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What Do The Funds Do? The portrait of Ventech Capital

For practically 25 years, Ventech Capital helps tech startups. On their counter, greater than 200 corporations supported, together with 100 till exit (resale or IPO). Specialist in “early stage” funding, the fund participates within the first rounds of funding and is commonly the primary institutional participant to take a position. In its portfolio, names well-known to most of the people corresponding to Vestiaire Collective or 750 grammes and through its funding within the Webedia group. For the reason that opening of its Paris workplace in 1998, the branches have multiplied and Ventech is now current in Berlin, Munich, Helsinki, Shanghai and Hong Kong, placing proximity and understanding of native tradition on the coronary heart of its method.

The alerts usually are not all inexperienced right this moment for tech. In an advanced macro-economic framework, tech shares suffered a robust correction this yr, particularly after the offensive speech of Jérôme Powell, the president of the American Federal Financial institution, who reminded buyers that inflation was right here to remain.

Nevertheless, morale is nice at Ventech Capital, and Audrey Soussan, Normal Accomplice, even specifies that the start of the yr was comparatively lively. The fund offered two corporations in its portfolio to American tech unicorns: 4stop resold to Jumio, a cell fee and on-line id verification firm that gives card and id validation and scanning merchandise for cell transactions and inside resold to Gainsight, a buyer success device. On the funding facet, the geographical areas and sectors are diverse: NFT, retail, social procuring, knowledge literacy, and many others.

The fund has additionally carried out refinancing, generally with exterior gamers. Audrey Soussan particulars: “For good corporations which have stable fundamentals, there’s at all times room for refinancing. Positive, inflation or provide chain points are impacting tech corporations and their valuations, but it surely’s a easy experience and it is not at all a state of affairs like 2000. I do not see that anymore as a interval of consolidation, which obliges everybody to renew good practices, to place issues again on monitor and specifically valuations”.

“Corporations with stable fundamentals exist, improvements are there and there’s room for brand new European champions”.

Audrey Soussan even has the sensation that France is doing higher than her European counterparts, and figures from the EY Enterprise Capital barometer verify this: within the 1st half of 2022, FrenchTech corporations raised greater than €8.4 billion, a rise of 63% in comparison with the first half of 2021. That is the strongest progress in investments in continental Europe and France is way forward of Germany. For the Normal Supervisor, it’s above all a change of method:

Earlier than, when money was low-cost, we centered on progress in any respect prices. As we speak, cash is costlier, and profitability is once more the most important subject”.

At present, Ventech is and invests specifically in marketplaces, Deep Tech (corporations that develop methods thought-about to be extremely revolutionary), software program options (Saas specifically) or synthetic intelligence (with the Web3 in sight). . Right here we aren’t speaking about crypto-currencies however about applied sciences based mostly on the Web3 and which purpose to remodel sectors, corresponding to for instance fee or banking makes use of.

The funding groups are additionally intently watching the digital well being sector, the event of which has accelerated put up covid. Ventech has thus invested in Mindler, a Swedish firm that provides teleconsultation for psychological assist periods. Lastly, the groups are intently monitoring the emergence of latest sub-sectors on the earth of information (knowledge literacy, knowledge high quality, knowledge catalog) and proceed to take an curiosity in semiconductors, a section wherein they declare robust experience. and see potential for future European leaders in a market at the moment monopolized by American and Chinese language behemoths.

Internationalization and impression, the 2 main challenges for portfolio corporations

For Ventech, their investments should meet two main challenges within the coming years. To begin with, a topic instantly linked to the fund’s DNA: worldwide growth. Ventech claims actual added worth on the topic and desires to do all the things doable to make sure that the geopolitical and macro-economic context doesn’t hamper the event initiatives of its corporations. Latest examples of worldwide growth embody Communal altering room which purchased out its American competitor Tradesy originally of the yr or Botify which continues its growth in Asia.

On the identical time, the fund endeavors to make use of its presence on the boards of administrators to encourage all its corporations to enhance their environmental and societal impression. The BCorp certification of Vestiaire Collective or the standing of firm with a mission of the producer of eco-responsible detergent are examples of this.

By way of impression, Ventech went a step additional and launched in November 2020 with the insurer Aviva and the incubator La Ruche, Alliance For Impression (Afi), the primary European seed impression fund devoted to impression tech.

The portfolio now features a dozen corporations in fairly diverse sectors. It is a quantity technique, the common ticket is round 250,000 euros however the fund targets between one and two investments monthly. Audrey Soussan particulars her imaginative and prescient for Maddyness.

We’re clearly within the environmental impression, however we additionally look intently on the societal impression.”.

The fund solely invests in corporations screened to fulfill the strictest standards of European laws on accountable funding.

To his credit score, corporations corresponding to Colette, a startup that promotes intergenerational co-living, Faircraft, which produces leather-based within the laboratory from stem cells, and Riveco, an organization that captures CO2 from industrial fumes..

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