Paris, 17 july 2017
France and Germany have renewed their commitment to the implementation of a FrancoGerman project to remedy the risk capital market failure for investments above € 10 million: in this way, Bpifrance and KfW will sign in 2017 an agreement for co-investments in French-German venture capital funds on both sides of the Rhine, with the objective of a first project financed no later than mid-2018. Such an initiative, which would mobilize up to € 1 billion of public and private investment, will enable the best national venture capital players to become pan-European, benefiting the growing startups of all sectors: digital but also Biotechnologies, environmental technologies.
This initiative will have a major impact on both growth companies and the venture capital ecosystem as it will:
• Invest bigger tickets to meet the needs of scale up of fast growing start-ups.
• Maintain in Europe the mature start-ups currently targeted by American or Chinese players.
• Link them with cross-border partners in complementary markets / sectors / technologies and likely to generate new growth opportunities at the regional level;
With regard to the French and German investment ecosystem:
• Develop operational synergies and the pooling of expertise between the Bpifrance and KfW partner funds;
• Promote the emergence of funds with recognized pan-European sectoral expertise
• Strengthen European venture capital managers (French and German) capacity to raise funds from international LPs (in particular the US)
Illustration Photo: German company Sunfire produced synthetic crude oil substitute ‘Blue Crude’ using green energy, CO2 and water (credits: sunfire GmbH / Cleantech Media / Flickr Creative Attribution-NoDerivs 2.0 Generic (CC BY-ND 2.0))