Innovacom closes Fund 5 on E120m

The oversubscribed fundraising for the French venture capital firm includes commitments from HarbourVest, Access Capital Partners and the European Investment Fund.

Innovacom, the Franco-US information technology investor, has held a second and final close of its latest fund on E120m, 20 per cent above the fund’s original target of E100m.

HarbourVest and GIC (Singapore) were the main investors following the June first closing, when the firm announced commitments totaling E50m. Access Capital Partners, AGF Private Equity, CIC Finance, the European Investment Fund, the FPCR2000 (fund of funds managed by Caisse des Dépots Group), and France Telecom have also backed the fund. Limited partners outside of France represent 60 per cent of the commitments to Innovacom 5.

Innovacom 5’s investment strategy will be consistent with that of the previous Innovacom funds (Innovacom 1, 2, 3, 4 and Technocom) and will target mainly start-ups in the domains of microelectronics and telecom systems. 75 per cent of the fund’s capital will be invested in Europe, with the remainder going to North America, where the firm has a San Francisco headquarters.

Innovacom was launched by France Telecom in 1988 and has backed businesses in the telecommunication and information technology sectors including Cobalt Networks, Infovista, Kelkoo and LastMinute.com. The firm has offices in Paris, Stockholm, and San Francisco.

“Innovacom’s performance over 15 years makes it one of the top European venture capital teams,” said Peter Wilson, managing director of HarbourVest. “We're impressed by the industry relationships the team has been able to build, as well as the added value it brings to the companies in which it invests.”

“We are very pleased with the fundraising,” said Denis Champenois, managing director at Innovacom. “At the beginning of the year, investors were sceptical about this part of the market. The climate for fundraising changed as the year progressed and we were obliged to say no to some investors, which would have been inconceivable at the beginning of the year.”

Paris-based SGDM acted as legal counsel for the fundraising. Innovacom did not use a placement agent.