At issue the lack of profitability of the segment

The time is not really the feast for young European shoots for own funds. However, the year 2008 started correctly. In the first quarter, 214 of them increased their capital for a global envelope of EUR 1.3 billion, according to the data established by Ernst & Young-VentureOne. Either a little or roughly equivalent to that of each of the quarters of the year 2007.

However, the next step was synonymous with slowing on both sides of the Atlantic. In Europe, a crossing has even experienced downward two symbolic thresholds. Between April and June, only 167 round table there were identified their number had still exceeded the bar of the 200 since mid-2003. And, in total some EUR 856 million, they were a low point. He must go back to the third quarter of 2004 to find a lower amount...

The France is no exception

It is clear that, in this panorama, the France is no exception. Since the beginning of the year, only 74 Tri start-up received a contribution of capital, for a total volume of EUR 265 million. In short, barely more than the 259 million euros made by 65 young companies in the fourth quarter of 2007. Despite such withdrawal, this score gives the bronze medal at the France on a podium dominated by the United Kingdom (752 million) and Germany (427 million).

"We had already undergone head-on the explosion of the Internet bubble and the setbacks that were subsequent." "The current financial crisis, which began more than a year ago, is a new blow for our profession," recognizes a French venture capitalist. In fact, currently, number of these experts on the financing of innovation find it difficult to raise new funds to their policyholders.

At issue: the lack of profitability of the segment. At the end of 2007, the internal rate of return (IRR) net funds created in Europe since 1998 was equal to zero, according to the professional associations of investors.

Moreover, the poor prospects of output are hardly encouraging. The stock market or even industrial seem really ready to take over from the Fund. "We are forced to stay in the capital of our entries longer that we expected," concedes an another financial.

Between two waters

Of course, exceptions exist, both as regards returns for the assignments. But, ultimately, the venture capital remains a segment of investment that evolves between two waters. The profession continues to advocate for measures to encourage the emergence of future champions. The theme of the "small business act" French, available to book a share of public procurement to the start-up, is part of the recurrent claims. The law of modernization of economy (LME) the resumed in some extent.

In the meantime, the trade sentence always to wear on the baptismal giants of tomorrow it is not absent in dream! The current market conditions indeed push investors to engage in that with no indications of "policy of the dusting."

Shown by the very many first round table in limited amounts signed lately. From the monthly barometer of "Capital Finance", they represented more than 51 of the transactions identified in 2007. In the first nine months of the year, they still totalled 56.