TECH FUNDING TRENDS IN FRANCE

A comprehensive, data-driven look at emerging trends, investments,

and active investors in France
Q1 2017 Trends
TABLE OF CONTENTS

6 Investment Trends: Deals and Dollars

12 Geographical Trends: Paris
16 Geographical Trends: UK & Germany
19 Sector Breakdown
24 Selected Industry Breakdowns
31 Top Deals and Investors

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SUMMARY OF FINDINGS
FINANCING TO FRENCH TECH ON PACE FOR RECORD HIGH IN
2017: 2017 is set to potentially outpace 2016 based on the Q117
deals and dollars run rate. Deal and dollar activity had already
reached a 5-year high in 2016, growing 109% and 63%,
respectively, over full-year 2015.
QUARTERLY DEAL COUNT CONTINUES HOT STREAK: French tech
companies received 180 deals in Q117, following 139 deals in
Q416 and 148 deals in Q316. $551M was invested in Q117, down
16% from Q416, but the fourth-most capital invested on a
quarterly basis since 2012.
EARLY-STAGE COMPANIES MAINTAIN MAJORITY OF DEAL
SHARE: Early-stage deals comprised 70% of deal share in Q117,
an increase from 64% of share in Q416. Late-stage deals declined
to a 3% share in Q117, from 8% in Q416.
FRENCH CORPORATES SLIGHTLY PULL BACK THEIR ACTIVITY:
Deals with participating corporates decreased to 22% of the total
in Q117, 2 percentage points below Q416 participation.
PARIS, THE CENTER OF THE FRENCH TECH UNIVERSE: $427M
was invested across 87 deals in Paris, France in Q117, marking a
36% increase in deals, and a 21% increase in dollars invested over
Q416.
FRANCE LAGS BEHIND UK AND GERMANY IN DOLLAR FUNDING:
France received $551M in total funding in Q117, trailing the UK with
$1.86B in total funding, and Germany with $699M.
FRENCH INTERNET SECTOR CONTINUES UPWARD TRAJECTORY:
Deal activity to the internet sector in Q117 saw a quarterly increase of
16 percentage points. Internet and mobile accounted for 87% of deals
in Q117.
IMPACT USA AND LAFAYETTE PLUG AND PLAY LEAD AMONG
INCUBATORS AND ACCELERATORS: Impact USA (headed by
Bpifrance and Business France), and Lafayette Plug and Play (led by
Plug and Play and Galeries Lafayette) were the most active investors
in the incubator and accelerator category in Q117.
BPIFRANCE MOST ACTIVE INVESTOR FOR Q117: Bpifrance
participated in the greatest number of deals to unique companies in
Q117. MAIF and Kima Ventures ranked second and third, while ZTP,
Breega Capital, Finistre Angels, and individual investor Xavier Niel
tied for fourth.
Note on Report Methodology
Exits in this report only include the first exit of a company. Funding analyses includes deals
& debt deals into private companies with headquarters in France. Deals from accelerators
and incubators are excluded from overall funding analyses, and are examined separately.
The latter is a methodology change compared to previous La French Tech reports.
For questions regarding this methodology reach out to info@cbinsights.com.
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France tech funding since 2012:

$6.65 BILLION
across

1,332 DEALS
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FRANCE POISED TO LEAD IN VOLATILE EUROPEAN MARKET

France has shown remarkable ability to adjust within [a]

changing environment -- it has positioned itself to lead
during this period of massive change.

John T. Chambers
Executive Chairman, Cisco

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Investment Trends:
DEALS & DOLLARS
Q12017 Trends

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 FRANCE FINANCING TRENDS TO TECH COMPANIES 730 2017 OPENS STRONG
2012 2017 (Q117) IN DEALS AND
730
DOLLARS TO FRENCH
(Full-Year Projection) TECH
2016 marked the third
484 year in a row of
increased deal volume,
with 484 deals. Despite a
$2,236 drop in 2015, dollar
(Full-Year Projection)
funding increased 63% to
232 over $2B in 2016.
180
171
Based on strong Q117
134 131
investment activity, 2017
deals and dollars may
potentially outpace 2016
$643 $608 $1,493 $1,275 $2,077 $551
at the current run-rate.
2012 2013 2014 2015 2016 2017 YTD
Disclosed Funding ($M) Deals

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 FRANCE QUARTERLY FINANCING TRENDS TO TECH Q117 SETS A NEW
COMPANIES HIGH FOR DEAL
180
Q112 Q117 VOLUME

148
Deal volume in Q117 has
139
reached a new high of
127 180 deals. On a quarterly
basis, deal activity for
Q117 is up 29% over
Q416.
67 70
63 Q117 funding declined
53 56
45 46 16% over Q416, though
40 40
33
37 35 36 33 Q117 remains the fourth
30 30
24 $1,002
most well funded quarter
since Q112.
$177

$134

$244

$297

$165

$203

$262

$337

$473

$202

$266

$295

$861

$655

$551
$125

$122
$114
$87

$71

2012 2013 2014 2015 2016 2017

Investments ($M) Deals

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 FRENCH TECH QUARTERLY DEAL SHARE BY STAGE 70% OF DEALS
Q116 Q117 ALLOCATED TO EARLY-
STAGE COMPANIES

Excluding any incubator

17% 17% 18%
21% or accelerator deals, 70%
7% 7% 5% 24%
3% 2% 1% 7% 1% 3% of deals in Q117 were
7% 3% 1%
1%
6%
1%
8%
attributed to early-stage
13%
17%
11% deals (seed and Series
12%
A).

Mid-stage deals (Series B

and Series C)
represented only 4% of
deals in Q117.
60% 56% 58% 52% 62%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

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

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 FRANCE TECH EARLY STAGE DEAL SIZE EARLY-STAGE DEAL
Q116 Q117 SIZE REMAINS STEADY
FROM Q416
$1.1 $1.1 $1.1
Q117 early-stage
(seed/angel and Series
$0.9
$0.8
A) median deal size
remained steady from
the end of 2016,
continuing at $1.1M.

Three of the last five

quarters have seen
median early-stage deal
sizes over $1M.

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Median Early Stage Deals Size ($M)

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 CORPORATE AND CVC PARTICIPATION IN FRENCH DEALS TO CORPORATE AND CVC
TECH COMPANIES PARTICIPATION
Q116 Q117 REMAINS HEALTHY

16% There was a slight dip in

19%
22% 24% 22% corporate and corporate
venture capital
participation in deals
between Q416 and
Q117.

Nonetheless, Q117
represented the third
quarter in a row in which
corporate and corporate
84% 81% 78% 76% 78% VC investors participated
in over a fifth of deals.
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Other Investors Corp / CVC Deal Participation

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Geographic Trends:
PARIS
Q12017 Trends

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PARIS LEADING FRENCH TECH SCENE

On Facebooks startup incubator in Station F, Paris:

Paris has always been a city of new ideas where people come
together to break new ground, to do new things. Were
excited to support a new generation of French startups with
enormous potential.

Sheryl Sandberg, Chief Operating Officer

Facebook, Inc.

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PARIS (87 DEALS) LILLE (3 DEALS)
PARIS: THE EPICENTER
OF FRENCH TECH

BREST (3 DEALS)

Paris was home to 87

NANTES (4 DEALS) France deals in Q117,
amounting to $427M in
investment.
BOULOGNE-BILLANCOURT (3 DEALS)
The next largest
concentrations of deals
were in Lyon and
Montpellier, both with 5
LYON (5 DEALS) deals in Q117.
MONTPELLIER (5 DEALS) TOULOUSE (3 DEALS)

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 PARIS QUARTERLY FINANCING TRENDS TO TECH COMPANIES PARIS: $427M ACROSS
Q116 Q117 87 DEALS IN Q117
87

68 64
64 Top Deals Q117

Oodrive Technologies
$70M / Series A
39
Vestiaire Collective
$62M / Series E

GuestToGuest
$35M / Series B
$231

$202

$304

$353

$427
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Investments ($M) Deals

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Geographic Trends:
UK & GERMANY
Q12017 Trends

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 QUARTERLY INVESTMENT ACTIVITY TO TECH COMPANIES FRANCE LAGS BEHIND
$M, France vs United Kingdom vs Germany THE UK AND GERMANY
IN Q117

With the exception of

Q316, France has lagged
behind both the UK and
Germany in quarterly
funding to tech
companies. However,
dollar funding is only
~$150M behind
Germanys total.

$449 Large deals to Global

$295
$266

$310

$1,023
$1,372

$3,534

$1,860
Switch account for some
$861

$655

$551
$492

$699
$845

$947

of the UKs large increase

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 in investment in Q316
and Q416.
France United Kingdom Germany

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 QUARTERLY INVESTMENT ACTIVITY TO TECH COMPANIES FRANCE PLACES 2ND
Deals, France vs United Kingdom vs Germany SINCE Q216 BASED ON
NUMBER OF DEALS

France has consistently

placed 2nd behind the UK
and ahead of Germany in
terms of the number of
deals to tech companies,
with 180 deals in Q117.

Interestingly, however, in
Q117, Frances average
deal size was only
$3.06M compared to
Germanys $5.82M, likely
70 214 104 127 185 107 148 222 118 139 194 102 180 261 115 due to the large number
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 of early deals.
France United Kingdom Germany

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SECTOR BREAKDOWN
Q12017 Trends

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 FRANCE TECH QUARTERLY DEAL SHARE BY SECTOR MOBILE DEAL SHARE
Q116 Q117 HITS 5-QUARTER HIGH
4% 6% 7% 5% 6%
4% 3%
13% 7%
11%
1% 4% Financings to internet
2%
3%
5%
companies decreased to
14% 20% 63% of deal share in
16% 24% Q117 after increasing to
22% 70% the quarter before.

In the same period,

mobile & telecom deal
share hit 24%,
representing a 5-quarter
high.
64% 71% 55% 70% 63%

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Internet Mobile & Telecommunications
Computer Hardware & Services Electronics
Software (non-internet/mobile)
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 FRANCE MOBILE & TELECOMMUNICATIONS INVESTMENT $127M INVESTED OVER
ACTIVITY 44 DEALS TO MOBILE &
Q116 Q117 44 TELECOMMUNICATIONS
COMPANIES IN Q117

32 Top Deals Q117

28
Doctolib
$28M / Series C

18 Databerries
$16M / Series A

11 Famoco
$12M / Series B
$165

$208

$127
$31

$24

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Investments ($M) Deals

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 FRANCE INTERNET INVESTMENT ACTIVITY $371M INVESTED OVER
Q116 Q117 113 113 DEALS TO
INTERNET COMPANIES
97 IN Q117
90

81
Top Deals Q117

Oodrive Technologies
$70M / Series A

45 Vestiaire Collective
$62M / Series E

GuestToGuest
$35M / Series B
$206

$222

$241

$315

$371
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Investments ($M) Deals

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$70M $62M $35M $28M $20M

COMPETING IN THE MOBILE AND INTERNET

SECTOR
Although the internet sectors share of deals declined by 7 percentage points in Q117,
the mobile and telecommunication sectors share increased by 4. Together, the two
sectors make up well over a majority of deal share. In these sectors, the largest deal
went to cloud data management platform Oodrive, which raised almost $70M in a
Series A round from investors such as MI3, NextStage AM, and Tikehau Capital.

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SELECTED INDUSTRY BREAKDOWNS
Q12017 Trends

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 FRANCE ADVERTISING TECH INVESTMENT ACTIVITY $21M INVESTED OVER 8
Q116 Q117
11 11 DEALS TO AD TECH
COMPANIES IN Q117

Top Deals Q117

8 Databerries
7 $16M / Series A

Allo-Media
$2M / Angel

Delight
$1M / Seed

2
$30

$43

$21
$1

$9

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Investments ($M) Deals

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 FRANCE MARKETPLACES INVESTMENT ACTIVITY $57M INVESTED OVER
Q116 Q117 13 13 DEALS TO
MARKETPLACES IN
Q117
10 10

9 Top Deals Q117

GuestToGuest
$35M / Series B

5 Bolden
$5M / Unattributed

Chronotruck
$4M / Series A
$10

$42

$35

$15

$57
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Investments ($M) Deals

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 FRANCE TRAVEL TECH INVESTMENT ACTIVITY $18M INVESTED OVER 5
Q116 Q117 DEALS TO TRAVEL
12 TECH COMPANIES IN
Q117

Top Deals Q117

TravelCar
7
$22M / Series B

5 5 5 Wheeliz
$1M / Seed

Adrenaline Hunter
$1M / Angel
$24

$66

$23

$18
$7
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Investments ($M) Deals

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 FRANCE HR & WORKFORCE INVESTMENT ACTIVITY $22M INVESTED OVER 9
Q116 Q117 DEALS TO HR &
9
WORKFORCE
COMPANIES IN Q117

Top Deals Q117

6 6
Qapa
$12M / Series A
4
Brigad
$2M / Series A

Jukebox
2
$2M / Angel

$22
$2

$3

$4

$9
Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Investments ($M) Deals

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 FRANCE AI INVESTMENT ACTIVITY $31M INVESTED OVER 7
Q116 Q117
9
DEALS TO AI
COMPANIES IN Q117

6 6 Top Deals Q117

5 Databerries
$16M / Series A

Kayrros
$10M / Series A

Otherwise
$2M / Seed VC
$15

$25

$22

$31
$7

Q1'16 Q2'16 Q3'16 Q4'16 Q1'17

Investments ($M) Deals

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FRANCE AT FOREFRONT OF COLLABORATION AND INNOVATION

On Airbnbs involvement in Station F, Paris:

What I think is unique about [Station F] is the scale

thousands of entrepreneurs all in the same room. I think it
could be the start of something really exciting . . .

Nathan Blecharczyk
Co-Founder and Chief Strategy Officer, Airbnb

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TOP DEALS AND INVESTORS
Q12017 Trends

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FRANCE TECH: MOST ACTIVE INVESTORS
BPIFRANCE LEADS THE
Q1'17
WAY AS MOST ACTIVE
RANK INVESTOR SELECT INVESTMENTS
EQUITY INVESTOR IN
InterCloud, Doctolib,
FRANCE IN Q117
1
Famoco
Bpifrance, MAIF Avenir,
and Kima Ventures took
2 GuestToGuest, TravelCar
the 1st, 2nd, and 3rd spots,
respectively, for most
3 RestoFlash, Ledger
equity deals to unique
companies completed in
4 DEMOOZ, ReachFive Q117.

4 Xavier Niel Kactus, Wistiki

ZTP, Breega Capital,
Finistre Angels, and
individual investor Xavier
4 Botfuel, Sencrop
Niel tied for the 4th
highest number of unique
4 Apizee, My movieUP investments.

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 FRANCE TECH: MOST ACTIVE
IMPACT USA LEADS
INCUBATORS/ACCELERATORS THE WAY AS MOST
Q1'17 ACTIVE INCUBATOR /
ACCELERATOR
RANK INVESTOR SELECT INVESTMENTS
Impact USA, an
1 Saagie, Tinyclues accelerator which was
launched by Bpifrance
2 Heuritech, Angus.ai and Business France,
took the top spot as the
most active incubator or
3 Feeligo, Blacknut
accelerator in Q117.

4 Fitle, ShorTouch Lafayette Plug and Play,

a retail-focused
4 AwaCloud, Sensinov
accelerator formed
jointly by Galeries
Lafayette and Plug and
6 Kuantom, FoodMeUp
Play, took 2nd place.

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 TOP FRANCE TECH EQUITY DEALS
Q1'17
COMPANY AMOUNT/ROUND SELECT ROUND INVESTORS COMPANY AMOUNT/ROUND SELECT ROUND INVESTORS

$70M / Series A NextStage AM, Tikehau Capital $16M / Series B MAIF Avenir, PSA Group

$62M / Series E IDInvest Partners, Vitruvian Partners $13M / Series B Partech Ventures, Alven Capital

Partech Vetures, Index Ventures,

$35M / Series B MAIF Avenir, Alyan Group $12M / Series A
360 Capital Partners

IDInvest Partners, Bpifrance,

$28M / Series C Bpifrance, Accel Partners $12M / Series B
Orange Digital Ventures

Axel Springer Digital Ventures, Ventech, Bpifrance,

$20M / Unattributed $11M / Series B
Caisse des Depots et Consignations CapHorn Invest

$16M / Series A Index Ventures, Mosaic Ventures $10M / Angel Kima Ventures

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 SELECT FRANCE TECH VC-BACKED TOP EXITS AD TECH STARTUP
Past 4 Quarters, Q2'16 - Q1'17 TEADS.TV LEADS EXIT
COMPANY VALUATION/EXIT TYPE DATE ACQUIRER RANKING FOR
PREVIOUS FOUR
$308M / Acquisition 3/21/2017 Altice QUARTERS
The $308M acquisition of
$275M / Acquisition 5/31/2016 Wolters Kluwer video ad tech platform
Teads.TV by Altice
represents the largest VC-
$191M / Acquisition 4/26/2016 Nokia
backed exit since Q216.

$106M / Acquisition 9/7/2016 iHealth The second largest VC-

backed exit during the
period was the $275M
$57M / Acquisition 10/24/2016 Enea
acquisition of
environmental
$57M / Acquisition 8/2/2016 Cheetah Mobile sustainability software
startup Enablon in Q216.

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5 OF 6 OF THE LARGEST
VC-BACKED EXITS
SINCE Q216 RAISED
LESS THAN $40M

Tech exits in France have

been remarkably capital
efficient.

With the exception of the

largest exit (Teads.TV)
which raised $82.8M
before its acquisition, the
five other startups all
raised less than $40M
before exiting. Notably,
News Republic raised
only $9M before its
$57M acquisition.

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 TOP FRANCE TECH AI DEALS MARKETING TECH
TOPS AI DEALS IN
Q1'17 Q117
COMPANY AMOUNT/ROUND SELECT ROUND INVESTOR(S)

Index Ventures, Mosaic Ventures AI marketing tech startup

$16M / Series A
ISAI Databerries raised $16M
in a Series A financing in
$9.5M / Series A Index Ventures, John Browne March 2016 from
investors including Index
Ventures.
$1.7M / Seed BPI France, 360 Capital Partners

Energy analytics startup

$1.6M / Angel Kima Ventures, VisVires Capital Kayrros took second
place with a $9.5M
Series A round in
January 2017.

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@cbinsights
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