The EY French Venture Capital Barometer surveys equity financing deals for start-ups and early-stage businesses, announced prior to July 25 2016, with a deal date from January 1 to June 30 2016.

1. EY French
Venture Capital
Barometer
1st semester 2016
#EYVCB

2. EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016
Franck Sebag
EY partner in charge of the VC-IPO sector in France
The pace is picking up! While last year seemed to have broken
all records, the first half of this year has seen one of the best
starts since the Barometer was first published (2013). With
an increase of 33% compared to H1 2015, the amounts
invested totaled just over one billion euro with 297 deals. The
average ticket value, which is constantly on the increase, hit
almost 3.4 million euro this semester. The French venture
capital ecosystem appears to be about to move up a gear and
continue its rise in the European league table.
In line with previous years, a large proportion – more than
two thirds – of this momentum was driven by the Digital and
Technology sector, which once again boasted some
exceptional fundraisers by companies such as Deezer, the on
demand music streaming website (100 million euro), Acco,
specializing in semiconductor components (35 million euro),
or the peer-to-peer car rental platform Drivy (31 million
euro).
However, the most remarkable breakthrough goes to the Life
Sciences sector, which alone accounted for 20% of funds
raised, representing a 40% increase compared to H1 2015!
Again, the most spectacular feats included those pulled off by
MedDay, a company specializing in the treatment of
neurological disorders, which raised some 34 million euro,
and Gecko Biomedical, surgical adhesives manufacturer, with
nearly 23 million euro. Fintech retained its place in the
rankings, although there was a fall in terms of amounts raised
(-30%).
This continued acceleration has taken France and
French capital to No. 1 in terms of number of deals and
into second place, tied with Sweden, for amounts raised
– thanks to Spotify’s outstanding fundraiser (900
million euro) – behind the UK but ahead of Germany.
Despite this progress, the UK is still the top European
fundraising ecosystem.
This is mainly due to the fact that 60% of the
fundraisers are accounted for by tickets of above €20
million, whereas 65% of French deals are for tickets less
than that amount.
While a Stanford study* recently established a
correlation between the amounts invested and the
number of jobs created – 38% of US employees working
in listed companies are employed by companies that
were funded by venture capital – the rise of the French
ecosystem is promising and gives an indication of the
potential of this vital link in the economic chain and
growth. Let’s keep it going!
*How Much Does Venture Capital Drive the US Economy?, Stanford
Graduate School of Business, Oct. 2015

3. Data
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016
€ 1.006bn of funds raised, 297 deals
Average per deal: €3.4m

4. Investments by sector
Big jump in investments in
Internet Services and Life
Sciences
Already at the top of the
fundraising league table at the end
of last year, investment in the
Internet Services sector has
doubled compared to H1 2015.
With 38% of deals and 42% of
amounts raised, it stays at No. 1 in
the top 5 investments by sector.
In parallel, the Life Sciences sector
has seen a similar boom: the capital
invested has doubled, moving the
industry up two places in the
ranking. This sector alone accounts
for 20% of the funds raised this
semester.
Still among the top contenders, the
Fintech sector has however had a
relatively quiet period,
accompanied by a 30% decrease in
the sums invested in comparison
with the 1st half of 2015.
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016
#EYVCB

5. Investments by maturity stage :
1st semester 2016
Total investments Average amount invested
1st semester 2015
Total investments Average amount invested
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016
#EYVCB

6. Top 5 investments
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016
#EYVCB

7. Interview
Frédéric Sedel
CEO and co-founder of MedDay Pharmaceuticals
Founded in 2011, MedDay is a biotechnology company that develops new drugs to treat disorders of the nervous system. In April, the
company sealed a deal for investment totaling 34 million euro from Innobio, Sofinnova Partners, Edmond de Rothschild Investment Partners
and Bpifrance Investissement. It returns MedDay to the top of the table in the Life Sciences sector this semester.
The €34 million in funds you have raised – which
places you among the top 5 for the first semester of
2016 – is the highest fundraiser in the Life Sciences
sector. How did it go?
Very well! This fundraiser comes at a time when our
company had begun to generate income, which is quite
rare in the Biotech sector. We were therefore in a good
position, especially as our product, which showed
efficacy in a phase 3 clinical trial, treats the most
advanced forms of multiple sclerosis and is positioned
on an important market in which no treatment has
been approved to date. This unusual situation for the
Biotech sector was seen as a great opportunity for
investors. With this money, we can fund a new
confirmatory clinical trial which will be conducted in
the United States with a view to obtaining definitive
marketing authorization in Europe and the US.
How do you choose your investors? Why the Edmond de
Rothschild Group (EDR)?
We are looking for investors who understand our
business, share our vision, our ambition and are able to
invest and wait for as long as it takes our company to
reach critical mass. This fundraiser, which encompassed
our existing investors, was also an opportunity to attract
two new investors: Edmond de Rothschild Investment
Partners, the top investor in this second round, and
Bpifrance’s Large Venture fund. These investors know our
industry and are not necessarily looking for a quick return
on investment. Edmond de Rothschild Investment
Partners also shares these values. That is why we seized
the opportunity when it arose! Raphaël Wisniewski
seemed to be the right person to come on board this
exciting adventure and join the Board of MedDay
Pharmaceuticals.
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016

8. (interview continued) What is the next step for MedDay Pharmaceuticals?
Now that the financial health of the company is secure, we can focus on the operational and regulatory aspects with the start
of our new trial, the approval and marketing authorization for our product in Europe and the United States. The timing will be
important because, depending on the authorizations granted, we will probably need additional funding, particularly if we
decide to market our product ourselves. The question of a new fundraising or IPO would then allow us to launch the
commercial business. We chose not to make a decision immediately on this to enable us to retain a margin of flexibility and
opportunity, let our thinking take its course and better adapt to future regulatory deadlines.
Raphaël Wisniewski
Partner at Edmond de Rothschild Investment Partners
Investments in the Life Sciences sector doubled in this first
semester – why, do you think?
The continued rise in investment over the last 3 years, the
excellent growth of companies in the sector and the
performance of the stock market in recent years have had a
very positive impact. This momentum has enabled investors to
increase their investment capacity in these companies, which
have achieved significant fundraisers of more than €20m this
semester. This growth was also driven by increased foreign
investment in French Biotech firms.
How do you see the end of the year for the Biotech
industry?
I am confident it will be a good second semester! The
funds raised recently by industry experts have increased
their capacity to invest. And although we have seen a
slowdown in stock market activity, corporate financing
requirements remain high, creating many investment
opportunities. The level of investment in the French
Biotech sector should therefore be maintained to the end
of this year.
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016

9. European perspective
Top 3 Countries for VC activity
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016
With 27% of the total number of
deals, France moved up to first
place on the European podium
in terms of volume of
transactions, but not only that,
with more than one billion euro
raised (16% of total sums
raised), France has overtaken
its rival, Germany!
Note, however, that second
place is shared with Sweden
which, thanks to Spotify’s
record deal (€900 million euro)
made a spectacular leap into
the top 3 in investments in
Europe.
#EYVCB

10. Note on methodology :
The EY French Venture Capital Barometer surveys equity financing deals for start-ups and early-stage
businesses, announced prior to July 25 2016, with a deal date from January 1 to June 30 2016.
The French data presented in the Barometer are based on data from Dow Jones VentureSource, CFNEWS and
Capital Finance. The European data are based on data from Dow Jones VentureSource and CB Insights.
These data have been processed and analyzed in accordance with the EY methodology by Ernst & Young et
Associés. This study only covers deals for which the amount was publicly announced.
The Internet Services sector covers activities such as e-commerce, performance marketing (e.g. lead generation,
search engine optimization), geomarketing or mobile applications.
The Life Sciences sector covers the biotech and medtech industries.
The Fintech sector covers start-ups that use technology to rethink financial and banking services (online
banking, crowdfunding, new payment means, etc.)
The Technology sector covers activities such as hardware, semiconductors, etc.
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016
#EYVCB

11. Contacts
Franck SEBAG
EY partner in charge of the VC-IPO sector in France
@frsebag
Nadège Abdou-Brahim
Marketing
@nadege_AB
Bonnie Olivier
Médias relations
@BonnieOlivier
EY French Venture Capital Barometer ……………….……………………………………………………………………… 1st semester 2016
#EYVCB