EY French Venture Capital Barometer

EY French Venture Capital BarometerAnnual results 2020

2 | EY French Venture Capital Barometer | Annual Results 2020

Franck SebagPartner, EY & AssociésIn charge of the Fast Growing Companies sector Western Europe & Maghreb

* All the data mentioned in this report comes from sources mentioned on page 7.

** Estimated amount not confirmed by the company.

In an extremely difficult economic environment, #FrenchTech is weathering the storm. While the image that immediately comes to mind is one of roller coasters, with sudden accelerations and dizzying drops, there is no denying that, with 620* companies having raised funds totalling €5,400 million in 2020, #FrenchTech has no reason to be ashamed of the past year. Far from it, in fact, even achieving remarkable performance given the circumstances. Amounts are up 7 % despite a 16 % drop in volume.

The Top 5 for the year 2020 is made up of Voodoo (€400** million), Mirakl (€256 million), Ynsect (€190 million), Ecovadis (€182 million) and ContentSquare (€173 million).

In terms of sector, software and internet services companies continue to concentrate over 50 % of the funds raised in terms of value (with €1,420 million and €1,400 million compared with €1,540 million and €1,100 million last year, respectively). As for Life Sciences, it is growing at the same rate as the rest of #FrenchTech, at around 5 % (€851 million compared with €811 million). Lastly, Fintech is affirming its status as a rising star with growth of 57 % (€622 million, up from €397 million in 2019).

These very good results are explained primarily by a boom in rounds over €50 million, rising in value from €1,300 million to €2,400 million (+88%) and having a strong impact on the average round value. Indeed, this average leapt from €6.9 million to €8.7 million over the period.

Île-de-France remains the undisputed regional leader of this ecosystem, with its start-ups alone accounting for 75 % of the amounts raised and 57 % of deals in 2020.

Although lying far behind, the Auvergne-Rhône-Alpes region remained in 2nd place, with 8 % of investments in terms of value (13% in number), followed by theHauts-de-France region, which came in 3rd place with4 % of investments in terms of value and number.

At European level, the United Kingdom remains the undisputed leader in Europe with over €12,700 million, growth of over 11 % in terms of both value and volume. France is sitting in 2nd place, but with Germany (with €5,200 million) close behind. However, it should be noted that these figures do not take into account all the funds raised by CureVac as the company became listed in 2020.

So, what will the future bring? What does 2021 have in store for us?

Driven by fair winds for the last few years, #FrenchTech is set to continue witnessing growth in the Growth Equity segment (fundraising in excess of €100 million). Between 2018 and 2020, these amounts grew fourfold in terms of value.

Whilst we have been seeking to understand the path of #FrenchTech exits for several years, Private Equity is emerging as a good alternative for our French scale-ups, with expectations of real corporate movement or the rise of a real IPO market in Europe.

Editorial#FrenchTech rides out the crisis

3EY French Venture Capital Barometer | Annual Results 2020 |

1st semester 2nd semester

20162015

€1.01 billion

297 deals

€1.20 billion

277 deals

€2.21 billion

for 574 deals

€760 million 240

deals

€1.05 billion

244 deals

€1.81 billion

for 484 deals

2017

€1.22 billion

301 deals

€1,35 billion

304 deals

€2.57 billion

for 605 deals

2018

€1.95 billion

333 deals

€1.67 billion

312 deals

€3.62 billion

for 645 deals

2019 2020

Amounts raised by start-ups in France

+21%

+12%

+16%

+32%

+14%

+22%+24%

+61%

+41%

+34%

+20%

-3%

+39%

+7%

€5.03 billion

for 736 deals

€5.39 billion

for 620 deals

€2.79 billion

387 deals

€2.24 billion

349 deals

€2.70 billion

360deals

+43%

€5.39 bn

620

IN FUNDS RAISED IN

DEALS...

... WITH AN AVERAGE DEAL SIZE OF €8.7

Editorial

€2.69 billion

260 deals

m


Investments by sector

Top 5 investments (and list of main investors)

Astanor Ventures, Happiness Capital, Upfront Ventures, Foodprint Coalition, Supernova Invest, Armat Group, Caisse des dépôts

YNSECT €190 millionCleantech

CVC Capital Partners (CVC), Goldman Sachs, Weil Gotshal & Manges

ECOVADIS €182 millionCleantech

€602 million 49 dealsCleantech

€622 million 52 dealsFintech

€851 million 106 dealsLife Sciences

140 deals€1,420 millionSoftware and IT Services

MIRAKL

Permira, 83North (formerly Greylock IL), Bain Capital, Elaia Partners, Felix Capital

€256 millionSoftware and IT Services

* Estimated amount not confirmed by the company.

CONTENTSQUARE

KKR, Bpifrance, Highland Europe, Blackrock, Canaan Partners, Eurazeo, Hermes GPE

€173 millionSoftware and IT Services

€1,400 million 128 dealsInternet Services

€110.5 millionVOODOO

Tencent capital

€400* millionInternet Services

5EY French Venture Capital Barometer | Annual Results 2020 |

Investments by maturity stage

Average amount invested (€8.70 million)

Annual Results 2020Total investments

Average amount invested (€6.80 million)

Annual Results 2019Total investments

€1,676 million

€186.2 million€143.9 million4 deals 9 deals

€576 million

€1,211 million

€29.5 million€21.1 million 41 deals69 deals

€1,453 million

€10.8 million€13.2 million 95 deals

€1,028 million

109 deals

€1,441 million


€1,129 million€1,141 million


€341 million€417 million

Series B

Series C and above

Growth Equity(Amount raised greater

than €100 million)

Series A

Seed

Investments on the basis of funds raised by tranche

2020 2019 Variation 20/19

Amount (€M) Number of deals Amount (€M) Number of deals Amount (€M) Number of deals

€0-5M 744 436 852 510 -13% -15%

€5-10M 479 74 584 91 -18% -19%

€10-20M 652 51 897 72 -27% -29%

€20-50M 1,075 38 1,395 47 -23% -19%

More than €50M 2,435 21 1,299 16 87% 31%

Total 5,385 620 5,027 736 7% -16%

For the year 2020, transactions exceeding €100 million represent €1.68 billion in total, for 9 deals.


In 2020, the three most significant countries in total accounted for €23.3 billion of investments, i.e. 56 % of all in-vestments made in Europe in terms of value.

Comparison of investments in the United Kingdom, Germany and France

VENTURE CAPITAL

€8.19 billion raised 1,114 deals

GROWTH EQUITY

€4.52 billion raised 22 deals

€12.71 billion raised / Δ +11%

1,136 deals / Δ +12%

€5.39 billion raised / Δ +7%

620 deals / Δ -16%

Investments by region

Top 3 French regions

The Île-de-France region accounted for 75 % of investments in terms of value for 2020.

The Auvergne-Rhône-Alpes region remained in 2nd place, with 8 % of investments in terms of value, closely followed by the Hauts-de-France region, which came in 3rd place with 4 % of investments in terms of value.

€5.39 billion

€5.03 billion

620 736

2020 2019

Number of deals

Funds raised

VENTURE CAPITAL

€3.71 billion raised

611 deals

GROWTH EQUITY


VENTURE CAPITAL


GROWTH EQUITY


€5.24 billion raised / Δ -14%

372 deals / Δ -28%

Δ: variation 2020/2019

€4,046 M

352

€3,519 M

433

ÎLE-DE-FRANCE

€186 M

37

€149 M

42

OCCITANIA

€431 M

82

€388 M

71

AUVERGNE-RHÔNE-ALPES

€84 M

12

€43 M

11

NORMANDY

€78 M

10

€58 M

18

GRAND EST

€6 M

2

€59 M

9

BOURGOGNE-FRANCHE-COMTÉ€38 M

7

€34 M

11

CENTRE-VAL DE LOIRE

€34 M

22

€76M

23

PAYS DE LA LOIRE

€59 M

19

€86 M

24

BRITTANY

€211 M

22

€197 M

29

HAUTS-DE-FRANCE

€86 M

27

€130 M

20

NOUVELLE-AQUITAINE

€127 M

28

€281 M

42

PROVENCE-ALPES-CÔTE D’AZUR

€0 M

0

€8 M

3

CORSICA

United Kingdom

Germany

France

7

MethodologyThe EY Venture Capital Barometer for France includes the equity financing transactions of businesses at the set-up stage or during their initial years of existence, with transaction dates between January 1, 2020 and December 31, 2020 and published prior to January 8, 2021. Those French companies raised funds from French and/or foreign VCs. The French data presented in this survey is based on data from Dow Jones VentureSource, CFNEWS, Capital Finance and Dealroom.co. The data for Germany and the United Kingdom is based on Dealroom.co. Processing of this data and analysis were based on EY methodology and carried out by EY & Associés. All transactions in excess of €100 million have been restated as Growth Equity.

Venture Capital includes all transactions below €100 million. In this study, we have only taken into consideration transactions in which the amount was disclosed publicly.The Internet Services sector encompasses activities such as e-commerce, marketing and performance (lead, listing), geomarketing and mobile applications. The Life Sciences sector includes the biotech and medtech sectors. The Fintech sector includes start-ups using technology to reshape financial and banking services (on-line banking, crowd funding, new payment methods, etc.) The Technology sector encompasses activities such as hardware, semiconductors, etc.

Top 10 investments in Europe

Company Country Sector Amount (€M)

KLARNA Sweden Fintech 693

ARRIVAL United Kingdom Transport 574

CUREVAC Germany Life Sciences 570

REVOLUT United Kingdom Fintech 527

OCTOPUS ENERGY United Kingdom Energy 479

KI INSURANCE United Kingdom Fintech 455

VOODOO France Internet Services 400*

CAZOO United Kingdom Transport 385

GRAPHCORE United Kingdom Semiconductors 338

SNYK United Kingdom Software and IT Services 318

* Estimated amount not confirmed by the company.

Δ -28%

GermanyΔ 10%

United KingdomΔ +89%

France

Funds raised in excess of €50 million in the United Kingdom, Germany and France

Δ: 2020/19 variation on the total amount raised per year

€3.72 billion

24 deals

2019

€2.67 billion

28 deals

2020

€5.86 billion

38 deals

2019

€6.47 billion

50 deals

2020

€1.29 billion

16 deals

2019

€2.44 billion

21 deals

2020

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© 2021 EY & Associés.All rights reserved.Studio BMC France - 2011BMC257. SCORE France No 2021-024.ED NONE

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Franck SebagPartner, EY & Associés Tel.: +33 (0)1 55 61 31 29 Email: [email protected]

Vivien Chezelle Senior Manager, EY & Associés Tel.: +33 (0)1 46 93 66 51 Email: [email protected]

Ingrid ThevenetMarketing, EYTel.: +33 (0)1 55 61 32 10Email: [email protected]

Quentin Hacquard Media Relations, EYTel.: +33 (0)1 55 61 35 47Email: [email protected]

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EY French Venture Capital Barometer