Ey social and economic performance of french digital start ups vl

Social and economic performance ofFrench digital business start-upsBarometer 2014

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

3.6 Entrepreneur’s profile

4. Contacts

1. Methodology

Barometer 2014

1. Methodology

• Barometer based on data from VC-backed digital start-ups

• Survey sent by venture capitalists to their participations

• EY, as a third-party, analyzed data in order to consolidate and guarantee itsconfidentiality.

1165

yearsold

€4,8m2012

&2013

start-ups Average age Raised since theircreation (median)

Key figures fromfinancial data

2. Executive summary

Hyper growth & Born global+43% of revenues vs 201239% of revenues are generated abroadin 2013+ 100% of ROW revenues vs 201224% of respondents have a foreign VCthat already invests in the firm

People

+22% of employees in one year91% of permanent contracts32 years old is the average ageof employees68% of employees have fromBachelor to Master Degree6% of entrepreneurs are women

Innovation support Value sharing46% of the sample did not use « YoungInnovative Company » tax incentive77% use French research anddevelopment Tax Credit (CIR)French research and development TaxCredit remains the preferred stateincentive

30% of employees owning equityinstruments90% of start-ups use equityinstruments2 is the average ratio betweenmanagement and staff salaries96% never distributed dividends

3. Key figures

Barometer 2014

3.1 Revenues

• Total revenues (in €m) • Growth of total revenues (in %)Analysis by revenue segment

1,598

2,279

0

500

1 000

1 500

2 000

2 500

2012 2013

71%

20%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0 to 5 M€ 5 to 50 M€ + 50 M€

Barometer 2014

3.1 Revenues

• Worldwide revenues (in %) • Worldwide revenues (in €m)

72%61%

17%21%

11% 18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013

1 1531 398

272

482173

399

0

500

1 000

1 500

2 000

2 500

2012 2013

France Europe International France Europe International

+ 21%

+ 100%39%

Barometer 2014

3.2 Fund-raising

• Average and median of fund raised(in €m)Analysis by revenue segment

• International VCPercentage of foreign venture capitalistsinvesting in French digital business start-ups. Analysis achieved by revenuesegment.

5

16

29

2

10

18

0

5

10

15

20

25

30

35

0 to 5 M€ 5 to 50 M€ + 50 M€

Average Median

13%

23%

43%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0 to 5 M€ 5 to 50 M€ + 50 M€

Barometer 2014


* Sample of 83 companies created after 2005.

46%No

54%Yes

• Did you use the label « Young InnovativeCompany » (JEI)?*

23%No

77%Yes

• Did you use the French research anddevelopment tax credit (CIR)?**

** Sample of 86 companies having R&D expenses.

Barometer 2014


25%No

75%Yes

83%No

17%Yes

Tax credit for encouraging competitiveness andjobs (CICE)

Innovation Tax Credit (CII)

• Did you use the new tax credits launched in 2013?

Barometer 2014


• Financing Research & Development(in €m)

• Tax controls in 2013Percentage of start-ups that had the Taxadministration performing a tax controlduring the year*.

18%

24%

0%

5%

10%

15%

20%

25%

2012 2013

* Analysis based on a sample of 108 participants.

25 29

89

123

16

18

0

20

40

60

80

100

120

140

160

2012 2013 2012 2013

Research Tax Credit R&D

InternationalFrance

Barometer 2014

3.4 People

• People

6 190

7 566

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

2012 2013

1376jobs

created

Barometer 2014

91%

3.4 People

4%3%

1%

Permanent contract ("CDI")

Temporary contract("CDD" and "Interim")

Professionaltraining contract

Internship

68%

26%

3%

3%

From Bachelor toMaster Degree

From Highschool toBachelorDegree

High schoolDegree or less

PhD

• Type of work contracts (2013) • People qualification (2013)

Barometer 2014

3.4 People

30%+ €50m

50%€5m to €50m

20%0 to €5m

• Distribution of employees by start-ups revenues

Barometer 2014

3.4 People

• Average age of staff • Ratio Management/Staff wages

42

32

0

5

10

15

20

25

30

35

40

45

Average ageManagement

Average ageEmployees

0,3

2

6,2

0,4

2

8,1

0

1

2

3

4

5

6

7

8

9

Minimum Average Maximum

2012 2013

Barometer 2014

3.4 People

89%Yes

11%No

• Are you both founder and manager of the company?

Barometer 2014

3.4 People

54%No

94%Men

46%Yes 6%

Women

• Serial entrepreneur • Gender of Chief Executive Officer

Barometer 2014

94%are men

42years old

46%are serial

entrepreneurs

92%have at least amaster degree

3.4 People

• Entrepreneur’s profile

Barometer 2014

3.5 Value sharing

70%Loss

30%Gain

* Sample of 94 start-ups.

• « Earnings before interests and taxes »or EBIT*

• Percentage of positive « EBIT » byrevenue segment*

12%

45%

71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0 to 5 M€ 5 to 50 M€ + 50 M€

€

Barometer 2014

3.5 Value sharing

54% 46%

% of shares held byowners and employees

% of shares held byexternal shareholders(VC, business angels …)

• Percentage of capital shares held by owners and employees

Barometer 2014

3.5 Value sharing

90%Yes

10%No

* Analysis based on a sample of 101 start-ups.

• Are you using equity instruments to motivate your team?*

Barometer 2014

3.5 Value sharing

60%27%

13%

* Analysis based on a sample of 105 start-ups.

Warrants (BSPCE)Free shares

(actions gratuites)

Stock-options &common shares (BSA)

• Types of equity instruments*

Barometer 2014

3.5 Value sharing

* Sample of 99 start-ups.

• Percentage of employees owning equity instruments*Percentage calculated by doing the ratio between the number of employees owning equity instruments and the totalof employees. First chart presents data globally and the second chart is presented by revenue segment.

28%

30%

27%

27%

28%

28%

29%

29%

30%

30%

31%

2012 2013

34%

24%

16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

0 to 5 M€ 5 to 50 M€ + 50 M€

Barometer 2014

3.5 Value sharing

96%No

4%Yes

• Did you distribute dividends since the creation of the company?

4. Contacts

Contacts

Franck SebagPartner, EYVC & IPO Leader France

@frsebag

Xavier LorphelinManaging PartnerSerena Capital

@Xlorphelin

About France Digitale

France Digitale bring together the champions of digitalentrepreneurship: start-ups with strong growth plans and potentialinvestors (venture capitalists and business angels). To build analliance between digital entrepreneurs and investors, so thatFrance becomes fertile ground for the creation ofdigital champions of International stature. For more information,please visit www.francedigitale.org.

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About EYEY is a global leader in assurance, tax, transaction andadvisory services. The insights and quality services wedeliver help build trust and confidence in capital marketsand in economies the world over. We develop outstandingleaders who team to deliver on our promises to all of ourstakeholders. In so doing, we play a critical role in building abetter working world for our people, for our clients and forcommunities.

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Ey social and economic performance of french digital start ups vl

Economy & Finance

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