Gilles Babinet says 4 French Investment funds are leaving France

Finance

Earlier this week, a tweet from Captain Dash founder and France’s “Digital Champion” for the EU, Gilles Babinet, got a fair amount of attention. This may be perhaps because Babinet’s tweet claimed that he knew of four different French investment funds who will be leaving France directly because of the tax changes. Just days later, the National Assembly (read: House of Reps) approved President Hollande’s controversial Tax changes, which, among other things, will raise the Capital Gains tax for VCs.
While the #geonpi managed to save entrepreneurs, it seems that the VC are being thrown under the bus. While #geonpi spokesperson Jean-David Chamboredon, GM of French VC firm ISAI (Blablacar, Commerce Guys, Shopmium, & more) continues to make TV appearances it seems that the movement has run out of steam, with only days until the French senate will approve the modified tax changes.


I contacted Babinet to get specifics on the investment funds, and while he can’t reveal every detal, he did say that Argos Soditic, a European Private Equity firm who, while they have not invested in many notable French web startups, have invested in France since 1989, represent nonetheless a loss for France. Babinet confirmed that “every significant asset holder is fleeing the country,” in response to the rising taxes on Capital Gains, as well as, likely, the 75% on personal income above €1 Million.
With companies like Criteo poised to IPO in the next year, returning investments to French VCs like Elaia Partners, these new tax changes represent a big dip in earnings for people like Marie Ekeland, who was the first VC to back Criteo, now worth an estimated $800M.

3 Responses

  1. Avatar
    Serge Versille

    If this is true, it’ll show that our dear gov officials don’t have the reasonning of a 5 year old who’d been read the tale of the golden goose. They might get a boost in tax income over this year and maybe the next, though I doubt it’ll be huge. And then it’ll be a net loss as the goose that laid golden eggs will no longer exist.

  2. Avatar
    Franck Sidon

    Entrepreneurs won’t be saved for long if the VCs are gone…

  3. Avatar
    Bruno Aziza

    Real shame for French startups and our great educational system – many of us have already moved out to Silicon Valley to see our projects realize faster. If there was a better system to give back and help the next generation of entrepreneurs, we would for sure participate. What ever happened to Sarkozy’s initiative for startups? Did the new president sunset it in silence???

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