The document provides key figures from a survey of French digital business start-ups in 2014. It finds that revenues grew 43% compared to 2012, with 39% generated abroad. The average start-up raised €4.8 million and was 5 years old. Employee numbers grew 22% and most had bachelor's degrees or higher. Innovation support was mostly through research tax credits, while equity instruments and salaries were used to motivate employees.

1. Social and economic performance of Frenchdigital
business start-ups
Barometer 2014

2. Page2
1. Methodology
2. Executive summary
3. Keyfigures
3.1 Revenues
3.2 Fund-raising
3.3 Innovation support
3.4 People
3.5 Value-sharing
3.6 Entrepreneur’s profile
4. Contacts

3. Page3
1. Methodology

4. Page4 Barometer2014
1. Methodology
• Barometer based on data from VC-backeddigital start-ups
• Surveysent by venturecapitalists to their participations
• EY,as a third-party, analyzeddata inorder to consolidate and guarantee its confidentiality.
116
5
years
old
€4,8m
2012
&
2013
start-ups Average age Raised since their creation
(median)
Key figures from financial
data

5. Page5
2. Executive summary

6. Page6
Hyper growth & Bornglobal
+43% of revenues vs 2012
39% of revenues are generated abroadin 2013
+100% of ROW revenues vs 2012
24% of respondents have aforeign VC that already
invests in the firm
People
+22% of employeesin one year
91% of permanent contracts
32 years old isthe averageageof employees
68% of employeeshave from Bachelor to
Master Degree
6% of entrepreneurs are women
Innovation support Valuesharing
46% of the sample didnot use « Young Innovative
Company» tax incentive
77% use French research anddevelopment Tax Credit (CIR)
French research anddevelopment TaxCreditremains the
preferred state incentive
30% of employeesowning equity instruments
90% of start-ups use equityinstruments
2 is the average ratio between management and staff
salaries
96% never distributed dividends

7. Page7
3. Keyfigures

8. Page8 Barometer2014
3.1 Revenues
• Total revenues (in €m) • Growth of total revenues(in %)
Analysisbyrevenuesegment
1,598
2,279
0
500
1000
1500
2000
2500
2012 2013
71%
20%
44%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0to5M€ 5to50M€ +50 M€

9. Page9 Barometer2014
3.1 Revenues
• Worldwide revenues(in %) • Worldwide revenues (in €m)
72%
61%
17%
21%
11%
18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013
1153
1398
272
482
173
399
0
500
1000
1500
2000
2500
2012 2013
France Europe International France Europe International
+21%
+100%
39%

10. Page10 Barometer2014
3.2 Fund-raising
• Average and median of fund raised
(in €m)
Analysisbyrevenuesegment
• International VC
Percentageofforeignventurecapitalistsinvestingin French
digitalbusinessstart-ups.Analysisachievedbyrevenue
segment.
5
16
29
2
10
18
0
5
10
15
20
25
30
35
0to5M€ 5to50M€ +50 M€
Average Median
13%
23%
43%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0to5M€ 5to50M€ +50 M€

11. Page11 Barometer2014
3.3 Innovation support
* Sampleof 83 companiescreatedafter 2005.
46%
No
54%
Yes
• Did youuse the label « YoungInnovativeCompany »(JEI)?*
23%
No
77%
Yes
• Did youuse the Frenchresearch and development tax credit
(CIR)?**
** Sampleof 86 companieshaving R&D expenses.

12. Page12 Barometer2014
3.3 Innovation support
25%
No
75%
Yes
83%
No
17%
Yes
Taxcredit for encouraging competitiveness and jobs (CICE) Innovation TaxCredit(CII)
• Did youuse the newtax credits launchedin 2013?

13. Page13 Barometer2014
3.3 Innovation support
• Financing Research &Development
(in €m)
• Tax controls in 2013
Percentageofstart-upsthathadtheTaxadministration
performingataxcontrolduringtheyear*.
18%
24%
0%
5%
10%
15%
20%
25%
2012 2013
* Analysisbasedona sampleof 108participants.
25 29
89
123
16
18
0
20
40
60
80
100
120
140
160
2012 2013 2012 2013
ResearchTaxCredit R&D
InternationalFrance

14. Page14 Barometer2014
3.4 People
• People
6190
7566
0
1000
2000
3000
4000
5000
6000
7000
8000
2012 2013
1376
jobs
created

15. Page15 Barometer2014
91%
3.4 People
4%
3%
1%
Permanentcontract("CDI")
Temporarycontract("CDD"and
"Interim")
Professional training
contract
Internship
68%
26%
3%
3%
FromBachelortoMaster
Degree
FromHighschool to
BachelorDegree
Highschool Degreeor
less
PhD
• Typeof workcontracts (2013) • People qualification (2013)

16. Page16 Barometer2014
3.4 People
30%
+ €50m
50%
€5m to €50m
20%
0 to €5m
• Distribution of employees by start-ups revenues

17. Page17 Barometer2014
3.4 People
• Average age of staff • Ratio Management/Staff wages
42
32
0
5
10
15
20
25
30
35
40
45
Averageage Management Averageage Employees
0,3
2
6,2
0,4
2
8,1
0
1
2
3
4
5
6
7
8
9
Minimum Average Maximum
2012 2013

18. Page18 Barometer2014
3.4 People
89%
Yes
11%
No
• Areyouboth founderand manager of the company?

19. Page19 Barometer2014
3.4 People
54%
No
94%
Men
46%
Yes
6%
Women
• Serial entrepreneur • Gender of Chief Executive Officer

20. Page20 Barometer2014
94%
are men
42
years old
46%
are serial
entrepreneurs
92%
have at least a
master degree
3.4 People
• Entrepreneur’sprofile

21. Page21 Barometer2014
3.5 Value sharing
70%
Loss
30%
Gain
* Sampleof 94 start-ups.
• «Earnings beforeinterests and taxes »
or EBIT*
• Percentage of positive « EBIT »by revenuesegment*
12%
45%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
0to5M€ 5to50M€ +50 M€
€

22. Page22 Barometer2014
3.5 Valuesharing
54% 46%
%of sharesheld by ownersand
employees
%of sharesheld by external
shareholders
(VC, business angels …)
• Percentage of capital shares held by owners and employees

23. Page23 Barometer2014
3.5 Value sharing
90%
Yes
10%
No
* Analysisbasedona sampleof 101 start-ups.
• Areyouusing equity instruments to motivate your team?*

24. Page24 Barometer2014
3.5 Value sharing
60%
27%
13%
* Analysisbasedona sampleof 105 start-ups.
Warrants(BSPCE)
Freeshares
(actions gratuites)
Stock-options& common shares
(BSA)
• Types of equity instruments*

25. Page25 Barometer2014
3.5 Value sharing
* Sampleof 99 start-ups.
• Percentage of employees owning equity instruments*
Percentagecalculatedbydoingtheratiobetweenthenumberofemployeesowningequity instrumentsandthe totalofemployees.Firstchartpresentsdatagloballyand
thesecondchartis presentedbyrevenuesegment.
28%
30%
27%
27%
28%
28%
29%
29%
30%
30%
31%
2012 2013
34%
24%
16%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0to5M€ 5to50M€ +50 M€

26. Page26 Barometer2014
3.5 Value sharing
96%
No
4%
Yes
• Did youdistribute dividends since thecreation of the company?

27. Page27
4. Contacts

28. Page28
Contacts
Franck Sebag
Partner,EY
VC& IPOLeaderFrance
@frsebag
Xavier Lorphelin
ManagingPartner
SerenaCapital
@Xlorphelin
About FranceDigitale
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Francebecomesfertilegroundforthecreationof
digitalchampionsofInternationalstature.Formoreinformation,
pleasevisitwww.francedigitale.org.
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