France Telecom-Orange and Publicis Groupe have partnered with Iris Capital Management to invest in technology companies, it has been announced.
Orange said the partnership would create one of Europe’s premier venture capital investors in the digital economy. Together, Orange and Publicis Groupe will contribute €150 million to the initiative; when added to Iris’ pre-existing funding commitments from investors, this will result in a total investment capacity of more than €300 million.
Three funds will be created: OP Ventures Growth will target established companies in France and Europe, providing up to €15 million per project; OP Ventures Global will invest in start-ups outside Europe, also with funds of up to €15 million per project; and OP Ventures Early Stage will provide seed-capital and early-stage investment of up to €3 million to young companies in France and the rest of Europe.
Both OP Ventures Growth and OP Ventures Global are to be operational immediately, while OP Ventures Early Stage will be operational in the second quarter of 2012. All three funds will be dedicated exclusively to companies involved in creating value within the digital economy.
Commenting, chairman and CEO of France Telecom-Orange Stéphane Richard said: “I’m delighted by today’s launch of OP Ventures. This joint initiative with Publicis Groupe and Iris is a pioneer in its field. It complements Orange’s considerable effort in terms of research and development, and it will encourage the emergence of future leaders of the digital economy by bringing them funds at several stages of their development.
“I would also like to thank both the European Investment Fund and CDC Entreprises for contributing to this project to create one of the leading players in Europe in digital venture capital.”
Maurice Lévy, chairman and CEO of Publicis Groupe, added: “A lot of companies eagerly anticipate our new project. This is clear just from the number of requests we’ve already received. We’ve been keen to set up OP Ventures on strong foundations, and we’ve decided to partner with Iris because of the depth of their knowledge and their successful track record.
“There are a lot of smart engineers and entrepreneurs in France and in Europe who are involved in projects that are innovative and exciting, and our plan is to get funds flowing to their businesses as fast as possible so they can flourish.”
As part of the deal, Orange and Publicis Groupe will each acquire a minority 24.5 per cent interest in Paris-based Iris. Iris’ management will retain a controlling 51 per cent interest.
Iris has invested some €870 million in more than 200 companies since its launch in 1986. Recent investments include French company Mediastay, an online games monetisation platform; Berlin-based search-engine optimisation company Searchmetrics; and Clear2Pay, a Belgian company specialising in payment technology solutions.
