Social and Economic Performances of the French Startup Ecosystem - 2015

1. Social and economic
performance of French
digital business
start-up
Barometer 2015

2. Summary
1. Methodology
2. Executive summary
3. Key figures
3.1 Revenues
3.2 Fund raising
3.3 Innovation support
3.4 People
3.5 Value-sharing
4. Contacts

3. Methodology1

4. Barometer based on data from digital business start-up financed by venture
capitalists
Survey sent by venture capitalists to companies they invested in
EY as a third-party to consolidate the data and ensure that the figures are kept
confidential
► 171 participants (116 participants in 2013)
► Average age: 6 years (5 years in 2013)
► 3,3 M€ invested by VC (median) versus 4,8 M€
► Key figures from financial data 2013 & 2014
Methodology1

5. Executive summary2

6. Page 6
Hyper growth & Born global
+37% of revenues vs 2013
43% of revenues are generated
abroad in 2014
25% of respondents have a foreign
VC that already invested in the firm
People
+30% of employees in one year
92% of permanent contracts
44% of people employed by
companies which revenues are
from 5 to 50M€
75% of employees have at least a
Master Degree
9% of entrepreneurs are women
Innovation support Value sharing
50% of the sample did not use « Young
Innovative Company » tax incentive
Research Tax Credit remains the
preferred state incentive
Tax controls decreased in 2014
Controls are now more focused on the
Research Tax Credit
48% of share capital held by
management and employees
93% of start-up use equity
instruments
75% of start-up have positiv
« EBIT » when reaching 50 M€
of revenues
98% never distributed dividends
Social and economic performance of
French digital business start-up

7. Key Figures3

8. Revenues3.1

9. Revenues3.1
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2013 2014
2 913
0%
10%
20%
30%
40%
50%
60%
70%
80%
71%
30%
38%
• Total Revenues (in M€)
2 123
• Growth of total revenues (in%)
Analysis by revenue segment
Barometer 2015
— 9 —
0 to 5 M€ 5 to 50 M€ + 50 M€

10. • Revenues worldwide • Growth of revenues (in M€)
France Europe International
62%
57%
19%
22%
19% 21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014
1 325
1 662
404
639393
613
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2013 2014
+25%
+ 57%
Revenues3.1
Barometer 2015
— 10 —

11. Fund raising3.2

12. • Average and median of fund raised
(in M€)
Analysis by revenue segment
• International VC
4
21
33
2
11
24
0
5
10
15
20
25
30
35
40
0 to 5 M€ 5 to 50 M€ + 50 M€
Average Median
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 to 5 M€ 5 to 50 M€ + 50 M€
38%
Percentage of foreign venture capitalists
investing in French digital business start-
up. Analysis achieved by revenue segment.
25%
23%
25%
of start-ups
are
international
VC backed
3.2 Fund raising
Barometer 2015
— 12 —

13. Innovation support3.3

14. • Did you use the label « Young
Innovative Company » (or « JEI » in
French)*?
50%
Yes
50%
No
* Analysis based on a sample of 109 participants in 2015
• Did you use the French research and
development tax credit (CIR) ? **
** Analysis based on a sample of 105 participants in 2015
Innovation support3.3
Barometer 2015
— 14 —
71%
Yes
29%
No

15. Barometer 2015
— 15 —
30%
Yes
70%
No
19%
No
81%
Yes
Innovation
Tax Credit
(CII in French)
Competitive
employ tax credit
(CICE in French)
• Did you use the new tax credits launched in 2014*?
Innovation support3.3
* Analysis based on a sample of 105 participants in 2015

16. Barometer 2015
— 16 —
7,6
M€
Received from
BPI in 2014
2,1
M€
Received from
BPI in 2013
27
Companies
declare
receiving
BPI grant in
2014
21
Companies
declare
receiving
BPI grant in
2013
• Did you receive BPI France grants* ?
Innovation support3.3
* Analysis based on a sample of 89 participants in 2015

17. Barometer 2015
— 17 —
Percentage of start-up that had the Tax administration
performing a tax control during the year
15%
15%
16%
16%
17%
17%
18%
18%
2013 2014
* Analysis based on a sample of 115 participants in 2015
17%
16%
• Tax controls in 2014* (in M€)
Innovation support3.3

18. People3.4

19. Barometer 2015
— 19 —
0
2 000
4 000
6 000
8 000
10 000
12 000
2013 2014
2 232
jobs created
1 476
people hired
in France
756
people hired
abroad
• People
7 452
9 684
For every one job created abroad, two
jobs are created here in France
People3.4 People3.4

20. Barometer 2015
— 20 —
92%
4%
2% 2%
Permanent contract (CDI)
Temporary contract (CDD & Interim)
Professional training contract
Internship
7%
18%
69%
6%
High-school diploma or less
Bachelor Degree or less
Master Degree
PhD
• Type of work contracts (2014) • People qualification (2014)
People3.4 People3.4 People3.4

21. Barometer 2015
— 21 —
44%
5 to 50
M€
32%
+ 50 M€
24%
0 to 5
M€
• Segmentation of employees by revenue segment of the digital business start-up
People3.4 People3.4

22. Barometer 2015
— 22 —
• Average age of staff
0
5
10
15
20
25
30
35
40
45
Average age
Management
Average age
Employees
31
40
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
Minimum Average Maximum
0,7
2,3
10,7
0,4
2,3
12,4
• Ratio Management/Staff wages
People3.4 People3.4
2013
2014

23. Barometer 2015
— 23 —
* Analysis based on a sample of 114 participants in 2015 ** Analysis based on a sample of 97 participants in 2015
39%
4%
10%
46%
Business developers / Marketing
Sales support/Consultants
Data Science / Business Intelligence
IT Developers
88%
Will hire in 2015
Looking for**
2015 Edition
• Focus on recruitments for the year 2015*
People3.4 People3.4
• Looking for**

24. Barometer 2015
— 24 —
73%
Consider that IT Developers
are the most difficult staff
to recruit
2015 Edition
• Focus on recruitments for the year 2015*
People3.4 People3.4
* Analysis based on a sample of 71 participants in 2015

25. Barometer 2015
— 25 —
92%
Yes
8%
No
• Are you both founder and manager of the company ?
People3.4 People3.4

26. Barometer 2015
— 26 —
51%
Yes
49%
No
91%
Men
9%
Women
• Serial entrepreneur • Chief Executive Officer
People3.4 People3.4

27. Barometer 2015
— 27 —
• Serial entrepreneur
People3.4 People3.4
91%
are men
40
years old
51%
are serial
entrepreneurs
94%
have at least a
master degree

28. Value sharing3.5

29. Barometer 2015
— 29 —
• “Earnings before interests and taxes”
or EBIT*
• Percentage of positive “EBIT”
by revenue segment*
* Sample of 102 start-up
74%
Loss
26%
Gain
38%
5 to 50
M€
75%
+ 50 M€
17%
0 to 5
M€
People3.4 Value sharing3.5

30. Barometer 2015
— 30 —
% of share capital held by external shareholders (VC,
Business angels…)
% of share capital held by owners and employees
52% 48%
• Percentage of share capital held by owners and employees
People3.4 Value sharing3.5

31. Barometer 2015
— 31 —
93%
Yes
7%
No
* Analysis based on a sample of 104 start-up in 2015
• Are you using equity instruments to motivate your team*?
People3.4 Value sharing3.5

32. Barometer 2015
— 32 —
* Analysis based on a sample of 104 start-up in 2015
72%
11%
17%
Warrants
(BSPCE)
Free shares
(actions
gratuites)
Stock-options
&common shares
(BSA)
• Types of Equity instruments*
People3.4 Value sharing3.5

33. Barometer 2015
— 33 —
Percentage calculated by doing the ratio between the number of employees owning equity instruments and the total
number of employees. First chart presents data globally and the second chart is presented by revenue segment
* Analysis based on a sample of 104 start-up in 2015
34%
Of staff owning
Equity instruments
2015 Edition
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0 to 5 M€ 5 to 50 M€ + 50 M€
39%
24%
17%
• Percentage of employees owning equity instruments*
People3.4 Value sharing3.5

34. Barometer 2015
— 34 —
2%
Yes
98%
No
• Did you distribute dividends since the creation of the company ?
People3.4 Value sharing3.5

35. Contacts4

36. Barometer 2015
— 36 —
Franck Sebag
Partner, EY
VC & IPO Leader France
@frsebag
Xavier Lorphelin
Managing Partner
Serena Capital
@Xlorphelin
4 Contacts

37. About France Digitale
France Digitale bring together the champions of digital
entrepreneurship: start-ups with strong growth plans and
potential
investors (venture capitalists and business angels). To build an
alliance between digital entrepreneurs and investors, so that
France becomes fertile ground for the creation of
digital champions of International stature. For more
information,
please visit www.francedigitale.org.
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