social and economic performance of french digital startups - france digitale ey 2014
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Social and economic performance of french digital startups 3rd edition (2014) by France Digitale and EYTRANSCRIPT
Social and economic performance of French digital business start-upsBarometer 2014
Page 2
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
3.6Entrepreneur’s profile
4. Contacts
Page 3
1. Methodology
Page 4 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 its confidentiality.
1165
years old
€4,8m2012
& 2013
start-ups Average age Raised since their creation (median)
Key figures from financial data
Page 5
2. Executive summary
Page 6
Hyper growth & Born global
+43% of revenues vs 201239% of revenues are generated abroad in 2013+ 100% of ROW revenues vs 201224% of respondents have a foreign VC that already invests in the firm
People
+22% of employees in one year91% of permanent contracts32 years old is the average age of employees68% of employees have from Bachelor to Master Degree6% of entrepreneurs are women
Innovation support Value sharing46% of the sample did not use « Young Innovative Company » tax incentive77% use French research and development Tax Credit (CIR)French research and development Tax Credit remains the preferred state incentive
30% of employees owning equity instruments90% of start-ups use equity instruments2 is the average ratio between management and staff salaries96% never distributed dividends
Page 7
3. Key figures
Page 8 Barometer 2014
3.1 Revenues
• Total revenues (in €m) • Growth of total revenues (in %)Analysis by revenue segment
2012 20130
500
1,000
1,500
2,000
2,500
1,598
2,279
0 to 5 M€ 5 to 50 M€ + 50 M€0%
10%
20%
30%
40%
50%
60%
70%
80%71%
20%
44%
+43
%
Page 9 Barometer 2014
3.1 Revenues
• Worldwide revenues (in %) • Worldwide revenues (in €m)
2012 20130%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
72%61%
17%
21%
11%18%
2012 20130
500
1,000
1,500
2,000
2,500
1,1531,398
272
482173
399
France Europe International France Europe International
+ 21%
+ 100%39%
Page 10 Barometer 2014
3.2 Fund-raising
• Average and median of fund raised (in €m)Analysis by revenue segment
• International VCPercentage of foreign venture capitalists investing in French digital business start-ups. Analysis achieved by revenue segment.
0 to 5 M€ 5 to 50 M€ + 50 M€0
5
10
15
20
25
30
35
5
16
29
2
10
18
Average Median
0 to 5 M€ 5 to 50 M€ + 50 M€0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
13%
23%
43%
Page 11 Barometer 2014
3.3 Innovation support
* Sample of 83 companies created after 2005.
46%No
54%Yes
• Did you use the label « Young Innovative Company » (JEI)?*
23%No
77%Yes
• Did you use the French research and development tax credit (CIR)?**
** Sample of 86 companies having R&D expenses.
Page 12 Barometer 2014
3.3 Innovation support
25%No
75%Yes
83%No
17%Yes
Tax credit for encouraging competitiveness and jobs (CICE)
Innovation Tax Credit (CII)
• Did you use the new tax credits launched in 2013?
Page 13 Barometer 2014
3.3 Innovation support
• Financing Research & Development (in €m)
• Tax controls in 2013Percentage of start-ups that had the Tax administration performing a tax control during the year*.
2012 20130%
5%
10%
15%
20%
25%
18%
24%
* Analysis based on a sample of 108 participants.
2012 2013 2012 2013Research Tax Credit R&D
0
20
40
60
80
100
120
140
160
25 29
89
123
16
18
InternationalFrance
Page 14 Barometer 2014
3.4 People
• People
2012 20130
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
6,190
7,566
+22
%
1376 jobs
created
Page 15 Barometer 2014
91%
3.4 People
4%3%
1%
Permanent contract ("CDI")
Temporary contract ("CDD" and "Interim")
Professional training contract
Internship
68%
26%
3%
3%
From Bachelor to Master Degree
From High school to Bachelor Degree
High school Degree or less
PhD
• Type of work contracts (2013) • People qualification (2013)
Page 16 Barometer 2014
3.4 People
30%+ €50m
50%€5m to €50m
20%0 to €5m
• Distribution of employees by start-ups revenues
Page 17 Barometer 2014
3.4 People
• Average age of staff • Ratio Management/Staff wages
Avera
ge a
ge M
anag
emen
t
Avera
ge a
ge E
mpl
oyee
s05
1015202530354045 42
32
Minimum Average Maximum0
1
2
3
4
5
6
7
8
9
0.3
2
6.2
0.4
2
8.12012 2013
Page 18 Barometer 2014
3.4 People
89%Yes
11%No
• Are you both founder and manager of the company?
Page 19 Barometer 2014
3.4 People
54%No
94%Men
46%Yes 6%
Women
• Serial entrepreneur • Gender of Chief Executive Officer
Page 20 Barometer 2014
94% are men
42 years old
46% are serial
entrepreneurs
92% have at least a master degree
3.4 People
• Entrepreneur’s profile
Page 21 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 » by revenue segment*
0 to 5 M€ 5 to 50 M€ + 50 M€0%
10%
20%
30%
40%
50%
60%
70%
80%
12%
45%
71%€€
Page 22 Barometer 2014
3.5 Value sharing
54% 46%
% of shares held by owners and employees
% of shares held by external shareholders
(VC, business angels …)
• Percentage of capital shares held by owners and employees
Page 23 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?*
Page 24 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*
Page 25 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 total of employees. First chart presents data globally and the second chart is presented by revenue segment.
2012 201326%
28%
30%
32%
28%
30%
0 to 5 M€ 5 to 50 M€ + 50 M€0%
5%
10%
15%
20%
25%
30%
35%
40%
34%
24%
16%
Page 26 Barometer 2014
3.5 Value sharing
96%No
4%Yes
• Did you distribute dividends since the creation of the company?
Page 27
4. Contacts
Page 28
Contacts
Franck Sebag
Partner, EYVC & IPO Leader France
@frsebag
Xavier Lorphelin
Managing Partner Serena 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.
EY I Assurance I Tax I Transactions I Advisory
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.
EY refers to the global organization and may refer to one ormore of the member firms of Ernst & Young Global Limited,each of which is a separate legal entity. Ernst & YoungGlobal Limited, a UK company limited by guarantee, doesnot provide services to clients. For more information aboutour organization, please visit www.ey.com.