. Northzone46. Otium Capital 47. P101 48. Palamon Capital Partners49. Partech Ventures50. Partners Group51. Passion_Capital52. Peninsula Capital 53. Platinum Equity 54. Point Nine Capital 55. Prime Ventures56. Providence Equity57. Rakuten Inc. 58. Spark Capital59. Stage 1 Ventures 60. TA Associates61. Target Global 62. Tiger Global Management63. TowerBrook Capital Partners 64. Trident Capital65. Trilantic Partners66. Warburg Pincus

VII. INTERNATIONAL VENTURE CAPITAL & PRIVATE EQUITY WITHOUT OFFICE IN SPAIN (NON RECURRENT ACTIVITY)1

1. 42Cap2. 123 Investment Managers3. 360 Capital4. A/O UK 1 Limited5. Adevinta Ventures6. Advent France Biotechnology7. Adventure8. Alchemy Capital Management9. Alpinvest

10. Apex Capital Partners11. Altpoint Capital12. Amadeus Capital Partners13. Amplo14. AnaCap Financial Partners Limited15. Anthemis Group16. ArcLight Capital Partners

17. Armilar Venture Partners18. AS Equity Partners19. Avalon Ventures20. Avenue Capital Group21. AXA Strategic Ventures22. Bahrain Mumtalakat Holding23. Base10 Partners Capital Management, LLC24. Baxter Ventures25. Benhamou Global Ventures (BGV)26. Bessemer Venture Partners 27. BITKRAFT Esports Ventures Management, LLC.28. Blue Horizon Ventures29. Boehringer Ingelheim30. Boston Seed Capital31. BPI France Investissement32. BPO Capital GmbH & Co33. Bregal Milestone LLP34. BrightCap Ventures35. Brighteye Ventures36. Bruckmann, Rosser, Sherrill & Co37. btov Partners38. Bynd Venture Capital39. C5 Capital40. Castel Capital41. Cell Innovation Partners42. Chiesi Ventures43. Chile Ventures44. Cipio Partners45. Cisco Investments46. Crista Galli47. Connect Ventures48. Correlation Ventures49. CRV50. Data Collective VC51. Dawn Capital52. DN Capital53. Delta Partners Group54. Dila Capital55. Docomo Ventures56. Early Bird57. eCapital Entrepreneurial Partners AG58. Emerige Societe par Accions Simplifiee59. Endeavor60. Evolvere Capital

1 In 2020 there were 45 other international investors whose name are confidential althought their aggregate activity is reflected in this survey.

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61. Evolution Equity Partners62. Felicis Ventures63. Fidelity Growth Partners Europe64. Florac65. Foundamental66. Founders Fund67. General Atlantic68. Georgian Partners Growth LP69. GGM Capital70. GGV Capital71. Global Founders72. Goodwater Capital73. Gr Capital74. Hellman & Friedman75. Horizon Ventures76. HR Ventures77. IDC Ventures78. Inflexion Private Equity79. Initial Capital80. InfraVia81. Intel Capital82. Jackson Square Ventures83. JJDC Innovation84. Kaszek Ventures85. Keensight Capital86. Khosla Ventures87. Knight Capital88. L Capital Asia89. Lead Edge90. Level Equity91. Liberty Mutual Strategic Ventures92. Liil Ventures93. LocalGlobe LLP94. Lone Star95. Lundbeckfond Ventures96. Magenta Partners97. Maniv Mobility98. Market One Capital99. Middleland Capital

100. MMC Ventures101. Monsanto Growth Ventures102. Mountain Nazca103. Mubadala Capital104. Nokia Growth Partners105. Oakley Capital Limited

106. Omega107. OneRagtime SAS108. OpCapita109. Open Ocean110. Optimizer Invest111. Orient Hontai Capital112. Oxford Capital Partners113. Paine Schwartz Partners, LLC114. Paladin Capital Group115. Philips N.V.116. Pillar117. Play Ventures Pte Ltd118. Ponooc B.V.119. PROfounders Capital Partners LLP120. QED Investors121. Quadrille Capital122. Qualcomm123. Randstad124. Redalpine Ventures125. Reach Capital126. Rhone Capital LLC127. Rider Global128. Road Ventures129. Roche Venture Fund130. Rocket Internet131. RPS Ventures132. Rose Tech Ventures133. Rothenberg Ventures134. RTAventures135. Sambrinvest136. SalesForce Ventures137. Sandton Capital138. Slack Fund139. Scale Capital (antes Inversur Capital)140. Scope Capital Advisory141. Seroba Life Sciences142. Sigma Partners143. SK Capital Partners144. Skyline Management LLC145. Société Régionale d’Investissement de Wallonie (S.R.I.W.)146. Sofimac Innovation147. Sofina148. SoftBank149. Spark Capital Partners150. Speedinvest

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151. StepStone Group152. Sunstone Capital A/S153. Surplus Invest GmbH154. TA Ventures155. TC Growth Partners156. Techstars Ventures157. Ten Eleven Ventures158. Tekton Ventures159. Three Hills Capital Partners160. Top Tier Capital161. Toro Ventures162. Toyota AI Ventures, LLC163. UL Invest164. Variv Capital165. VI Partners166. Vertical Venture Partners167. Vista Equity Partners168. Yabeo

VIII. ENTITIES THAT CEASED ACTIVITY

1. Adams Street Partners2. Cantabria Capital S.G.E.I.C, S.A 3. E.Ventures4. Expon Capital5. Going Investment Gestión, S.G.E.I.C, S.A.6. Industry Ventures7. Sapphire Ventures (antes SAP Ventures)8. Vulcan Capital9. Vy Capital

IX. ENTITIES THAT START THEIR ACTIVITY IN SPAIN IN 20202

1. A/O UK 1 Limited2. Adevinta Ventures3. Advent France Biotechnology4. AnaCap Financial Partners Limited5. Armilar Venture Partners6. AS Equity Partners7. Bankia Fintech8. Base10 Partners Capital Management, LLC9. BITKRAFT Esports Ventures Management, LLC.

10. Blue Horizon Ventures11. Bolsa Social Impacto, FESE12. BPI France Investissement13. Bregal Milestone LLP

14. BrightCap Ventures15. btov Partners16. Bynd Venture Capital17. Chile Ventures18. Crista Galli19. CRV20. DeA Capital S.p.A.21. eCapital Entrepreneurial Partners AG22. Evolution Equity Partners23. Faraday Venture Capital, SGEIC, S.A.24. Florac25. Foundamental26. Founders Fund27. GAWA Capital Partners SGEIC, S.A.28. Georgian Partners Growth LP29. Global Social Impact Investments SGIIC30. GVC Gaesco31. Impact Partners32. Inflexion Private Equity33. InfraVia34. Kaszek Ventures35. Knight Capital36. Lead Edge37. Liberty Mutual Strategic Ventures38. Nina Capital SGEIC, S.A.39. OneRagtime SAS40. Paladin Capital Group41. Play Ventures Pte Ltd42. Ponooc B.V.43. PROfounders Capital Partners LLP44. Red Eléctrica y de Telecomunicaciones, Innovación y

Tecnología45. Rider Global46. Road Ventures47. RPS Ventures48. SHIP2B Ventures, SGEIC, S.A49. SOFIMAC Innovation50. Sofina51. Surplus Invest GmbH52. The Valley Venture Capital, SGEIC SA53. Think Bigger Capital, SGEIC SA54. Tikehau IM55. Toyota AI Ventures, LLC56. Vertical Venture Partners57. VI Partners

2 To those 56 incorporations in the Private Equity & Venture Capital market , we should add 5 international GPs whose name are confidential although their aggregate activity in 2020 is reflected in this survey.

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Notes

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2021 SURVEYVenture Capital & Private Equity activity in Spain

Private Equityand Venture Capital:Part of the solution

Venture Capital & Private Equity activity in SpainVenture Capital & Private Equity activity in Spain

SURVEYVenture Capital & Private Equity activityin Spain

2021

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