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Startups in France - statistics & facts

Startups have become a symbol for something fresh, innovative, and energetic. With 15 percent of the French population showing interest in creating their own business, it follows that motivation or conditions might not be ideal for everybody. Mostly young people aged 15 to 29 were keen on working in an equally young institution, probably due to the more independent nature of a small startup. From a socio-categorical point of view, 46 percent of managers and employees expressed their wish to work in a startup.
Of those who did not want to create their own business, 52 percent of administrative and financial directors were still interested in working with startups, as they believed that a collaboration could be beneficial in learning new skills to become chief digital officers or even data scientists.

Creating a startup

As the growing field of technology is attracting a high volume of new input globally, real estate activities prevail for French startups, mostly created in the Île-de-France region. The large number of such companies might correlate with the durability of the sector, where five years after their creation, almost 70 percent of young companies specializing in real estate were still active.
In terms of founders, the majority of companies are still created by men, while only about 30 percent of women could consider themselves business owners. Generating more than 10 thousand jobs a year (mostly with permanent contracts), startups are important contributor to the French economy. Investing in digital products and new technologies such as Artificial Intelligence (AI), recruiting from these fields are crucial steps in positioning a successful business. Developers and programmers, data scientists, sales and marketing representatives are therefore in demand.

Financing startups

With a total of 675 startups recorded in 2018, France had a 35 percent turnover share on an international level, and generated 6.6 billion euros in total revenue that year.
In order to generate enough revenue, in most cases startups need to secure plenty of funding opportunities. With banks investing in innovative business ideas, tax credits (which is a tax reduction that can be refunded) are another source of funding. In 2019, 60 percent of French digital startups used the Research Tax Credit (CIR). The innovation tax credit is a tax measure which was used by 50 percent of SMEs. Those can benefit from a tax credit of 20 percent of the necessary expenses for the design and/ or the realization of prototypes or pilot installations of a new product.


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Startups in France

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Financing a startup

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