In 2015 the French capital investors injected 605 million euros into young Smart Grid and energy transition companies, according to the French Association of investors for growth. Recap of the main financing initiatives aimed at your Smart Grid entrepreneurs in France.
A meeting of the Camping at the Numa in Paris – Photo credit : Le Camping on Flickr[1] in CC
604 million euros is 26% more than in 2014 (469 M€)[2].With 67 operations out of 79, environmental startups have the lion’s share of fundraising. 23 of them were first rounders, that is to say that they do not yet have a turn over. Renewable energy startups attracted 20% of capital investments (16% of operations). Experts in energy efficiency, for their part, accounted for 22% of capital investments (29% of operations).
The COP21 and the energy transition law are stimulated initiatives in the area of capital risk and capital investment.
An “energy transition” label for investment funds
In October 2015 the French ministry of Ecology announced the creation of an “energy and ecological transition for the climate” label with a view to “highlighting investment funds that finance the green economy and create incentives for the creation of new green funds.”. A call for expressions of interest was published at the end of December to select certifying organisations that are charges with handing out labels to qualifying investment funds[3].
A seed fund of € 50 million to build the city of tomorrow
The General Commission for Investment (CGI) and Bpifrance announced the creation of a seed fund for startups that are developing technologies and services in the field of “Smart Cities”. With € 50 million, seed capital funds may invest in new companies. Investments will be made during the first investment rounds and may reach 2 M €. The fund will focus on the areas of urban design and environment, buildings and customs, energy and networks, mobility and innovative urban services[4].
RTE gets involved in the financing of startups
For its part, RTE has partnered with the Truffle Capital management company to initiate the creation of a support fund. The fund will be operational in 2017[5]. “The selected innovative companies will have support for up to eight years. Projects will be selected on the basis of their ability to bring technological innovation, including in the digital field, around the strategic priorities of the RTE “.
In early February Engie announced that it was working to create a new investment fund with 1 to 2 billion euros to invest in smart grids and green technologies. The group plans to contribute between 15 and 20% of the overall investment amount. In May 2014 Engie had already launched its own corporate fund, Engie New Ventures, with € 100 million. In September 2015, it had completed 7 investments in European and American start-up to a total of € 25 million.
Invest In SmartGrids a business “speed dating” organised by Think Smartgrids
The Think Smartgrids Association is preparing, together with AFIC, a “speed dating” type event on 19th of May 2016 to bring startups and investment funds in the Smart Grid sector together. Invest in Smartgrids will take place at the Hub in BPI France, on the Haussman boulevard.
Inscription : pauline.jaccon@thinksmartgrids.fr
ITEMS International for Think Smartgrids
[1] https://www.flickr.com/photos/54493932@N08/15151728551/
[2] AFIC incollaboration with GreenUnivers and EY, French Cleantech panorama, 2016
http://www.demeter-partners.com/wp-content/uploads/2016/02/CdP_Barome%CC%80tre-CLEANTECH_2015_Fe%CC%81vrier-2016-2.pdf
[3] http://www.developpement-durable.gouv.fr/Creation-d-un-label-Transition.html
[4] http://www.bpifrance.fr/content/download/18906/243772/file/20160212%20-%20CP%20CGI%20Bpifrance.pdf
[5] http://www.rte-france.com/sites/default/files/20151216_dp_rte_start-up.pdf