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Themes
- Thinking about SMEs – who are we talking about?
- The shape of the funding market in the EU – an overreliance on debt?
- Breaking down the funding escalator – where are the gaps?
European Commission Roundtable on SME Access to Finance Allen - - PowerPoint PPT Presentation
European Commission Roundtable on SME Access to Finance Allen - - PowerPoint PPT Presentation
Association for Financial Markets in Europe European Commission Roundtable on SME Access to Finance Allen Simpson Chair of the AFME SME Finance Working Group Head of Public Policy, Corporate Banking, Barclays 20 March 2017 1 Themes
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Business survival rates: European Union and United States Concentration of job creation (UK)
Thinking about SMEs –who are we talking about?
20 40 60 80 100 120 Share of firms Share of jobs created Other High growth Source: Nesta, 2009
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European Union United States Total stock of outstanding finance for SMEs €2,007bn €1,236bn Share of bank finance 77% 40% Listed market capitalisation €10tn (53% of GDP) €19tn (140% of GDP) Venture capital investments €4.2bn €26.4bn Business angels €6.1bn €22.7bn Equity crowdfunding €354m €149m Accelerators €38m €83m
A big market for SME finance, but not for growth
Source: Nesta, 2009
Size of funding markets in the EU and the US
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The EU funding escalator for high-growth companies
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Innovation and venture capital are both fragmented
Venture capital investment as % of GDP Innovation by region
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Business angel activity in Europe and the US
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Crowdfunding – small but growing
EU vs US, 2013 – H1 2016
Data widely varies between the various sources of data for investments through crowdfunding platforms. Other sources include the Alternative Finance Benchmarking Report (E&Y, KPMG and University of Cambridge), Massolution.com. The data cited in the European Commission’s report on Crowdfunding comes from crowdsurfer.com.
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Venture debt
2 4 6 8 10 12 2003 2004 2005 2006 2007 2008 2009 Europe UK
Venture debt as a % of total VC - historic Venture debt as a % of total VC - today
5 10 15 20 25 United States UK Europe (exc. UK)
Percentage of VC total
Low estimate High estimate Source: BVCA Source: E&Y
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Primary Equity Markets
Number of IPOs in European main markets and MTFs and from US EGCs, 2012 – 2015
Source: AFME, Dealogic
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Themes
- SMEs and Growth companies are different things, with different needs
- There is a general gap for all forms of risk finance in the EU
- Too much fragmentation between member states, and between funding levels
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