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:

Vis-à-vis companies:

• 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)

 

Source: Bpifrance

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))

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