
Steady, cautious growth of software deals
After the extravagance of the tech bubble, the French software sector has demonstrated steady recovery in deal volume growth since bottoming out at its lowest point in 2004. The steady decline in deal volume in software in France between 2000-04 can be attributed to the bursting of the tech bubble, although the graph shows that the fall in 2002 and 2003 is far more gradual than might have been expected.
With the leverage situation at present and large LBO deals supposedly on the rocks, there is a real possibility for a rise in investment in early-stage software and technology companies as low to mid-market investors and venture capitalists seek out opportunities. The growth trend between 2004-07 looks set to continue this year with 2008 already being marked by a number of early-stage software deals being concluded, including Criteo, Mobile Distillery, Oodrive and Novalys.
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