Some days ago, as part of its start-up support plan, the French Government detailed different measures. Back in March, France announced its plan of $4.3 billion ( € 4 billion). Refining and introducing additional steps are one of the latest announcements.
In its initial announcement in March, the French Government wanted to do so quickly. In addition to the widely used short-term work scheme in order to prevent dismissals, they announced here in March:
Undertakings that were in the process of raising a new round of funding could raise a bridge over the Programme d'Investissements d'Avenir from public investment bank Bpifrance.
Private investors announced that they would co-invest up to USD 89.4 million ( € 80 million) on the table and that they will co-invest up to USD 89.4 million (EUR 80 million).
Startups can receiving a government-funded loan specifically tailored to the strange business model of startups:
- you can get liquidity support even if you do not generate revenue, provided the criteria are met.
- For employees based in France, start-ups can borrow up to two years' payroll or 25% of annual profits — the higher. That is 2,2 billion dollars (2 billion dollars).
- Initiatives can collect tax returns quicker, and in particular VAT returns. This is a $1.6 billion (€ 1.5 billion) liquidity injection.
It's been on the table already. And what's new is here:
For main technology firms, Bpifrance is introducing a new investment fund. It is here that the idea is that French startups are supported so that they are not purchased too quickly by large foreign companies or fall behind in international competition. As part of this fund, Bpifrance is to invest $167.6 million. It may be extended to 558,77 million dollars (500 million euros) in 2021.
The French Public Bank's bridge round program was doubled by another $89.4 (€ 80 million).
Start-ups which can not and do not receive a government-sponsored loan will now obtain a loan directly from Bpifrance.
A $111.8 million (€ 100 million) will be provided by Bpifrance.
The government has invested $173.2 million in a number of vertical-specific funds (Program de support à l'innovation majeure, AI challenge ...) and will be in the position to raise funds more easily from Bpifrence with capital-intensive tech start-ups working on technologic breakthroughs.
The technology transfer fund and the Second French Technology Acceleration Fund will give deep-tech start-ups and accelerators $223,5 million ( € 200 million).
The support plan includes many complicated investment funds, mainly managed by Bpifrance, as you can see.
It is obvious that the investment bank is looking for help from deep technology to markets faced with certain liquidity issues to as many start-ups as possible.
The new investment fund is an important step aimed at helping businesses that can be bought by international companies. Some people would oppose the initiative and say that start-ups must remain hungry to succeed internationally. Others will also suggest that Chinese and US companies sign lucrative deals with their respective governments.
