A start-up nation is inconceivable without state support in terms of research and infrastructure to accommodate new entities. These incubators, accelerators, the support of large groups, and of course, financing, which is the crux of the matter, constitute major assets for innovation.
The world of start-ups continues to grow with more than 3,500 creations in 2024. According to the EY barometer on venture capital in France, French start-ups raised 13.4 billion euros in 2023. Growth of the number of unicorns (start-ups valued at more than a billion euros) in French Tech has been 30 since 2024, which testifies to the success and dynamism of the sector.
An ecosystem that resists
The successes are there! It is difficult to miss new unicorns like BlaBlaCar, Doctolib, OVHcloud, Alan, Contentsquare, Ledger, Qonto, Mirakl, Back Market, Deezer, Meero or Veepee. Some confirm their status as ambassadors of French Tech. Doctolib, valued at more than 5.8 billion euros in 2023, continues its European expansion.
Back Market, a reconditioning specialist, exceeded $5.7 billion in valuation at the start of 2024. These successes demonstrate the potential for innovation and growth of the French ecosystem. The other areas of success illustrate the effectiveness of public authorities with the implementation of several measures to support entrepreneurship.
Tax reductions, research tax credits, investments in research, creation of incubators, support from BPI France, and the France Relance 2030 program are all measures that allow France to move in the right direction.
However, start-ups, for example, encounter difficulties in obtaining financing at a late stage. Access for start-ups to initial fundraising has clearly improved, but the transition to unicorn remains a major concern. According to France Digitale, 7% of French start-ups managed to raise more than 100 million euros in 2023, compared to 15% in the United Kingdom. The French private financial and banking environment is still cautious, pushing certain companies to turn to foreign capital for their growth.
Formation et talents
Training in mathematics, engineering and AI is recognized worldwide and is a French asset. Thus, in 2024, France is ranked 3rd among the most productive countries in the world in terms of scientific publications in AI. Initiatives such as École 42, Station F and the major engineering schools have actively contributed to the emergence of this new entrepreneurial world.
France has undoubtedly moved closer to its ambition of becoming a “start-up nation” since 2017. Successes are multiplying and the country has increased its attractiveness. On the other hand, several key challenges remain: the financing of scale-ups, the internationalization of start-ups and the consolidation of technological giants likely to become world leaders. The French “start-up nation” model is now a reality under construction, but maturity still requires sustained efforts by all players in the ecosystem.
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