Most French companies aren’t tech companies, so the French government is going to contribute to the digital transformation of small and medium companies with a $460 million investment (€385 million) as well.
But nearly $1 billion (€800 million) will be dedicated to state aids for French startups over the next couple of years. “It represents a volumetric increase,” Cédric O said. “If we look at innovation aids managed by Bpifrance, we have a 60% increase.
In addition to that, as part of the innovation program, France will spend $3 billion (€2. 5 billion) over the next five years to invest in startups with Bpifrance acting as a traditional VC firm, and in VC funds directly as limited partners.
As part of this support plan, the government plans to spend a significant chunk on money on all things digital — startup investment, infrastructure investment and digital transformation.
The government is also going to spend $300 million (€250 million) on digital inclusion with public agents helping elderly citizens and simpler administrative services.
That’s why today’s stimulus plan isn’t just about tech startups. “We have to keep investing massively because it’s the future of work but we have to make sure everyone benefits from those investments,” Cédric O said.
According to the government, boosting bigger French startups through public investment could benefit the tech ecosystem at large.