An investigation into public finance for potential high growth sustainable start-ups: the case of France

Catherine Deffains-Crapsky (), Jesus-Herell Nze-Obame and Robyn Owen
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Catherine Deffains-Crapsky: GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, CEREFIGE - Centre Européen de Recherche en Economie Financière et Gestion des Entreprises - UL - Université de Lorraine
Jesus-Herell Nze-Obame: GRANEM - Groupe de Recherche Angevin en Economie et Management - UA - Université d'Angers - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Robyn Owen: Middlesex University [London]

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Abstract: The French private equity ecosystem is characterised by the presence of Bpifrance, a state investment bank (SIB) which has structured and streamlined the sector since its creation in 2013. On the demand side, this research questions the influence of Bpifrance, as a direct public investor with sustainable venture capital objectives for environmental and social public good. France's venture capital market is examined on the length of time between early-stage venture capital funding rounds and the ability of funded ventures, including those with deep tech and sustainable development goals (SDGs), to progress along the stages of the finance escalator. To answer this question, data was collected from Dealroom, a platform that provides investment information on a large number of startups in different countries over their lifecycle. An event history analysis is conducted on a sample of 3741 French ventures that raised their first seed funds between 1990 and 2023. The results confirm the impact of Bpifrance and the various public programmes that accompanied it on the structuring of the French venture capital ecosystem. On the other hand, the results question the ability of Bpifrance to support start-up companies with disruptive social and/or environmental innovations that require patient capital and significant risk-taking.

Keywords: State Investment Bank; Government Venture Capital; Financial escalator; Entrepreneurial finance; Deeptech (search for similar items in EconPapers)
Date: 2026-03-10
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Published in Venture Capital, inPress, pp.1-29. ⟨10.1080/13691066.2026.2641221⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05555191

DOI: 10.1080/13691066.2026.2641221

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