The Portugal Fintech Report 2020

Ecosystem

Snapshot

KEY FINDINGS

Harboring the belief that the Portuguese fintech ecosystem is the most candid and truest source of information in itself, Portugal Fintech conducted an open survey to reach key findings to better understand where we stand and where we want our future to lead us.

FINTECHS PER VERTICAL

In terms of distribution per vertical, Portuguese Fintechs are biasing towards Payments & Money Transfers, Insurtech and Blockchain &  Crypto verticals.

Source: 2020 Portugal Fintech Survey

MOST POPULAR FOUNDING YEAR

2018

2020

11% of companies were founded in 2020

17% of companies were founded in 2018

2019

14% of companies were founded in 2019

2017

14% of companies were founded in 2017

...

Source: 2020 Portugal Fintech Survey

TOTAL FUNDING TO DATE FROM TOP 30 FINTECHS

€ 275,863,900

The top 30 Fintechs have raised on aggregate over € 275 million euros.

Source: 2020 Portugal Fintech Survey

SIZE

Most companies (69%) have up to

STAGE

of companies are pre-seed

13%

22%

of companies are between Series A and C

22 EMPLOYEES

with 31% being later.

Source: 2020 Portugal Fintech Survey

43%

of companies are seed

22%

are either bootstrapped or from later stages

Source: 2020 Portugal Fintech Survey

STILL ABOUT FUDING...

The top three verticals with regards to funding are:

The top three regions with regards to funding are:

Approximately 

29%

of funding comes from external capital (international players)

Source: 2020 Portugal Fintech Survey

GEOGRAPHIC DISTRIBUTION

Lisbon, Porto and Braga are the main Fintech hubs for the Portuguese-based companies. Outside of Portugal, most of Portuguese companies are based in the UK, the US and Spain.

Source: 2020 Portugal Fintech Survey

OTHER INTERESTING FIGURES

GREATEST HARDSHIP

MAIN AREA TO IMPROVE

When asked about their opinion on hardships, Fintechs showed to be struggling with the sales cycle. Regarding the areas they thought should be improved, similarly to the previous year regulation is the first priority, followed by access to market.

Source: 2020 Portugal Fintech Survey

TALENT

In a world of fast-paced, continuous innovation, talent is an imperative need.

93,800

PROFESSIONAL DEVELOPERS

In Portugal in 2019, versus 89,600 in 2018.

Source: 2020 Portugal Fintech Survey

#43

SKILLS
COMPETITIVENESS

Portugal in worldwide ranking of general level of skills of the workforce and the quantity and quality of education.

Source: World Economic Forum, 2019

#28

BUSINESS DYNAMISM 
COMPETITIVENESS

Portugal in worldwide ranking of capacity to generate and adopt new technologies and new ways to organize work.

Source: World Economic Forum, 2019

TOTAL FTE ALLOCATED TO RESEARCH & DEVELOPMENT

ESTIMATE OF THE INCREASE IN THE COST OF TALENT

Source: Pordata

Source: 2020 Portugal Fintech Survey

WHAT IS THE MOST DIFFICULT TO FIND OR HIRE IN THE JOB MARKET?

Source: 2020 Portugal Fintech Survey

Source: 2020 Portugal Fintech Survey

CAPITAL

Capital is oxygen. Thus, startups having a wider access to investment and capital is a reflection of an economy which believes in, pushes and capacitates innovation.

WHAT ARE THE GREATEST OBSTACLES WHEN APPROACHING INVESTORS?

WHICH DO YOU SEE INVESTORS POINTING OUT AS POSITIVE CHARACTERISTICS OF PORTUGUESE FINTECHS?

Source: 2020 Portugal Fintech Survey

Source: 2020 Portugal Fintech Survey

TOTAL EXPENDITURE WITH RESEARCH & DEVELOPMENT (€ thousands)

€ 132,877,772

TOTAL AMOUNT RAISED IN JUNE YTD

By Portuguese startups in a total of 25 rounds, according to a monthly activity report.

Source: Portugal Startup Scene July 2020, by Pedro Almeida

Source: Pordata

POLICY AND REGULATION

Policymakers and regulators are key to unlock the potential of a country to encourage collaboration, creativity and innovation.

#31

INNOVATION CAPABILITY
COMPETITIVENESS

Portugal in worldwide ranking of R&D and environment for collaboration and innovation.

Source: World Economic Forum, 2019

#96

BURDEN OF GOVERNMENT REGULATION

Portugal in worldwide ranking, scoring on average 3.1 on a scale of 1 to 7 where 1 is ‘extemely burdensome’.

Source: World Economic Forum, 2019

DO YOU BELIEVE FINTECHS NEED STRONGER TIES WITH THE GOVERNMENT?

DO YOU BELIEVE REGULATORS ACT WITH THE FINTECH STARTUPS’ INTERESTS IN MIND?

Source: 2020 Portugal Fintech Survey

DO YOU BELIEVE THERE HAS BEEN AN IMPROVEMENT IN ACCESSIBILITY TO PORTUGUESE REGULATORS?

Source: 2020 Portugal Fintech Survey

WHAT IMPACT DO YOU ESTIMATE REGULATION TO HAVE HAD ON YOUR FINTECH IN THE PAST 12 MONTHS?

Source: 2020 Portugal Fintech Survey

Source: 2020 Portugal Fintech Survey

A vibrant ecosystem with no signs of slowing down

S

ince we first launched a report reflecting the state of the industry, much has changed. Looking back, it is astonishing to see how much we have evolved, how much we have grown.

 

Regulators have worked to build a bridge between regulation, legislation and the Fintech space by re-launcing the Portugal Finlab with a second edition and taking steps towards the implementation of a Regulatory Sandbox. The community has grown and matured, and with that also the need to collaborate has risen – with that purpose in mind, the Fintech House opened doors in the beginning of 2020 and has over 40 startups and 25 partners under the same roof. Even after the outbreak of Covid-19 Pandemic, we saw Fintech join forces to bring value to Society with its solutions at a time when digitalization and technology shed light on a dark pitcture.

What will the future hold for an ecosystem that shows no signs of slowing down?

 
 
Architectural Structure

DRIVERS & TRENDS

By: Gabriel Coimbra

Group Vice-President & Country Manager

FINDING THE NEXT NORMAL: 2020 TECHNOLOGY SOURCING LEADERSHIP IMPERATIVE

DIGITAL TRANSFORMATION SPEND IMPACTED BY COVID-19

Prior to COVID-19, digital transformation (DX)-related spending was projected to grow at unprecedented rates. Although the pandemic has certainly had a significant impact ($500 billion three-year forecast downward adjustment), growth rates remain strong in certain sectors (see Figure 1). Furthermore, the 2020 spending forecast for certain DX use cases remains strong according to IDC’s Worldwide Digital Transformation Spending Guide, April 2020.

 

Similarly, based on a global IDC survey of over 800 executives, 42.7% of enterprises will spend less on IT than originally budgeted. Although this may seem like a dire forecast, 27.6% of survey respondents did not anticipate any impact on their IT spending. Furthermore, 26.8% anticipated higher spending than budgeted.

 

WORLDWIDE DX GROWTH RATE BY SECTOR: BEFORE AND AFTER THE COVID-19 IMPACT, 2020

Source: IDC’s Worldwide Digital Transformation Spending Guide Use Case Forecast, version 1, April 2020

BE PREPARED

A

t last, you may think, some positive data. Before celebrating, consider that over 65% of enterprises were not prepared to respond to COVID-19. Consider supply chain resiliency, which has been challenged by the pandemic.

As cloud ecosystems have expanded, the supply chain has been something of an adoption laggard, and the resulting resiliency of supply chain IT systems has become more difficult to assess. For example, an ERP application may be hosted in a resilient cloud environment in one or more geographic locations. As with all critical applications, the operation ERP solution is dependent on regular updates, patches, and support provided by geographically dispersed teams.

Furthermore, these teams depend on collaboration applications that are hosted in yet other cloud environments. Accordingly, the reliance of the supply chain is highly dependent on the capability of the global organization to communicate and work effectively. COVID-19 exposed weaknesses in this cloud supply chain as enterprises scrambled to supply their team members with computing resources in remote locations where reliable broadband and, in some cases, electricity were not available.

IT SOURCING/PROCUREMENT AGILITY KEY TO QUICK RESPONSE

Although there are a number of reasons why the response was slow, a major contributing factor is the agility, or lack thereof, within IT sourcing/ procurement organizations.

Another recently conducted IDC survey correlates the pandemic response with the effectiveness of IT sourcing/procurement organizations. Enterprises that were able to quickly implement changes as a result of COVID-19 were supported by highly effective and agile IT sourcing/procurement organizations. Conversely, enterprises that were slow at responding to COVID-19 challenges do not have effective agile IT sourcing/procurement organizations.any impact on their IT spending. Furthermore, 26.8% anticipated higher spending than budgeted.

DX MORE CHALLENGING TO IT SOURCING/ PROCUREMENT THAN COVID-19

N

ow, with all the focus on COVID-19 crisis response, it appears that many IT sourcing/ procurement organizations have lost focus on what used to be most enterprises’ number 1 priority — digital transformation. Accordingly, IDC survey data shows that many enterprises no longer rely 

on IT sourcing/procurement to assist in their DX initiatives, which, as pointed out previously, continue to grow at rapid, albeit slightly reduced, rates. According to IDC survey data, the most digitally oriented enterprises are dissatisfied with the effectiveness of their IT sourcing/procurement organizations.

In enterprises where a significant amount of business (>50%) comes from digital products, services, or channels, executives are far less satisfied with the effectiveness of the IT sourcing/ procurement organization in supporting the business than enterprises where a relatively small amount of business (<50%) comes from such digital products, services, or channels. In a nutshell, the bar is set much higher in digitally motivated organizations as IT sourcing/ procurement organizations are challenged by new delivery models, sourcing strategies, and contract negotiations for technologies required for digital transformation. Accordingly, our clients at IDC consistently engage us to help formulate agile technology sourcing strategies and develop corporatewide IT sourcing/procurement policies that are effective at supporting critical DX initiatives.

With the aforementioned situation in mind, in this document and in the following series of documents, we explore the characteristics of IT sourcing/procurement organizations that are effective at supporting their businesses. Furthermore, we provide actionable advice to help executives transform their IT sourcing/ procurement operations for more effective digital transformation and recovery from the pandemicinspired recession.

FROM CRISIS RESPONSE TO FINDING THE NEXT NORMAL

As mentioned previously, IDC survey data indicates that IT sourcing/procurement organizations have succeeded at responding to the COVID-19 crisis as well as dealing with the economic slowdown. The latest IDC survey data shows that 41% of enterprises globally are either returning to growth or aggressively pursuing the next normal. For these enterprises, the priority is no longer the pandemic response or the global economic slowdown. Digital transformation is once again a priority.

To be effective, the IT sourcing/procurement organizations supporting these enterprises must shift priorities accordingly. Unfortunately, this is not the case, especially in enterprises that rely on DX for their revenue sources. As a result, it is imperative for IT sourcing/procurement executives to understand where their enterprises are positioned along the recovery curve. Operating in crisis mode while your business is returning to growth and focusing on new investments will create misalignment and even prolong the road to recovery for the enterprise.

BUSINESSES RETURNING TO GROWTH AND FINDING THE NEXT NORMAL

Source: IDC’s COVID-19 Impact on IT Spending Survey, July 2020

EMERGING TECHNOLOGIES DRIVE DIGITAL TRANSFORMATION

As discussed previously, the majority of enterprises are no longer battling the crisis or focused on survival. Over 50% of enterprises have moved on to transform and grow the business. IDC expects this trend to continue. In fact, survey data shows that nearly 80% of enterprises are either implementing significant business transformation initiatives powered by disruptive technologies or are using disrupting technologies in limited production environments.

CHANGING PRIORITIES FOR IT SOURCING/PROCUREMENT ORGANIZATIONS

IDC’s recent survey data indicates that technology sourcing and procurement organizations are operating in crisis mode, focusing on the immediate concerns of the pandemic, while line-of-business leaders look to implementing business transformation initiatives leveraging emerging and disruptive technologies. In fact, according to IDC executive survey respondents, the number 1 priority for increasing the effectiveness of IT sourcing and procurement is the effective procurement of emerging technologies such as cloud, SaaS, PaaS, IoT, AI, and Big Data. On the other end of the spectrum, according to survey respondents, issuing RFPs and the effective administration of purchase orders and invoices are functions that are least likely to improve the effectiveness of procurement organizations if performed at the highest level of effectiveness.

WHERE IS YOUR ENTERPRISE ALONG THE EMERGING/ DISRUPTING TECHNOLOGY CONTINUUM?

ARE YOUR TECHNOLOGY SOURCING/ PROCUREMENT RESOURCES SUPPORTING AND LEADING THE BUSINESS TRANSFORMATION ACTIVITIES?

IS YOUR PROCUREMENT ORGANIZATION STILL OPERATING IN CRISIS MODE AND STILL FOCUSED ON IMMEDIATE CONCERNS OF THE PANDEMIC?

WHAT CHANGES TO YOUR PROCUREMENT OPERATIONS WOULD MOST IMPROVE THE EFFECTIVENESS OF YOUR IT SOURCING/ PROCUREMENT ORGANIZATION?

 

ARE YOU FOCUSED ON MAKING THE RIGHT CHANGES?

 

ARE YOU SPINNING YOUR WHEELS MAKING CHANGES THAT WILL NOT AMOUNT TO MUCH FROM A BUSINESS PERSPECTIVE?

DRIVERS & TRENDS

By: Luís Roquete Geraldes

Francisco Vieira de Almeida

Inês Agapito

Team Genesis @ MLGTS

FUNDRAISING: CONVERTIBLE INSTRUMENTS (AND THE WRONG WAY OF USING THEM)

A

key aspect to running a successful emerging company, regardless of its development stage, is to ensure the company has access to capital to fund its operations. There are multiple funding options to raise capital and, most often, emerging companies resort to equity rounds, conver-

tible debt or convertible equity. There is a series of factors that need to be considered when it comes to selecting one (or more) of the available financing options, such as the growth stage, timings, the target investment amount, runway, size and industry of the business. 

Within this context, in late 2013, the famed Y Combinator introduced the Simple Agreement for Future Equity (“Safe”), which has since emerged as the main instrument used for early stage fundraising. The Safe is an agreement whereby the investor is granted (i) the right to receive shares of the target company upon the occurrence of the next equity financing (i.e. when the target company raises a priced round, the outstanding Safes will automatically convert), or (ii) the right to receive certain amounts upon the occurrence of other trigger events, including a sale of the target company.

The number of shares to be issued to the Safe holder is determined at the next priced round, when institutional investors (typically VCs) set the price for preferred shares. Then, using the Valuation Cap or the Discount Rate (as such terms are explained below), the Safe will often convert into preferred shares at a lower price per share than the institutional investors paid.

Entrepreneurs seeking investment typically struggle to understand the main differences between a Safe and a convertible note. While the latter is a debt instrument, the Safe is generally accepted and classified as a quasi-equity instrument, as it non-reimbursable and it does not carry interest or a maturity date, i.e., the Safe will remain outstanding unless the Safe holder is issued preferred shares in connection with a priced financing round or receives certain amounts in connection with a liquidity or dissolution event. Further, a convertible note will typically convert into equity upon the occurrence of a qualified priced round (i.e. a priced round in which the company raises a pre-determined minimum amount) whereas conversion of a Safe will be triggered upon the occurrence on any bona fide priced round, regardless of the amount being raised.
 

The Y Combinator made available four different types of Safes, including different features:
 

a) Safe: Valuation Cap, no Discount;

b) Safe: Discount, no Valuation Cap;

c) Safe: Valuation Cap and Discount; and

d) Safe: MFN, no Valuation Cap, no Discount.

The Valuation Cap is a feature that has been introduced to benefit early stage investors for taking additional risk. In brief, the valuation cap sets the maximum price that the Safe will convert into equity upon the occurrence of an equity round. Likewise, the Discount feature sets forth that the price per each share subscribed by the Safe holder will carry a discount, which typically ranges between 10% to 20% of the price per share paid in next equity round. Finally, the MFN feature (or Most Favored Nation clause), means that if the target company subsequently issues Safes with provisions that would be advantageous to the holders of outstanding Safes (such as a valuation cap and/or a discount rate), such Safe holders may choose to amend their Safes to reflect the terms of the later-issued (and more favorable) Safes.

PRE-MONEY SAFE VS POST-MONEY SAFE

A

few years after releasing the initial version of the Safe (the “Pre-money Safe”), the Y Combinator unleashed an updated version, the “Post-money Safe”,  which  includes  significant  changes  on how dilution is  calculated.  The  key  takeaway  is that the Post-money Safe is the best 

instrument for both founders and investors to understand ownership and calculate exactly how they will be diluted in subsequent financing rounds, thus making sure that the founders no longer have a hard time deciding how much to fundraise while ensuring they sell the intended percentage of their company.

PROS OF THE SAFE

a) The Safe is a simple, straightforward and short document that significantly simplifies and accelerates the fundraising process, notably due to its standardized form and limited set of variable terms (such as the discount, the valuation cap and the most favored nation);

b) Given the simple and standardized form of the Safe, there will be less negotiation;

c) Decreased negotiation time will lead to lower transaction costs and more efficiency;

d) Safes are quasi-equity, as opposed to being convertible debt so, from an accounting perspective, Safes are registered in the left side of the balance sheet;

e) Safes do not carry interest nor a maturity date, which provides the company with additional flexibility as regards to timing of subsequent financing rounds;

f) Founders and investors defer the discussion about the valuation of the target company to a later stage.

STRATEGIC GUIDANCE AND SUBOPTIMAL SCENARIOS:

KEY TAKEAWAY

BE SURE TO LOCALIZE THE SAFE TEMPLATE

The Y Combinator Safe templates are open sourced for founders and investors to use as they may deem fit. However, and even though the Safe templates provide a satisfactory starting point, we strongly encourage founders and investors to have their lawyers reviewing the document. This is particularly the case with target companies incorporated outside the United States of America, as the Safe templates should always be “localized” pursuant to the laws of the country of incorporation of such company

KEY TAKEAWAY

BE SURE TO ADEQUATELY CHOOSE THE SAFE’S GOVERNING LAW

The Safe should be governed by the applicable laws of the target’s country of incorporation. Just downloading the Safe template form the Y Combinator’s website and using it for a Portuguese target “as is” is just asking for trouble and hemorrhaging money with legal costs down the road.

KEY TAKEAWAY

ALL OUTSTANDING CONVERTIBLE INSTRUMENTS SHOULD BE THE SAME AND HAVE THE SAME TERMS

Having multiple convertible instruments outstanding with different terms and conditions (notably discount, valuation cap and trigger events but also SAFEs along with convertible notes or along with advanced subscription agreements) can be tremendously cumbersome to manage, notably in connection with the conversion of such instruments, as most often the parties have different interpretations of the conversion scenarios and such may hinder or impair future financing rounds. Founders often overlook the conversion mechanics of different instruments but, as a cautionary tale, we have seen quite a fair share of “broken cap tables” owing to different convertible instruments and varying terms.

KEY TAKEAWAY

DO THE MATH AND AGREE ON A FULLY DILUTED CAP TABLE

Before entering into any convertible instruments, founders and investors should have full visibility on the fully diluted cap table to ensure alignment between the parties on each of the conversion scenarios. Failure to do so may significantly delay closing of future financing rounds and will create significant discomfort with the early investors.

KEY TAKEAWAY

AVOID HAVING SIDE LETTERS WHICH TRANSFORM A CONVERTIBLE ROUND INTO AN EQUITY ROUND

The purpose of a convertible instrument is to streamline the funding process and try to close as swiftly as possible. Side letters tend to add an extra layer of complexity, thus slowing down the investment process as additional negotiation will be required, notably to make sure the terms and conditions set forth under the side letter will not hinder or impair future financing rounds. Furthermore, some investors will agree to a Safe provided they can have “equity round-like” rights granted under a side letter. Remember: a side letter can be perfectly fine (for instance, when it offers some assurances in case of an exit) but one should be on the lookout for side letters which mimic or actually legislate for what will occur in the next round.

DRIVERS & TRENDS

By: Filipa Franco

Head of Listing, Euronext Portugal

WHY IT IS THE RIGHT TIME TO LOOK FOR CAPITAL MARKETS’ FINANCING

F

or all executives in charge of running and fostering a company’s growth, finding and securing the right funding at the right time is crucial.

On last year’s report I shared my views on “why your ambition should be IPO-driven”, highlighting capital markets’ benefits and specificities. I also addressed a few myths and prejudices surrounding this funding alternative (which can be considered the most liberating route), offering management freedom of action while accelerating companies’ growth. 

In this peculiar year, marked by the COVID-19 outbreak, funding remains a central topic and capital markets have shown to still play a pivotal role in supporting innovative businesses in times of crises. 

As always, capital markets and investor behaviour reflect economic circumstances: in times of prosperity, all economic agents are driven by optimism and growth perspectives (a causal situation known as bullish markets). In less prosperous times, economic agents will turn bearish, more cautious in their decision-making, either on stock selection or companies’ valuations. 

Unsurprisingly, in times of unprecedent uncertainty, as we have faced since the end of February, capital markets registered extraordinary trading volumes, volatility and an abrupt fall of stock prices. However, over the past weeks, with improved visibility on the pandemic’s impact, capital markets’ performance gradually normalised and many issuers seized opportunities to capture new funding:

  • By early June, the Euronext 100 index had recovered almost half its losses and was down by only 11% since the start of the year, with tech companies appearing to be one of the most resilient in this crisis. In fact, in our newly digitalised world, tech businesses have either registered significant growth or seen their business models rapidly validated. Tech companies listed on Euronext registered an 18% market cap valuation increase and over €3bn funds’ inflow in 2020, second only to health care companies (which, business-wise, are naturally the main beneficiaries of a health crisis).

  • Equity capital markets’ (ECM) activity gradually yet significantly increased, both on primary and secondary deals. In H1 2020, ECM volumes across Europe reached €61bn, 45% more than in 2019. The 246 executed deals were primarily directed at strengthening balance sheets and liquidity purposes (60% of the deals) and the remaining 40% accounting for funds raised to finance growth opportunities, either organically or through acquisitions.

Debt capital markets (DCM) also recorded historic highs, especially in February, when existing issuers quickly secured funding from their ongoing debt programmes. Over €1.2tn was raised on Euronext markets since January. Sustainable bonds gained market share as investor demand for ESG inclusion factors increased, and ESG-compliant issuers and firms raising capital sought to benefit from the increased visibility, improved investor profile and lower interest rates that ESG compliance can bring. Naturally, most of those deals were performed by existing issuers, who benefited from continued support and a facilitated access to funding, a relevant competitive advantage over privately held companies. Either during an economic crisis, when access to funding is critical (yet more challenging), or when an opportunity comes up, requiring funding on a specific moment (for instance an acquisition), the ability to timely raise money is key to the success of a company. 

However, as market conditions significantly improved, IPOs gradually returned to the market. Tech businesses led new listing ambitions throughout Europe as they demonstrated their businesses’ ability to succeed in the new post-COVID-19 environment while still meeting investors’ appetite. 

 

At Euronext, we welcomed 22 technology companies since the beginning of the year, among which: Pexip (a videoconference provider), Nyxoah (a medtech developing an innovative solution against sleep apnea) and Unifiedpost (a fintech specialised in the optimisation of the electronic processing of invoice flows and other administrative documents). 

In total, tech companies have raised €1.42bn on Euronext markets this year for an aggregated market cap of €7.72bn

LOOKING BACK ON RECENTLY LISTED COMPANIES, TWO CONCLUSIONS CAN BE HIGHLIGHTED

  • Even in times of increased uncertainty, capital market investors are keen to support and invest in resilient businesses and growth strategies;

  • In spite of the social distancing measures imposed, virtual roadshows took the lead and paved the way forward, factually grounding their ability to connect companies and investors in an effective, cost-saving and environment-friendly way. This proved an important support for all issuers, as it allowed companies to increase the number of potential investors they could market their business to. It became particularly relevant for smaller companies, or those based outside the main financial centres, who were previously required to make a stronger effort to connect with investors.

IT CAN ALSO BE NOTED THAT EUROPEAN FINTECH PLAYERS ARE AMONG BEST PERFORMERS ON EURONEXT MARKETS

Adyen: the Dutch leading, worldwide provider of payment solutions continued its extraordinary performance since its €7bn IPO in mid-2018, reaching €48bn in market cap in September 2020 (+585%). Throughout this period, pre-IPO shareholders gradually sold their shares, increasing free float from 13% to 80%, benefitting from the company’s significant growth performance and corresponding valuation.

 

Unifiedpost: A Belgian fintech, specialised in the optimisation of electronic processing of invoice flows and other administrative documents, executed its successful listing in September. With the ambition to become the leading pan-European cloud-based platform for SME business services built on documents, identity and payments, the company raised €252m, effectively valuing the company at €608m in market cap on its listing day. The private placement, priced at the high-end of the offer range, was oversubscribed and executed in 2 days, benefitting from 6 investors who had previously committed €87m (securing cornerstone investors ahead of the offer period is an effective risk mitigation strategy in Europe, and becoming increasingly popular with younger companies and/or offers placed during higher volatility periods). We are proud to see one more alumni from TechShare, Euronext’s pre-IPO programme designed for tech companies, taking this decisive step.
 

A FINAL NOTE ON ANOTHER TREND EMERGING FROM THIS CRITICAL SITUATION

An increased awareness towards sustainable business models and activities, either focusing on environment, social and/or governance goals. As always, capital markets are leading the way with investors moving funds towards sustainable companies, ensuring that and those that succeed on an effective ESG performance and communication will benefit from increased access to funding by securing a broader investor base.

Capital markets thus remain an appealing and available financing alternative for those who – regardless of their size – have the ambition to independently pursue their vision and business strategy while demonstrating the resilience and suitability of their businesses in spite of the current economic and social environment. In this regard, tech companies were granted a significant competitive advantage over other companies, thanks to a superior and more favourable market sentiment.