At the Vivatech trade fair, the French President announced the launch of the second phase of the Tibi initiative. A further €7 billion will be invested between now and 2026 to support the development of technology companies. The experts at AURIS Finance, an M&A consultancy, explain.
“Priority for the decarbonisation of the economy and high-tech projects”. Announced by Emmanuel Macron at the European technology fair Vivatech, the second phase of the Tibi initiative was confirmed at the end of June by the Ministry of the Economy, Industry and Digital Autonomy. Twenty-eight institutional investors, including a large number of insurers, have signed up to the initiative. These investors have already committed €7 billion over three years, €1 billion more than in the previous plan.
Consolidate funding for the technology ecosystem
Conceived in 2019 by economist Philippe Tibi, the initiative aims to increase the funding capacity of technology companies by tapping into the savings of institutional investors. “Ambitious French start-ups have not found sufficient funding in France to become world or European leaders. Hence the desire to support the emergence of large-scale venture/growth funds, on the non-listed market, and to participate in the financing of global Tech funds, on the listed market”, explained the economist in an interview published in 2021. The first phase of the scheme brought together 25 participants and deployed €6 billion over three years. With 45 non-listed funds and 25 listed funds, Tibi 1 raised a total of €30 billion.
A welcome funding boost
The second phase of the Tibi initiative is characterised by a strong focus on energy transition. In addition to well-established “late stage” start-ups, investments will also focus on “early stage” companies, i.e. companies that are in the process of raising their first round of financing. Despite the high level of institutional commitment – €7 billion for the Tibi 2 initiative – negotiations have not been easy. “I feel that our friends at the Tibi Fund are too cautious. We need their help. We can’t wait for the situation to improve before we start investing,” declared the head of state at the end of February, when the new promotions of the Next 40 and FT120 program were announced.
French technology is holding its own
With the end of the low interest rate policy and the uncertain geopolitical context, innovative companies are finding it difficult to raise financing. However, French companies are holding up well. In 2022, French tech raised €13.5 billion, a record that makes France the leading ecosystem for financing new technologies in the European Union. In the ranking of the world’s unicorns (companies valued at more than €1 billion), France, which now has 27, is in seventh place. The United States is in first place with 712 unicorns, followed by China with 248.
Get the support you need
In Europe, France stands out for its ecosystem of innovative companies. The second part of the Tibi initiative is a real opportunity for companies looking for funding, and in particular for start-ups trying to raise their first funds. Our experts are specialised by sector and will support you throughout your search for funding.
