French Tech Shanghai - What is French Tech?

What is French Tech?

A breakdown of la French Tech scene in Shanghai

French Tech Hubs

In recent years, the French startup ecosystem has enjoyed incredible momentum, driven by a new generation of entrepreneurs, investors, engineers, designers and many other talented individuals. France has been called a new “Startup Republic”, dotted with thriving hubs and talent that are vehicles for a robust entrepreneurial mindset.

This domestic momentum has a name – “French Tech” – and French startups are rallying around this emblematic moniker showing that the ecosystem is developing rapidly.

This can be easily seen in Paris with its numerous innovation stakeholders, and where a strong political will acts as a driving force. The city is quite simply bubbling with activity, with over 40 business incubators, 80 coworking spaces, 20 fab labs, close from 1,500 startups being set up annually, and a growing number of success stories. Today, there is an exceptionally strong impetus across the world and this has been acknowledged and heralded by international rankings.

The Four Assets of la French Tech environment

Talent: Skilled and Affordable

100,000 engineers are trained every year in France.
70,000 PHD students every year.
The French Touch in Mathematics : 13 Fields medals out of 55.
Thanks to french tax incentives an engineers costs 50% less than in Silicon Valley.
80% of French entrepreneurs exhibiting at CES International 2015 graduated from France's top management and engineering schools.

Venture Capital : A Fast Growing Market

VC funding in Europe (2014) : €7,5bn being +32,5% in one year...!
3 countries have 65% of the market : France, Germany & UK.
France ranks 2nd in Europe in terms of private equity récipients.
VC funding in France : $1.1bn in 2013, $1bn in 2014 and $2bn in 2015.

Source : Barometre EY du capital risque en France, H1-2015

Ecosystem : A Booming Startup Ecosystem

Hyper growth & born global startup 2014 vs 2013 :

+37% revenue increase.
+43% leap in revenue generated abroad in 2014.
+25% increase in firms with foreign VC investment.
+30% rise in staff numbers in one year.

Focus on Paris :

#1 Business Center in Continental Europe (largest GDP in Europe).
World's 3rd most attractive city for foreign investment (KPMG).
#1 in Europe for the growth of its innovation market (CB insight 2014).

Government : Firmly Behind Entrepreneurship

La French Tech was launched by the French Government.
$6bn R&D tax credit program covering 30% of all R&D expenses.
$225m of investment in private startup accelerators.
#3 open data index.
BPI France : $1,25bn for innovation.
2013 : Law for Crowdfunding
2016 : Digital Republic Law : consisting of provisions focusing on Net neutrality, Data portability, Video Game competitions, and New copyrights exception.