France Télécom-Orange and the Publicis Groupe advertising business are planning to launch a new venture capital fund.
The fund – which is starting with a 150 million Euro (£129 million) investment from the two companies – will help budding entrepreneurs in Europe’s digital economy.
Additional funding from other investors is expected to bring total funding to 300 million Euro.
A management company will be responsible for the new fund, with investment decisions made by a committee that’s independent of France Telecom-Orange and Publicis Groupe.
The fund’s targets for investment will be companies focusing on digital technology, content and services, including online marketing, e-commerce, mobile content and services, online gaming and social networks, as well as supporting technologies including middleware, cloud computing, security, and online payments.
Seed capital and early-stage investment will target fledgling companies in France and Europe, with investments of up to €1 million.
Later-stage financing for more established companies in France and Europe will provide up to €15 million, while at a later stage the fund may opt to invest in start-ups outside Europe, alongside American or Asian partner funds.
Stéphane Richard, Chairman and Chief Executive Officer of France Telecom-Orange, said “French investment capital has been suffering for far too long from the absence of a solid ecosystem to link young companies together with larger groups, research centers and government systems.
“We’re very happy to be working with Publicis Groupe to finance and support digital start-up projects. This is a surging growth market and it’s an important challenge: our job will be to contribute to the emergence of tomorrow’s leaders. From the point of view of France Télécom-Orange, the new fund complements our investments in R&D, as well as creating a terrific opportunity to be present at the birth of growth projects.”
Separately, Orange has acquired a 34.15% minority stake in Cascadia, the company newly formed to hold radio group Skyrock’s web operations, for €14 million.
According to Orange, where Skyrock.com is the leading blog platform in France among the 12-24 age group in terms of pages viewed, recording nearly one billion page views per month.
