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2019 French Venture Capital Landscape

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White Star Capital - French Venture Capital Landscape

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2019 French Venture Capital Landscape

  1. 1. FRENCH VENTURE CAPITAL LANDSCAPE
  2. 2. TABLE OF CONTENTS 1. What’s new in 2019? Page 4-7 2. 2018 in a Snapshot Page 8-11 3. Overview: Why We Are Excited About France Page 12-20 4. The French Ecosystem: Stronger Than Ever Page 21-26 5. Public Sector is Pushing Hard to Support the Tech Ecosystem Page 27-31 6. Diversity & Talent in France Page 32-36 7. Deep Dive on French VCs Page 37-46 2
  3. 3. A WORD FROM OUR TEAM 3 Eric Martineau-Fortin Managing Partner In this first edition of our report, we aim to share our enthusiasm on the French Tech and Venture Capital ecosystem as well as touch upon a few additional topics. We wish to share our excitement about France and dive into a few data points that show the country’s explosive growth in tech and VC investments over the last four years. We look at the role that the public sector has had on catalysing this growth. We also look at the diversity and talent which makes up this ecosystem and end by diving into the main VC’s and investors that have been injecting capital into France. At White Star Capital, we started investing in France in 2016 and have made two landmark investments in the country into Klaxoon and Meero. We established a permanent office in Paris in 2017 and since formally set up a regulated fund in France in the second half of 2018. We also recruited a few weeks ago an international investment professional to join us in France as a Principal towards the middle of the year with the intention to strengthen our continental European team. We are much looking forward to continuing investing in the fast growing French market! Matthieu Lattes General Partner Over the past few years, we’ve been fortunate to witness of the fast acceleration of the French tech ecosystem. We are now building global champions out of France in technology, as we’ve seen decades ago with a number of our local international champions in what have now become traditional industries. Our French entrepreneurs are as ambitious as others, fearless and do think global well from Day 1. We succeeded in creating over the last few years an environment of trust, bringing top-tier French and international investors to support growth stories in technologies to a large scale. We are engaged since mid 2018 to build in Paris a solid team of professionals with strong complementary international backgrounds, supported by our colleagues out of New York, London, Tokyo, Hong-Kong and Montreal. We will keep doing so in the coming months with the recruitment of more international talents in Continental Europe out of our French office. We are much looking forward to announcing shortly our new French portfolio company after Klaxoon and Meero and to keep meeting the most promising start-ups that will join them in the coming months. External data sources: Sanjay Zimmermann Associate (Montreal) “The French market has seen an incredible boom and explosion in Startup and VC activity in the last 3 years – vive la French Tech! ” Pauline Studer Associate (Paris) “The ambition of French Entrepreneurs is increasingly global and matches with their world-class technical skills and creativity: the perfect French touch!” Alex Wilson Associate (London) “France has developed all the necessary assets to turn its new generation of startuppers into global leaders” Jean de Lencquesaing Associate (New York) “The vitality of the French startup ecosystem is remarkable and very promising as the businesses further mature and scale”
  4. 4. WHAT’S NEW IN 2019?
  5. 5. 5 WHAT’S NEW IN THE ECO-SYSTEM? Overview of France’s activity early 2019 Strong 2019 start for French start-ups with significant funding rounds Alongside high funds dynamism Source: news run Bridgestone EMEA et Iris Capital announce a corporate venture partnership: Bridgestone joins Iris Next alongside Orange, Publicis and Valeo Axa Venture Partners held a $150m first close for its AVP Early Stage II fund ($180m hard cap), focusing on high-growth technology companies Partech doubled its Africa VC fund to $143m and opened a Nairobi office in addition to its Dakar practice AngelSquare launches AngelSquare Impact, its second investment structure, dedicated to “impactful” start-ups – having a positive impact on society or the environment Seventure Partners announced a first close for its €100m fund Health for Life Capital II Series C $125m 2011 Upgrades biomass into high quality compounds for nutrition thanks to insect properties Paris Series F $92m 2013 Digitalises points of sale worldwide Paris Series C $62m 2012 Provides the technology to launch a marketplace Paris Series C $60m 2012 Optimizes Web and mobile sites Paris Series E $170m 2013 Offers a booking platform to help find doctors Paris
  6. 6. 6 MonBuilding Structured Seed players SaaS Companies remain of high interest Glance at some of the hot sectors RECENT SEED TRENDS Overview of France’s activity early 2019 Source: news run. Note: Reflects notable investments under €3m since 01-Jan-2019. FoodTech HRTech Dark Kitchen PropTech Wizbii
  7. 7. May 16-18 Paris 7 WORLD CLASS TECH AND VC EVENTS Notable events to come in 2019 July 18-19 Brest September 24 Paris June 11-12 October 10 Paris Paris Number of participants Number of start-ups 50,000 1,800 1,000 100+ 4,300 2,000 5,000 110 43,000 400
  8. 8. 2018 IN A SNAPSHOT
  9. 9. “PARIS BECAME THE MOST ATTRACTIVE EUROPEAN CITY FOR FOREIGN DECISION- MAKERS” * This performance is mainly explained by the uncertainties related to Brexit – EY report “IDINVEST LAUNCHES A $829M PRIVATE DEBT FUND AT 60% COLLECTED FROM FOREIGN INVESTORS” Exceeded target of 600M and will target the European “lower mid- market” - Fusacq, Les Echos “BPIFRANCE WILL PROVIDE €10 BILLION TO FUND FRENCH COMPANIES” * This concerns companies at key stages in their development – Business France “ULTIME SOFTWARE ACQUIRED PEOPLEDOC FOR $300M” Thanks to this acquisition, Ultimate Software will expand its activities in Europe and distribute PeopleDoc’s services to its own customers – TechCrunch “DEEZER RAISED A $185M SERIES F” The on-demand music platform raised the biggest round of the year from Orange, LBO France, Saudi- based Rotana and other investors. – Tracxn and CBInsights “BPIFRANCE ORGANIZED THE 4TH EDITION OF BPIFRANCE INNO GÉNÉRATION” With 43,000 entrepreneurs, 1,000 speakers and 300 thematic workshops, this event is one of the largest gathering of entrepreneurs in Europe – Bpifrance “FRANCE HAS A VERY ACTIVE PUBLIC AND INCREASINGLY PRIVATE AI RESEARCH” * In 2018, four important companies including Google and Fujitsu launched an AI Research Center in Paris – FranceIsAI “THE FRENCH GOV’T WILL WIDEN AND SOFTEN THE TALENT VISA LAUNCHED IN 2017 FOR FOREIGNERS” * This Visa program targets now any innovative company (not only digital) – La Tribune, Maddyness “THE FRENCH GOV’T ANNOUNCED THE CREATION OF A €400 MILLION FRENCH TECH SEED FUND” * This new fund will be operated by Bpifrance and focused on deep tech – L’Usine Digitale *Additional details provided in the report 9 NEWS HIGHLIGHTS Superb last 12 months for the French Tech
  10. 10. Stage: Sector: Legend Stage Sector Seed AI CleanTech Series A Fintech Ecommerce Series B Smart City Food Series C Mobile Software Stage: Sector: Stage: Sector: Stage: Sector: Stage: Sector: Growth Fund $210M $70M Stage: Sector: $163M $174M $151M 10Source: Tracxn (based on French domiciled funds – with the exception of White Star Capital) and *Pitchbook – European Venture Report, 3Q 2018 NEW FUND ANNOUNCEMENTS IN 2018 Over $1B in new capital raised by French VC funds this year French VC’s closed four funds in 3Q, the most of any European country* $180M Stage: Sector: Stage: Sector: $192M $104M
  11. 11. ● 1st European city in terms of knowledge spillover1 Europe’s 2nd talent pool for IT developers The city was ranked 2nd in Europe for its access to capital 2nd European city for Artificial Intelligence talent All quotes come from Business France Tech Book, 2017 1 Knowledge spillover: Stimulating technological improvements in a neighbor through one’s own innovation. 11 PARIS IN THE SPOTLIGHT Paris: A major European city for tech and startups Europe’s 2nd city by number of LinkedIn members with AI skills
  12. 12. OVERVIEW: WHY WE ARE EXCITED ABOUT FRANCE
  13. 13. VC funding in France (2013-2018) VC FUNDING IN FRANCE Funding has almost quadrupled in the last 4 years with a significant rising deal size Average VC-backed funding Total funding allocated to top 10 deals Source: CBInsights 13 2 2 4.7x $ 0m $ 2m $ 4m $ 6m 2013 2014 2015 2016 2017 2018 Average Deal Value ($m) Median Deal Value ($m) $ 0.6B $ 0.7B $ 1.4B $ 1.8B $ 2.4B $ 3.3B 2013 2014 2015 2016 2017 2018 42% 44% 48% 33% 22% 28% 2013 2014 2015 2016 2017 2018
  14. 14. Top European cities by Total Deal Amount (2018) PARIS: EUROPE’S SECOND LARGEST TECH HUB Both in terms of deal volume and deal amount While Paris is still half the amount of funding and deal volume of London, it is over 1.5x larger than Berlin Top European cities by Total Deal Volume (2018) Source: CBInsightsSource: CBInsights 14 465 206 143 113 80 London Paris Berlin Stockholm Barcelona $ 3.2B $ 1.7B $ 1.1B $ 0.4B $ 0.4B London Paris Berlin Stockholm Barcelona 1.9x 1.5x
  15. 15. Top European cities by Total Deal Amount in Seed funding (2018) Top European cities by Total Deal Volume in Seed funding (2018) Source: CBInsightsSource: CBInsights 15 $ 218m $ 104m $ 42m $ 23m $ 12m London Paris Berlin Stockholm Barcelona 106 49 37 37 18 London Paris Berlin Stockholm Barcelona 2.1x 2.5x PARIS: EUROPE’S SECOND LARGEST TECH HUB Even clearer when looking at Seed funding only When looking at Seed funding only, Paris’s scale ahead of other cities becomes even more apparent, which is setting this market up for several more years of funding and deal volume growth as the seed companies funded today begin to mature
  16. 16. % of French deal volume per stage, per year As seen earlier, seed funding represents the largest share of total funding in France. Indeed, Seed-stage funding increased by 230% of the percentage of total deal volume captured over the last 10 years. However, later stage of venture funding still need to improve in the years to come. The total number of exits rising year over year since 2010 is another encouraging sign as it suggests healthy levels of M&A activity in the country. The # of VC-backed exits has grown as well albeit not at the same pace, as later stage funding still remains low. We do believe the increase seen across Europe at the VC funding level contributes to accelerate the number of exits. The number of French exits has been steadily rising year-over-year since 2010 Source: CBInsights 16 FUNDING STAGES & EXITS In the last decade, seed stage deals as a % of French deal volume increased by 230% and exits grew steadily 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Seed Series A Series B Series C Series D+ 14 10 15 16 24 30 41 37 5154 103 100 133 178 259 403 725 653 2010 2011 2012 2013 2014 2015 2016 2017 2018 Number of exits in France (VC Backed) Number of exits in France (Total)
  17. 17. U.K. Canada Germany France Israel $7.1bn $3.7bn $3.3bn $2.4bn Region Total Deal Amount (FY 2018) Source: CBInsights CAGR Deal Volume (2016-2018) +6.8% +15.8% +11.0% +12.5% *Western Hemisphere only, VC deals Angel round through Series E+ U.S $98.8bn +5.6% 17 $2.8bn +5.1% SIZING UP FRANCE IN A GLOBAL CONTEXT France sits with top regions for venture deals and has recently become one of the fastest growing markets 547 1,139 690 300 Total Deal Volume (FY 2018) 7,658 528
  18. 18. Series B share of deals Series C share of deals Series E share of deals Seed/Angel share of deals Series A share of deals Series D share of deals Source: CBInsights 49% A higher % of investments in the seed stages indicates a younger ecosystem. France, having experienced record growth, especially at the seed stage with startup renaissance in the last few years has in relative terms one of the youngest ecosystems in the Western Hemisphere with over 71% of deals at the Seed stage. This means in the coming years we should expect to see a trickle down effect into the A, B and C stages as the ecosystem matures. 24% 13% 7% 3% 3% 49% 24% 13% 7% 3% 3% 49% 28% 11% 6% 3% 2% 62% 22% 10% 4% 1% 1% 69% 18% 8% 3% 1% 1% 71% 19% 6% 2% 1% 1% 18 DEAL SHARE BY STAGE; PAST 3 YEARS France’s Startup ecosystem is young and froth with potential
  19. 19. INCREASING # OF $50M+ ROUNDS Signs of a growing ecosystem of later stage investors betting on the development of France-born global champions Source: CBInsights • With growth rounds exceeding $100m, we can say that the market is buying exits comprised between $300m and $500m • Hence, this leads to the creation of genuine global leaders • In France, the ecosystem as well as the macro-environment (social, education, taxes, infrastructure…) became attractive for international investors Source: CBInsights 19 # of $50M+ rounds-since 2015 International funds Domestic funds $ 315m $ 375m $ 279m $ 826m2 3 4 9 -20 -15 -10 -5 0 5 10 15 -$ 100m $ 100m $ 300m $ 500m $ 700m $ 900m $1 100m $1 300m 2015 2016 2017 2018 Deal Amount Deal Volume
  20. 20. Mobility / Transportation EdTech/HRTech Activity Examples Activity Examples Source: CBInsights; * White Star Capital portfolio companies; * 20 HOT FRENCH SUBSECTORS A snapshot of France’s strongest subsectors over the past 3 years Funds that invested in the below-mentioned sectors $ 108m $ 69m $ 81m 22 18 7 -45 -25 -5 15 $ 0m $ 50m $ 100m $ 150m $ 200m $ 250m 2016A 2017A 2018 Deal Amount Deal Volume $ 36m $ 169m $ 154m 11 22 22 -20 -10 0 10 20 -$ 20m $ 80m $ 180m $ 280m 2016A 2017A 2018 Deal Amount Deal Volume DeepTech/AI Activity Examples * $ 84m $ 143m $ 345m 21 33 36 -20 0 20 40 -$ 40m $ 160m $ 360m $ 560m 2016A 2017A 2018 Deal Amount Deal Volume FoodTech/AgTech Activity Examples $ 127m $ 280m $ 182m 34 33 29 -20 0 20 40 $ 0m $ 200m $ 400m $ 600m 2016A 2017A 2018 Deal Amount Deal Volume
  21. 21. THE FRENCH ECOSYSTEM: STRONGER THAN EVER
  22. 22. US Giants are expanding their R&D and Operations teams into France 22 TECH GIANTS’ IMPACT ON FRANCE Giants are developing AI/Research Labs in France but are still focusing mainly on Paris Source: FranceisAI by France Digitale Cloud Computing Has a Cloud Managed Services (CMS) center located in Montpellier and a data center located in Paris Has a cluster of data centers, three in Paris and one near Marseille Artificial Intelligence Launched its first AI Lab ever in Paris at the end of June 2018 Has opened an AI Lab in Paris in March 2018 Has a Parisian AI Center since 2015 Has one AI center in Paris since March 2018 Has an AI Center in Paris since January 2018 Has two AI Centers near Nice since 2011 Acquired Xerox’s AI Research Center in Grenoble in June 2017 Has a Parisian R&D Center since 2014 Built its third largest AI R&D Center in Paris in March 2018 Source: CBInsights The location of giants’ AI/Research Labs in France * *IBM is the giant developing the most its CMS and data centers in different regions of France
  23. 23. acquired by for an undisclosed amount Compte Nickel Founded in 2012 Fintech Paris Zenly Founded in 2011 Real-time location sharing Paris Chauffeur Privé Founded in 2012 Booking transporting platform Levallois-Perret Teads F Founded in 2011 Video advertising Montpellier Cedexis Founded in 2009 Traffic monitoring platform Paris Optis Founded in 1989 Design & Software La Farlède $100m $300m $307m $236m $295m 2017 2018 Source: Tracxn 1 €306m converted to USD Metrologic Group Founded in 1980 Advanced 3D measurement software solutions Meylan $417m1 $300m $300m PeopleDoc Founded in 2007 Cloud-based HR management systems Paris 23 CONTINUED LARGE TRANSACTIONS IN 2018 Significant # of >$200m exits in last 2 years
  24. 24. Note: Excludes funds raised during an IPO Source: CBInsights as of Mar-2019 White Star Capital portfolio companies Total funding $m 24 TOP 30 MOST FUNDED FRENCH STARTUPS Companies which received funding over the last 10 years 449442 311 268 161 147 147 131 122 122 113 108 105 104 99 93 90 87 86 83 71 71 70 68 66 59 57 56 56 55
  25. 25. French VC-Backed IPOs have seen continuous activity over the last few years, with a peak in 2015 and 2018 gearing up to be another record year. There seems to be an increasing number of recent IPO’s coming out of the ICT sector as some of the more mature French startups are starting to exit. Most of the domestic IPO’s are not as large as typical NASDAQ IPO’s however with the median IPO proceeds being $35m and the average proceeds being $47m in the last 5 years. Legend: Domestic Stock Exchange Foreign Stock Exchange Number of IPO’s $54m $46m $260m $13m $17m $12m $9m $8m 2015 20162014 2017 $10m $10m French VC-Backed IPOs from 2014 to 2018 2018 25 STILL NON-EXISTENT IPO MARKET VC-Backed IPO’s in the French market primarily exit on domestic stock exchanges $69m $15m $35m $51m $59m 6 8 3 4 9 Source: CBInsights
  26. 26. 26 LARGEST FUNDING ROUNDS OVER LAST 4 YEARS France experienced record VC funding in 2017 and the momentum continued in 2018 and 2019 2015 Series D $200m 2006 Long Distance Ride Sharing Paris Series D $115m 2009 Cellular Network Operator Labege 2016 Series C $35m 2010 Peer-to-peer car rental marketplace Paris Series A $32m 2007 Rating platform for global supply chain Paris Series E $160m 2009 Cellular Network Operator Labege Series E $109m 2006 On-Demand Music Streaming Paris Series C $72m 2013 Online marketplace for craft and gardening products Paris Series D $75m 2010 Platform for IOT deployments Paris Series A $70m 2000 Cloud-based file management system Paris Series E $62m 2009 Luxury Resale Marketplace Paris 2017 Source: CBInsights Series B $75m 2014 Bitcoin Security Paris 2018 Series F $185m 2006 On-Demand Music Streaming Paris Series D $80m 2009 Marketplace for personalized holiday packages Paris Series C $101m 2012 End to end machine learning based data science platform Paris Series C $62m 2012 Provide technology to launch marketplace Paris 2019 Series F $92m 2013 Digitalization for points of sale worldwide Paris <$100m >$100m LEGEND Series C $125m 2011 Innovative products operating in the agrofood Paris Series E $170m 2013 Booking platform to help find doctors Paris
  27. 27. PUBLIC SECTOR IS PUSHING HARD TO SUPPORT THE TECH ECOSYSTEM
  28. 28. • A 20% innovation tax credit has been created for startups and will apply to innovation expenses up to €400,000 per year and per company • President Macron announced the removal of the highest 20% rate of the salaries’ social charges and that compensation and bonus schemes would no longer be included in the severance pay’s calculations • France took measures to enhance the link between fundamental research and business application • The 2018 budget for the ministry of higher education, research and innovation rose by more than 6%, to $9.9B (with an extra $2.8B to research over the next 5 years) • French National Research Agency, which funds individual projects on a competitive basis, rose its budget by 5% to $818m. France is Europe’s second country by gross R&D expenditure ($63bn) (2018) • France has a huge pool of skilled talent with 100,000 engineers and 70,000 PhD students every year • France’s universities offer high-quality cross-disciplinary programs, resulting in more complete future workers in terms of skills • Bpifrance will invest €4B for the Energy and Ecological Transition (TEE), a law enhancing energy savings and the development of renewable energies. In this context, Bpifrance has already supported 1,400 energy companies for a total amount of €1.4B • In July 2017, Bpifrance launched France Investissement Energie Environnement (FIEE), a €100m fund that will strengthen its offer dedicated to the TEE Environment-focused innovation Creating Talent Promoting a Friendlier Tax Environment for Startups Innovation Funding 28 FRENCH PROGRAMS UNIQUE TO FRANCE More than €80bn spent to promote innovation and attract & develop talent
  29. 29. 29 Macron is willing to transform France into a “startup nation” and wants entrepreneurship to be well on the up - Business France, 2018. Before launching all the new projects as a President, Macron was already initiating this change in mindset back at the time when he used to be Minister of Economy. Indeed, he launched the Growth, Economic Activity and Equal Economic Opportunity Act (aka the “Macron Law”) promoting liberalization, investment and labor market reform - Business France, 2017. Since Macron’s elections, 60% of CEO’s from foreign companies say that the country is more attractive. According to Brice Teinturier, Executive Director at polling studies firm IPSOS, “international investors view France positively for the first time”. Interesting fact: the French Digital Agency managed by the Minsitry of Economy and Finance, and stimulating and supporting actions preparing the French society for digital revolutions has an average team age of 31 years old -Business France, 2018. Half a million companies are created every year in France. It is quicker to create a business in France (3.5 days on average) than in the UK (4.5 days) or in Germany (10.5 days). Between 2012 and 2015, the number of startups created in France increased by 30%. Also, more than 300 private accelerators are present in the country. As far as business is concerned, France’s future has rarely looked brighter -Business France, 2018. The French Government Investment Fund (CDC) plans to support the Arc of Innovation project by creating over 150,000 sq. m. of tertiary real estate (for incubators, co-working spaces…) in Paris and neighboring municipalities. €600m were already invested for Paris alone – Business France Tech Book, 2017. In the 2017 Top 100 Global Innovators ranking (Derwent World Patents Index, 2017) by Clarivate Analytics, France is ranked third behind Japan and the US. Still in the same report, France accounts for 37% of all European Innovations (Germany: 21%, Switzerland: 16%). In the Bloomberg 2018 Innovation Index, France is ranked second for high-tech intensity, calculated with the number of domestically domiciled high-tech public companies. 52% of French People would be interested in creating startups. Moreover, 68% of the French population say that the government adds new momentum to entrepreneurship and enterprise creation -Business France, 2018. According to a EY report about France’s attractiveness, it is shown that 56% of people find the support policies for startups effective . Finally, since end 2016, the media mentioning the words “France” and “startup” altogether skyrocket - EY, 2018. CHANGE IN MINDSET TOWARDS FRENCH TECH Select quotes from the news and media in France that embody the country’s change in mindset
  30. 30. Date Program Name Amount Purpose June-18 French Tech Seed Fund €400m • This fund will be operated by Bpifrance, through a network of business finders made of incubator and laboratories. • Focus on deep tech startups coming from laboratories or incubators/accelerators June-17 PSIM Fund €200m • Bpifrance manages this Major Innovation Program fund • It intervenes exclusively with the 12 winners of the Global Innovation Competition (CMI) (Snips, Wandercraft…) by investing check sizes between €2 and €20 million June-17 Innovation and Industry Fund (FII) €10,000m • Managed by Bpifrance, it invests in the key stages of startup growth • The fund is evergreen, investing the returns (≈€250m) of its €10bn in assets on an annual basis • €150m will finance big technological challenges • €70m will support deep tech companies • €25m will be dedicated to nanotechnologies Dec-15 French Tech Acceleration Fund €200m • Managed by Bpifrance, it invests (check sizes between €1m and €20m) in French accelerators and investment funds providing acceleration programs to startups Dec-13 Large Venture Fund €1,000m • Managed by Bpifrance, it is investing in fast-growing innovative startups with high capital requirements (check sizes between €10m and €30m) • The fund size increased to €1bn in 2017, with an estimated €500m in dry powder RECENT GOVERNMENT EQUITY PROGRAMS The French state invests more than €10B in equity programs 30
  31. 31. 31 REGIONAL PROGRAMS Promoting Startup initiatives beyond Paris DeepTech Aids Up to €8K in financial aids for robotic projects Breizh’up €10M investment fund to support innovative startups Prime Création A €5K to €20K grant for startups Startup Investment Up to €3M in financial aid or loan for startups Start’Oc From €5K to €2M in financial aids for startups JEREMIE Provence- Alpes-Côte d’Azur €121M fund for the development of startups The Honor Loan From €2K to €25K loan facilitating startups’ access to bank loans Regional loans From €20K to €200K in regional loans for startups Regional loans Up to €30K for the startup’s birth and up to to €100K for R&D development French Tech Loire Valley From €150K to €500K in financial aids for startups Provides European loans only Hauts- de- France Normandie Grand Est Centre-Val de Loire Bretagne Pays de la Loire Bourgogne- Franche- Comté Nouvelle- Aquitaine Auvergne- Rhône-Alpes Occitanie PACA
  32. 32. DIVERSITY & TALENT IN FRANCE
  33. 33. Masters in Management5 Masters in Finance6 France’s World Class Universities 1 EUROPEAN COUNTRY IN TERMS OF THE NUMBER OF UNIVERSITIES OFFERING AN EXECUTIVE MBA1 EUROPEAN COUNTRY IN TERMS OF THE NUMBER OF UNIVERSITIES OFFERING A MASTER IN MANAGEMENT3 #1 #1 1 Financial Times, 2 Ecole 42, 3 Financial Times, 4 International Journal of Science,5 QS World University Rankings, 6 QS World University Rankings The budget for education rose in 2018 but it is expected to rise in 2019 as well.4 33 EDUCATION IN FRANCE 9 44 9 2 2 12 500 admitted students out of the 53 848 students preparing entrance program Education of the Future: Ecole 42 was founded in 2013 by Xaviel Niel in order to provide a 3-year top-notch zero tuition fee program to learn coding.2 Second largest mathematics institution in the world after Princeton First MBA program in Europe France is the second country with the highest number of Fields medals after the USA. Founding school of:
  34. 34. 34 ATTRACTING FOREIGN TALENT The attraction of foreign talent now constitutes a key to create France-born global champions • An innovative public initiative led by the Ministry of the Economy which aims to boost a collective dynamic in order to place France among the greatest startup nations. • The French Tech Visa established in June 2017 in order to facilitate the reception and set up of tech international talents, gives access to a 4-year residence and work permit • In October 2018, this Visa was softened and widened by targeting any innovative company but not only digital companies anymore • This program offers a 12-month accelerator program for international entrepreneurs who want to build up in France • The startups joining this program have access to a fast- track procedure to obtain a residence permit. Also, each team receives €45K and will be part of one of the 41 selected partner incubators. • The program Reviens Léon (“Come back, Léon”) initiated by iconic startups (BlaBlaCar, Chauffeur Privé, showroomprivé.com, Sigfox…) • First launched to attract French expatriates is now called “WONDERLEON” and is being opened up to international talent as well. 41% of the PhD’s in France come from outside France 30% Target % of foreign startups aimed for Paris Based Incubators by 2020
  35. 35. 35 WOMEN IN LEADERSHIP A few of France’s most inspiring women Source: News run Clara Gaymard Co-founder of Raise Ventures Julie Chapon Co-founder of Yuka Marie Ekeland Co-founder of Daphni Co-founder of Bime and Co- President at France Digital Rachel Delacour Fleur Pellerin Founder of Korelya Founder of One Ragtime Stéphanie Hospital Mathilde Lacombe Co-founder of Aime Co-founder of Educapital Marie-Christine Levet Co-founder of Seasonly, Agathe Wautier Co-founder of the Galion Project Founder of The Family Alice Zagury Roxanne Varza Director of Station F Director of 42 Sophie Viger Fany Péchiodat Partner at Portag3 Ventures Hélène Falchier Founding Partner and GP Fund I of The Refiners Géraldine Le Meur
  36. 36. Women Equity ”We are the first European research, promotional, financial, operational and supportive program for women-led growth companies.”2 AFIC avec ELLES “The French Association of Investors for Growth aims to promote the importance of women’s role in private equity and venture capital.” 6 Femmes Business Angels “We are a network of female business angels financing with an average check size of €10K innovative startups run by both men and women.” 1 ESG strategy by Bpifrance “Our ESG investment strategy is based on the quality of governance and management by promoting the integration of women.”3 Funds Accelerators/Programs Girls in Tech “With the launch of three offices (Paris, Marseille and La Reunion) in our French regional chapter, we want to help eradicate the gender disparity in French high-tech industries.” 4 Initiative France engage with Femmes Chefs d’Entreprises “By signing a national convention (Feb 2018) we reaffirm our mutual desire to support female entrepreneurs.” 8 Fédérations Pionnières “We represent all the Pionnières incubators supporting female tech entrepreneurs in France and abroad.”5 Social Builder “We are a social startup that builds gender diversity and equality in the digital business and entrepreneurship. We do so by providing support and training for women, networks and businesses.” 7 1 Femmes Business Angels, 2 Women Equity , 3 Bpifrance, 4 Girls in Tech, 5 Fédérations Pionnières, 6 AFIC avec ELLES, 7 Social Builder, 8 IF & FCE 36 WOMEN-LED TECH INITIATIVES On top of the respective 20% and 30% of the French startups and companies founded by women, several funds and incubators are taking a meaningful stance on tackling gender diversity
  37. 37. DEEP DIVE ON FRENCH VCS
  38. 38. 38 LARGEST SEED FUNDS Throughout the years, top seed funds have emerged in France Source: CBInsights, Serena Capital; 1 Dealroom Report , Traxcn and Crunchbase Most active seed funds per number of direct seed investments over the last 2 years Recently featured as top quartile Seed VC fund by Dealroom1 59 25 22 12 12 11 10 10 9 7 6 5 4 4
  39. 39. 39 FRENCH INCUBATORS AND ACCELERATORS Most incubators / accelerators that are running today were started in the last 5 to 10 years Incubators/Accelerators Description Founded Year Location Total number of portfolio companies Portfolio Companies Public incubator facilitating start-up creation in the field of public research. 2012 Paris 290 Service infrastructure for start-ups in Europe. Takes 5% equity for free in exchange of long- term support. 2013 Paris, Berlin, London 200+ Provides start-ups with mentoring, financing, and office space. 2012 Paris 41 Supports start-ups, entrepreneurs and innovative projects of companies through various programs. 2005 Paris, San Francisco 450 Start-up studio located in Paris and Brussels, focusing on enterprise software startups. 2011 Paris, Bruxelles 16 Full service innovation hub for the digital age that operates worldwide and builds future- proof organizations and tech start-ups. 2015 8 cities including Berlin, Moscow, NYC and Paris 134 Economic development and innovation agency of Paris 2015 Paris 1000+ Start-up campus designed for tech companies from all over the world. 2014 Paris - Start-up studio focused on companies based on technologies, research and deeptech work. 2014 Paris - The American incubator opened a structure in Paris partnering with Partech shaker. Start- ups give 6% in equity in exchange of $120,000. 2017 Paris 21 International talent investor, which supports individuals to build globally technology companies. First Paris-based edition launched in October 2018 2018 London, Paris, Berlin, Singapour, HK, Bangalore 230+ 1 Companies from the London-based edition as the Paris-based one launched in October 2018 11
  40. 40. 40 STATION F: THE LARGEST STARTUP CAMPUS IN THE WORLD Based in Paris and Inaugurated in June 2017, The 34,000 square meters incubator was created by mogul Xavier Niel who invested €250M in the project Some of the 30 startup programs available at Station F Open to early-stage startups which will get full-time desk in Station F campus and join the community of entrepreneurs. Facebook Startup Garage: 6-month acceleration program targeting all startups involved in personal data. Microsoft France launches its first worldwide program focused on artificial intelligence in partnership with INRIA at Station F. Accelerator Fashion / Tech / Retail, which aims to generate growth for its start-ups for 9 months by testing their solution on vente- privee and by linking them to partner brands. The Gaming & Entertainment program is designed by Ubisoft to foster the creation of original contents. • A hub with more than 3,000 desk stations, housing 1,000 startups and offering 30 startup programs. • Director: Roxanne Varza (ex-Microsoft and ex-Editor in Chief of TechCrunch). Some VCs Partners:
  41. 41. Percentage of total investments per region in 2017 Top 5 Angel Groups by: 3 4 5 Dollar Amount # of deals Total Deal Amount Total Deal Volume Source: France Angels 1 2 41 ANGEL INVESTOR LANDSCAPE Ile-de-France, Bretagne and Auvergne-Rhône-Alpes as the top 3 regions for angel activity 2.4% 0.8% 6.6%26.1% 4.2% 3.8% 9.6% 13.2% 7.6% 4.8% 12.6% 8.3% € 36.5M € 41.2M € 42.7M € 48.0M 2014 2015 2016 2017 +12.9% +3.6% +12.4% 356 386 415 509 2014 2015 2016 2017 +8.4% +8% +23%
  42. 42. 42 SOME OF THE MOST ACTIVE FRENCH BUSINESS ANGELS In 2017, individual business angels invested over €15M +12.9% +12.4% +8% +23% Denis Fayolle Co-founder of La Fourchette Thierry Petit Co-founder of showroomprive.com Frédéric Montagnon Co-founder of Teads.tv Thibault Elzière Founder of eFounders Michaël Benabou Co-founder of Vente- Privee Fabrice Grinda CEO of OLX Thierry Vandewalle CEO of Wind Capital Jacques-Antoine Granjon CEO of Vente- Privee Founder of Meetic and Sensee Marc Simoncini Founder of Iliad Xavier Niel Source: Challenges, Franceangels
  43. 43. Investor Country Source: CBInsights 43 INTERNATIONAL VCS INVESTING IN FRANCE VCs with Foreign Head Quarters which participated in the most VC deals in France over the last 10 years Investor State Investor State Investor Country 1: CA; 2:NY; 3:NJ 1 2 3
  44. 44. Source: CBInsights Public institutions Number of investments 44 FRENCH INSTITUTIONAL INVESTORS Most Active French Financial institutions; per direct VC investments over the last 2 years Private institutions 38 29 17 15 14 13 10 7 6 6 5 4 3 3 192
  45. 45. Corporate VC Sectors Direct Investment Investment in VC funds Select French Investments Enterprise software, Fintech, Consumer Tech and Digital Health x x Mobility, Robotics, Smart Cities, and IoT x x Smart Cities, Distributed Energy and Green Mobility x Collaborative Economy, Mobile Apps, Insurtech and Fintech x x Mobility, Data, IoT, and Smart Cities x x Electronics, Software and Telecommunications x New Mobility and Smart Cities x x New Mobility, Autonomous Driving and Connected Services x IoT, Robotics, Smart Cities, New Energies x x Mobility, E-Services, Data, Saas, Paas and IoT x Water Management, Recycling and Recovery of Waste x Source: CBInsights & CFNews 45 MOST ACTIVE CORPORATE VCS Most Active Corporate venture capital groups in France in the last 18 months
  46. 46. GLOBAL PRESENCE AND PORTFOLIO INTRODUCTION TO WHITE STAR CAPITAL White Star Capital We invest in ambitious entrepreneurs on both sides of the Atlantic. We have founded, scaled and sold many successful technology businesses. We leverage our collective experience, expertise and global network to help our startups succeed. www.whitestarvc.com

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