Emmanuel Macron wants to make Paris the capital of the start-up

on October 11, 2017 – AP WRITING – Corporate

© Viva technology – Emmanuel Macron on stage at salon Viva Tech 2016 in Paris.

Paris would be by train to overtake London as the european capital of start-ups. It is in any case the project of the new French President.

During his visit to the salon Viva tech on June 15, Emmanuel Macron has announced his ambition to make France “the nation of ” start-up” through the creation of a fund of 10 billion euros to finance innovative companies, as well as a visa “French Tech” for foreign entrepreneurs.

The president has also announced its intention to reform the labour law French and lowering the corporate tax, to encourage business creation.

The French start-ups need help

Certainly, the French start-ups are dynamic, but their development comes up against difficulties of financing. The French are very reluctant to touch their savings to invest in risk capital. They focus on the stone and savings accounts, deemed less risky.

In addition, business angels are more rare in france : there are 8 000, compared to 25 000 in the United Kingdom and 298 000 in the United States. Thus, the French entrepreneurs have a tendency to leave the country in order to obtain the funds necessary for their financing.

© Getty Images

Creation of a fund of 10 billion euros

In order to encourage the French companies are innovative, a fund of 10 billion euros has been created. According to Emmanuel Macron, it will invest in the key stages of the growth of these companies.

In France, the phase of financing of small business has big weak points and requires measures to support. Macron proposes that Bpifrance manages this fund, which will be powered by the dividends or the resale of the shares into which the French State is the majority shareholder.

Measures to simplify the lives of entrepreneurs

Emmanuel Macron has reiterated its ambition to facilitate the development of innovative companies by removing the tax on capital as well as taxes on the funds invested in the businesses. According to him, the capital must be used to finance the economy and not to cause investors to flee.

Thus, a withholding of 30 % included to the income of capital will be created at the next finance law. Finally, the taxation and regulation will encourage risk-taking and innovation. A “right to error” will be put in place.

Paris, a capital city very attractive for the innovation

In order to become the european capital of start-up, Paris did not hesitate. Since 2001 the city has created no fewer than 100 000 square meters of incubators, while the even surface will be created by 2020.

In 2017, the biggest incubator in Europe has been inaugurated : Cargo hosts 50 start-up on 15 000 m2.

The next year, the Station F of Xavier Niel will see the day in the 13th district on an area of 34 000 square. The companies specialised in Fintech or the forex trading online will have the opportunity to integrate these incubators.

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