French later-stage VC firm Time Equity Partners is looking to raise a second fund to fuel its investments. The company needs $130 million (€100 million) before the end of the year, according to Les Échos. The government could invest between $26 million and $40 million (between €20 million and €30 million).
Multiple investors are already committed to financing two-thirds of the new fund — Time’s parent company Yam Invest will add $43 million (€33 million) to it. Big French companies, such as EDF, Bouygues or car companies, could also participate to put a foot in the startup ecosystem and to invest a tiny portion of their cash on hand.
Time only plans to invest in a few companies, because it will bring between $6.6 million and $20 million (between €5 million and €15 million) for each venture round. The new fund would therefore be focused on later-stage French startups.
The VC firm follows the same strategy for all of its investments. First, the company has to be profitable. While it restricts the number of potential portfolio companies, Time’s investments are safer as a result. It doesn’t bet on potential acquisitions, but rather on accelerating growth and bringing more revenue. As a consequence, the firm only takes a small stake in its portfolio companies, because those startups are already doing well.
For example, last month, health gadget company Withings raised $30 million from Bpifrance, Idinvest Partners, 360 Capital Partners and existing investor Ventech. While Time didn’t invest, Withings would have satisfied the investment strategy of Time’s future fund.
In 2010, Time launched its first fund of $66 million (€50 million). Since then, it has made seven investments ranging between $4 million and $13 million (between €3 million and €10 million) in Brille24, iConcerts, Mobile Network Group, Thema, Oodrive, Comment ça marche and AdScale. It is unclear whether Time still has cash to invest from its first fund, but its portfolio will certainly grow in 2014.
(Photo credit: Anirudh Koul)