According to the Indicateur Chausson Finance, one of France’s major capital search operators for startups with a high growth potential, French venture capital financed 152 French startups for a tota...

According to the Indicateur Chausson Finance, one of France’s major capital search operators for startups with a high growth potential, French venture capital financed 152 French startups for a total of FF 1.4 billion in the second half of 1999, compared with 129 startups for FF 0.87 billion in the first half-year. In one year, French venture capital has invested a total of FF 2.27 billion i.e. an increase of 236%. 281 companies have benefited, i.e. an increase of 153 % compared with the previous year. The league table of the ten most active capital risk companies remained unchanged in the second half of 1999. Companies listed included notably: 3i France, ABN Amro Venture, Apax Partners, CDC Innovation, Dassault Développement, Galiléo, etc. The tope ten capital risk companies together represent 68% of investments funded and 65% of the operations carried out in that half-year. During this period, each of these companies invested an average of FF 96 million and carried out 13 operations. In the whole year, each of these French venture capital companies invested an average of F 160 million and completed 25 operations. For the fist time, the indicateur Chausson Finance included the investments made by French venture capital providers in European companies. During the second half-year, 11 companies out of 28 invested in European startups, i.e. 30 operations for a total investment of FF 627 million. During this period, FF 626 million was invested in 60 Internet companies, i.e. 2.9 times more than during the first half-year (32 companies). Over the whole year, FF 831 million was invested in the Internet sector, i.e. 11 times more than in 1998 representing 37% of total investments. The telecommunications sector also saw a large increase, with 12 % of total investments in the second half-year, as opposed to 6 % in the first half-year. The software sector, on the other hand. Dropped from 38 % to 22 % of total investments between the first and second halves of 1999. The other sectors also saw a clear drop over the same period. The biggest fund-raising deal of the year was by Imediation (FF 165 million). The total funds raised by the ten biggest deals of the year increased from FF 554 million in 1998 to FF 1.5 billion in 1999. The average funding received by the 281 companies financed also climbed FF 8 million, i.e. an increase of 31 % from 1998. (Christine Weissrock - Atelier Paribas 15/03/2000)