August 3, 2021

Funding for start-ups: the government is raising its ambitions

In September 2019, Emmanuel Macron in person lifted the veil on his project intended to make France a player that counts on the global technological scene. The “start-up nation” needs to give birth to many unicorns – these start-ups valued at more than a billion dollars (approximately 820 million euros) – in order to establish its credibility.

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To achieve this, the President of the Republic considers that “The battle for capital is essential”, in order to promote the biggest rounds of table necessary for the emergence of champions. Based on a report made in July 2019 by Philippe Tibi, a scientist (Atos) in finance (UBS), he announces that he has obtained the commitment of a 5 billion euros contribution from institutional investors. to finance start-ups or supplement funds specializing in technology. These players had hitherto been reluctant to bet on these risky companies. By relying on a leverage effect, the Elysée is hoping to 20 billion new money injected into the French ecosystem by the end of 2022.

Halfway through, the objectives are more than on track to be met. On the institutional side, nearly three quarters of commitments (3.5 billion euros) have already been honored. By also calling on third-party investors, nearly fifty funds labeled “Tibi” have already collected 18 billion euros. Therefore, the government decided to raise its targets. Monday June 7, it is the ambition to raise 30 billion euros for French Tech by the end of the year 2022 that was to put forward the Minister of the Economy, Bruno Le Maire. An announcement that delighted Philippe Tibi, who had seen dawning “Some skepticism” at the time of publication of its report.

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The idea is not to ask more from institutions. Many are now convinced of the value of venturing on these lands which offer advantageous returns on investment. Before them, US pension funds made a specialty of investing in US tech giants, with big profits as a result. The Tibi mission still plans to continue to supply French insurance companies with information on sectors such as biotech, medtech, semiconductors, energy storage, mobility, the environment, etc. in which start-ups. up French could have their card to play.

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