Insurers finance the development of technology companies

Eighteen months after the launch of the ‘Tibi’ funds, fifteen insurers have already supported French Tech companies massively, with investments that will reach EUR 3.2 billion by the end of 2021. They will continue their commitment, in particular to support the development of biotech players.

The “Financing the Fourth Industrial Revolution” event held today at the French Ministry of Finance known as Bercy on the initiative of Bruno Le Maire, the French Minister of the Economy, Finance and Recovery, and Cédric O, the French Secretary of State for Digital Transition and Electronic Communications, provided an opportunity to take stock of the ‘Tibi’ initiative, launched by Bercy in 2020, which aims to create a dense financing ecosystem for young technology companies.

Of the 21 investors in the Tibi programme, 15 insurers have already committed €2.3 billion and are planning to commit a further €900 million by the end of the year.

The latter will continue their support in favour of French Tech companies, in particular those in the biotech sector. Insurers, as long-term investors, are in fact partners adapted to the financing needs of technology companies, and particularly life science companies for which the development is over the long run.

To invest more massively and in the long term in innovative sectors, insurers are campaigning for a favourable economic and regulatory framework, which does not hinder long-term investments, in particular thanks to a clear tax system, stable regulations, but also to adapted prudential rules.

Florence Lustman, President of the French Insurance Federation , took part in the round table discussion on “The specific challenges of financing biotechs” at the “Financing the Fourth Industrial Revolution” event on 7 June at Bercy. In particular, she stressed that “Insurers are the cornerstone of the Tibi programme’s funding”. They have already committed €2.3 billion this year and are preparing to invest almost 1 billion more. She pointed out that “the health of tomorrow represents a major challenge for the health sovereignty of our country, as highlighted by the Covid-19 crisis. Insurers are already committed, through the investment programme Relance Durable Franceof which EUR 800 million of the programme’s EUR 2.3 billion - are devoted to financing companies in the healthcare sector. As long-term investors, insurers are well placed to take up the challenge of financing biotechs that have a development - research - testing - approval - cycle that is a long-term one.

key players in the financing of the productive economy.

They devote 60% of their investments to businesses, particularly in sectors with high potential and in all areas that make our economy more resilient and sustainable, such as infrastructure, ecology and new technologies.