Financing innovation in early stage
April, 2d 2012 Jacques MELER

Business Angels situation in France 2011
• 3950 Business Angels (+10% /2010)
• 76 Associations (+5%)
• 327 investments achieved (+9%)
• 44,5 M€ invested (for total fund raising of 111M°€)
• Average investment : 132 K€ for BA (195K€ in 2009)
(source France Angels as of December 31st 2011)
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2010 INVESTMENTS
Breakdown by activity :
Autre secteur % EN 2010
9%
Industrie / Chimie
7%
Services et
transport NTIC
10% 45%
Santé /
Biotechnologie
14%
Bien de
consommation /
distribution
8% Energie /
Cleantech
7%

START UP FINANCING CYCLE
R&D Birth Survive 1st Success Take off Maturity
REVENUE
Capital Developpement
Venture Capital 5 M€ - ….
Early stage 2 à 10 M€ Public Market
Business Angels 100 K€ à 3 M€
Awards 50 - 500 K€
Government help /
Incubators/seed capital
25 - 150 K€ TIME
Idea/Concept Proof of concept Product launch Industrial growth
Prototype 1st client Sales growth international

THE REAL CYCLE !.......
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Mission of Seed capital and early stage
financing
Finance the « go to Market »
• Prototypes or pre-series are achieved, validation is done or on
going
• Search for 1st reliable customers (≠ subsidized projects)
• Leverage to finance first equipment
• Finance BFR
FINANCE THE FUTURE not PURCHASE THE PAST
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Current Situation of Early Stage + Venture
Capital
• 1st Half 2011 vs 1st Half 2010 = - 69% of
collected Funds : from 231M°€ to 72M°€ !
• Greater selection in projects by professional
investors
• Greater potential role for BAs
• New players :
- Web entrepreneurs (Isaï, Jaïna, Kima…)
- NTIC big groups (Orange, SFR…)
-Corporate Venture by Industrial groups
(Schneider, Alstom, Total, Veolia, Suez….) 7

Current Situation of Early Stage + Venture
Capital
• As of today 5 Regions have created Co-Investment
Funds to finance Innovation and Development
• PACA Investment is among the first with 16M°€
• These funds rely on Private co-investors
• We have today in PACA a 3 « storey » system :
- Individual BAs up to 250/300K€
- SIBAs idem, additional to BAs
- PACA Investment from 150 to 750K€ as additional
co-investor
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Conclusion
• BAs are committed to cooperate with new SATT :
- Select entrepreneurs
- Select and finance projects coming from
Academic and Public Research
• Opportunity to balance investment in NTIC with more
« industrial » projects
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