With the number of startups booming during the last couple of years, it was natural for more financing solutions to be enabled by the French government. However, two recent studies show that in 2016 venture capital for startups has increased considerably. It must be noted that venture capital is provided by private companies and not by the authorities which proves that the French business community believes in companies with high development potential. Our French lawyers can assist entrepreneurs interested in opening companies in this country.
It is a known fact that a startup may encounter financial difficulties in the beginning, as after putting all the effort and money into registering the company, obtaining the trade license and finding a place to operate, finances can become scarce. However, things are not like this anymore in France, as venture capital has now become one of the main financing options for startups. In 2016, the gap in venture capital solutions between France, Germany and the UK narrowed significantly.
Between 2015 and 2016 the number of venture capitalists investing in French startups doubled, reaching 486 and an amount of 2 billion USD injected in this type of companies. This way France made it up to the third place right after the UK and close to Germany which came second.
Our lawyers in France can offer more information on the regulations venture capitalists and companies must abide by.
According to a report issued at the end of 2016, in 2015 France had the largest number of innovative companies present in several international fairs and exhibitions in the world, which is why it came as no surprise that most of the venture capital funding went to this type of companies. Most of the financing for the innovation industry came from foreign venture capital funds in 2016.
The cities where most innovative startups are located in are Paris, Montpellier, Lyon, Nantes and Marseille. Most of the foreign venture capital funds came from Switzerland, the United States of America and Germany.
Please feel free to contact our law firm in France if you need more information on financing options available for startups. We can also help if you want to register a company in France.
There are no comments