Paris, Dusseldorf In mid-June, the self-declared president of the “start-up nation” suddenly made an appearance again: Emmanuel Macron visited the tech industry at its Vivatech trade fair in Paris and conveyed the feeling that the young companies would also be a top priority in his second term. Macron formulated a goal: by 2030 there should be 100 “unicorns” in France, i.e. start-ups with a valuation of more than one billion dollars.
Like no other European head of state or government, Macron has taken care of start-ups in recent years. Nevertheless, his goal is still far: France currently has 27 “unicorns”.
And the tech industry is worried: Inflation, the energy crisis and the war in Ukraine are all calling for Macron’s attention. It is questionable whether mythical creatures are actually still on the priority list of the president and his new government.
The expectations of the start-up association France Digitale are still high. The development of the tech scene in France has accelerated significantly in the past five years, says General Director Maya Noël of the Handelsblatt. “But we have to keep accelerating, because we are not yet in the maturity phase.” “French and European tech champions” should emerge. “We still need political support for this,” says Noël.
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In Germany, many founders and start-up investors envy the French competitors for their head of state. According to new figures from the Paris start-up center Agoranov, the German scene seems to be closer to the 100 unicorns. The French start-up experts have ranked the top 100 so-called “scale-ups” in the European Union. This refers to start-ups in the growth phase.
“Germany holds the gold medal with 33 scale-ups in the top 100,” the authors sum up – German scale-ups even make up half of the top 10, and a total of eight make it into the top 20. France is in second place so far, with 30 scale-ups in the top 100, but only one company in the top ten and three in the top 20. The decisive factor for the ranking is how many millions the companies have been able to collect each year since they were founded.
Macron’s new start-up man is not considered a start-up expert
However, it must also be noted that France increased its share of the top 100 by four last year, while Germany lost one company. And that could also be due to Macron and his initiative.
His commitment has brought about a number of changes in the law, such as incentives in tax law, a “tech visa” for specialists and an attractive model for employees to participate in the company’s capital.
And yet, in the meantime, disillusionment has set in again: When Macron left the post of digital state secretary vacant after his re-election in May, disappointment was heard in the scene. Although Bruno Le Maire added the “Ministry for Digital Sovereignty” to the super-ministry of finance and economics, the start-ups lacked a clear contact person.
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After the defeat of his center alliance in the parliamentary elections in June, Macron rebuilt his government team. Le Maire’s department finally received an “associate minister for digital transformation and telecommunications”, one level higher than the previous state secretary. France Digitale welcomed the protocol upgrade, which reflects “the growing importance of digital companies for the French economy”.
However, there are doubts about the appointment: the new junior minister Jean-Noël Barrot is considered to be technically versed in the field of company start-ups and small businesses, but the economist has not yet made a particularly strong impression as an expert in the tech sector.
The French media spoke of a political occupation. Barrot belongs to one of the centrists supporting Macron. His experience as a member of the National Assembly could in turn be a tactical advantage: Given the lack of a parliamentary majority for the Macron camp, the 39-year-old will have to fight for his digital projects in parliament. It remains to be seen how much Barrot can support him in this.
New measures are planned to make start-ups more resilient to crises
The French tech industry also has to be patient when it comes to the question of the new government’s next start-up initiatives: Prime Minister Élisabeth Borne did not acknowledge the start-up concerns in her government statement, apart from a vague commitment to the “great digital nation” France room one. Barrot doesn’t want to reveal the details of his plans until after the summer break.
However, the Handelsblatt learned a few priorities from its environment. One focus will therefore be on how the support can be tailored to the different phases of start-ups – from the founding time to the IPO. With a view to the financing environment made more difficult by inflation and interest rate increases, instruments are also to be developed so that tech founders can survive “times of crisis”.
>> Read here: From heiress to enabler – how Susanne Klatten conquered the start-up scene
In view of the shortage of skilled workers, one will also dedicate oneself to the training and recruitment of tech talents. The tech industry, which is heavily concentrated in Paris, should also have a greater impact on the regions. After all, it will be about more diversity and parity between the sexes in the start-ups, according to the ministry.
Meanwhile, France Digitale hopes that financing instruments such as the European Tech Champions Initiative, which is endowed with state funds, will be expanded. In addition, start-ups should be given more consideration when awarding public contracts. “There are still too many obstacles today,” says Maya Noël. A “preference for European tech companies” is needed.
France Digitale would also like a solution to the problem of skilled workers. This is the biggest brake on growth, explains Maya Noël. When he appeared at the Vivatech trade fair, Macron already made a promise on this point: through training and further education programs, up to 500,000 additional developers and IT experts should enter the job market.
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