Pascal Mercier of Aelios Finance, a corporate finance advisory firm in Paris, for his view on early stage venture trends in France.

Aelios did 20 transactions last year, many of which are listed on its website.

Here is what he said on capital available in France...

The French venture funds raised a very high amount of capital last year. The FCPI- type of funds typically raise about €30M every year, but in 2007 we saw firms raising €50M and €70M. Regular “LP GP” funds, such as Ventech or Alven raised large amount of Capital also based on their good performances. [FCPI investors receive a tax break and are similar to VCTs in the UK].

What are VCs Looking For?
Internet related ventures. They know that France has some great entrepreneurs in the Internet industry, and a good ecosystem with a lot of success stories.

The software sector is another story.