The President of the French Republic, Emmanuel Macron, recently announced a massive investment of capital into French tech startups. Namely, France has prepared a total of 5 billion euros with the goal to grow more billion-euro startups.
During his recent speech, Macron addressed the lack of sufficient growth capital as the main challenge to the development of French startups. The government is actively working on growing investment capital to pour resources into tech companies in order to help startups develop and expand into multi-billion euro businesses.
Besides involving asset managers and insurers such as Axa, Allianz, Aviva, and Natixis, France is also courting international investors to support their goals. Read on to learn more about the details of the recent investment and what this could mean for the future of French tech startups.
Emmanuel Macron, France's president, speaks during a press conference with Giuseppe Conte, Italy's... [+]
© 2019 Bloomberg Finance LPThe Details of the Investment
Macron’s speech held at the Elysee Palace revealed the country’s plans to support French-based tech startups with a sum of 5 billion euros over the next three years.
Out of this sum, 2 billion will be invested in French-based venture capital funds that focus on late-stage investments, whereas the other 3 billion will be given to global tech funds managed by French-based managers.
“We’ll have €2 billion that will go in so-called late-stage funds and €3 billion for funds managed by asset managers specialized in (publicly listed) tech companies.”
Moreover, there are plans to set up teams in Paris that would aim to encourage global investors to push the French tech development even further.
Up until now, the French public investment bank Bpifrance was in charge of providing most of the financing. However, the government is now turning to the private sector for investments, which could lead to more growth capital.
The French Tech Mission and Future Goals
The amount of capital for French startups collected from investors has nearly tripled in the last four years. The amount will exceed 5 billion euros this year, thus putting France ahead of Germany in the tech startups collected from investors has nearly tripled in the last four years. The amount will exceed investment race.
The government is actively pushing The French Tech Mission forward with the aim to become a tech giant in Europe and later on a global-scale. The French Mission, also known as La French Tech, is an initiative that promotes French startups on a global level and helps them develop into large companies.
The French Tech Mission will choose the top 40 French startups and label them as Next40. These startups will have access to a fast-track administrative system and all the support they need for further development.
Macron has set a goal to have 25 unicorn companies by 2025, that is, privately owned startups worth over one billion euros. The special treatment provided by The French Tech Mission could help startups move in that direction.
“Our desire is to make France the leading ecosystem in Europe. We want to create many more unicorns (start-ups with a value of more than €1bn) in the next few years. Today there are seven and we are targeting 25 unicorns by 2025 and companies that are worth €5bn, €10bn, €15bn” said Cédric O, France’s minister for the digital economy.
2019-09-29 04:36:00Z
https://www.forbes.com/sites/ilkerkoksal/2019/09/29/france-on-its-way-to-become-a-tech-giant-macrons-speech-and-the-recent-investment/
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