Performance Du Capital Risque: Le Cas Des FCPI (in French)

Abstract

The main objective of this article is to examine venture capital in France, and, in particular, the performance of Mutual Funds for Investment in Innovative Enterprises (FCPIs) which represent around 50% of venture capital funds raised. Firstly, we look at recurrent problems facing venture capital in France: the limited capacity to raise funds from the public sector, the lack of possibilities for an IPO, the low profitability of these funds, as well as the fact that international opportunities for funds may increase the possibility of diversifying but risk restricting the amount invested in France. Secondly, we assess the performance of FCPIs based on the study of 129 funds launched between 1997 and 2005. We show that the performance of FCPIs is characterized on the one hand by a ‘J-curve’ that we validate empirically, and, on the other hand by an average profitability which remains low considering the risks incurred. The attractiveness of these funds, except for a few rare exceptions, comes from the tax incentives which they provide.

Keywords: capital risque, rentabilité, FCPI, levée de fond, fond, FCP, SICAV, performance

JEL Classification: G24