Time Equity Partners to Launch New $130 Million Fund for Investing in 10 French Startups

Time Equity Partners Seeks Second Fund to Fuel Later-Stage Investments

Table of Contents

Overview

French later-stage venture capital firm Time Equity Partners is seeking to raise its second fund, with a target size of $130 million (€100 million). The company aims to invest in a select few companies, bringing between $6.6 million and $20 million (between €5 million and €15 million) to each venture round.

Government Investment and Multiple Investors

According to Les Échos, the government is expected to invest between $26 million and $40 million (between €20 million and €30 million) in Time Equity Partners’ second fund. Additionally, multiple investors have already committed to financing two-thirds of the new fund. Time’s parent company, Yam Invest, will contribute $43 million (€33 million) to the fund.

Big French Companies Joining the Mix

Several big French companies, including EDF, Bouygues, and car manufacturers, are considering investing in Time Equity Partners’ second fund. This move is seen as an opportunity for these companies to participate in the startup ecosystem and invest a small portion of their cash on hand.

Investment Strategy Focuses on Profitability

Time Equity Partners follows a consistent investment strategy, which prioritizes profitability over potential acquisitions. The company only invests in companies that are already profitable, restricting the number of potential portfolio companies. This approach makes Time’s investments safer, as they bet on accelerating growth and increasing revenue rather than relying on acquisitions.

Example: Withings’ Recent Funding Round

Last month, health gadget company Withings raised $30 million from Bpifrance, Idinvest Partners, 360 Capital Partners, and existing investor Ventech. Although Time Equity Partners did not invest in this round, Withings would have satisfied the investment strategy of Time’s future fund.

Time’s First Fund and Portfolio

In 2010, Time launched its first fund with a size of $66 million (€50 million). Since then, the company has made seven investments ranging between $4 million and $13 million (between €3 million and €10 million) in various startups. It is unclear whether Time still has cash to invest from its first fund, but its portfolio will certainly grow with the new fund.

Time’s Investment Strategy

Profitability: Time Equity Partners only invests in companies that are already profitable.
Small Stake: The company takes a small stake in its portfolio companies, as they are already doing well.
Accelerating Growth: Time bets on accelerating growth and increasing revenue rather than relying on acquisitions.

Conclusion

Time Equity Partners’ second fund is expected to focus on later-stage French startups, with the goal of investing in a select few companies. The company’s investment strategy prioritizes profitability, safety, and accelerating growth, making it an attractive partner for startups that have already demonstrated success.