The Strength of Venture Capital in France

by Jessica Duong

  • 23 Nov 2011
  • PE

Fifty one percent of the 177 France-based fund managers on Preqin’s database make venture capital investment, and further statistics show that these companies play a significant role in the private equity market. There are currently 91 fund managers based in France that employ venture capital in their company’s investment strategy, with 59 of these exclusively targeting pure venture capital investments according to Preqin’s Fund Manager Profiles product. Collectively, the 59 firms have raised over USD 4.9 billion in total funds in the last 10 years, and have USD 1.4 billion of dry powder at their disposal.

The top five France-based firms that solely focus on venture capital opportunities are: CDC Enterprises, Ventech, Truffle Capital, Innovacom and Blackfin Capital Partners, which are all headquartered in Paris. This ranking is based on the total capital raised in the last 10 years. Together, just these five firms have raised over USD 2.4 billion in capital, accounting for close to 50% of total capital raised in the last 10 years by all the 59 France-based fund managers that exclusively nominate venture capital to be their main investment strategy.

CDC Enterprises is the top player, having raised almost USD 973 million in the last 10 years. The firm invests in small to medium-sized companies by providing them with start-up or expansion capital to create value and jobs. The focus for CDC Enterprises is to promote growth in SMEs within the IT, communications and life sciences industry sectors. The second largest France-based fund manager, Ventech, similarly targets high potential IT, communications and life sciences companies for investment and is recently pursuing investments in the growing Chinese economy. It has raised USD 430 million in the period, less than half the amount raised by CDC Enterprises

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