French software publishers raised 220 million euros from July 2013 to June 2014, according to the second barometer of KPMG for Afdel, the French association of software publishers and Internet solutions. This figure is rising sharply over one year since during the first edition of this thermometer of venture capital in the sector, 142 million euros had been raised.
“The record amount of fundraising reached is a new recognition of the excellence of the know-how of the French software industry” explains Jamal Labed, President of Afdel. However, 7 operations concentrated 123 million euros, or 56% of the total amounts raised over the twelve months studied. Among these companies are Scality (17 million euros raised), recently awarded by Syntec Numérique, TalentSoft (15 million euros), Synthesio (14 million euros) and Novapost (13 million euros).
Priming: 46% of operations
The audit firm emphasizes that 55 operations were carried out, of which 55% for round tables ranging between 0.5 and 1.5 million euros. In terms of the funding phase, 46% of operations were first rounds and 26% second rounds. “We must salute the vigor of the market for the first rounds, which allow more and more entrepreneurial projects to find their financing,” said Guillaume Cauchoix, deputy director of KPMG corporate finance.
However, the study underlines that French private investors cede ground to their foreign and public counterparts when fundraising exceeds a certain amount. When raising more than 10 million euros, there was a foreign investor in 86% of cases, and a direct public investor in 57% of cases. “The appetite of foreign investors associated with the commitment of Bpifrance contributes to the achievement of very significant tours for our software champions” indicates Eric Lefebvre, partner at KPMG Technologies.