Coronavirus or not, launch of a new tech investment fund

Coronavirus or not, launch of a new tech investment fund

The fund is part of the venture capital funds – seven approved so far – which carry the hopes of Macron plan announced in September for the financing of growing startups: these companies which have already started to prove themselves commercially, and which seek tens of millions of euros to accelerate their development.

By stimulating these funds, the President of the Republic hopes to lead institutional investors such as insurers and pension funds to invest more in French tech.

Also read: What is the French Tech 120 for and who are the selected startups?

InfraVia Growth Fund’s goal is to reach 500 million, a threshold that would have been achievable as early as September if the coronavirus crisis had not struck, Vincent Levita, who heads InfraVia, the company, told AFP. fund manager.

“It may take a little longer,” but a number “are ready to invest,” he said.

“They did their analytical work […] but are currently in a mode ‘we are waiting to see more clearly’“ he explains.

By construction, the new fund focuses on a sector that could emerge stronger than weakened from the coronavirus crisis: that of startups offering software and other tools for the digital transformation of companies, with an exclusively professional clientele.

The purpose of the fund is to invest 10 to 50 million euros each time in its protégés.

If the deconfinement goes well, with a return to an almost normal life between mid-June and mid-July, “then it is not impossible that we announce a first deal [investissement] in July”said Vincent Levita, who has a handful of cases ready to go.

“If the deconfinement is slower, if everything is normalized” in September “then we will have the first deals in September-October”, he continues.

“There are analyzes that we can do remotely in confinement, but there are things that we cannot do without putting ourselves [physiquement] next to the guy, “he explains.

The subscribers of InfraVia Growth Fund are 80% of institutional investors and Bpifrance, which intervenes through three of its tools.

They also include a number of family group investment companies, and individual investors like Xavier Niel, the founder of Iliad / Free.

Also read: 56 tech investment funds commit to better funding start-up women


Chinese investment in U.S. falls to lowest level in 10 years, analysts say

Chinese investment in U.S. falls to lowest level in 10 years, analysts say

Chinese investment in the United States dropped to $5 billion in 2019, a slight decrease from a year earlier and the lowest level since the global financial crisis a decade ago, according to a new analysis by the U.S.-China Investment Project.

The analysis attributed the investment slowdown to Chinese restrictions on outbound capital, more regulatory oversight in the United States, slower Chinese economic growth, and rising tensions between the two nations.

Relations between the United States and China have deteriorated in recent weeks as the novel coronavirus has spread across the globe, killing more than 276,000 people worldwide and infecting over 4 million.

U.S. President Donald Trump said on Friday he was undecided about whether to end the so-called Phase 1 U.S.-China trade deal, just hours after top trade officials from both countries pledged to press ahead with implementing it despite coronavirus economic wreckage.

Story continues below advertisement

Trump, who has blamed China’s early handling of the coronavirus outbreak in Wuhan in late 2019 for causing thousands of deaths and millions of job losses in the United States, has threatened to terminate the trade deal if China fails to meet its purchase commitments.

The report released on Monday shows that Chinese investment into the United States had slowed even before the pandemic.

Stephen Orlins, president of the National Committee on U.S.-China Relations, one of the groups behind the report, said in a foreword that both countries should resist a retreat to “economic nationalism” in the event of a global recession.

U.S. investment in China increased slightly in 2019 to $14 billion, up from $13 billion a year earlier, according to the analysis.

However, the pandemic has put additional pressure on U.S. companies in China, raising questions about whether to move operations out of the country to diverse supply chains, the report said.


Author: By Ted Hesson Reuters

Posted May 11, 2020 1:16 pm

SEC sues Florida investment firm over alleged inflated portfolio value

SEC sues Florida investment firm over alleged inflated portfolio value

The SEC suit, filed Monday, contends TCA overstated its funds’ values by over $150 million as of last fall. TCA was cited in a January NBC News report.

Securities and Exchange Commission; SEC

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.


May 11, 2020, 7:16 PM UTC

The Securities and Exchange Commission has sued TCA Fund Management Group, a Florida investment company cited in a January NBC News report, for allegedly improperly inflating its portfolios’ values in recent years.

TCA was a direct lending fund, a type of investment company that made loans to small and mid-size businesses that could not secure funding elsewhere. Based in Aventura, Fla., TCA began operations in 2011 and was overseen by Robert Press. Press was not named as a defendant in the SEC suit.

Let our news meet your inbox. The news and stories that matters, delivered weekday mornings.

The SEC’s civil suit, filed Monday, contends that TCA fraudulently accounted for revenues it was unlikely to receive and overstated its funds’ values by over $150 million as of last fall. The SEC said TCA, which reported $500 million in assets, falsely told investors that the funds’ holdings rose in value every month. TCA also filed false reports about its funds’ performance with the SEC, the suit said.

If TCA had accounted accurately in its operations, its funds would have reported numerous months of negative returns, the SEC said. TCA improperly reported consistent annual gains of 7 percent to 8 percent in recent years, NBC News reported.

Carl Schoeppel, a lawyer representing TCA, did not immediately return an email seeking comment.

NBC News reported in January that three employees had filed a whistleblower complaint with the SEC contending that TCA’s accounting practices were phony and inflating the funds’ asset values. At the time, a TCA employee told NBC News, “There’s a bloated portfolio and assets under management that don’t really exist. … And investors are subscribing and redeeming based on those net asset values.”

Domiciled in the Cayman Islands, the TCA fund is aimed at wealthy investors who can afford its $100,000 minimum, regulatory documents show. Many loans in TCA’s main fund are in default, according to the SEC.

At the time of the NBC News report, TCA had begun to wind down its funds’ operations. On April 30, a lawsuit was filed in federal court in Miami against TCA and its management on behalf of investors in its funds.

In filing its suit, the SEC seeks a return of alleged ill-gotten gains received by the funds and payment of penalties for the alleged violations. It also asked the court to appoint a receiver for the funds’ operation.

Gretchen Morgenson is the senior financial reporter for the NBC News Investigative Unit.


Author: Gretchen Morgenson

Coronavirus or not, launch of a new tech investment fund

Leave a Comment