Euroscape 2020: Decacorn Unleashed (Accel)

Summary

• Venture capital investment in private cloud companies in Europe and Israel reached $9-9.5bn YTD 2020, up from $7-7.5bn in 2019 YTD.p.18
• The Accel Euroscape Index experienced a +506% growth between 2013 and 2020, outpacing the NASDAQ Index.p.14
• Cloud software market share is anticipated to overtake traditional software by 2025, reaching c. 50%+ or c. US$900bn.p.4
• In 2020 YTD, total capital raised through Cloud IPOs, secondary offerings, and convertibles reached $17bn.p.13

Key insights

1. Public cloud market capitalization increased by c.$1 Trillion in one year, growing from $0.8T in September 2019 to $1.7T in September 2020.p.10
2. Enterprise cloud spending quarter-over-quarter Q2 growth was 8%, slightly below the historical average of 10%.p.21
3. European and Israeli venture capital cloud funding reached close to 50% of the US market volume in 2020 YTD.p.18
4. By 2023, the number of active citizen developers is predicted to be 4x the number of professional developers.p.48
5. Traditional banks spend 75% of their total IT costs on maintenance.p.49
6. The median time elapsed from founding to Euroscape inclusion is 6 years, compared to 9 years for Champions League companies.p.38