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Reports
The French
tech revolution
How France’s startups made it to centre stage
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The French
tech revolution
How France’s startups made it to centre stage
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2 SIFTED REPORTS
The New French
Revolution
Looking back,
moving forward
Covid-19 could have very well spelled the given the inhospitable environment created
end of days for the French startup scene in by anti-startup bureaucrats. We still have
2020. But instead, it proved that the French the scars to show for it: Snowflake, Datadog,
ecosystem is robust enough to not only roll Eventbrite, Tenable and Moderna to name a
with the punches but to fight back. few, all billion-dollar companies founded by
French entrepreneurs in the US.
After a year that defies description (let’s
face it, “unprecedented” doesn’t quite cut Given this context, the milestones we have
it), French startups raised a record €5.4bn, reached this past year aren’t just markers
7% more than in 2019. Making France the of resilience but of the sheer relentlessness
only country among Europe’s three largest with which so many of us have worked to
markets that managed to grow in 2020. take the ecosystem this far in such a short
France now counts among its ranks 10 period of time. It is also a reminder of how
unicorns — 4 of which sprang up last year — much work is still left to be done.
and has strengthened its IPO pipeline.
Fortunately, this work has a clear direction.
Though we enter 2021 with a lot of
Covid-19 proved that uncertainty, there are three things that you
the French ecosystem is can bet your hat on:
robust enough to not only
The French government, which Sifted
roll with the punches but has nicknamed the “very visible hand”
to fight back (p. 34), is not about to let the ecosystem
down now. Certainly not under President
Macron and Cedric O’s (p. 20) watch. I
Not bad for a place that, less than a decade don’t just mean funding — I’m talking
ago, was considered a tech backwater. about significant pro-startup policies,
It was a place where venture capital was regulations, programmes and the continued
scarce and foreign investors came for commitment of our team and 50+ French
Fashion Week or to sip rosé along the French Tech Government Correspondents (p. 23).
Riviera — certainly not to invest in startups!
Many of our best founders fled to the US, Diversity and inclusion will move front
convinced that staying would be suicide and center. This isn’t about political
THE FRENCH TECH REVOLUTION 3
correctness, charity or “diversity washing” (p. you watched President Macron’s December
34). We can only surmount the crisis with the interview with Niklas Zenstrom, then you
help of the very best entrepreneurs — and know something is cooking.
these don’t only come from the privileged
classes. Great innovators can be found in The “French Tech Revolution” is well on
the inner cities, the countryside, among its way, with entrepreneurs, investors,
immigrants, refugees and the urban poor. communities… and yes, even the
Many of them will be women. This talent government, helping to push the whole
needs to be tapped if we are to succeed. In movement forward. The time is coming
2021, we are upping support of grassroots when values and valuations will go hand-in-
programmes like Les Déterminés, Station hand, and when innovation will be focused
F’s Fighters or Singa, and injecting 200+ on solving humanity’s most important
founders from unlikely backgrounds into the challenges — and if things go right, with no
ecosystem via our €15M programme, French heads rolling.
Tech Tremplin (p. 23).
We will break whatever record we set for
the next year. With the rest of Europe.
France is proud of what we’ve achieved as
an ecosystem, but we’re also grounded in
reality. We need all of Europe to mobilise KAT BORLONGAN
Director of La French Tech
change and to seize this moment in order to
become an alternative tech powerhouse. If
4 SIFTED REPORTS
Contents
5 Before you begin
A primer on France
Geared for growth?
6 France has proven its mettle at producing startups that scale. Unlocking more capital, and
building the talent pool to support rapidly growing companies, can take it to the next level.
Where are France’s startups based?
14 France’s startups are concentrated in Paris, but there are many ecosystems outside of
the capital
The FT120
16 Every year, 120 French tech startups are selected to take part in the La French Tech FT120
support programme. This is the 2021 cohort, sorted by their year of foundation.
The next battle
An interview with Cédric O, minister of state for the digital transition and electronic
20 communications
“We have a president who is willing to commit himself to technology, because tech is
at the heart of international discussions today… (Macron) is fully aware we have to
invest more and accelerate.”
The entrepreneurial state
21 The French government has always sought to guide its economy and nurture strategic
industries. Emmanuel Macron’s presidency has upped the game when it comes to
applying these principles to its digital sectors.
The French touch
25 French innovation carries its own distinct signature, from food and wine-tech to the
AI pioneers drawing from the country’s long history of excellence in fundamental
mathematics. But the French touch is also about startups tackling some of France’s
deepest challenges, such as educational inequality.
Predictions for 2021
32 We asked French entrepreneurs and investors what they think 2021 has in store for the
world of tech. Here are eight trends to watch out for.
THE FRENCH TECH REVOLUTION 5
Before
you beg
gin
A primer on France
What is there to say about French tech? weighing up France’s ‘innovation DNA’.
A decade or so ago, the answer to that Silicon Valley’s model was about disruption
question would’ve been a tough one. at all costs — breaking things didn’t matter,
Silicon Valley enjoyed the near exclusivity of if anything it was a measure of success. For
churning out tech champions, while Europe, a long time being a technology company
which had largely missed the boat on the meant adopting that approach. So what will
rise of the data economy, was struggling to the French way be? And can French tech
move forward. emerge with a strong, distinct identity that
differentiates its startups and influences
A lot has changed in 10 years. Economic innovation globally?
reform and a trans-partisan effort to support
startups and entrepreneurs, financially This report analyses the state of French tech
and otherwise, are paying off. Unicorns as of 2020, zooming in on the particular
and brands with international reach are context created by the Covid-19 pandemic
now coming out of France, and founders and looking well beyond it too, to explore
are outgrowing their national and regional the achievements of French startups and
ambitions. France is steadily figuring pinpoint the early signs of what is still to
out how to capitalise on its world-class come for the country’s innovators and
mathematicians and encourage well- entrepreneurs.
established corporates and startups to work
together — and international investors are We split our analysis into three parts:
taking notice. ecosystem growth, the government’s
role and strategy, and the ‘French touch’,
The work isn’t over though. Sparking interest which explores the distinct signature of the
for French tech on the global stage is a country’s innovation. In the final chapter, we
significant achievement, but it’s still only step explore predictions for 2021, highlighting
one. Attracting further capital from bigger the trends to look out for. We hope you enjoy
financiers and for bigger rounds, unlocking reading it.
the path to stock market listings for startups,
and growing a more diverse pool of top-
notch international talent are just some of
the challenges that lie ahead.
Fast forward another decade and what’s MARIE MAWAD
Journalist at Sifted
likely to matter extends beyond any single
milestone. Instead, we’ll probably be
6 SIFTED REPORTS
Geared
for growth?
France has proven its mettle at producing startups that
scale. Unlocking more capital, and building the talent
pool to support rapidly growing companies, can take it to
the next level.
What France has achieved
→ Unicorns and global brands are coming out of France
→ A change in mindset is giving rise to ambitious
entrepreneurs
→ The previous generation of entrepreneurs are reinvesting
and giving back
→ There is a growing pool of available capital for startups
→ An uptick in investment in 2020
→ Attention from international investors
→ More collaboration with corporates
What’s next?
→ A chance to capitalise on deep tech as the next frontier
→ Unlocking more capital, including financing for later-stage
growth
→ More large exits through M&A
→ Converting a growing IPO pipeline into European stock
market listings
→ Attracting more top-notch branding and product marketing
talent
→ Firm up a growing influx of global tech talent
→ Encourage smaller hubs in cities outside of Paris
THE FRENCH TECH REVOLUTION 7
F French
rom health insurance and A NEW BREED OF FOUNDERS
ride-sharing to insect food and
cryptography, France’s startups
have proven their ability to
Under 30 years old, Lazimi is part
of France’s relève: a new generation angel
build global brands. The country’s
unicorns have made headline news,
of founders who are walking in the
footsteps of earlier success stories investors
from telehealth platform Doctolib’s
plans to hire 3,000 new employees
— entrepreneurs like Xavier Niel,
Marc Simoncini and Jacques-Antoine worth
to OVH challenging Amazon’s cloud
hosting services in 138 countries.
Granjon, who have made a fortune,
and are now in their fifties and
reinvesting their winnings to support
knowing
HUGUES LE BRET: founder of
French-born technology companies are the next generation. Antoine Martin
Compte-Nickel (sold to BNP
attracting the interest of international and Alexis Bonillo became seed Paribas), backed fintechs like
players like Sequoia and Tencent, and investors after selling their location- Pretto, Pixpay and Helios via his
many are well positioned in sectors sharing app Zenly to Snap for €300m. own consulting/investment arm
poised for growth, particularly in areas Pierre Kosciusko-Morizet became a
VALENTINE BAUDOIN: partner at
influenced by Covid, such as digital business angel after selling his eBay Founders Future, seed investor in
health, cybersecurity and enterprise competitor PriceMinister to Japanese Lydia, alma, memo and Mansa
software. internet giant Rakuten.
THIBAUD ELZIERE: founder of
eFounders, investor in Argent,
Each success feeds back into the Telecoms billionaire Niel has
Spendesk and PayFit
ecosystem. Wannabe entrepreneurs arguably done the most to boost
take inspiration from national the ecosystem through the Station F DIDIER VALET: former deputy
success stories, and a strong spirit startup campus, which has nurtured chief executive at Société
Générale, investor in Epsor,
of collaboration infuses the French over 1,000 of France’s up-and-coming
Leocare and Alma
startup community as winners help lift businesses. Graduates include
fledgling companies up the ladder. Stonly, Okarito and QantEv, which DAMIEN GUERMONPREZ: chair of
have each completed multi-million- Lemonway, investor in Pumpkin,
“As we have more and more startups euro fundraising rounds. They’re Trustpair, TacoTax, Buy Way and
Personal Finance
scaling and succeeding, we have more emblematic of how far France has
team members in those startups who come with regards to fostering GILLES SAMOUN: founder
can give the knowledge and learning ambitious entrepreneurship. of Qualys and Salesmachine,
back to others,” says Sacha Lazimi, the investor in Spendesk, Shine and
cofounder and chief executive of Yubo, Like Lazimi, the new breed of French Payfit
a friend-making social media app for entrepreneurs are in it for the long
CÉLINE LAZORTHES: founder of
youngsters. haul — out to scale their startups Leetchi / MANGOPAY, investor in
into global champions. They say they Pumpkin and Tacotax
are less tempted to cash out early,
Yubo
THE ELEVATOR PITCH: Europe’s
Snapchat for teens
MARKET: Consumer tech
TOTAL FUNDING: €51m
YEAR FOUNDED: 2015
USERS: 40m+ in 40+ countries
FUN FACT: Games help start a
conversation. As ice-breakers Yubo
users often share a group game of
Pictionary, or play “would you rather”
or “let them guess”.
Image: Station F
8 SIFTED REPORTS
France’s less obsessed with valuations, less
likely to move their company to the
OpenClassrooms
unicorns US and more confident that they can
spawn the next Facebook or Amazon
from their hometown.
THE ELEVATOR PITCH: Education for
anyone, anywhere
DEEZER: online music streaming
service for any device MARKET: Edtech
2006 | Raised €480m | Employs 700+
President Emmanuel Macron has set a
TOTAL FUNDING: €62.7m
target of having more than 25 unicorns
YEAR FOUNDED: 2013
BLABLACAR: connects drivers with in France by 2025, from about half
USERS: 2.5m+
empty seats with people looking for of that number in 2020. And while
a ride NORTH STAR METRIC: 1m individuals
such targets are not easily reached, placed in the workforce every year by 2025
2006 | Raised €405m | Employs 600+
entrepreneurs still called him out for TOP THREE COMPETITORS: Galileo,
MEERO: a marketplace for not being ambitious enough. Coursera, Udacity
professional photographers and FUN FACT: Cofounder Pierre Dubuc was 11
clients Voodoo’s Alexandre Yazdi and Alan’s years old when he went online searching
2016 | Raised €269m | Employs 1000+ for a how-to guide on coding a website
Jean-Charles Samuelian responded
from scratch. That led to the launch of
DOCTOLIB: software for online that France should stop counting its the first iteration of the OpenClassrooms
appointments with doctors and unicorns. Samuelian pitched the idea of project the same year.
dentists aiming instead to build five companies
2013 | Raised €237m | Employs 1500+
worth €50bn each. To that, Macron’s
OVHCLOUD: providers of web hosting,
response was: “jackpot, you’re on”. once innovative national telecoms
cloud and dedicated servers giant turned into a mere provider
1999 | Raised €650m | Employs 2000+ for the ‘dumb pipes’ of Netflix’s data.
A CHANGE IN MINDSET It completely fell out of the mobile
VEEPEE: a members-only online
handset market and sold off assets
shopping destination
2001 | Raised undisclosed private That’s a far cry from the talk common that were former national glories, like
equity | Employs 6000+ among and about French tech a Alcatel’s mobile phone brand, to name
decade ago. just one example.
MIRAKL: helps retailers launch their
marketplace and manage their sales
2011 | Raised €357m | Employs 350+
“When my cofounder and I started Early waves of French technology
out, entrepreneurship just wasn’t entrepreneurs struggled too. Flash
CONTENTSQUARE: an optimisation sexy,” says Pierre Dubuc, who sales website Veepee ventured into the
platform for web and mobile user cofounded online education platform US only to pull out shortly after over
experience
OpenClassrooms in the early 2000s, fears it would be crushed by bigger
2012 | Raised €302m | Employs 800+
which he started when he was 11 rivals with deeper marketing budgets.
IVALUA: web-based spend years old. When he turned 18 in 2006, For years, music streaming app
management solutions it was hardly any better. “There were Deezer’s motto was complete global
2000 | Raised €121m | Employs 500+ practically zero support structures at expansion — except the US. And when
that point and it was really hard to online ad placement startup Criteo —
VOODOO: casual games developer
for mobile raise any money at all. Friends and one of France’s most symbolic early
2013 | Raised €182m | Employs 300+ family looked at us with question successes — sought a stock market
marks in their eyes,” he says. listing in 2013, it turned to the Nasdaq.
In fact, like most of Europe, France Over the years, however, successive
fell behind with the emergence of the governments began to promote
digital and data economy. It spent entrepreneurship by pumping
years moping about not having its investment into startups through a
own Google or Facebook, all the while variety of structures. The successes
struggling to support its homegrown of some founders started to inspire
success. Failing to keep up with new others to take up the baton and push
consumer service offerings, it saw its further.
THE FRENCH TECH REVOLUTION 9
“Today is completely different; there’s
all this talk about entrepreneurship
expansion. Mirakl, a cloud-based
e-commerce company, raised $300m Corporate
all the time, incubators at every
corner and founders’ programmes
(€247m) in September to build out
its engineering, sales and marketing innovation,
in universities,” says Dubuc. “At the
beginning, we used to dream of
capabilities.
French
making a hundred grand and we
thought that was the ultimate success.
If we set up shop today, we’d have an
French corporates are also bringing
their firepower as they look to harness
startup innovation.
style
SCHNEIDER ELECTRIC has a corporate
incubator and a million euros in seed
venture capital arm with a €500m
money.” “The French ecosystem has so fund and an Internet of Things (IoT)
profoundly evolved over the past five accelerator.
years. Startups are more mature and
have ready-to-deploy solutions that L’OREAL is the official sponsor of
MORE MONEY, FEWER Station F’s beauty accelerator with
PROBLEMS bigger companies can pick up quickly,” partners including Sillages Paris,
says Julie Ranty, the managing director a startup developing personalised
A changing mindset has translated at Viva Technology, the organiser of fragrances based on machine learning.
into concrete success. The average the VivaTech conference, which aims
DANONE runs their own Manifesto
startup size at acquisition is growing to bridge the gap between startups
Innovation Accelerator.
steadily each year, a sign that founders and corporates in France and Europe.
are holding on for longer. They’re “As a result, collaboration between Paris public transport operator RATP
expanding internationally, faster and startups and corporates has developed runs an accelerator programme that
more aggressively than ever before, a lot. And existing leaders in various has supported startup LifeAZ, a first
aid training platform that uses games
and they are tapping investors for industries are also more conscious that
to teach first aid to people on public
sizable sums. they need to keep innovating, and that transport.
startups can help.”
International venture funds and
technology giants are placing their
bets: Tencent led a $45m (€37m) raise
EcoVadis in fintech Lydia, Sequoia is ramping up
THE ELEVATOR PITCH: A ratings agency its European network, which includes “There’s not enough M&A and exit
that’s more interested in impact criteria a scout role for Roxanne Varza, Station perspectives for French startups,
MARKET: Greentech F’s chief, and US venture fund Accel has but having bigger startups on the
TOTAL FUNDING: €213m picked up local talent for its scouting market and more acquisitions by
YEAR FOUNDED: 2007 network, including Doctolib’s Agnès these startups could be a factor that
USERS: 450+ enterprise companies Bazin. accelerates market consolidation,” says
NORTH STAR METRIC: Reach of their Viva Technology’s Julie Ranty. “French
network impact, measured by the number And while corporates in France startups are also seen more and more
of companies that engage in sustainability
aren’t as acquisitive as they could be as attractive targets for international
TOP THREE COMPETITORS: Sedex, RBA
(Société Générale’s acquisitions of companies, whether in tech or more
and Higg
Shine and Treezor in recent years and traditional players. That will also keep
FUN FACT: EcoVadis awards companies
a score — and a medal (the top one is BNP Paribas’ takeover of neobank bringing dynamism to the market.”
platinum) Compte-Nickel in 2017 are notable
exceptions), France’s bigger startups Perhaps the greatest testament
are increasingly becoming acquirers to France’s growth dynamics is its
Tehtris, a cyber startup, raised a in their own right — carpooling app performance through the pandemic
whopping €20m Series A in November BlaBlaCar has expanded by taking over year. Of Europe’s three largest markets
2020. EcoVadis, a sustainability metrics bus ticketing platforms, while Doctolib by invested venture capital, France
software firm, raised $200m (€165m) has consolidated by buying one of its grew the most, at 7%, ahead of the UK
in January 2020 to support its global rivals. and Germany.10 SIFTED REPORTS
Over the past decade, funding raised Fournier is confident about France’s to power better healthcare, and how
by French startups has been on a positioning in deep tech, a category humans can cope with the impact
spectacular growth path, and the comprising complex engineering and of climate change. They’ll typically
country has been able to both attract science-based fields like AI, robotics, develop breakthrough technology in
more global investors and deliver bigger quantum computing and biotech, anticipation of future potential.
funding rounds for its tech ecosystem. thanks to the country’s exceptional
technical talent pool. “The last 20 years Recently, Covid-19 and the race to
Thanks to the uptick in investment in have been about digital, but the next come up with a cure and engineer the
2020, France exceeded €5bn in capital decade will be about deep tech and we first vaccine has heightened interest
invested on an annualised basis for the have something to offer in this new in deep tech, and biotech more
first time. Paris is now Europe’s number era,” says Fournier. specifically.
two hub for startup investment, behind
London, and in the continent’s top “Covid has served as an accelerator in
“The last 20 years have
four destinations in terms of startup some markets,” says Christophe Tallec,
network density, talent pool and been about digital, but general director of Hello Tomorrow, a
investor sophistication, along with the next decade will be technology conference that launched
London, Berlin and Stockholm. about deep tech and out of Paris and focuses on deep
tech innovation. “In digital health for
we have something to instance, the virus is helping knock
CATCHING THE NEXT WAVE offer in this new era” some barriers down and it has freed up
access to a lot more data.”
While France’s startup community Deep tech startups are often described
is diverse, growth momentum is as the bridge between fundamental But beyond the current context, what
proving especially strong in business- scientific research and the potential deep tech is about essentially runs on a
to-business (B2B) software, biotech, applications deriving from it — clock with an entirely different rhythm.
digital health, clean tech and agri-tech, concrete products and services “Deep tech is all about long-term
according to Paul-François Fournier, that can be sold to consumers or trends,” says Tallec. “It targets today
executive director in charge of the businesses. These startups will typically the kinds of segments that will have
innovation division at Bpifrance, the take an innovative stance on long- tremendous economic weight and
state-owned investment fund and a term challenges like reducing our influence [over] our lives in the coming
major startup investor. carbon footprint, using data science decade.”
DeepTech VC Investment
Other VC Investment
DeepTech VC Investment (€bn), Portion of graduates in science, technology,
2015-2020 engineering and mathematics by country (%), 2018
Source: europeanstartups.co, dealroom.co Source: europeanstartups.co, dealroom.coTHE FRENCH TECH REVOLUTION 11
Four Sometimes, that means fundamental
research 20 years in the making in
THE CAPITAL CONNECTION
French a geek-only lab can translate into
tomorrow’s business goldmine.
French startups have momentum, and
are positioned in all the right areas, but
deep tech “In that respect, France’s strong
suit is undeniably its talent pool of
the community still faces its share of
challenges. It needs to further deepen
startups technology and science super brains,”
says Tallec.
its financing pool, and to catch up
to much bigger markets for startup
to know France ranked 7th in a 2018 global
study of AI startup formation.
capital such as the UK and, farther
ahead still, the US.
France is home to dozens of deep tech
Moreover, its engineering talent pool Financing for later-stage growth is a
startups ranging across fields from
AI to robotics, space tech quantum is deep and comparatively cheap dominant worry.
computing to biotech. Here are four compared to the now-comically
names worth knowing: overpriced Silicon Valley, thanks in
part to tax incentives for innovative
“We have pretty good
EXOTEC: Founded in 2015, it has
raised €100m to build intelligent robot projects. early-stage investors
fleets that operate in 3D to enhance but for later stage,
warehouse automation. “We can keep our R&D and tech
say €50m to €150m, it
in France because we have good
KINEIS: Founded in 2018, it has raised
engineers who are far cheaper than doesn’t happen enough”
€100m to launch IoT nano-satellites
into orbit. the West Coast,” says Pierre-François
Thaler, chief executive of EcoVadis. “What is missing is the next-stage
ALEDIA: Founded in 2011 as a spin companies, with five or 10 billion of
off from French atomic energy agency
Talent is the first reason cited by Tony revenue and at international scale,” says
CEA, it has raised €171m and achieved
world-first breakthroughs in silicon Fadell when he talks about why he left Alan founder Jean-Charles Samuelian.
chips that enhance microLED displays. Silicon Valley and moved to Paris a few “We have pretty good early-stage
years ago to set up a deep tech fund investors but for later stage, say €50m
OWKIN: Founded in 2016, it has raised called Future Shape. The inventor of to €150m, it doesn’t happen enough.”
€68.2m and built a virtual lab — a
the iPod, a former Apple executive and
portfolio of AI models and solutions
— where pharma companies and founder of smart home pioneer Nest, Access to funding from bigger, later-
academics can access the best models which he sold to Google for $3.2bn stage investors is important on several
and datasets to accelerate medical (€2.6bn), Fadell is one of the famous levels. Bigger funds can connect
research.
names of tech that has helped draw founders to a bigger network of other
attention to France. entrepreneurs and partners, to share
notes with and cooperate. When you
get big investors on board “you are
joining a family, and that access to
entrepreneurs can be helpful”.
EcoVadis chief executive Pierre-François
Thaler also notes the late-stage
financing gap in terms of mergers and
acquisitions. “What’s missing in France
is this M&A ecosystem,” he says. “You
can go quickly from Series A to Series B
but then many companies look at M&A
and the acquirers are still in the US.
You tend to see companies going to
million-dollar revenue and then having
to turn to American companies.”
Image: Exotec12 SIFTED REPORTS
There were no French firms in the “It is one thing if one or two startups go European investors are also aligning
top 10 acquisitions by value at exit, to NASDAQ, but if we are creating 20 or with what is the biggest trend in
according to Atomico’s 2020 State of 30 in Europe, it would be unfortunate not startup financing: special-purpose
European Tech report, although there to find a European solution, therefore we acquisition companies or SPACs, shell
has been a positive trend of private are trying to push the debate on this.” companies that raise money through
equity-led buyouts and majority IPOs to buy other companies. Xavier
ownership transactions, as with “It is one thing if one Niel recently launched 2MX Organic,
Mirakl, EcoVadis, Contentsquare and which will focus on organic food
Sendinblue.
or two startups go and sustainable consumer goods,
to NASDAQ, but if we although the jury is still out on
There are also signs of protectionism are creating 20 or 30 whether SPACs will help the startup
that could limit startups’ access
in Europe, it would be economy.
to outside finance. In June, the
government created a fund to invest unfortunate not to find
in home-grown companies if they a European solution” ATTRACTING TALENT
receive unsolicited approaches from
foreign investors. The country faces While European tech companies tend A second growth constraint is the
a challenge in seeking international to list on the continent, hyperscalers talent pool, which is unbalanced. While
capital for its startups and remains do not — those valued at over $1bn France performs strongly in technical
suspicious of rival nations poaching its are five times more likely to list on a US and engineering skills, it is weaker in
best and brightest. exchange, according to Atomico. branding and product marketing, as
well as those individuals who have
The coming year looks set to be experienced this hyper scaling in the
IPO CHALLENGE better both for Europe and France past and aren’t faced with it for the first
given bullish stock market trends time, a chicken-and-egg conundrum
The IPO route could be stronger. While and the amount of money looking for any emerging ecosystem.
France reportedly wants to attract for opportunities after a dire 2020.
unicorns from across the continent A number of French startups are “We lack people that have experience,
to list their shares in Paris, the reality rumoured to be considering an IPO, huge scale and that are creative and
is that European tech flotations have including OVH, Doctolib and Swile. have worked in a big company at the
been subdued of late, compared to the
phenomenal procession of IPOs over
the Atlantic. $1B
There were no French companies
appearing among the top 10 European
IPOs of 2020, and Europe as a whole
had a dud year, with only 16 tech
flotations through to September, the
lowest rate in over a decade.
Startups could benefit from a European
‘NASDAQ’ to give them greater capital
access, according to Bpifrance’s Paul-
François Fournier.
“We are going to build stronger and
stronger companies that need an
exit strategy and, for some, going to
NASDAQ is not going to be effective if
they are not in the US market,” he says. Number of tech IPOs by market cap by country, 2016-2020
Source: AtomicoTHE FRENCH TECH REVOLUTION 13
beginning, like Snapchat employees,
Instagram employees,” says Yubo’s
leaving some of the more mature
ecosystems like Silicon Valley, New Four
Sacha Lazimi. “The engineering part is
strong, but in creative, marketing and
York and London,” says Roxanne
Varza, the director of Paris startups French
branding, we don’t have that many
people.”
campus Station F. “Today, the Station F
community is one-third international, tech hubs
“The engineering
with the US, China, Morocco and South
Korea amongst the best represented outside of
part is strong, but in
countries on campus.”
Paris
creative, marketing and A stronger talent pool is likely to
BORDEAUX: This regional digital
accelerate the development of tech
branding, we don’t have health cluster in the south west of
hubs across France too, away from the France boasts several prominent
that many people” capital city. e-Health startups including DESKi,
which develops AI analysis of medical
imagery, and Lucine, which creates
He adds that one downside of the “[Already] the growth of the French
digital solutions to relieve chronic
country’s tight-knit and collaborative ecosystem has been in cities all across pain. Many Paris-based startups
community is a hesitance to poach France: Bordeaux, Marseille, Lile, have set up their “second office”
talent from domestic rivals, leading Nantes,” says Bpifrance’s Paul-François here, including Back Market and
ManoMano.
companies to hire more from foreign Fournier. “Out of 4,000 startups a year,
countries or remotely. 25% of them are not in Paris. Startups TOULOUSE: The Airbus BizLab, an
have access to talent from all over the aerospace accelerator, brings together
The permanent changes wrought by country. This is one of the key assets startups and Airbus ‘intrapreneurs’
the pandemic could, of course, play of the French ecosystem: it will not to explore innovations including
satellite imaging, unmanned aerial
into France’s hands here. The forced remain on a single front of Paris”.
vehicles and cybersecurity. It has since
transition to remote work has changed expanded to Hamburg, Bangalore and
how some companies look at talent Madrid.
acquisition and opened up their “Out of 4,000 start-ups
RENNES: This cybersecurity and
geographic horizons. a year, 25% are not in military intelligence hotspot combines
“Recently we’ve started to see a
Paris. Start-ups have research facilities, multinationals,
SMEs and the French military, with an
massive influx of global tech talent, access to talent from estimated 4,200 ICT firms. Rennes is
including experienced entrepreneurs all over the country” also the home of ComCyber, France’s
cyber defence command system.
NANTES: Launched in 2017, The
University of Nantes’ Disrupt Campus
Nantes programme has fostered the
startup ecosystem in the city, along
with local network and NGO initiatives
that offer resources to young
entrepreneurs. Successes include La
Cantine Numérique, which facilitates
interaction between digital companies
and students, and Atlanpole, the
regional accelerator promoting
startups in the deep tech field.
For additional notable hubs, have a look
at the map on the next page.
Image: Lucine14 SIFTED REPORTS THE FRENCH TECH REVOLUTION 15
Lille
1.6%
Where are 2020
milestones
France’s Caen
JANUARY: France broadens stock-
startups
options and tech visa rules to make
0.4% itself more attractive for international
talent.
Paris The FT120 startups programme is
Strasbourg
based?
54.1%
0.9% launched, featuring 120 laureates and
extra handholding measures across
France.
EcoVadis raises €165m.
Rennes
1.3%
France’s startups are MARCH: As the Covid-19 crisis hits,
France unveils a €4.3bn emergency
concentrated in Paris, liquidity support plan dedicated to its
startups, stepping in to address the
but there are many cash and other concerns.
ecosystems outside of Nantes
1.6% MAY: ContentSquare raises about
the capital €155m.
French departments shaded by % of startups AUGUST: Voodoo raises money from
located within them, with top 15 cities Tencent for an undisclosed amount
highlighted. and becomes a unicorn at a valuation
of €1.4bn.
Source: europeanstartups.co, dealroom.co.
French companies that raised €1m+ as of
Jan 2021 SEPTEMBER: A stimulus package of
€100bn is unveiled, including a €7bn
direct commitment to digital. Mirakl
Lyon raises €247m.
4.4%
OCTOBER: Ynsect raises €190m.
Grenoble DECEMBER: France exceeded €5bn
1.9% in capital invested on an annualised
basis for the first time in 2020. Paris
Bordeaux became Europe’s number two hub for
2.3%
startup investment, behind London.
Nice
0.7%
2020 highlights Aix-en-Provence
1%
→ €5.4bn raised in 2020 across the Valbonne
Toulouse Montpellier 0.7%
ecosystem 2.6% 1.5%
→ That’s 620 VC deals Marseille
1.8%
→ +7% growth in total raised vs 2019
→ VC money has grown x7 since 2014
→ 75% of investments focus on Paris
and its region
→ IoT, healthtech and AI are the most
common categories of French
startups16 SIFTED REPORTS THE FRENCH TECH REVOLUTION 17
The FT120 of pharmaceuticals and
diagnostics tests
EYEVENSYS: platforms
cardiovascular diseases
SCALITY: allows
businesses to
get accounts, payment
cards, loans, insurance
and gift cards
intelligent
transportation systems
for public passenger
scams
VOODOO: casual games
developer for mobile
autoimmune disease
KERANOVA: instruments
for ophthalmic surgery
photographers with
clients
PERFECTSTAY: B2B tour
IGYXOS: pharmaceutical
products for human
reproductive health
Every year, 120 French tech startups are for long acting non-viral easily manage their MIRAKL: online sector WYND: develops unified KLAXOON: facilitates operator PHARMEDISTORE:
selected to take part in the La French Tech gene therapy for ocular databases in the cloud marketplace platform WORLDIA: online travel commerce platforms interactivity within a SPARINGVISION: B2B marketplace for
FT120 support programme. This is the 2021 diseases VESTIAIRE COLLECTIVE: and dropship solution agency group emerging therapy pharmacists
cohort, sorted by their year of foundation. JOBTEASER: jobs portal marketplace to buy and S4M: connect brands
2014 OCTOBER: SME lending against central vision
for students and fresh
graduates
sell luxury, pre-owned
fashion products
with consumers
by bridging digital
2013 AGRICONOMIE:
platform
PAPERNEST: contract
loss
SPENDESK: smart spend
2018
1999 2007 WITHINGS: developer YOUNITED CREDIT: advertising and the AKENEO: Product e-commerce website management management software ALMA: guaranteed and
of digital health and Online platform to real-world Experience for all farming needs platform to simplify for finance teams and simple split payment
MEILLEURTAUX: BLABLACAR: connecting wellness smart devices facilitate financial QAPA: connects job Management (PXM) BACK MARKET: online administration employees IZIWORK: interim jobs
mortgage loan drivers with empty transactions between seekers and recruiters solutions marketplace dedicated PAYFIT: allows SMEs to SWILE: digital solutions platform
financing broker
OVHCLOUD:
seats to people looking
for a ride
2009 lenders and borrowers with a matching
algorithm
ALL MOL: ticketing
network
to refurbished products
CITYSCOOT: electric
easily and quickly pay
their employees
for employee rewards
and benefits
KINEIS: IoT network
connectivity
webhosting, cloud and ECOVADIS: AB TASTY: helps
2010 YNSECT: farms insects BIOSERENITY: smart scooters rental SHADOW: high-end QARE: on-demand,
dedicated servers sustainability Rating
and Performance
marketers tailor UX and
increase conversion IADVIZE: conversational
to make natural
ingredients for
clothing that monitors
the health of people
DNA SCRIPT: synthetic
DNA through natural
computer accessible
from any online device
online-to-offline virtual
medical practice
2019
2000 Monitoring
FINALCAD: mobile apps
rates
DEEZER: online music
marketing platform
connects customers
aquaculture and pet
nutrition
with epilepsy
CYBELANGEL:
enzymes
DREEM: headband to
TALENT.IO: recruitment
platform for tech
QONTO: online banking
services for small
ANKORSTORE: online
B2B marketplace
GEOSAT: land surveyor, and predictive analytics streaming service with experts via real- intelligence solution improve sleep profiles businesses connects independent
underground network
detection, 3D scanning,
for construction
LEMONWAY: payment
available on any device
EVANEOS: tailor-made
time messaging
PLATFORM.SH:
2012 designed to detect data
leaks on the internet
ENYO PHARMA: clinical
stage biotech
VIRTUO: digital car
rental service
TRUSK: last mile delivery
marketplace
shops and specialist
brands with
MMS service provider for tours and travel with automated, continuous- AFYREN: microbiology DOCTOLIB: online MADBOX: mobile YUBO: social platform neighbourhood
IVALUA: web-based
spend management
marketplaces
MICROPHYT: solutions
local travel agents
FLEXFUEL:
deployment high-
availability cloud
and bioprocess
engineering
booking for medical
appointments
games
MISTERFLY: online
for Generation Z
2017 retailers
SKEEPERS: collection
solutions to industrialise the
production of unique
environmentally friendly hosting solution
engine depollution SIGFOX: service
AMARISOFT: provides
LTE and NR software
INOTREM: develops
immunotherapies
travel agency
MOLOTOV: TV
2016 BRUT: creates short-
form video content
and publication of
customer reviews
2001 microalgae-based
bioactives
technology
MISTERTEMP’: chain of
provider for IoT that runs on standard
hardware
for the treatment of
inflammatory diseases
streaming service
ORNIKAR: online
ALAN: digital health
insurance platform
HR PATH: human
capital management
OPENCLASSROOMS:
online education
recruitment and temp
agencies
2011 CONTENTSQUARE: helps
brands create customer
HAPPYTAL: digital
platform for patients
driving school DYNACURE: treatments
for patients affected
technology
VEEPEE: members-
platform
SELECTRA: online
MWM: designs and
markets mobile apps
ALEDIA: develops and
manufactures light-
experiences on web,
mobile and apps
and services in health
institutions
2015 by serious orphan
disorders The FT120 in numbers
only online shopping utility comparison for and connected objects emitting diodes COOPTALIS: assists HEETCH: ride-sharing CERTIDEAL: INNOVAFEED: produces
→ 37,556 people are employed by companies
destination domestic and SME dedicated to music CORWAVE: implantable companies with talent app targeting late night
marketplace for insect-based protein for from the FT120 listing
customers OKWIND: designs, blood pumps based acquisitions and transportation seekers second-hand electronic the feed industry
→ 30% of those employees are based outside
2005 SENDINBLUE: all-in-one
marketing platform for
manufactures and
delivers smart and
on a breakthrough
membrane tech
candidates with their
mobility projects
SHIFT TECHNOLOGY:
fraud-detection
EKWATEUR: renewable
electricity and gas
JOONE: hygiene and
care products
France
→ And 62% are running fully on remote work
BELIEVE: digital growing businesses connected solar HAPPN: mobile dating FLYING WHALES: technology for the provider KOVERS: ethical health
distributor and label TALENTSOFT: HR trackers app using real-time environmentally friendly insurance industry FRICHTI: home-made insurance → FT120 companies plan to hire 10,000
people in 2021
services provider for software solutions for RECOMMERCE: trade geolocation cargo transport aircraft TISSIUM: biodegradable food production and LUKO: smart device to
artists and labels talent management in, refurbishment and HOPPEN: multimedia LUMAPPS: social sealants and adhesives delivery improve home safety → 4 in 10 of all the FT120 current employees
are female
BIOLOG-ID: and learning resale of smartphones services dedicated to intranet for for wound closure GOJOB: digital and reduce electricity
identification and electronics the medical industry collaborative suites ULTRA PREMIUM temporary work bills → But 7 out of 10 executive committee
members are male
technology to manage
and trace sensitive
2008 REUNIWATT: solutions
for cloud observation
LEDGER: security and
infrastructure solutions
MANO MANO: online
marketplace for DIY,
DIRECT: food brand
for dogs and cats,
operations
ILEK: electricity supplier
MEDADOM: video-
consults with doctors → 70% have some presence or office abroad
health products DEVIALET: high-end and cloud cover for cryptocurrencies home improvement distributed online IMCHECK through web apps and → US, Germany, UK and Spain are top 4
EXOTEC: mobile robots audio hardware forecasting and blockchain and gardening VADE SECURE: security THERAPEUTICS: tele-connected kiosks foreign markets
to help in warehouse manufacturer ROBOCATH: solutions applications products features against immunotherapy MEERO: matches → 38% of sales generated away from home
management ENTEROME: developer for the treatment of LYDIA: enables users to UBITRANSPORT: sophisticated email for cancers and professional on averageEdTech
Ed
PerfectStay MisterFly Worldia Evaneos Ornikar Papernest Ivalua Lemonway Lydia October
T
Data/AI/
TravelTech
Meilleurtaux Cloud/SaaS
D
Ubitransport Virtuo Blablacar Talentsoft PayFit Luko
Fin Lumapps
FinTech/
Heetch Gojob HR Path AssurTech Qonto
Okwind Reuniwatt Ilek FlexFuel Ekwateur Wynd
C Mistertemp’
CleanTech/ Klaxoon
GreenTech
Flying Whales Logistics Akeneo Cooptalis Iziwork
L Meero Swile JobTeaser HR iAdvize
HR
Trusk Mirakl Talent.io
M
Mobility Back Market Younited Credit Spendesk
Platform.sh
Selectra
Open
Cityscoot Certideal Classrooms Sendinblue AB Tasty Skeepers
I Mar
Industry/ MarTech
Production S4M Contentsquare
site Shift
EcoVadis All Mol Technology A
AdTech OVHcloud
Exotec Brut
Alma Qapa
Me Happn
FoodTech/
AgriTech Molotov MediaTech
Eyevensys
Enterome Happytal F
Robocath
Alan Frichti Shadow Geosat
Recommerce
Biolog-id Entertainment
E
Pharmedistore
Cybel Kovers Voodoo
Angel
Sigfox Scality
Igyxos Ultra Premium Retail/
Agriconomie Direct E-commerce
Amarisoft R MadBox
Doctolib
Joone IoT/Manufacturing Ankorstore
TG
Tel IoT
H Tech for
Good
HealthTech/ Telecom
BioTech/ ImCheck ManoMano Yubo Believe
MedTech Therapeutics Ledger Devialet
Keranova Construction
Tech/PropTech
Vade Ynsect Hoppen Vestiaire Co
Secure Collective
S MWM Deezer Finalcad
Inotrem
Security/Privacy
BioSerenity Veepee
Dynacure Afyren
ENYO
Pharma Withings
SparingVision Innova
Feed Dreem A AdTech F
FoodTech/
L Logistics Sp SpaceTech
Corwave AgriTech
Qare
Tissium Microphyt C
CleanTech/
Fin
FinTech/
M Mobility T TravelTech
GreenTech AssurTech
Construction HealthTech/
Co H Mar MarTech Tel Telecom
DNA Script Tech/PropTech BioTech/MedTech
SpaceTech Data/AI/Cloud/
D HR HR Me MediaTech TG Tech for Good
SaaS
Sp
Visual guide to the Aledia Medadom E Entertainment I
Industry/
Production site
R
Retail/
E-commerce
FT120 2021 cohort by Kineis Ed EdTech IoT
IoT/
Manufacturing
S Security/Privacy20 SIFTED REPORTS
The next battle
An interview with Cédric O, minister of state for the digital
transition and electronic communications
“B
uilding French tech instead for the next one,” says O. “Yes, discussions today and because
has been a trans- there are areas where we’re lagging otherwise Europe faces the risk of
partisan priority for behind, but in others we’re on par with being kicked out of history,” says O.
over 10 years, and the US and China.” “He’s fully aware we have to invest
we’re reaping the fruits now,” says more and accelerate.”
Cédric O, the French junior minister Where Macron really differentiates
for digital affairs. “There are a few from previous French leaders has When Covid-19 hit France in early 2020,
things we have to unlock still, but the perhaps been in his pragmatic the government quickly signalled that
underlying trend is really good. There approach; he has an ability to turn the it wasn’t going to sit idly by and watch
are no deal-breaker obstacles.” page on previous tech debacles and startups struggle.
missed opportunities and look instead
Soon after Macron was elected in to what lies ahead. After years of pumping state money
May 2017, he started putting forward into growing the startup ecosystem,
ambitious targets to make France Predecessors focused on how France, France rushed to pour in more and
a ‘nation of unicorns’, while digital like most of its European neighbours, create a pipeline of support for
minister Cédric O wants his country fell behind with the emergence entrepreneurs.
to bounce back from its failure to of Google, Facebook and the data
produce its own Ubers and Airbnbs by economy. Instead, Macron has made Mid-March, less than 24 hours after
positioning itself to, as he says, win the it clear that he’s keen to not let Macron announced school closures
next technology battle. history repeat itself. His view is that and a host of other measures that
technology isn’t just about innovation would lead to a full lockdown, O was on
“We shouldn’t be stuck on competing or even economic growth, but also a live Facebook event with founders,
in the previous battle, we should aim about the sovereignty of nations. One answering questions and promising a
of his main concerns is that France and boost from the government. Days later,
Europe could once more be left behind, the government unveiled a €4.3bn
consuming technology that is designed liquidity support plan dedicated to
and built elsewhere — and giving up its startups, stepping in to address
their data in the process. the cash concerns brought about by
the coronavirus crisis, as well as to
With that in mind, he has announced propose a furlough scheme and other
plan after plan, each aimed at exceptional measures.
federating talent, money and
efforts around a key theme: artificial “The power of big tech in the US was
intelligence, the development built during the 2008 financial crisis,”
of quantum technologies and says digital minister O. Now, there’s
cybersecurity. Covid-19 and France wants “to use the
stimulus package to build the French
“We have a president who is willing to economy in the long term, to make
commit himself to technology, because it more competitive in two priority
tech is at the heart of international sectors: environment and digital”.THE FRENCH TECH REVOLUTION 21
The entrep
pre-
neurial state
The French government has always sought to guide its
economy and nurture strategic industries. Emmanuel
Macron’s presidency has upped the game when it comes
to applying these principles to its digital sectors.
What France has achieved
→ Tech has been a trans-partisan priority for over a decade,
and it’s paying off
→ France has turned the page on the previous decade’s tech
debacles and is looking ahead
→ Macron’s commitment to technology is an economic driver
and sovereignty weapon
→ R&D tax credits have been maintained, helping
attract international research investment
→ Administrative reforms, dedicated schemes like the
French Tech Visa and a revised stock options
regime, are supporting startups
→ Hard cash has been dedicated to startups to
support Macron’s vision
→ Visibility and handholding for founders through the
La French Tech network
→ Generous Covid-19 bailouts have helped to keep the
ecosystem on course
What’s next?
→ Entrepreneurs want more simplification and further reform
→ Calls for change to France’s procurement strategy to favour
local startups
→ Intention to make more of France’s €100bn stimulus
package accessible to startups
→ A clearer regulatory line for tech in Europe
→ Deployment of government’s digital budget, including for
AI, quantum, cybersecurity and deep tech more broadly22 SIFTED REPORTS
France’s
F
rance’s government is artificial intelligence, cybersecurity
famous for its economic and quantum computing as central
Covid-19 interventionism — dirigiste,
deriving from the French ‘to
priorities for public spending.
relief for direct’, became an economics textbook
shorthand for state-led development
Of that, €3.7bn will go to strengthening
startup financing, in particular
startups models — but it took its time to
apply those ideas to its own startup
ecosystem.
through Bpifrance, the French national
investment bank created in 2012 by
former president Francois Hollande
France was one of Europe’s more
that has brought patient capital to the
generous countries when it came
to shielding its startups from the “When Emmanuel Macron came to French market.
economic fallout from Covid-19. Here power, he said, ‘we’re late and need
is what it offered: to invest in tech ecosystems or we It’s not just Covid that’s accelerating
→ A €4.3bn injection for startups will lose the better part of the century financing; there has been hard cash
aimed specifically at addressing and all the value will go to the US or on the table for a while to support
cash concerns, including a Asia’,” says Thibaud Hug de Larauze, France’s vision. Most notably,
short-term refinancing scheme
(€160m), the early payment of
cofounder of Back Market. Bpifrance has invested over €20bn
some tax credits (€1.5bn), the across sectors including digital, life
accelerated payment of already- And while Macron wasn’t the first sciences, energy transition, medtech,
planned investments in the sector to pump money into startups and fintech and agritech. Its importance
(€150m) and guarantees over
facilitate entrepreneurship — measures is clear when you consider that
cash flow costs (€2bn)
including tax breaks aimed specifically Bpifrance contributes 18% to 19%
→ Social charges and tax payments
at innovation have been around for of France’s total startup financing
were pushed back
several presidencies — startups and either directly or indirectly through
→ Mediators on offer to help
founders view the younger, tech-savvy contributions to investment funds and
recover funds from customers
president as more engaged in their other schemes.
→ State-backed credit mediators world than his predecessors.
ready to intervene for companies
that couldn’t make debt
Bpifrance takes between 4% to 5%
payments or loan insurance fees return on investment, compared to
to their bank the 10% or more typical for regular
→ Government loans specifically investors. While 50% state-owned, it
adapted for startups and directly
on offer via state-backed investor
Back Market is staffed by private sector experts,
ensuring more commercially astute
Bpifrance, and backing from THE ELEVATOR PITCH: Why buy new
choices.
Bpifrance as a guarantor to get a when you can buy refurbished
loan from a bank MARKET: Consumer tech
Executive director Paul-François Fournier
→ Rent, electricity, gas and water TOTAL FUNDING: €158m
bills deferred or cancelled positions the bank in the context of a
YEAR FOUNDED: 2014
broader shift in innovation from large
→ Temporary unemployment USERS: 1,000+ verified sellers
measures
corporates, who once dominated the
FUN FACT: Used laptops and Playstations
were best sellers during Covid-19 landscape, to startups. “The digital world
changed the paradigm,” he says. “In this
era, where everything is connected, a
PUT YOUR MONEY WHERE small group is more agile to manage the
YOUR MOUTH IS innovation process.”
In 2020, France unveiled a stimulus Bpifrance built its strategy on
package of €100bn, pointing supporting startups through study
to industrial and technological tours to Silicon Valley and Israel and
development and ecological transition now funds around 2,000 startups a
as major targets. The budget included year, up from 800 in 2013. It is backing
a €7bn commitment to digital, with critical startup communities essential toTHE FRENCH TECH REVOLUTION 23
France’s comparative strengths like AI,
which it pumped €368m into in 2019.
“The French government has created
a more pro-business environment The French
The state-backed financier has access
to enormous pools of capital — in early
and worked hard to simplify the visa
process for foreigners,” says Station
F’s Roxanne Varza. “While the visa is
Tech Visa
2020, it raised €4.2bn from investors easier to obtain, arriving in a foreign → A simplified, fast-track scheme
for non-EU startup employees,
including Abu Dhabi’s Mubadala country is never easy. This is perhaps founders and investors to obtain
Investment Company along with large where more can be done to improve a residence permit for France
international and French institutional the experience.”
→ Aims to encourage tech talent to
investors such as Covea and Axa, as join, launch or invest in a French
well as family offices such as Orange. Meanwhile, Macron has maintained startup
Through this fund, Bpifrance plans to the R&D tax credits that have proved → Valid for four years
invest in large and mid-sized companies extremely popular with entrepreneurs
→ No diploma requirements
in France’s CAC and SBF indexes. over the years and even helped to
attract research investment from → Costs a few hundred euros in
administrative fees
The government has also created its international giants, convincing
own financial war chest. In September companies from Huawei to Facebook → As of 2020, eligible companies
don’t have to be headquartered in
2019, President Macron secured a to set up labs in France. Tax credits
France
pledge from institutional investors to cover around a third of the cost of
direct €6bn of capital into late-stage subcontracting with research institutes
venture funds and listed tech equities. and can lower the cost of hiring PhDs.
These funds will participate in growth “It is important to maintain these rates,
rounds for tech companies. they are working well,” says Ÿnsect In 2020, France changed its stock-
cofounder Antoine Hubert. options rules to expand the existing
Support programmes are also in fiscally advantageous scheme (so-
place to make France a scale-up There is an 80% discount on taxes called “BPSCE”) to foreign businesses
nation. La French Tech’s Next40/120 for engineers, according to Yubo’s with employees based in France. The
programme supports 120 startups Lazimi. France has the highest direct change came as entrepreneurs across
a year through measures including government funding and tax support for Europe, in a bid to help startups attract
enhanced access to government business R&D of all OECD countries and talent on the global stage, rallied
ministries, greater visibility through the generosity of its incentives increased behind the “Not Optional” campaign
access to official French delegations significantly between 2000 and 2019. for a new pan-European stock options
overseas and help in connecting with
public sector opportunities. Founders
get handholding from a group of more Direct Funding of BERD
than 50 dedicated correspondents Tax Support for BERD
from government agencies, ministries
Subnational tax Support for BERD
and public services.
REFORMS
There have also been legal and
regulatory reforms. Key changes
in recent years include eliminating
a wealth tax outside of property,
introducing a flat tax on dividends,
simplifying the process of winding
down businesses and introducing a
special tech visa for non-EU startups, Direct government funding and tax support for
founders and investors. Business Enterprise Research & Development (BERD), 2018
As a percentage of GDP. Source: OECD R&D Tax Incentive DatabaseYou can also read
