PARIS -- France Télécom-Orange [EURONEXT Paris : FR0000133308] and Publicis Groupe [EURONEXT Paris : FR0000130577] will announce today plans to launch a new venture capital fund. The fund will finance and develop budding entrepreneurs in the digital economy, particularly in France and the European Union, building on the sector’s potential for spectacular creativity and growth. It remains subject to the approval of the relevant authorities.

France Télécom-Orange and Publicis Groupe are committed to jointly investing 150 million euros in the new fund. In addition to their respective commitments, the two sponsors intend to invite other investors to join them, to reach a target of 300 million euros.

The fund’s main targets for investment will be companies focusing on digital technology, content and services. Likely sectors include online marketing, e-commerce, mobile content and services, online gaming and social networks, as well as their associated technologies and infrastructures such as middleware, cloud computing, security, and online payments.

The fund’s investments will be divided into three distinct categories. Seed-capital and early-stage investment will target fledgling companies in France and Europe, with investments of up to one million euros. Later-stage financing for more established companies in France and Europe will provide up to 15 million euros per project. Thirdly, at a later time the fund may also opt to invest in start-ups outside Europe, alongside American or Asian partner funds.

The new fund will be operated by a management company, with investment decisions made by an Investment Committee independent of both France Télécom-Orange and Publicis Groupe. Details of the fund’s operation and governance will be released at a later date.

Orange (NYSE: FTE)