French venture capital barometer

2nd semester 2013

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Contacts

Franck SebagPartner, Ernst & Young et Associés Tel. : +33 (0)1 46 93 73 04 Email : franck.sebag@fr.ey.com

Natacha VanrybMarketingTel. : +331 46 93 86 97Email : natacha.vanryb@fr.ey.com

EY | Assurance | Tax | Transactions | Advisory

41% United

Kingdom

13% France

18% Germany

Editorial

We are pleased to present the very first edition of our French Venture Capital Barometer. As France is seeking the drivers of sustainable growth, the ability to allow innovative medium-sized companies to develop is crucial. These companies are the economic powerhouse of Europe in terms of growth and employment, as well as key ambassadors of our country around the world. Following the examples of the United States or Israel, it is now critically important to make France a “startup nation”.

Our VC Barometer reveals three major trends for the second half of 2013:

• The significant weight of the digital sector.

• The vast amounts invested in Biotech and Medtech.

• The position of France as 3rd most active country for VC in Europe.

Franck Sebag, EY Partner, France VC and IPO Leader

672 M$ raised in 177 deals in the second half of 2013

Investment by industry segment

Investment by stage of development

Top venture capitalists

European outlook

Top 5 Investments

159 M$ in44

deals

Software

182 M$ in68

deals

Internet services

55 M$ in10

deals

Biotech

59 M$ in9

deals

Medtech

87 M$ in5

deals

Electronics

Pixium VisionMedtech

Abingworth Management, Bpifrance Investissement, Omnes Capital, Sofinnova Partners

34 M$

WithingsElectronics

360 Capital Partners, Bpifrance Participations, Idinvest Partners, Ventech

32 M$

French venture capital barometer ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________2nd semester 2013

MethodologyThe French Venture Capital Barometer lists all deals of equity financing made by venture capitalists in companies in their start-up or early stages, from 1 July to 31 December 2013 (deals published before 21 January 2013).French data presented in this barometer are provided by Dow Jones VentureSource, CFNEWS and CapitalFinance. European data are provided by Dow Jones VentureSource. Data processing and analysis are made according to the EY methodology and realized by Ernst & Young et Associés. The barometer only accounts for the deals which amount has been disclosed.Internet services include activities such as e-commerce, lead marketing, geomarketing or mobile apps. Figures within the ‘Top venture capitalists’ section come from internal sources and were sent for validation to the venture capitalists.Euro amounts were changed to dollar according to the closing rate on 31 December 2013 which is 1EUR = 1,3791USD, according to Natixis.

Number of deals

Top 3 Countries for VC activity (percentage of total amount raised)

Geographical distribution of deals within the EU (percentage of total number of deals)

47 M$ Crocus TechnologyElectronics

Idinvest Partners, Industrial Investors et Rusnano, Innovation Capital, Nanodimension, Sofinnova Ventures, Ventech

TalendSoftware

Balderton Capital, Bpifrance Investissement, Idinvest Partners, Iris Capital, Silver Lake Sumeru

40 M$

ScalitySoftware

Galileo Partners, Bpifrance Investissement, Idinvest Partners, Iris Capital, Menlo Ventures, Omnes Capital

23 M$

15 Bpifrance

9 CapDecisif

8 Idinvest Partners

7 A Plus Finance

9 Les Fonds Partech

7 Viveris Management

5 Omnes Capital

3rd round and more

2nd round

1st round

Seed round

11,52 M$

2,21 M$

4,76 M$

0,69 M$

Total investment Average amount invested

312 M$27 deals

19 M$29 deals

203 M$92 deals

138 M$29 deals

30% United Kingdom

20% GermanyFrance 16%

Spain 7%

Italy 4% Netherlands 4%

Sweden 4%15% Others EU countries