How France supports its startups

The French government has detailed its plans to support local startups. France has already announced a support plan for startups worth about $ 4.3 billion back in March. This is reported by TechCrunch.

Now we are talking about detailing this plan and adding a few additional measures to it.

In March, the French government announced the following measures:

• Startups, which were in the process of raising a new round, could raise a bridge round from Bpifrance, a state investment bank, under the Program d’Investissements d’Avenir program. Bpifrance allocated $ 89.4 million for this, and private investors announced that they could invest in these cases an additional $ 89.4 million.
• Startups could attract loans provided by the state. Such loans are specifically tailored to the non-standard startup business model: even if the company does not generate revenue, it can receive assistance as long as it meets the criteria. Startups can borrow the equivalent of a 2-year salary for employees based in France or 25% of annual revenue, whichever is higher. $ 2.2 billion has been allocated for this.
• Startups are promised faster tax refund calculations (in particular, for VAT), this is another $ 1.6 billion.

These standards are already working. What’s new added?

• Bpifrance launches a new investment fund for key technology companies. The idea is to support French startups so that they are not quickly bought up by large foreign high-tech businesses, or that they keep up with the international competition. The bank will invest $ 167.6 million under this fund. This can be extended until 2021, increasing the amount to $ 558.77 million.
• The program of bridge rounds from the French state bank replenished with an amount of $ 89.4 million.
• Startups that cannot receive a state loan or are not suitable for a financing program can apply for a loan directly to Bpifrance. Another $ 111.8 million was allocated for this.
• Capital-intensive high-tech startups working on revolutionary technologies will be able to attract money from Bpifrance more easily: the government allocated $ 173.2 million for various niche funds and programs (Program de soutien à l’innovation majeure, i-Nov, AI challenge …).
• High-tech startups and accelerators will receive $ 223.5 million through the technology exchange fund and the second French Tech Accélération fund.

As you can see, the support plan includes many complex investment schemes and funds, which are mainly managed by Bpifrance.

Source: ain.ua, techcrunch.com