Published on July 11, 2025, by Arnaud Lefevbre, Option Finance
Excerpts from the article available on the Option Finance website : here.
“After expanding rapidly throughout the 2010s, Corporate Venture Capital (CVC), made up of venture funds created by corporates, has become much more professionalized. Now involved in nearly a third of all fundraising rounds for French startups, these players have become essential to their financing.“
“New entrants arriving gradually”
(…) “In 2022 and 2023, only Carrefour, Stellantis and GTT (an engineering company developing containment systems for the maritime transport and cryogenic storage of liquefied natural gas) entered this space. The path had first been opened as early as 2010 by Mobivia. The parent company of Norauto and Midas was later followed by major French groups, both listed and unlisted, such as Air Liquide, Bouygues, Saint-Gobain, Engie, EDF, L’Oréal, La Française des Jeux, Orange, Groupe ADP, Capgemini, Société Générale, BNP Paribas, Schneider Electric, SNCF and Sopra Steria. ‘In recent years, the French CVC market has entered a phase of rapid maturation and professionalisation,’ notes Muriel Atias, co-chair of the venture committee at France Invest and Chief Investment Officer at L’Oréal BOLD Ventures.“
“Growing professionalism within teams”
“In recent years, many CVCs have sharpened their investment theses, formalized their processes, and built dedicated teams—something not always the case in the early days, when executives often juggled their CVC duties with broader corporate roles. Depending on funding size and portfolio breadth, teams now range from three to over ten members.
‘It’s a mix of finance and business profiles,’ notes Muriel Atias. These shifts have helped CVCs scale up. ‘French CVCs have become essential investors, now accounting for roughly 30% of the capital raised in funding rounds,’ adds Julien Maldonato.
After fifteen years of growing presence in the French VC ecosystem, CVCs have gained significant recognition among startup founders. ‘Entrepreneurs raising funds increasingly value the support CVCs offer,’ says Lucas Rudolf, co-chair of France Invest’s venture commission and managing director of 574 Invest, SNCF Group’s corporate fund. ‘Beyond capital, we bring domain experts, brand credibility, and sometimes new clients. While our funds may be smaller than traditional VCs’, these advantages have boosted our legitimacy in funding rounds.’
According to AsterFab’s latest survey, CVCs most often invest at the seed stage (30%) or in Series A (41%), with an average ticket of €3 million. Typical investments range from €50,000 to €30 million, with equity stakes generally between 5% and 15%. ‘CVCs are by no means a mere prelude to M&A,’ Rudolf insists.“
“Heightened pressure on financial returns”
(…) “To retain the backing of top management, CVCs must now meet a dual objective. The first, shared with all investment funds, is to deliver performance. In a less favorable economic climate where many companies are tightening budgets, pressure on this front is growing. ‘With CVCs reaching greater maturity and capital discipline becoming more rigorous, there is an increased focus on performance and return on investment,’ explains Muriel Atias. ‘This translates into more selective deal sourcing, more active portfolio management, and stronger support in executing startups’ operational roadmaps in coordination with the corporate.’ While the returns of most CVCs are by no means inferior to those of traditional VCs — France Invest reports an average 10-year net IRR of 8.6% for venture and growth funds at the end of 2024 — strong financial results alone are not sufficient. CVCs are also expected to deliver another key benefit to the group: operational synergies generated through collaboration with the startups they back.” (…)
“A tool on the path to mainstream adoption”
“Given such a strong track record, industry specialists remain optimistic about the growth prospects of the French CVC ecosystem, which they believe will continue to attract new entrants. ‘For reasons of competitiveness and sovereignty, the European Commission keeps urging companies across the continent to co-invest in certain strategic sectors, such as energy and technology,’ notes Julien Maldonato.“ (…)
