BDO LLP | INTERNATIONAL TECH HUB
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THE GOVERNMENT SUPPORT France has a great deal of public and private assistance for businesses, both from large corporations and the government itself. There are over 5,000 specific regimes for fast-growing companies starting out in the tech space. Because there are so many different criteria depending on location, regulation, business size and more, it can sometimes be tricky for newer companies to navigate. Tax is another area which causes newer businesses to France some trepidation. The digital services tax, recently implemented by President Macron, is an indication that the French government is looking to tax tech businesses more in future. Despite this, the area’s stability and proximity to major European infrastructure still makes it appealing to businesses looking to establish themselves. France has excellent credentials for research and development, which appeals to businesses working in that area. THE INVESTOR ANGLE Venture capital firms in France have invested amounts of up to €3.6 billion – quite competitive when compared to other European states. French tech businesses tend to stay in the country for three to four years before expanding abroad, largely because the initial support is favourable here. Several unicorns and large tech companies have benefited from the investment here. For French companies, raising capital without plans to go international can be difficult, but foreign businesses seeking to get a foothold in France may have more success. Another aspect to consider when thinking of expanding into France is that – while it remains a problem worldwide – female entrepreneurs tend to encounter a more favourable climate in France. Women still raise 20% less than men when pursuing capital for their businesses, but this is improving constantly, where other nations are failing.
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