- A new French Revolution is occurring as France is becoming a major startup nation and innovation hub, especially in tech. - Factors driving this include a large talent pool of engineers and researchers, a new entrepreneurial culture among youth, and a rising VC industry. - The French VC industry has grown significantly in recent years, with investments tripling over 3 years and France now the #2 VC market in Europe. - Major initiatives like Station F aim to further support the growing startup ecosystem in France and help French startups think more globally and ambitiously.

1. A New French Revolution
NVCA Dinner
September 11, 2017

2. 3 missions
Support Innovative
Companies
Foster
Entrepreneurship
Provide Eximbank
Tools
A new concept of a Bank for Entrepreneurs

3. Bank Loan
Guarantees
and Credit
Insurance
Loans
Innovation
Financing
VC
Small Cap
Eq. Invt
Mid-Large
Cap Eq. Invt
Fund of
Funds
€8B
p/y guarantees
€16B
p/y export credit
insurance
€15B
per year
€1,3B
per year
(soft loans /
subsidies)
€1,5B
AUM
€1,4B
AUM
€14B
AUM
€4B
in 330 Funds
€1B
committed in 2017
60,000
companies
per year
20,000
companies
per year
4,000
startups
2,000
SMBs
per year
7 Funds
50 invts
per year
4 Funds
100 invts
per year
Orange, Gemalto,
STmicro,
Ingenico, Soitec,
Criteo, Talend…
including
Atomico,
Balderton, Versant
Ventures, New
Leaf, Advent
The « French Silicon Valley Bank »

4. What is going on
in France ?

5. Rising
VC Industry
Large
Talent Pool
New
Culture
A New Tech Revolution

6. A Large
Talent Pool

7. Easy
Access
Competitive
Workforce
Scientific
Excellence
1,000,000 engineers
= Germany
$60,000 / year
+ 30% Tax Credit
IoT / Telcos
80,000+ devs / year Low Turnover AI / Analytics
70,000+PhD / year
47% foreigners
60 hours / week Biotech
Secret sauce: the talent pool

8. «France already has one of the strongest
AI research communities in the world»
Mark Zuckerberg
June 2, 2015
Math Nation

9. A New
Culture

10. A massive cultural shift
50%of 18-24 year old French people want to create
their own company
Poll IdInvest / ViaVoice, April 2015

11. Early leaders
Role Models
New Kids on the Block
Frédéric
Mazella
Antoine
Martin
Nicolas
Dessaigne
Jonathan
Benhamou
Jérôme
LecatOlivier
Pomel
Daniel
Marhely
Bertrand
Diard
Pierre
Chappaz
Xavier Niel
Jean-Baptiste RudelleJean-David Blanc
Pierre K-Morizet
Marc SimonciniLoic Le Meur
Jacques-Antoine Granjon

12. A full fledged Startup Nation
They have offices in the USA
Ivalua
Keymetrics
Kizbat
Launchmetrics
Ledger
Mediabong
Mirakl
Mobydish
Myfeelback
MyFox
Netvibes
News Republic
AODocs
Adok
Adwanted
Adways
Soap
Stickyads
Stilog
Storefront
OVH
Palacebnb
Paws En Vogue
PeopleDoc
Phasics
Clarityad
Cognit
Concord
Concord
Vidcoin
VideoStitch
Voice Polls
Voxeet
Wellbot
Whatt
Wimi
Wittycircle
Ysance
Yuzu
Genymotion
Giroptic
HelloBill
Hexo
Hi
Hudson Mind
HumanGive
Hyphen
Ifeelgoods
Dataiku
Datawords
Devialet
Dowsa
Doz
Easymovie
Easyroomate
Shapr
ShopingFeed
Sightcall
Silver Credit
Sindup
Sinequa
Sketchfab
Skylights
Secret Media
SellSecure
Sellsy
SevenHugs
Beekast
Birdly
Blupods
Botify
Bubble
BulldozAir
CallR
Calso
Checkr
Planetassur
Pradeo
Prismic
Prodontis
Prynt
Redbird
Rythm
Ryze
Samocat
Scoop-It
Sculpteo
Seald
Tempow
Tilkee
Tondo
Topi
Inovia
Insuite
Invibes
Appaloosa
Artlist
Bandsintown
Be-Bound
FreshPlanet
iAdvize
Fruition Sciences
Gandi
Email Hunter
Evercontact
Exosun
Ezakus
Fittingbox
Matooma
Once
One2Team
OneKloud
Openio
Orbirental
Outscale
Stupeflix
Sublime Skinz
Synthesio
Tech4stress
Triby
Tricy
Tunsy
TvTy
Uppler
1000Mercis
Nuxeo
Octoly
Invoxia
Inwebo
Itrust
Cosmo
Curioos
Dailymotion
NewsMatic
Nexway
Teads
Talend
Criteo Placemeter
VestiaireCollective
Zenly
Tribe
Sigfox
Invivox
FollowAnalytics
Ubisoft
Exoplatform
Instaply
Dashlane
Logmatic
Wit-AI
Tellmeplus
Babbler
Algolia
DxO
Jarvis
ConnectThings
Deezer Algama
Odaseva
TextMe
Scality
Lalilo
Letsignit
ListenOnRepeat
Login People
Nomalys
SensioLabs

13. « Among our foreign founders,
French are now second after Canadians »
Michael Seibel, CEO
Y Combinator
A global ambition
2010 2014 2015 2016 2017*2012

14. A talented community in the US
Yann Lecun Head of AI
Alex Dayon Pres. Product
Gilbert Passin VP Manufacturing
J-P Courtois Exec. VP
Marc Onetto
ex SVP Operations
Fidji Simo VP Product
Frederic Lalluyaux
Former CEO
JB Rudelle Founder
Alex Lebrun
Founder
David Gurle
Founder
Eric Setton
Founder
Jérôme Lecat
Founder
Mathilde Collin Founder
Nicolas Dessaigne Founder

15. Time to think BIG
Station F
The Largest Tech Campus in The World
1,000
startups

16. A Rising
VC Industry

17. Investments($M)
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
Numberofdeals
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180
190
200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Deals Investments
1452
586
679
870
302294
203
477
342
269
1004
204
167
121126114
74
297
253
87
142177
167
188
144
150
133
81
49
66
69
65
43
35
47
52
37
31
36
30
40
24
41
3333
41
24
40
30
36
31
37
52
47
35
43
65
69
66
49
81
133
150
144
188
167
2012 2013 2014 2015 2016 2017
VC x3 in 3 years
Source

18. 0
1
2
3
4
2012 2014 2016
3,2
3,8
3,2
1,31,3
0
1
2
3
4
2012 2014 2016
2,7
1,5
0,8
0,6
0,5
0
1
2
3
4
2012 2014 2016
2,7
1,8
1,2
0,50,5
0
1
2
3
4
2012 2014 2016
2
2,9
2
0,60,6
UK France GermanyIsrael
France is now #2 in Europe
Volume in $B (2012 - 2016)
Source

19. 4,110
France is now #2 in Europe
100
37,5
375
12,5
650
2012 2014 2016
410
542
644
545
520
100
237,5
375
512,5
650
2012 2014 2016
118
167
180
243
590
100
237,5
375
512,5
650
2012 2014 2016
132
166
241 231 237,5
375
512,5
650
2012 2014 2016
165
245
288
353
380
Number of deals (2012 - 2016)
Source
UK France GermanyIsrael

20. France is now #2 in Europe
Q2 2017
0
0,575
1,15
1,725
2,3
1,3
1,5
2,3
Volume in $B
0
60
120
180
240
112
167
231
Number of deals
UK France GER UK France GER
Source

21. Number of deals by regions
(Q1 & Q2 2017)
341
36
52
33
23
5
17
23
9
3
16
15
1
Source

22. $6,2B
VC Dry powder

23. Shift towards larger deal size
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
100 %
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
< 1M 1M - 5M 5M - 10M 10M - 25M > 25M
Early stage
Expansion
Growth
Source
60% (82% in 2014)
% of deals
30% (17% in 2014)
10% (1% in 2014)

24. Increasing median ticket size ($M)
Seed Series A Series B Series C
2
4
6
8
10
12
14
16
2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016
14,1
5,9
2,4
0,9
14,1
5,1
2,1
0,6
7
3,5
1,7
0,6
But lower burn rate
in FR
Our challenge:
Expansion ~ Late
US
$6M
US
$2M
US
$16M
US
$33M

25. 0
40
80
120
160
2012 2016
160
80
Average size of
French VC funds (€M)
x2
Today’s challenge: growth stage
Largest rounds in the last 12 months ($M)
OVH 250 KKR, Towerbrook Capital Partners
Sigfox 150
Salesforce Ventures, Bpifrance,
Total, Alto Invest, Intel Capital, Elliott
Deezer 110 Access Industries, Orange
Devialet 105
Bpifrance, Korelya Capital,
Foxconn, Renault, SharpCM CIC
Actility 75
IdInvest, Bpifrance, Creadev,
Foxconn, Ginko
Oodrive 71 Tikehau Capital, MI3, NextStage
Vestiaire Collective 62 IdInvest, Eurazeo, Vitruvian
Blade 51 Business Angels
Algolia 53
Accel, SaasTr Fund, Alven, Point
Nine Capital, Storm Ventures
GuestToGuest 35 Alyan, MAIF

26. $308M Altice
$275M Wolters Kluver
$213M Snap
$191M Nokia
$189M Trainline
$122M IPO
$106M iHealth
$57M enea
Top exits last 12 months

27. They believe in French entrepreneurs

28. THANK YOU
nicolas.dufourcq@bpifrance.fr