French startups, new economic opportunity

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Updated on October 6, 2020. France was the leading European country in terms of startups, high-growth companies in the technology sector in 2018 (1). The country gives a chance to large new and innovative projects of start-ups. These high-growth start-ups, aged four or five years, are referred to as “gazelle” according to INSEE (2). The latter are increasingly relocating abroad, especially in North America.

Bordeaux startups expand market in pursuit of US ‘big dream’

Formerly known as Ubi i/o, the French business accelerator in the United States, designed by Business France, became Impact USA in 2017. It accelerates the development of French start-ups in Silicon Valley and Silicon Alley. Each year, this process selects innovative and promising projects from start-ups to launch them into the U.S. economic market. A place for innovation, Silicon Valley, located south of the San Francisco Bay Area in California, hosts many international technology startups and companies each year. Apple, Facebook and Google, which have now become international economic monsters, began their adventure and conquer the world in the hollow of Silicon Valley. This year, it was the turn of the Bordeaux startup Dronisos to be selected by the business accelerator Impact USA to spend 10 weeks in the business model of Silicon Valley.

Dronisos, dream and technological show

Dronisos, which qualifies as the European leader in indoor and outdoor drone shows, has decided to continue its economic ascent in the US economic market. Created in 2016, the Bordeaux startup is the first to position itself in the indoor and outdoor entertainment market for amusement parks and major events. She works on drone representations for Airbus, Futuroscope and Warner Bros.

After having the opportunity to spend 10 weeks in the United States thanks to Impact USA, the young Bordeaux startup had the opportunity to study the functioning of the American market and meet potential customers. Dronisos intends to expand into the U.S. market.

His plans to continue in the U.S. lands are divided into two stages. The first is the opening of an office in Florida, in Orlando, which is a flagship city of the world economy around entertainment and entertainment. Dronisos also aims to launch a drone pilot training center in Kentucky.

Dronisos is just another French startup that has had the resources and support to carry out its projects. Many others are just waiting to make the same journey. France will be there to support them.

Meeting youth start-up team
Startups attract young entrepreneurs around the age of 35.

France, a “recordman” country of startupers

France reached a new record in terms of business start-ups in 2018. Indeed, “691,000 companies have been created in France, 17% more than in 2017,” according to INSEE (3). Moreover, the creators of so-called “individual” companies are still as young as ever. The average age of the creators is around 35 years. Under-30s increased slightly to 38% (3).

The most popular sectors of startups are the majority of consulting activities (3). The information and communication sector is also highly prized by young creators. Indeed, the average age is 32 years, according to INSEE (3).

French startups are growing fast. According to the 2017 Barometer of La France Digitale (4), their turnover increased by 33% to reach 5.3 billion euros.

Growth driven by French political will

Their growth and strong development can be explained by the country’s involvement in supporting the emergence of new technologies. Indeed, many French startups carry out substantial fundraising. Thus, “the provider of network solutions and services for connected objects Actility which has raised 71 billion euros. Or online file-sharing specialist Oodrive, which has raised 65 billion euros. Finally, specializing in the DIY and gardening sector, ManoMano has raised 60 billion euros” (5).

France does not neglect the financial and economic power that its startups can bring back to the country. It therefore does not hesitate to mobilize the resources necessary for their proper development. Indeed, “business accelerators” (such as Impact USA)have been created specifically with the aim of accompanying start-ups. They also propel them into a foreign economic model. The market advocated is that of the United States, with the impetus of Silicon Valley and Silicon Alley.

A movement that will intensify with the Covid-19 recovery plan

In order to revive the French economy in the face of the pandemic, beyond ecological or industrial investments, the digital sector, traditionally a strong provider of startups, will also benefit from massive support. The French government plans to invest nearly seven billion euros in the heart of digital technology. And this, only for two years. Among the actions carried out, support for the development of Artificial Intelligence, partial funding for industrial robotics, or the acceleration of digital transformation. The devices will be launched gradually from October 2020. In this context, to accelerate the digital transformation of SME, SME, FranceNum will reactivate its “activators”. Both private and public players, they will be able to provide audit and advice to SMEs anxious to move forward. The Recovery Plan reveals the main lines on pages 153 and 154. It includes “The awareness and collective support of small and medium-sized enterprises (SMEs) in all sectors to digitisation, via the actions of France Num.”

Sources:

Dronisos release

(1) The FT 1000: the complete list of Europe’s fastest-growing companies by Financial Times 2018

(2) The fast-growing companies of Nicolas Bignon and Marc Simon, 14 November 2018

(3) Hugo Gourdon’s 2018 business start-ups, January 29, 2019

(4) The 2017 Barometer on the Economic and Social Performance of Digital Startups in France, France Digitale

(5) France, Business France startup country of 2018

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