barometer ey-fd 2015
TRANSCRIPT
Social and economic performance of French digital business start-up
Barometer 2015
Summary
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
4. Contacts
Methodology 1
Barometer based on data from digital business start-up financed by venture
capitalists
Survey sent by venture capitalists to companies they invested in
EY as a third-party to consolidate the data and ensure that the figures are kept
confidential
► 171 participants (116 participants in 2013)
► Average age: 6 years (5 years in 2013)
► 3,3 M€ invested by VC (median) versus 4,8 M€
► Key figures from financial data 2013 & 2014
Methodology 1
Executive summary 2
Page 6
Hyper growth & Born global
+37% of revenues vs 2013
43% of revenues are generated abroad in 2014
25% of respondents have a foreign VC that already invested in the firm
People +30% of employees in one year
92% of permanent contracts
44% of people employed by companies which revenues are from 5 to 50M€
75% of employees have at least a Master Degree
9% of entrepreneurs are women
Innovation support Value sharing 50% of the sample did not use « Young Innovative Company » tax incentive
Research Tax Credit remains the preferred state incentive
Tax controls decreased in 2014
Controls are now more focused on the Research Tax Credit
48% of share capital held by management and employees
93% of start-up use equity instruments
75% of start-up have positiv « EBIT » when reaching 50 M€ of revenues
98% never distributed dividends
Social and economic performance of French digital business start-up
Key Figures 3
Revenues 3.1
Revenues 3.1
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2013 2014
2 913
0%
10%
20%
30%
40%
50%
60%
70%
80%
71%
30%
38%
• Total Revenues (in M€)
2 123
• Growth of total revenues (in%) Analysis by revenue segment
Barometer 2015 — 9 —
0 to 5 M€ 5 to 50 M€ + 50 M€
• Revenues worldwide
• Growth of revenues (in M€)
France Europe International
62% 57%
19% 22%
19% 21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014
1 325 1 662
404
639 393
613
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2013 2014
+25%
+ 57%
Revenues 3.1
Barometer 2015 — 10 —
Fund raising 3.2
• Average and median of fund raised (in M€)
Analysis by revenue segment
• International VC
4
21
33
2
11
24
0
5
10
15
20
25
30
35
40
0 to 5 M€ 5 to 50 M€ + 50 M€
Average Median
0%
5%
10%
15%
20%
25%
30%
35%
40%
0 to 5 M€ 5 to 50 M€ + 50 M€
38%
Percentage of foreign venture capitalists investing in French digital business start-up. Analysis achieved by revenue segment.
25% 23%
25% of start-ups
are international
VC backed
3.2 Fund raising
Barometer 2015 — 12 —
Innovation support 3.3
• Did you use the label « Young Innovative Company » (or « JEI » in French)*?
50% Yes
50% No
* Analysis based on a sample of 109 participants in 2015
• Did you use the French research and development tax credit (CIR) ? **
** Analysis based on a sample of 105 participants in 2015
Innovation support 3.3
Barometer 2015 — 14 —
71% Yes
29% No
Barometer 2015 — 15 —
30% Yes
70% No
19% No
81% Yes
Innovation Tax Credit
(CII in French)
Competitive employ tax credit
(CICE in French)
• Did you use the new tax credits launched in 2014*?
Innovation support 3.3
* Analysis based on a sample of 105 participants in 2015
Barometer 2015 — 16 —
7,6 M€
Received from BPI in 2014
2,1 M€
Received from BPI in 2013
27 Companies
declare receiving
BPI grant in 2014
21 Companies
declare receiving
BPI grant in 2013
• Did you receive BPI France grants* ?
Innovation support 3.3
* Analysis based on a sample of 89 participants in 2015
Barometer 2015 — 17 —
Percentage of start-up that had the Tax administration performing a tax control during the year
15%
15%
16%
16%
17%
17%
18%
18%
2013 2014
* Analysis based on a sample of 115 participants in 2015
17%
16%
• Tax controls in 2014* (in M€)
Innovation support 3.3
People 3.4
Barometer 2015 — 19 —
0
2 000
4 000
6 000
8 000
10 000
12 000
2013 2014
2 232 jobs created
1 476 people hired
in France 756
people hired abroad
• People
7 452
9 684
For every one job created abroad, two jobs are created here in France
People 3.4 People 3.4
Barometer 2015 — 20 —
92%
4%
2% 2%
Permanent contract (CDI)
Temporary contract (CDD & Interim)
Professional training contract
Internship
7%
18%
69%
6%
High-school diploma or less
Bachelor Degree or less
Master Degree
PhD
• Type of work contracts (2014) • People qualification (2014)
People 3.4 People 3.4 People 3.4
Barometer 2015 — 21 —
44% 5 to 50
M€
32% + 50 M€
24% 0 to 5
M€
• Segmentation of employees by revenue segment of the digital business start-up
People 3.4 People 3.4
Barometer 2015 — 22 —
• Average age of staff
0
5
10
15
20
25
30
35
40
45
Average ageManagement
Average ageEmployees
31
40
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
Minimum Average Maximum
0,7
2,3
10,7
0,4
2,3
12,4
• Ratio Management/Staff wages
People 3.4 People 3.4
2013
2014
Barometer 2015 — 23 —
* Analysis based on a sample of 114 participants in 2015 ** Analysis based on a sample of 97 participants in 2015
39%
4% 10%
46%
Business developers / Marketing
Sales support/Consultants
Data Science / Business Intelligence
IT Developers
88% Will hire in 2015
Looking for**
2015 Edition
• Focus on recruitments for the year 2015*
People 3.4 People 3.4 • Looking for**
Barometer 2015 — 24 —
73% Consider that IT Developers are the most difficult staff
to recruit
2015 Edition
• Focus on recruitments for the year 2015*
People 3.4 People 3.4
* Analysis based on a sample of 71 participants in 2015
Barometer 2015 — 25 —
92% Yes
8% No
• Are you both founder and manager of the company ?
People 3.4 People 3.4
Barometer 2015 — 26 —
51% Yes
49% No
91% Men
9% Women
• Serial entrepreneur • Chief Executive Officer
People 3.4 People 3.4
Barometer 2015 — 27 —
• Serial entrepreneur
People 3.4 People 3.4
91% are men
40 years old
51% are serial entrepreneurs
94% have at least a
master degree
Value sharing 3.5
Barometer 2015 — 29 —
• “Earnings before interests and taxes” or EBIT*
• Percentage of positive “EBIT” by revenue segment*
* Sample of 102 start-up
74% Loss
26% Gain
38% 5 to 50
M€
75% + 50 M€
17% 0 to 5
M€
People 3.4 Value sharing 3.5
Barometer 2015 — 30 —
% of share capital held by external shareholders (VC, Business angels…) % of share capital held by owners and employees
52% 48%
• Percentage of share capital held by owners and employees
People 3.4 Value sharing 3.5
Barometer 2015 — 31 —
93% Yes
7% No
* Analysis based on a sample of 104 start-up in 2015
• Are you using equity instruments to motivate your team*?
People 3.4 Value sharing 3.5
Barometer 2015 — 32 —
* Analysis based on a sample of 104 start-up in 2015
72%
11%
17% Warrants(BSPCE)
Free shares(actionsgratuites)
Stock-options&common shares(BSA)
• Types of Equity instruments*
People 3.4 Value sharing 3.5
Barometer 2015 — 33 —
Percentage calculated by doing the ratio between the number of employees owning equity instruments and the total number of employees. First chart presents data globally and the second chart is presented by revenue segment
* Analysis based on a sample of 104 start-up in 2015
34% Of staff owning
Equity instruments
2015 Edition
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
0 to 5 M€ 5 to 50 M€ + 50 M€
39%
24%
17%
• Percentage of employees owning equity instruments*
People 3.4 Value sharing 3.5
Barometer 2015 — 34 —
2% Yes
98% No
• Did you distribute dividends since the creation of the company ?
People 3.4 Value sharing 3.5
Contacts 4
Barometer 2015 — 36 —
Franck Sebag
Partner, EY VC & IPO Leader France
@frsebag
Xavier Lorphelin
Managing Partner Serena Capital
@Xlorphelin
4 Contacts
About France Digitale France Digitale bring together the champions of digital entrepreneurship: start-ups with strong growth plans and
potential investors (venture capitalists and business angels). To build an alliance between digital entrepreneurs and investors, so that France becomes fertile ground for the creation of digital champions of International stature. For more
information, please visit www.francedigitale.org.
EY I Assurance I Tax I Transactions I Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for communities. EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit www.ey.com.