tech funding trends in france

TECH FUNDING TRENDS IN FRANCEA comprehensive, data driven look at emerging trends, investments, and active investors in France

6

12

16

18

23

27

Investment Trends

Geographical Trends: Paris

Geographical Trends: UK & Germany

Sector Breakdown

Selected Industry Breakdowns

Top Deals and Investors

www.cbinsights.com 2

TABLE OF CONTENTS

SUMMARY OF FINDINGS

3www.cbinsights.com

FRENCH CORPORATES STEPPING UP THEIR PARTICIPATION:

Deals with CVCs participating grew 4 percentage points from Q2’16

to 21% of the total in Q3’16. This compares to 11% in Q3’15.

FRENCH MOBILE SECTOR GAINS STEAM: While the internet

sector remains the largest area for investment, mobile has gained

steam over time and took 20% of deals in Q3’16.

BPI FRANCE LEADS AS MOST ACTIVE INVESTOR IN 2016:

Between Q1’16 and Q3’16, BPI France racked up the greatest

number of deals. Kima Ventures came in second. Partech Ventures

and Credit Agricole tied for third.

PARIS TAKES THE LION’S SHARE OF DEALS: $304M was

deployed across 65 deals to tech companies in Paris, France

through to Q3’16. On a quarterly basis, funding in Q3’16 is up 64%

while deal count remains even. Top deals include a $61M corporate

minority round to OCTO Technology, $24M to BlaBlaCar, $23M to

Alkemics, and $17M to electric scooter rental service Cityscoot.

Note on Report Methodology

Exits in this report only include the first exit of a company. Funding analysis includes

deals from accelerators and incubators, as well as debt deals, into private companies with

headquarters in France.

For questions regarding this methodology reach out to [email protected].

BOOM IN DEAL ACTIVITY TO TECH COMPANIES IN FRANCE:

Deal flow has been trending up since 2012 and recently surged

71% over 2015 full-year for a 4-year high of 368 deals in just the

first three quarters of 2016.

TECH COMPANY FUNDING REACHES A 7-QUARTER HIGH:

Funding to tech companies in France also reached a new high

mark of $1.5B in 2016. Remarkably, this is a high hit in just the

first 3 quarters of the year. Funding has generally been trending

up since Q2’13. In Q4’15, funding dropped but has since then

been growing each quarter. From Q2’16 to Q3’16, funding grew

200% to reach $857M in total funding over 145 deals.

FRENCH TECH IN STRIKING DISTANCE OF PEERS: In Q3’16,

France saw more funding than German tech startups and neared

the levels seen by UK startups.

EARLY-STAGE COMPANIES TAKE MORE DEALS: As with many

nascent tech investment markets, early-stage deal activity

dominates. 62% of deals in Q3’16 were at the early stage.

ENABLON IS MOST HIGHLY VALUED EXIT IN 2016 YTD:

Valued at $275M at the time of its acquisition by Wolters Kluwer,

Enablon comes in as the highest-valued tech exit in 2016 year-to-

date. Four of the top French tech exits this year were valued at

>$100M. In second was Nokia’s acquisition of Withings.

France tech funding since 2012:

$5.5 BILLIONacross

1,018 DEALS


“France is the country I would

bet on in Europe more than any

other.”

John T. Chambers

Executive Chairman, Cisco


FRANCE POISED FOR CONTINUED GROWTH

Investment Trends: DEALS & DOLLARS


2016 ALREADY A

RECORD YEAR IN

DEALS AND DOLLARS

FOR FRENCH TECH


$6

59

$6

02

$1

,48

2

$1

,25

3

$1

,50

7

138 131

166

215

368

2012 2013 2014 2015 2016

FRANCE FINANCING TRENDS TO TECH COMPANIES2012 - 2016 (Q3'16)

Investments ($M) Deals

Deal volume for the past

three years has trended upwards. Already, deal flow in 2016 through

Q3’16 is up 71% over full-year 2015.

Despite a drop in 2015, funding in 2016 through

Q3’16 has picked back up and has already reached a 4-year high.

Q3’16 SETS A NEW

HIGH FOR DEAL

VOLUME


$1

77

$1

42

$8

7

$2

53

$2

97

$6

8

$1

14

$1

24

$1

21

$1

59

$2

02

$9

99

$2

56

$3

35

$4

64

$1

98

$2

58

$2

73

$8

57

3341

24

40

28

39

2935

5346

3136

5259 56

4856

128

145

2012 2013 2014 2015 2016

FRANCE QUARTERLY FINANCING TRENDS TO TECH COMPANIES2012 - 2016 YTD (Q3'16)


Deal activity in Q3’16 has

reached a 4-year high of 145 deals. On a quarterly basis, deal activity for

Q3’16 is up 13% over Q2’16. After dropping in Q4’15, activity has greatly

picked up.

Funding to tech in Q3’16 is up over 200% since Q2’16, nearly reaching

the 4-year high seen in Q4’14.

EARLY-STAGE DEALS

MAKE UP 62% OF

TOTAL DEALS IN

Q3’16

Early-stage deals

continue to occupy the largest deal share in Q3’16 with 62% of the

total deal count. Late-stage deals tend to occupy no more than

13% of the total deal share and in Q3’16 that share is only at 4%.

Series C rounds are down for the second-consecutive quarter.


56% 55% 64% 66% 62%

22% 13%

11% 12%11%

3%

13%3% 1%

6%1%1% 0.4%

2%11%

3% 8% 7%4%

6%

16%14% 13%

17%

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

FRANCE TECH QUARTERLY DEAL SHARE BY STAGEQ3'15 - Q3'16

Seed / Angel Series A Series B Series C Series D Series E+ Other

AS THEY GET MORE

NUMEROUS, EARLY-

STAGE DEALS DROP

BELOW $1M

Early-stage deal size has

been trending downwards since Q3’15 as overall deal count

grows.

In Q3’16 median early-stage deal size was $900K, down over one-

third since Q3’15.


$1.4

$1.2

$1.3

$1.1

$0.9

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

FRANCE TECH EARLY-STAGE DEAL SIZEQ3'15 - Q3'16

Median Early Stage Deals Size ($M)

CORPORATES

PARTICIPATE IN ONE-

FIFTH OF TOTAL TECH

DEALS IN FRANCE

Q4’15 saw an uptick in

the share of deals backed by CVCs before falling for 2 consecutive

quarters.

Q3’16, however, is up 4 percentage points over Q2’16 for a 5-quarter high

of 21% of total deal flow.


89% 81% 82% 83% 79%

11%

19% 18% 17%21%

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

Other Investors Corp / CVC Deal Participation

CVC PARTICIPATION IN FRENCH DEALS TO TECH COMPANIESQ3'15 - Q3'16

Geographic Trends: Paris


“Paris is surging with innovation, research and

startups…Paris offers history, culture and five-

sense experiences. And its multitude of top-tier

universities produce programming and

engineering talent at a fraction of the Silicon

Valley cost.”

Gary Shapiro, President & CEO

Consumer Technology Association


PARIS LEADING FRENCH TECH SCENE

PARIS DOMINATES

DEAL FLOW TO

FRANCE-BASED

STARTUPS

Paris leads France with

162 deals to private companies in 2016 through Q3’16. No other

city managed to grab more than 8 deals.

Paris-based Zenly was the largest mobile deal of

the quarter.


PARIS: $304M

DEPLOYED ACROSS

65 DEALS TO TECH

COMPANIES IN Q3’16

Top Deals - Q3’16

OCTO Technology

$61M // Corporate Minority

BlaBlaCar

$24M // Private Equity

Zenly

$23M // Series B


$3

88

$8

5

$2

25

$1

85

$3

04

27

23

32

65 65

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16


PARIS QUARTERLY FINANCING TRENDS TO TECH COMPANIESQ3'15 - Q3'16

Geographical Trends: UK & Germany


FRANCE HAS BANNER

QUARTER AS

FUNDING SURPASSES

GERMANY

For the past 5 quarters,

funding to France based startups lagged behind that of the UK and

Germany.

In Q3’16, buoyed by a $279M deal to OVH.com, total funding was 85%

higher than that to Germany-based startups and only 7% behind the

UK.


SECTOR BREAKDOWN


MOBILE GROWS DEAL

SHARE. MOBILE AND

INTERNET TAKE 77%

OF DEALS

Internet investment

dropped 13 percentage points in Q3’16 to settle at 57% of deal count.

This is the lowest share for the sector in the past 5 quarters.

Mobile & Telecom saw a

corresponding increase in deal share, reaching 20% in Q3’16.


70% 67% 64% 70% 57%

16%15%

13%13%

20%

2%

4%2%

6%

9%13% 13% 9% 10%

4% 6% 7% 7% 7%

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

FRANCE TECH QUARTERLY DEAL SHARE BY SECTORQ3'15 - Q3'16

Internet Mobile & Telecommunications

Computer Hardware & Services Electronics

Software (non-internet/mobile)

$98M INVESTED OVER

29 DEALS TO MOBILE

SOFTWARE &

TELECOM


Top Deals – Q3’16

Zenly

$23M// Series B

WeMap

$2M // Seed

Nomad Education

$0.9M // Seed


$2

2

$3

8

$2

8

$1

7

$9

8

9

7 7

17

29

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

FRANCE MOBILE & TELECOMMUNICATIONS INVESTMENT ACTIVITYQ3'15 - Q3'16


COMPETING IN THE MOBILE SECTORQ3’16 saw significant growth in deal share to the France mobile sector. The

above companies, shown with total funding received to date, had the largest rounds of Q3’16 in mobile. Two of the top five deals were to marketing platforms Ogury and Adotmob. Zenly, at $23M the largest mobile deal in

Q3’16, was funded by Benchmark and Kima Ventures, among others.


$33.7M $22.7M $20.5M $12.3M$23.6M

$307M INVESTED

OVER 83 DEALS TO

INTERNET



BlaBlaCar

$24M // Private Equity

Alkemics

$23M // Series B

Cityscoot

$17M // Series A


$4

38

$9

6

$2

00

$2

08

$3

07

39

3236

89

83

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

FRANCE INTERNET INVESTMENT ACTIVITYQ3'15 - Q3'16



SELECTED INDUSTRY BREAKDOWNS

$30M INVESTED OVER

11 DEALS TO AD

TECH COMPANIES IN

Q3’16


Ogury

$15M // Series B

TVTY

$7M // Series B

Sync2ad

$2M // Series A


$1

3

$5

$1

$8

$3

0

6

4

1

9

11

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

FRANCE ADVERTISING TECH INVESTMENT ACTIVITYQ3'15 - Q3'16


$34M INVESTED OVER

9 DEALS TO

MARKETPLACES IN

Q3’16


StarOfService

$10M // Series A

Stootie

$8M // Series A

Ulule

$6M // Series A


$3

6

$2

$9

$4

2

$3

4

4

3 3

10

9

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

FRANCE MARKETPLACES INVESTMENT ACTIVITYQ3'15 - Q3'16


$23M INVESTED OVER

8 DEALS TO TRAVEL

TECH COMPANIES IN

Q3’16


Cityscoot

$17M // Series A

Yescapa

$3M // Series A

Group Corner

$1M // Seed


$1

$4

$2

5

$6

6

$2

3

2

1

5

13

8

Q3'15 Q4'15 Q1'16 Q2'16 Q3'16

FRANCE TRAVEL TECH INVESTMENT ACTIVITYQ3'15 - Q3'16



TOP DEALS AND INVESTORS

BPIFRANCE LEADS

AS THE MOST ACTIVE

INVESTOR IN FRANCE

THROUGH Q3’16

Bpifrance and Kima

Ventures round out the 1st and 2nd spots for most deals in the first 3

quarters of 2016. Partech Ventures and Crédit Agricole tied at the No. 3

spot while 360 Capital Partners, MAIF, and SmartAngels.fr round out

the top 5.


RANK INVESTOR SELECT INVESTMENTS RANK INVESTOR SELECT INVESTMENTS

1Nomad Education, Drivy,

BizMeeting8 Alkemics, Evaneos

2 Zenly, PayFit, Heetch 8 HomeRez, Tellmeplus

3 Alkemics, Lendix, ManoMano 8 Dictanova, Argosim

3 Mimosa, Helpfood, Stokkly 8 Zenly, Dayuse

5 Tediber, Tiller Systems, Cubyn 13 OpenClassrooms, Sqreen

5Cozy Cloud, SamBoat,

TravelerCar13 AntVoice, Wizbii

5 Klassroom, Evioo 13 Intersec, Cozy Cloud

8 Babbler, Intersec

FRANCE TECH: MOST ACTIVE INVESTORS

2016 (Q3'16)

OVH.COM, OCTO TOP

LIST OF LARGEST

DEALS IN Q3’16

Internet service provider

OVH.com leads the pack in Q3 with $279M in private equity from

Kohlberg Kravis Roberts & Co. and TowerBrookCapital Partners.

In 2nd is IT consultancy

OCTO Technology with a deal in which Accenture took a $61M minority

stake.


COMPANY AMOUNT/ROUND ROUND INVESTORS

$279M/Private EquityKohlberg Kravis Roberts & Co,

TowerBrook Capital Partners

$61M/Corporate Minority Accenture

$55M/Private Equity Keensight Capital

$24M/Private Equity Baring Vostok Capital Partners

$23M/Series B

Benchmark,

IDInvest Partners,

Kima Ventures,

Jerry Murdock

$23M/Series B

Partech Ventures,

Serena Capital,

SEB Alliance,

Index Ventures,

Cathay Capital Private Equity

$20M/Series B

Aster Capital,

Serena Capital,

CapHorn Invest

$17M/Series A LeasePlan

$15M/Series B

Ventech,

CoVent Partners,

IDInvest Partners,

Airtek Capital Group (ACG)

$13M/Series C

Omnes Capital,

CapHorn Invest,

Naxicap Partners

TOP FRANCE TECH EQUITY DEALS

Q3'16

WEARABLES AND

SOFTWARE-AS-A-

SERVICE TOP EXITS

RANKINGS

The most highly valued

exit by a French VC-backed tech company in 2016 YTD was the March

acquisition of software company Enablon by Wolters Kluwer.

In 2nd was the $191M

acquisition of wearables company Withings by Nokia.


INSURANCE FRAUD

PREVENTION

SOFTWARE TOPS AI

DEALS

After completing a $10M

Series A in May 2016, Paris-based Shift Technology is now the

most well-funded AI company in France.

In 2nd is Tellmeplus, based in Paris and

Montpellier, with $4.7M in Seed financing from February 2016.


TOP EXITS IN FRANCE

RAISED $39M OR

LESS PRIOR TO EXIT

In a move to bolster their

network traffic management and analytics functions,

Sweden-based Eneaacquired Qosmos—which had raised $39M—

for $57M in October 2016. Enablon was acquired for $275M after

raising only $15M.


@LaFrenchTech

www.lafrenchtech.com

@cbinsights

www.cbinsights.com

tech funding trends in france

Documents