France is preparing to launch Tibi 3, the third phase of its public-private tech funding initiative, with deployment planned from 2027 to 2030 and a central focus on creating a pan-European financing ecosystem. Building on the success of its first two phases, which mobilized over €15 billion for technology companies, the initiative aims to reduce Europe’s dependence on foreign capital by channeling institutional investment into strategic sectors like deeptech and artificial intelligence.
The initiative’s governance structure has expanded significantly since its inception, with technical committees growing from 21 to 35 members, according to the French Treasury. These committees, which include public entities like Bpifrance and Caisse des Dépôts alongside private insurers and asset managers, are responsible for granting the Tibi label to qualifying fund management companies.
While no formal announcement has been made, sources indicate the third phase should match or exceed previous funding levels, La Tribune reported. The first phase mobilized €6.4 billion between 2020 and 2022, surpassing its €6 billion target, while the second phase is projected to raise up to €9 billion by 2026, exceeding its €7 billion goal.
The initiative operates primarily through a fund-of-funds model, with analysis of 92 approved unlisted funds revealing a clear strategic focus. Deeptech leads investment categories at 27%, followed by software at 23% and online platforms at 22%, according to Treasury data. Key deeptech sub-sectors include health, energy, cybersecurity, mobility, and artificial intelligence.
European Expansion Strategy
The defining ambition of Tibi 3 is its transformation into a pan-European model, addressing the continent’s dependency on foreign capital for late-stage tech funding. The French initiative has already served as a direct model for Germany’s Wachstumsfonds Deutschland (Growth Fund Germany), signaling powerful Franco-German alignment in creating a network of national financing schemes.
The strategy involves strengthening pan-European vehicles like the European Tech Champions Initiative (ETCI), managed by the European Investment Fund. According to the Banque de France, there are calls to expand the ETCI and open it to private investors to increase its financial capacity.
A central proposal includes creating public-private partnerships where European public capital co-invests alongside private funds with pan-European mandates, helping to de-risk cross-border investment and encourage a more unified continental approach.
Market Response and Challenges
A formal evaluation by the Inspection Générale des Finances confirmed the initiative’s success in tripling annual investment in French tech companies at near-zero budgetary cost to the state. Market reception has been strong, with institutional investors exceeding Tibi 2 funding targets over a year ahead of schedule, the Treasury reported.
However, scaling this success presents significant challenges. Replicating France’s model across 27 different regulatory environments remains a major hurdle. Any pan-European investment vehicle will face scrutiny under EU state-aid and competition rules, requiring careful structuring to avoid market distortion.
The ultimate success will be measured by the initiative’s ability to channel sufficient capital into strategic sectors to create globally competitive European champions, particularly in deeptech and greentech industries.
Sources
- La Tribune
- Direction générale du Trésor
- Banque de France
- Inspection générale des finances
