Festival French Tech 2014

1. Nicolas von Bülow,
Partner & Co-founder - Clipperton Finance
Jean-Michel Deligny
Managing Director – go4venture Advisers
France Digitale Day - June, 11th 2014

2. France Digitale Day - June, 11th 2014
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FRENCH INNOVATION FINANCING: A SNAPSHOT
BIOTECH /
CLEANTECH
IT
59%
CleanTech
13%
Above $30M
2%
$10-30M
9%
$1-10M
62%
Below
$1M
27%
FRANCE: ROUND SIZE SPLIT – 2013 (# DEALS)
SOURCE: DIGIMIND / CLIPPERTON FINANCE
MEDTECH
COMPONENTS
CONNECTED
OBJECTS $30M RAISED $20M RAISED
$26M RAISED
ON NYSE$45M RAISED
$23M RAISED $37M RAISED
$42M RAISED $27M RAISED
FRANCE: SECTOR SPLIT – 2013 (AMOUNTS)
INNOVATION FINANCING IN FRANCE - 2013
$1B
Value
235
deals
A FEW
EXAMPLES
LifeSciences
28%
$1 816M
$1 640M
$1 001M
UK DACH FR
238
deals 153
deals
235
deals
SOURCE: DIGIMIND / CLIPPERTON FINANCE
* ALL FINANCING ROUNDS ABOVE $500K, EXCLUDING IPOS, SECONDARIES AND
MAJORITY INVESTMENTS
COMPARED TO UK IN GERMAN MARKETS

3. France Digitale Day - June, 11th 2014
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EUROPEAN VC INVESTMENTS BY COUNTRY OF FUND (€K)
SOURCE: EVCA - 2014
INCLUDES ALL VENTURE CAPITAL INVESTMENTS – SEED, EARLY STAGE AND LATER STAGE
€957k
€1138k
€929k
€847k
€725k
€675k
€786k
$864M
$1005M
$704M
€751M
€770M
$591M
$657M
€1641M
€1770M
€875M
€802M
€840M
€678M
€521M
2007 2008 2009 2010 2011 2012 2013
France Germany UK
• FRENCH, GERMAN AND UK VCS HAVE SIMILAR
INVESTMENT CYCLES AND SIMILAR FIREPOWER
• BUT REMEMBER, 2X MORE INVESTMENTS IN THE UK…

4. France Digitale Day - June, 11th 2014
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1990S 2000S 2010S
#2 IN THE WORLD FOR
IPTV
€3.7B REVENUE IN
2013
INVENTOR AND
WORLDWIDE LEADER OF
SMART CARDS
€2.4B REVENUE IN 2013
ACQUIRED BY SAP FOR €4.8B –
BIGGEST SOFTWARE ACQUISITION
IN EUROPE
>20% OF SAP REVENUE
ACQUIRED BY RAKUTEN IN
2010 FOR €180M
ACQUIRED BY IBM FOR
$340M IN 2009
INVENTOR OF PRIVATE SALES
>€1.6B SALES (2013)
>$4B VALUATION
INVENTOR OF AD RETARGETING
$2B VALUATION UPON IPO
WORLDWIDE REACH
$160B ACQUISITION BY
ORANGE GROUP
LEADING MUSIC STREAMING
PLATFORM
>$150M RAISED
OVER $300M SALES
$50M INVESTMENT FROM
ACCEL PARTNERS
DEVELOPER OF AORTIC VALVE
REPLACEMENT
>$700M ACQ. BY MEDTRONIC
WORLDWIDE LEADER IN
HUMANOID ROBOTICS
$100M ACQ. BY SOFTBANK
ONE OF THE BIGGEST
ACQUISITION BY ADOBE IN
EUROPE ($600M)
DEVELOPER OF THE FIRST
ARTIFICIAL HEART
LISTED IN PARIS
>500 PEOPLE
JUST ANNOUNCED THE ACQ. OF
JEUXVIDEOS.COM FOR >$120M
CONNECTED HEALTH INNOVATOR
$30M RAISED IN 2013
BIG DATA STORAGE LEADER
STRONG DEVELOPMENT IN THE US
TALENT MANAGEMENT SUITE
$20M RAISED IN 2013
INNOVATOR IN CONNECTED OBJECTS
NETWORKS
$20M RAISED IN 2014 (INC. INTEL)
WEB SECURITY INNOVATOR
$22M RAISED IN 2014 (INC.
BESSEMER)
EUROPEAN LEADER IN SOCIAL
COMMERCE
INVESTMENT FROM CONDE NAST
INNOVATING IN CLOUD ENTERPRISE
SOLUTIONS
$18M RAISED IN 2014 WITH ACCEL
INNOVATING IN CLOUD ENTERPRISE
SOLUTIONS
$18M RAISED IN 2014 WITH ACCEL
NUMEROUS INTERNATIONAL LEADERS ACROSS SEGMENTS
LEADER IN OPEN SOURCE
$40M RAISED IN 2014
GLOBAL EXPERT IN LASER SYSTEMS
$37M TRANSACTION

5. France Digitale Day - June, 11th 2014
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FRENCH START-UPS AND US MONEY RECENTLY

6. France Digitale Day - June, 11th 2014
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Acquired by Acquired by
A FEW EXAMPLES OF CROSS-BOARDER OPERATIONS
€180M
Acquired by
€4.8B
Acquired by
~$150M
$600M
Acquired by
$100M
Acquired by
$700M
Acquired by
>$20M
Acquired by
$25M
Acquired by
$340M

7. France Digitale Day - June, 11th 2014
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WHAT HAPPENED OVER THE LAST 15 YEARS
MINDSET
ECO-SYSTEM
PEOPLE
TOP LEVEL MANAGERS HAVE GAINED EXPERIENCE:
- PROFESSIONAL
- CONNECTED
- TECH SEASONED
THE INNOVATION ECO-SYSTEM HAS BEEN STRUCTURED:
- CONNECTIONS BETWEEN PUBLIC RESEARCH AND PRIVATE ENTITIES
- VCS HAVE GAINED EXPERIENCE AND SECTOR EXPERTISE
JUST LIKE IN OTHER EUROPEAN COUNTRIES, TECHNOLOGY HAS BECOME A
KEY TOPIC:
- GOVERNMENT INCENTIVES HAVE BEEN INSTALLED
- START-UP CULTURE HAS SPREAD AMONGST ENGINEERS AND GRADUATES

8. France Digitale Day - June, 11th 2014
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86
98
179
272
402
Ireland
Spain
Germany
France
UK 27%
18%
12%
7%
6%
% of Europe
# OF ROUNDS1 - (2011-2014 YTD MAY 31) VALUE OF ROUNDS1 (2011-2014 YTD MAY 31)
€371mn
€441mn
€552mn
€747mn
€1 189mn
Germany
Netherlands
Italy
France
UK 22%
14%
10%
8%
7%
Source: VentureSource
1. VC / PE rounds for Information Technology companies based in Europe
FRANCE IS EUROPE’S 2ND MOST ACTIVE VENTURE MARKET
% of Europe

9. France Digitale Day - June, 11th 2014
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108
100
86
81
69
59 58 57
51 49 48 48
30 30 28 25 25 24 23 21
Crocus
Technology
Deezer
Wonga
Borro
SixDegrees
Hyperoptic
Access
Powa
Appsense
Just-Eat
FarFetch
Mimecast
Amplitude
Criteo
SuperSonic
Imagine
Aldebaran
Spartoo
Viadeo
Withings
Leosphere
Top 10 UK and French Fund-Raisers1
(2011-2014 YTD May 31, €mn)
Top 10 UK Total: €606mn Top 10 France Total: €414mn
– 32%
Source: Go4Venture Advisers HTI Database
1. Large HTI investments (>£5mn / €7.5mn / $10mn) for Information Technology companies based in Europe
ACCESS TO CAPITAL IS SOMEWHAT BINARY

10. France Digitale Day - June, 11th 2014
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69%
55%
31%
45%
UK France
US Non-US
Selected Non-US2
Investors
Selected US2
Investors
Selected Non-US2
Investors
Selected US2
Investors
Source: Go4Venture Advisers HTI Database
1. Large HTI investments (>£5mn / €7.5mn / $10mn) for Information Technology companies based in Europe
2. Rounds defined as international if any single investor is not from the same country as the fund-raising company’s HQ;
and US if any single investor
is based in the US
US vs. Non-US International Rounds1,2
(2011-2014 YTD May 31)
US INVESTORS ARE STILL LESS ACTIVE THAN IN THE UK

11. France Digitale Day - June, 11th 2014
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2
3
10
12
27
Finland
Switzerland
France
Germany
UK 42%
18%
15%
5%
3%
% of Europe
# OF M&A EXITS1 (2012-2014 YTD MAY 31) VALUE OF M&A EXITS1 (2012-2014 YTD MAY 31)
35%
21%
17%
9%
4%
Source: Go4Venture Advisers HTI M&A Database
1. M&A exits of European VC and Growth Equity backed Information Technology companies of $50mn or more
2. Includes the €2.2bn exit of Supercell, the only €1bn+ exit in the sample
FRANCE IS STILL NOT GETTING ITS SHARE OF M&A EXITS
% of Europe
€542mn
€1 171mn
€2 283mn
€2 816mn
€4 801mn
Ireland
France
Finland
Germany
UK
2

12. France Digitale Day - June, 11th 2014
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100mn+ UK and French M&A Exits1
(2012-2014 YTD May 31, €mn)
UK # of Exits: 12 France # of Exits2: 4
– 67%
Source: Go4Venture Advisers HTI M&A Database
1. M&A exits of European VC and Growth Equity backed Information Technology companies
2. Includes aborted exit of Dailymotion
LACK OF US BUYERS UNDERMINING AVERAGE EXIT VALUES
623 600 582
455
387 365
242 240 238 215
153 131 127 122 121 116
GlobeOp
Skrill
Callcredit
Neolane
NaturalMotion
DeepMind
Avelo
TDXGroup
Ubiquisys
GeoNetworks
LaCie
Dailymotion
(aborted)
E-Learning
FFastFill
Solarsoft
OB10

13. France Digitale Day - June, 11th 2014
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WRAP-UP: AN UNDERESTIMATED MARKET
ENGINEERING
ENVIRONMENT
DOMESTIC
MARKET
MATURE INNOVATION
ECO-SYSTEM
EFFICIENT FISCAL
FRAMEWORK
- STABLE LEGISLATION
- LOW R&D COSTS DUE TO
GOVERNMENT INCENTIVES: E.G.
CIR/CICE
- FUND FUNNELING TOWARDS
INNOVATION
- DYNAMIC
- LINKED WITH FUNDAMENTAL
RESEARCH
- DRIVEN BY PRIVATE FUNDS
- INTEGRATED FINANCING FUNNEL
FOR EARLY TO LATER STAGE
- TECH-SEASONED FUND MANAGERS
- WORLWIDE LEADERS
- STRONG AND MATURE
- ESTABLISHED B2C CULTURE
- GEOGRAPHICAL DIVERSITY
- EUROPEAN CROSSROADS
- R&D: 2.3% OF GDP
- #2 IN EUROPE FOR
MATHEMATICS, SCIENCE AND
TECH GRADUATES*
- #2 IN EUROPE FOR PATENTS
FILED*
CURRENT LACKS & AXIS FOR
IMPROVEMENTS
FRENCH AND EUROPEAN PUBLIC
MARKETS ARE NOT STRONG ENOUGH
TO TAKE OVER PRIVATE FUNDS
LATER STAGE FUNDS ARE NOT YET
GEARED TOWARDS TECHNOLOGY AND
LACKING MANAGERS EXPERIENCED IN
THE FIELD
TOO FEW DIGITAL CHAMPIONS
CAPABLE OF CONSOLIDATING THE
MARKET
* EUROSTATS

14. France Digitale Day - June, 11th 2014
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For more information please visit www.go4venture.comFor more information please visit www.clipperton.net
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