French VC Firms: Future Plans & US Expansion

Founders Future Secures Investment for Expansion

Paris-based venture capital firm Founders Future, managing approximately €300 million (roughly $324 million based on current exchange rates) in assets, is broadening its ownership structure. A 25% share in the holding company overseeing both Founders Future’s funds and Sowefund has been divested to a consortium including MACSF, the Dassault family, and CMA CGM Group, alongside other investors.

Investment Track Record and Growth Ambitions

Since its inception in 2018, Founders Future has demonstrated a strong investment history, making early-stage investments in notable companies such as Lydia, Alma, Taster, La Fourche, Riot, Swan, and Yuka. The firm’s portfolio currently encompasses 110 companies, distributed across two early-stage funds and a dedicated growth fund.

Looking ahead, Founders Future has established a significant objective for 2030: to achieve €1 billion in assets under management. This target necessitates a substantial and accelerated pace of fundraising.

Strategic Rationale for Capital Restructuring

Founding partner Marc Menasé explained the decision to open up the holding company’s capital. “We are building a company, differentiating ourselves from the increasing number of solo GPs and super angels in the VC landscape,” he stated. “This restructuring, undertaken while formulating our roadmap to 2030, provides the necessary resources to realize our ambitious goals.”

Expansion into the United States

The newly acquired capital will be strategically deployed to facilitate an expansion into the U.S. market. Plans include establishing a dedicated team and opening offices on both the East and West Coasts.

Menasé highlighted the potential for European companies expanding into the U.S. “Companies originating in Europe that achieve strong product-market fit and generate substantial revenue in their home countries often experience a two to threefold increase in their Annual Recurring Revenue (ARR) within 36 months of operating in the United States.”

Valuation and Exit Opportunities

He further noted that U.S.-based startups generally benefit from a greater capacity to secure funding from American investors, often at valuations approximately double those seen in Europe. This advantage is attributed to the increased availability of exit opportunities, particularly through acquisitions by larger corporations.

“Our vision is to become a truly global firm, with distinct European and American divisions, creating a transatlantic bridge,” Menasé elaborated. “Initially, this will support our European portfolio companies in their U.S. expansion efforts.”

Fundraising for U.S. Investments

Founders Future intends to launch a growth fund specifically focused on American investments. This fund will enable the firm’s European limited partners to participate in the U.S. tech market through Founders Future’s expertise.

Conversely, the firm believes it can provide valuable assistance to American companies seeking to expand into Europe, leveraging its understanding of the European tech ecosystem and regulatory environment.

Investment Strategy and Fund Size

“We will begin with measured investment targets, deploying between $5 and $10 million in growth rounds of at least $50, $60, or $70 million,” Menasé clarified.

While fundraising for this new fund has not yet commenced, Founders Future is aiming to raise up to $250 million. It is anticipated that MACSF, the Dassault family, and CMA CGM Group may also contribute to this U.S.-focused growth fund, in addition to their investment in the holding company.