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French venture capital investment turns upwards in H2 2002

Evidence of the relative buoyancy of the French venture capital activity: after four consecutive semesters recording decline, the second half of 2002 brought a marginal increase in investment levels, according to L'Indicateur Chausson Finance.

There was a six per cent increase in H2 2002 with E271m invested compared with E254m in H1 2002.

But the gentle increase in investment was mainly to the benefit of existing portfolio companies and the proportion of capital committed to start-ups continued its downward path, Chausson Finance said. New investments accounted for 38 per cent of total financings, compared with 42 per cent in the previous year, and 63 per cent in H2 2000.

In terms of sector differences, healthcare and life sciences was the most popular for the first time, with E97m of investments. Healthcare was the only sector to have increased investment value.

Expansion capital was the most popular stage in H2 2002, with E169m allocated to expansion opportunities. Seed financing declined once again: just E14m was invested in seed stage opportunities during the period.

‘The semester on semester decline in the number of companies gaining seed-stage financing is becoming a concern,' said Chausson Finance.

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