A few days ago, the French federal government detailed various measures as part of its assistance plan for startups. France already revealed a $4.3 billion (EUR4 billion) plan back in March. The new announcements are more about refining and including some extra measures.

The French government wanted to act quickly when it made its initial statement in March. In addition to the widely-used short-time working plan to avoid layoffs, here’s what they revealed in March:

  • Startups that remained in the process of raising a new funding round could raise a bridge round from public investment bank Bpifrance through the Program d’Investissements d’Avenir. Bpifrance put $89.4 million (EUR80 million) on the table, private investors revealed that they ‘d co-invest as much as $89.4 million (EUR80 million) as well.
  • Startups can get a government-backed loan that are specifically customized to the odd organisation model of startups: even if you do not produce revenue, you can get some liquidity support as long as you match the criteria. Startups can obtain as much as 2 years of payroll for staff members based in France or 25% of yearly revenue– whichever is higher. This represents $2.2 billion (EUR2 billion).
  • Start-ups can get income tax return more quickly, and VAT returns in specific. This is a liquidity injection of $1.6 billion (EUR1.5 billion).

That was currently on the table. And here’s what’s new:

  • Bpifrance is introducing a new mutual fund for crucial technology companies. When it comes to global competition, the idea here is to support French startups so that they do not get acquired by huge foreign companies too quickly or they don’t fall behind. Bpifrance will invest $167.6 million (EUR150 million) as part of this fund. It might be extended in 2021 to reach $558.77 million (EUR500 million)
  • The bridge round program from the French public bank has actually been doubled with another $89.4 million (EUR80 million).
  • Startups that don’t fit the bill and can’t get a government-backed loan can now get a loan from Bpifrance directly. Bpifrance will provide $111.8 million (EUR100 million).
  • Capital-intensive tech start-ups dealing with tech breakthroughs will be able to raise cash more easily from Bpifrance as the government has actually injected $173.2 million (EUR155 million) in various vertical-specific funds (Programme de soutien à l’innovation majeure, i-Nov, AI difficulty …).
  • Deep tech start-ups and deep tech accelerators will get as much as $223.5 million (EUR200 million) through a technology transfer fund and a 2nd French Tech Accélération fund.

As you can see, the assistance strategy includes a lot of complex investment funds, primarily handled by Bpifrance. It’s clear that the investment bank wishes to assist as numerous start-ups as possible, from deep tech to marketplaces facing some liquidity problems.

The brand-new mutual fund focused on helping start-ups that could get acquired by foreign companies is an interesting move. Some will slam the effort, saying start-ups require to stay hungry to remain ahead of worldwide competition. Others will say that American and chinese business likewise sign profitable contracts with their respective federal governments.

Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.