Action Startups 2018 is a government program created to support the growth of these young innovative structures, constituting one of the most promising engines for our economy. The observation that the French are massively attracted to this new form of work and the reinvention of many professions thanks to digital technology has prompted the government to take up this subject.
This particularly innovative ecosystem is now reaching a form of maturity, which is why it seemed essential to promote the conditions in which they operate.
Action Startups 2018 is the fruit of a vast consultation bringing together all the players in the startup world over several months during 15 roundtables and brainstorming workshops.
Bringing new ideas and transformations to light, and responding to the needs of entrepreneurs , is at the heart of government action. Nearly 1,300 online questionnaires filled in by startups identified more than a hundred observations, to which concrete responses were provided.
More than 200 one-to-one meetings were held with members of the government and with 30 partners responsible for feeding back French suggestions.
Following this wide-ranging consultation, the Secretary of State for the Digital Economy, Mounir Mahjoubi, drew up an assessment of his action, outlining 5 key measures aimed at making the future of startups brighter
While startups need flexibility and agility to adapt their business model and meet market expectations, administrative constraints and the lack of clarity in legal standards have emerged as difficult issues for entrepreneurs to master.
Starting in June 2018, the government will set up a network of "start-up-innovation correspondents" in each ministry, to enable rapid contact with dedicated, specialist contacts.
Mounir Mahjoubi is also keen to promote the experimentation of new projects through the France Expérimentation network, which enables any startup to apply for the right to bypass a regulation or law when it has ambitions to create a new business model or to develop a product.
Of course, improving the day-to-day life of startups cannot really take shape without easing the administrative and financial constraints they are likely to encounter, especially in periods of hyper-growth.
The PACTE law (which will be examined by Parliament at the end of June), will provide that only companies that have reached or exceeded the social thresholds of 11, 20 and 50 employees for at least 5 consecutive years will have to apply the measures set out in the law.
Priority will be given to supporting the financing of start-ups, especially during their growth periods.
To achieve this, the government is counting on the support of the Banque Publique d'Investissements, which could develop a "venture loan" offering to encourage major fund-raising.
It also wants to support the rise of Initial Coin Offerings (ICOs) by promoting companies issuing tokens that protect savers.
The government also wants to place itself directly in the position of purchaser to encourage the growth of startups. It wants to adapt procedures for young companies, which will undoubtedly encourage the development of innovative solutions.
Deep-tech companies will also be the focus of a special stock exchange, the details of which will be defined in the coming months.
In 2017, French Tech companies raised more than €2.5 billion
Recruiting the right profiles is never easy for startups, not least because of the mismatch between the skills required and the training offered by the French secondary and higher education systems.
To counter this, the government has announced the introduction of a "digital and computer science" specialization from 2019, as well as a plan for 10,000 short digital training courses.
More flexible conditions for the French Tech Visa will encourage the recruitment of talent from abroad.
In particular, this will resolve the current difficulty in recruiting developers on the national market.
A stock market indicator dubbed "next 40" will be launched in autumn 2018, to enable the most promising French startups to be listed .
The government is also considering the inclusion of startups in the foreign trips it organizes, in order to promote their products and know-how.
Some French Tech sectors require specific, highly targeted measures.
To this end, fintechs will benefit from an increase from €2.5 to €8 in the authorized threshold per project for accessing participatory financing.
The PACTE Act should also allow the PEA-PME to include securities financed via crowdfunding platforms.
Other sectors, such as Edtechs (technologies serving education), still need to be structured.
Healthtech will benefit from a major boost from Big data in this field, with the national health data system enriched by the contribution of hospitals.
All these proposals and measures have yet to be debated, and have not yet been submitted to Parliament. In any case, they demonstrate a real enthusiasm for startups, and assure entrepreneurs of the government's firm support in promoting their success.
Afterwards, he promises to remain attentive to the needs of French start-ups, modifying or improving the systems to meet their individual requirements.
Written by our expert Paul LASBARRERES-CANDAU
June 11, 2018
