Impact of the Corona crisis on startups & tech - INITIAL FINDINGS 24 MARCH 2020 - Blog ...
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Impact of the Corona crisis on startups & tech INITIAL FINDINGS 24 MARCH 2020
Impact of the Corona Crisis on startups & tech
Amazon and Netflix have outperformed the market. Apple, Google,
Facebook have been performing roughly in line.
Current market cap
Share price performance % change since 31 Jan
40% January 31 Ecommerce $ 919B
Platform (0.6%)
20%
TV $ 146B
Streaming (3%)
0%
Search $ 735B
(10%) Advertising (27%)
(20%)
$ 1.0T
Electronics
(29%)
(30%)
S&P500 - (32%)
(40%)
Social $ 427B
2 dec 2019 23 dec 2019 15 jan 2020 6 feb 2020 28 feb 2019 20 mar 2020 Advertising (33%)
Source: Dealroom.co, Google Finance as of March 21.
Page / 2 March 2020
Impact of the Corona Crisis on startups & tech
Video conferencing, food delivery and health are outperforming the market.
Current market cap
Share price performance % change since 31 Jan
80% Video conferencing $ 36B
January 31
SaaS 77%
60%
Telemedicine $ 10B
40% Health 37%
20%
Food $ 10B
Groceries 4%
0%
$ 6B
(20%) Games
(2%)
(40%)
Food $ 14B
Delivery (6%)
(20%)
S&P500 - (33%)
2 dec 2019 23 dec 2019 15 jan 2020 6 feb 2020 28 feb 2019 20 mar 2020
Source: Dealroom.co, Google Finance as of March 21.
Page / 3 March 2020
Impact of the Corona Crisis on startups & tech
Travel, advertising, retail and mobility have been hit hard.
Current market cap
Share price performance
% change since 31 Jan
40% S&P500 (33%)
January 31
20%
Real estate $ 4.0B
Marketplace (36%)
0%
Mobility & $ 37B
Food delivery (42%)
(20%)
Retail $ 17B
(40%) Payments (50%)
(60%) Advertising
$ 34B
(50%)
(80%)
$ 7.0B
Mobility
(55%)
2 dec 2019 23 dec 2019 15 jan 2020 6 feb 2020 28 feb 2019 20 mar 2020
$ 7.0B
Travel
(56%)
Source: Dealroom.co, Google Finance as of March 21.
Page / 4 March 2020Impact of the Corona Crisis on startups & tech
Most big Asian companies have performed relatively better, except Recruit
Holdings (jobs & recruitment)
Current Market cap
Share price performance % change since 31 Jan
Diversified $ 430B
Internet (4%)
20% January 31
Ecommerce $ 486
10% platform (15%)
Ecommerce $ 39B
0%
platform (17%)
(10%) $ 32B
Electronics
(19%)
(20%)
Search $ 31B
Advertising (30%)
(30%)
Job search & $ 9B
recruitment (42%)
2 dec 2019 23 dec 2019 15 jan 2020 6 feb 2020 28 feb 2019
Source: Dealroom.co, Google Finance as of March 21.
Page / 5 March 2020Impact of the Corona Crisis on startups & tech
Health, streaming, gaming, ecommerce, food delivery and (most) SaaS are
outperforming the market.
Share price performance since 31 January
20%
13%
10%
–
(4%)
(10%) (8%)
(13%)
(20%) (15%)
(17%)
(20%) (20%)
(23%) (24%) Market (1)
(30%) (26%) (26%) (27%)
(30%) (30%) (31%) (31%)
(32%)
(40%) (38%) (38%) (38%) (39%)
(40%)
(41%)
(45%)
(50%)
(49%) (50%)
(60%)
Source: Dealroom.co and Google Finance.
1) Note: Nasdaq and S&P500 dropped roughly 25% in the same period.
Page / 6 March 2020Page / 7
€100B
€120B
€140B
€160B
€180B
€20B
€40B
€60B
€80B
–
SAP (Saas , -24%)
ASML (Semiconductors , -20%)
Siemens (Diversified , -42%)
March 2020
Booking.com (Travel , -38%)
WPP (Marketing , -50%)
Dassault Systems (Diversified , -22%)
Philips (Diversified , -26%)
Source: Dealroom.co and Google Finance.
Spotify (Streaming , -12%)
Adyen (Fintech , -12%)
Amadeus (Travel , -45%)
NXP (Semiconductors , -45%)
IHS Markit (Fintech , -40%)
Wolters Kluwer (Consulting , -17%)
Nokia (Communications , -29%)
Impact of the Corona Crisis on startups & tech
Stmicro (Semiconductors , -41%)
Lost value since 31 January
Infineon (Semiconductors , -45%)
Delivery Hero (Food , -6%)
Hexagon (Semiconductors , -31%)
WireCard (Fintech , -36%)
Ocado (Food , 4%)
Capgemini (Consulting , -43%)
TakeAway.com (Food , -21%)
Yandex (eCommerce , -35%)
Worldline (Fintech , -27%)
WorldPay (Fintech , -37%)
Zalando (Fashion , -29%)
Iliad (Cable , -1%)
Temenos (Fintech , -37%)
Axel Springer (eCommerce , 0%)
Sage Group (Fintech , -27%)
Zendesk (SaaS , -34%)
TeamViewer (Saas , -6%)
JustEat (Food , 25%)
Nexi (Fintech , -32%)
Scout24 (Car Sales , -22%)
United Internet (Cable , -17%)
Ingenico (Fintech , -15%)
Nemetschek (Saas , -44%)
HelloFresh (Food , 5%)
in value, down 33% from €1.1 trillion to €0.8 trillion.
Rightmove (Real Estate , -36%)
ASM (Semiconductors , -36%)
Elastic (Saas , -25%)
AutoTrader (Car Sales , -35%)
Kinnevik (Internet , -36%)
Avast Software (Security , -32%)
Boohoo.com (Fashion , -38%)
Rocket Internet (Internet , -21%)
Farfetch (Fashion , -36%)
Ericsson (Communications , -5%)
Moneysupermarket (Fintech , -24%)
The Trainline (Travel , -53%)
Zur Rose (Health , 9%)
ASOS (Fashion , -61%)
Zooplus (Pet food , 36%)
Shop Apothekee (Health , 10%)
Trivago (Travel , -45%)
Global Fashion Group (Fashion , -29%)
GoCompare (Fintech , -48%)
On The Beach (Travel , -61%)
Boozt Fashion (Fashion , -13%)
Lastminute.com (Travel , -55%)
Funding Circle (Fintech , -39%)
Edreams Odigeo (Travel , -66%)
Purplebricks (Real estate , -60%)
Holidaycheck (Travel , -57%)
The most valuable European tech & internet companies lost a combined €383 billion
Hostelworld (Travel , -67%)Page / 8
–
20%
40%
60%
(80%)
(60%)
(40%)
(20%)
Zooplus (€ 0.7B, eCommerce)
36%
JustEat (€ 5.5B, Food)
25%
Shop Apothekee (€ 0.7B, Health)
10%
March 2020
Zur Rose (€ 1.1B, Health)
HelloFresh (€ 4B, Food)
Ocado (€ 10.3B, Food)
Axel Springer (€ 6.8B, Marketplaces)
Source: Dealroom.co and Google Finance.
Iliad (€ 7B, Communications)
Ericsson (€ 1.9B, Communications)
(5%)
TeamViewer (€ 5.8B, Saas)
Delivery Hero (€ 14.1B, Food)
Spotify (€ 21.5B, Streaming)
Adyen (€ 21.3B, Fintech)
Boozt Fashion (€ 0.2B, Fashion)
Impact of the Corona Crisis on startups & tech
Ingenico (€ 4.7B, Fintech)
United Internet (€ 5.1B, Communications)
(17%)
Wolters Kluwer (€ 16.6B, SaaS)
ASML (€ 94B, Semiconductors)
Rocket Internet (€ 2.4B, Diversified internet)
TakeAway.com (€ 9.6B, Food)
Dassault Systems (€ 34.9B, SaaS)
Scout24 (€ 5.2B, Marketplaces)
(22%)
SAP (€ 118B, Saas)
Moneysupermarket (€ 1.4B, Fintech)
Elastic (€ 3.8B, Saas)
Philips (€ 29.5B, Diversified)
Sage Group (€ 6.5B, Fintech)
Worldline (€ 8.8B, Fintech)
(27%)
Global Fashion Group (€ 0.3B, Fashion)
Nokia (€ 15B, Communications)
Zalando (€ 7.5B, Fashion)
Hexagon (€ 11.9B, Semiconductors)
Nexi (€ 5.3B, Fintech)
Avast Software (€ 3.4B, Security)
(32%)
Zendesk (€ 6B, Communications)
AutoTrader (€ 3.7B, Car Sales)
Yandex (€ 9.2B, eCommerce)
Farfetch (€ 2.3B, Fashion)
Kinnevik (€ 3.7B, Internet)
(36%)
ASM (€ 3.8B, Semiconductors)
Rightmove (€ 4B, Real Estate)
WireCard (€ 10.5B, Fintech)
WorldPay (€ 8.5B, Fintech)
Temenos (€ 6.8B, Fintech)
(37%)
Booking.com (€ 45B, Travel)
Boohoo.com (€ 2.4B, Fashion)
Funding Circle (€ 0.2B, Fintech)
IHS Markit (€ 17.8B, Fintech)
Stmicroelectr. (€ 15B, Semiconductors)
Siemens (€ 54B, Diversified)
Capgemini (€ 10.2B, Consulting)
Nemetschek (€ 4.1B, Saas)
(44%)
NXP (€ 19.1B, Semiconductors)
Amadeus (€ 19.3B, Travel)
Infineon (€ 14.6B, Semiconductors)
Trivago (€ 0.5B, Travel)
GoCompare (€ 0.2B, Fintech)
WPP (€ 36.7B, Marketing)
The Trainline (€ 1.2B, Travel)
(53%)
The most valuable European tech & internet companies: absolute % change.
Lastminute.com (€ 0.2B, Travel)
Holidaycheck (€ 0.1B, Travel)
Purplebricks (€ 0.1B, Real estate)
ASOS (€ 1.1B, Fashion)
On The Beach (€ 0.2B, Travel)
Edreams Odigeo (€ 0.2B, Travel)
Hostelworld (€ 0.1B, Travel)
(67%)Impact of the Corona Crisis on startups & tech
Structural vs. cyclical impact: a mental framework.
Structural positive
Collaboration Both Structural and cyclical
software impact, because crisis is
Telehealth
accelerating a trend that
Passion economy and Passion Online groceries Meal kits was already underway.
freelance could benefit from economy
social distancing in the long Freelance
Food delivery
run (more controversial) Biotech
Staples
eCommerce
Online eduction
Discretionary
eCommerce
Telecom/ Streaming Gaming
Real estate hosting video/music
Fintech
Cyclical negative Jobs Cyclical positive
Travel Frontier tech Cleantech
Restaurant tech
Will the sharing economy Sharing Gig economy
bunce back fully or only economy
partially? Ride hailing
Car sharing
Structural negative
Source: Dealroom.co
Page / 9 March 2020Impact of the Corona Crisis on startups & tech
Publicly listed venture capital funds and diversified internet holdings.
Current % change
Selected portfolio companies
market cap since 31 Jan
Prosus € 104B (20%) Tencent, Delivery Hero, Mail,ru, Swiggy, Udemy, Byju's, Letgo
Global consumer internet giant
Axel Springer € 6.8B 0% Uber, Business Insider, Purplebricks, Dott, N26, Careship, Magic Leap
European marketplaces and media group
Adevinta € 4.3B (42%) Leboncoin, Fotocasa, Infojobs, Coches, Milanuncios, Kodit, Medwing, Flatfair, Shpock, Lendo
European marketplaces group
Eurazeo SE € 3.4B (36%) Europcar, Farfetch, Desigual, Doctolib, Meero
Listed European VC fund
Rocket Internet € 2.4B (21%) Global Fashion Group, Home24, Caterwings, Helpling, Personio, Easy Taxi, Proprio, Vaniday
Startup builder and GP of GFC
Draper Esprit € 372M (45%) N26, Transferwise, Revolut, Graphcore, Ledger
Listed European VC fund
Vostok New Ventures € 302M (40%) Babylon Health, Gett, Voi Technology, Propertyfinder
Listed European VC fund
Augmentum Fintech € 78M (39%) Zopa, Tide, Interactive Investor, Grover
Listed European VC fund
Digital Magics € 26M (41%) Hyperloop, Talent Garden, Buzzoole, DeRev
Listed European VC fund
H-Farm € 19M (43%) WiFi Skeleton key, Depop
Listed European VC fund
LVenture Group € 17M (36%) 2Hire, Soundreef, Codemotion, Apical
Listed European VC fund
Source: Dealroom.co, Google Finance as of March 21.
Page / 10 March 2020Impact of the Corona Crisis on startups & tech
Initial startup surveys indicate immediate cash flow issues for many startups.
Meanwhile, well over two-thirds (1) of startups are not venture backed.
In the Nordics, 38% of startups have plans to reduce their In the Netherlands, over half of startups expect to run out of
workforce (by thehub.io). money in three months (by techleap.nl).
Source: TeachLeap (techleap.nl) and The Hub (thehub.io).
1. Source: Dealroom.co analysis in Amsterdam and Berlin.
Page / 11 March 2020Impact of the Corona Crisis on startups & tech
Startups are still slightly better off than most small business. According to JP
Morgan, more than half of small business hold less than one month of cash buffer.
Restaurant bookings. Cash buffer in days by small businesses.
Source: JP Morgan data, FT and OpenTable.
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