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The French tech revolution How France’s startups made it to centre stage

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The New French Revolution Looking back, moving forward

Covid-19 could have very well spelled the given the inhospitable environment created end of days for the French startup scene in by anti-startup bureaucrats. We still have 2020. But instead, it proved that the French the scars to show for it: Snowfake, Datadog, ecosystem is robust enough to not only roll Eventbrite, Tenable and Moderna to name a with the punches but to fght back. few, all billion-dollar companies founded by French entrepreneurs in the US. After a year that defes description (let’s face it, “unprecedented” doesn’t quite cut Given this context, the milestones we have it), French startups raised a record €5.4bn, reached this past year aren’t just markers 7% more than in 2019. Making France the of resilience but of the sheer relentlessness only country among Europe’s three largest with which so many of us have worked to markets that managed to grow in 2020. take the ecosystem this far in such a short France now counts among its ranks 10 period of time. It is also a reminder of how unicorns — 4 of which sprang up last year — much work is still left to be done. and has strengthened its IPO pipeline. Fortunately, this work has a clear direction. Though we enter 2021 with a lot of Covid-19 proved that uncertainty, there are three things that you the French ecosystem is can bet your hat on: robust enough to not only The French government, which Sifted roll with the punches but has nicknamed the “very visible hand” to fght back (p. 34), is not about to let the ecosystem down now. Certainly not under President Macron and Cedric O’s (p. 20) watch. I Not bad for a place that, less than a decade don’t just mean funding — I’m talking ago, was considered a tech backwater. about signifcant pro-startup policies, It was a place where venture capital was regulations, programmes and the continued scarce and foreign investors came for commitment of our team and 50+ French Fashion Week or to sip rosé along the French Tech Government Correspondents (p. 23). Riviera — certainly not to invest in startups! Many of our best founders fed to the US, Diversity and inclusion will move front convinced that staying would be suicide and center. This isn’t about political THE FRENCH TECH REVOLUTION 3

correctness, charity or “diversity washing” (p. you watched President Macron’s December 34). We can only surmount the crisis with the interview with Niklas Zenstrom, then you help of the very best entrepreneurs — and know something is cooking. these don’t only come from the privileged classes. Great innovators can be found in The “French Tech Revolution” is well on the inner cities, the countryside, among its way, with entrepreneurs, investors, immigrants, refugees and the urban poor. communities… and yes, even the Many of them will be women. This talent government, helping to push the whole needs to be tapped if we are to succeed. In movement forward. The time is coming 2021, we are upping support of grassroots when values and valuations will go hand-in- programmes like Les Déterminés, Station hand, and when innovation will be focused F’s Fighters or Singa, and injecting 200+ on solving humanity’s most important founders from unlikely backgrounds into the challenges — and if things go right, with no ecosystem via our €15M programme, French heads rolling. Tech Tremplin (p. 23).

We will break whatever record we set for the next year. With the rest of Europe. France is proud of what we’ve achieved as an ecosystem, but we’re also grounded in reality. We need all of Europe to mobilise KAT BORLONGAN Director of La French Tech change and to seize this moment in order to become an alternative tech powerhouse. If 4 SIFTED REPORTS

Contents

Before you begin 5 A primer on France

Geared for growth? 6 France has proven its mettle at producing startups that scale. Unlocking more capital, and building the talent pool to support rapidly growing companies, can take it to the next level.

Where are France’s startups based? 14 France’s startups are concentrated in Paris, but there are many ecosystems outside of the capital

The FT120 16 Every year, 120 French tech startups are selected to take part in the La French Tech FT120 support programme. This is the 2021 cohort, sorted by their year of foundation.

The next battle An interview with Cédric O, minister of state for the digital transition and electronic communications 20 “We have a president who is willing to commit himself to technology, because tech is at the heart of international discussions today… (Macron) is fully aware we have to invest more and accelerate.”

The entrepreneurial state The French government has always sought to guide its economy and nurture strategic 21 industries. Emmanuel Macron’s presidency has upped the game when it comes to applying these principles to its digital sectors.

The French touch French innovation carries its own distinct signature, from food and wine-tech to the 25 AI pioneers drawing from the country’s long history of excellence in fundamental mathematics. But the French touch is also about startups tackling some of France’s deepest challenges, such as educational inequality.

Predictions for 2021 32 We asked French entrepreneurs and investors what they think 2021 has in store for the world of tech. Here are eight trends to watch out for. THE FRENCH TECH REVOLUTION 5

Before you begin A primer on France

What is there to say about French tech? weighing up France’s ‘innovation DNA’. A decade or so ago, the answer to that Silicon Valley’s model was about disruption question would’ve been a tough one. at all costs — breaking things didn’t matter, Silicon Valley enjoyed the near exclusivity of if anything it was a measure of success. For churning out tech champions, while Europe, a long time being a technology company which had largely missed the boat on the meant adopting that approach. So what will rise of the data economy, was struggling to the French way be? And can French tech move forward. emerge with a strong, distinct identity that diferentiates its startups and infuences A lot has changed in 10 years. Economic innovation globally? reform and a trans-partisan efort to support startups and entrepreneurs, fnancially This report analyses the state of French tech and otherwise, are paying of. Unicorns as of 2020, zooming in on the particular and brands with international reach are context created by the Covid-19 pandemic now coming out of France, and founders and looking well beyond it too, to explore are outgrowing their national and regional the achievements of French startups and ambitions. France is steadily fguring pinpoint the early signs of what is still to out how to capitalise on its world-class come for the country’s innovators and mathematicians and encourage well- entrepreneurs. established corporates and startups to work together — and international investors are We split our analysis into three parts: taking notice. ecosystem growth, the government’s role and strategy, and the ‘French touch’, The work isn’t over though. Sparking interest which explores the distinct signature of the for French tech on the global stage is a country’s innovation. In the fnal chapter, we signifcant achievement, but it’s still only step explore predictions for 2021, highlighting one. Attracting further capital from bigger the trends to look out for. We hope you enjoy fnanciers and for bigger rounds, unlocking reading it. the path to stock market listings for startups, and growing a more diverse pool of top- notch international talent are just some of the challenges that lie ahead.

Fast forward another decade and what’s MARIE MAWAD Journalist at Sifted likely to matter extends beyond any single milestone. Instead, we’ll probably be 6 SIFTED REPORTS

Geared for growth?

France has proven its mettle at producing startups that scale. Unlocking more capital, and building the talent pool to support rapidly growing companies, can take it to the next level.

What France has achieved → Unicorns and global brands are coming out of France → A change in mindset is giving rise to ambitious entrepreneurs → The previous generation of entrepreneurs are reinvesting and giving back → There is a growing pool of available capital for startups → An uptick in investment in 2020 → Attention from international investors → More collaboration with corporates

What’s next? → A chance to capitalise on deep tech as the next frontier → Unlocking more capital, including fnancing for later-stage growth → More large exits through M&A → Converting a growing IPO pipeline into European stock market listings → Attracting more top-notch branding and product marketing talent → Firm up a growing infux of global tech talent → Encourage smaller hubs in cities outside of Paris THE FRENCH TECH REVOLUTION 7

rom health insurance and A NEW BREED OF FOUNDERS ride-sharing to insect food and French cryptography, France’s startups Under 30 years old, Lazimi is part F have proven their ability to of France’s relève: a new generation angel build global brands. The country’s of founders who are walking in the unicorns have made headline news, footsteps of earlier success stories investors from telehealth platform Doctolib’s — entrepreneurs like Xavier Niel, plans to hire 3,000 new employees Marc Simoncini and Jacques-Antoine worth to OVH challenging Amazon’s cloud Granjon, who have made a fortune, hosting services in 138 countries. and are now in their ffties and knowing reinvesting their winnings to support HUGUES LE BRET: founder of French-born technology companies are the next generation. Antoine Martin Compte-Nickel (sold to BNP attracting the interest of international and Alexis Bonillo became seed Paribas), backed fntechs like players like Sequoia and Tencent, and investors after selling their location- Pretto, Pixpay and Helios via his many are well positioned in sectors sharing app Zenly to Snap for €300m. own consulting/investment arm poised for growth, particularly in areas Pierre Kosciusko-Morizet became a VALENTINE BAUDOIN: partner at infuenced by Covid, such as digital business angel after selling his eBay Founders Future, seed investor in health, cybersecurity and enterprise competitor PriceMinister to Japanese Lydia, alma, memo and Mansa software. internet giant Rakuten. THIBAUD ELZIERE: founder of eFounders, investor in Argent, Each success feeds back into the Telecoms billionaire Niel has Spendesk and PayFit ecosystem. Wannabe entrepreneurs arguably done the most to boost take inspiration from national the ecosystem through the Station F DIDIER VALET: former deputy success stories, and a strong spirit startup campus, which has nurtured chief executive at Société of collaboration infuses the French over 1,000 of France’s up-and-coming Générale, investor in Epsor, Leocare and Alma startup community as winners help lift businesses. Graduates include fedgling companies up the ladder. Stonly, Okarito and QantEv, which DAMIEN GUERMONPREZ: chair of have each completed multi-million- Lemonway, investor in Pumpkin, “As we have more and more startups euro fundraising rounds. They’re Trustpair, TacoTax, Buy Way and Personal Finance scaling and succeeding, we have more emblematic of how far France has team members in those startups who come with regards to fostering GILLES SAMOUN: founder can give the knowledge and learning ambitious entrepreneurship. of Qualys and Salesmachine, back to others,” says Sacha Lazimi, the investor in Spendesk, Shine and cofounder and chief executive of Yubo, Like Lazimi, the new breed of French Payft a friend-making social media app for entrepreneurs are in it for the long CÉLINE LAZORTHES: founder of youngsters. haul — out to scale their startups Leetchi / MANGOPAY, investor in into global champions. They say they Pumpkin and Tacotax are less tempted to cash out early, Yubo THE ELEVATOR PITCH: Europe’s Snapchat for teens MARKET: Consumer tech TOTAL FUNDING: €51m YEAR FOUNDED: 2015 USERS: 40m+ in 40+ countries FUN FACT: Games help start a conversation. As ice-breakers Yubo users often share a group game of Pictionary, or play “would you rather” or “let them guess”. Image: Station F 8 SIFTED REPORTS

less obsessed with valuations, less France’s likely to move their company to the US and more confdent that they can OpenClassrooms unicorns spawn the next Facebook or Amazon THE ELEVATOR PITCH: Education for from their hometown. anyone, anywhere DEEZER: online music streaming service for any device MARKET: Edtech President Emmanuel Macron has set a 2006 | Raised €480m | Employs 700+ TOTAL FUNDING: €62.7m target of having more than 25 unicorns YEAR FOUNDED: 2013 BLABLACAR: connects drivers with in France by 2025, from about half USERS: 2.5m+ empty seats with people looking for of that number in 2020. And while a ride NORTH STAR METRIC: 1m individuals such targets are not easily reached, 2006 | Raised €405m | Employs 600+ placed in the workforce every year by 2025 entrepreneurs still called him out for TOP THREE COMPETITORS: Galileo, MEERO: a marketplace for not being ambitious enough. Coursera, Udacity professional photographers and FUN FACT: Cofounder Pierre Dubuc was 11 clients Voodoo’s Alexandre Yazdi and Alan’s years old when he went online searching 2016 | Raised €269m | Employs 1000+ Jean-Charles Samuelian responded for a how-to guide on coding a website from scratch. That led to the launch of DOCTOLIB: software for online that France should stop counting its the frst iteration of the OpenClassrooms appointments with doctors and unicorns. Samuelian pitched the idea of project the same year. dentists aiming instead to build fve companies 2013 | Raised €237m | Employs 1500+ worth €50bn each. To that, Macron’s once innovative national telecoms OVHCLOUD: providers of web hosting, response was: “jackpot, you’re on”. cloud and dedicated servers giant turned into a mere provider 1999 | Raised €650m | Employs 2000+ for the ‘dumb pipes’ of Netfix’s data. A CHANGE IN MINDSET It completely fell out of the mobile VEEPEE: a members-only online handset market and sold of assets shopping destination 2001 | Raised undisclosed private That’s a far cry from the talk common that were former national glories, like equity | Employs 6000+ among and about French tech a Alcatel’s mobile phone brand, to name decade ago. just one example. MIRAKL: helps retailers launch their marketplace and manage their sales “When my cofounder and I started Early waves of French technology 2011 | Raised €357m | Employs 350+ out, entrepreneurship just wasn’t entrepreneurs struggled too. Flash CONTENTSQUARE: an optimisation sexy,” says Pierre Dubuc, who sales website Veepee ventured into the platform for web and mobile user cofounded online education platform US only to pull out shortly after over experience OpenClassrooms in the early 2000s, fears it would be crushed by bigger 2012 | Raised €302m | Employs 800+ which he started when he was 11 rivals with deeper marketing budgets. IVALUA: web-based spend years old. When he turned 18 in 2006, For years, music streaming app management solutions it was hardly any better. “There were Deezer’s motto was complete global 2000 | Raised €121m | Employs 500+ practically zero support structures at expansion — except the US. And when that point and it was really hard to online ad placement startup Criteo — VOODOO: casual games developer for mobile raise any money at all. Friends and one of France’s most symbolic early 2013 | Raised €182m | Employs 300+ family looked at us with question successes — sought a stock market marks in their eyes,” he says. listing in 2013, it turned to the Nasdaq.

In fact, like most of Europe, France Over the years, however, successive fell behind with the emergence of the governments began to promote digital and data economy. It spent entrepreneurship by pumping years moping about not having its investment into startups through a own Google or Facebook, all the while variety of structures. The successes struggling to support its homegrown of some founders started to inspire success. Failing to keep up with new others to take up the baton and push consumer service oferings, it saw its further. THE FRENCH TECH REVOLUTION 9

“Today is completely diferent; there’s expansion. Mirakl, a cloud-based all this talk about entrepreneurship e-commerce company, raised $300m Corporate all the time, incubators at every (€247m) in September to build out corner and founders’ programmes its engineering, sales and marketing innovation, in universities,” says Dubuc. “At the capabilities. beginning, we used to dream of French making a hundred grand and we French corporates are also bringing thought that was the ultimate success. their frepower as they look to harness style If we set up shop today, we’d have an startup innovation. SCHNEIDER ELECTRIC has a corporate incubator and a million euros in seed venture capital arm with a €500m money.” “The French ecosystem has so fund and an Internet of Things (IoT) profoundly evolved over the past fve accelerator. years. Startups are more mature and have ready-to-deploy solutions that L’OREAL is the ofcial sponsor of MORE MONEY, FEWER Station F’s beauty accelerator with bigger companies can pick up quickly,” PROBLEMS partners including Sillages Paris, says Julie Ranty, the managing director a startup developing personalised A changing mindset has translated at Viva Technology, the organiser of fragrances based on machine learning. into concrete success. The average the VivaTech conference, which aims DANONE runs their own Manifesto startup size at acquisition is growing to bridge the gap between startups Innovation Accelerator. steadily each year, a sign that founders and corporates in France and Europe. are holding on for longer. They’re “As a result, collaboration between Paris public transport operator RATP expanding internationally, faster and startups and corporates has developed runs an accelerator programme that more aggressively than ever before, a lot. And existing leaders in various has supported startup LifeAZ, a frst aid training platform that uses games and they are tapping investors for industries are also more conscious that to teach frst aid to people on public sizable sums. they need to keep innovating, and that transport. startups can help.”

International venture funds and technology giants are placing their bets: Tencent led a $45m (€37m) raise EcoVadis in fntech Lydia, Sequoia is ramping up THE ELEVATOR PITCH: A ratings agency its European network, which includes “There’s not enough M&A and exit that’s more interested in impact criteria a scout role for Roxanne Varza, Station perspectives for French startups, MARKET: Greentech F’s chief, and US venture fund Accel has but having bigger startups on the TOTAL FUNDING: €213m picked up local talent for its scouting market and more acquisitions by YEAR FOUNDED: 2007 network, including Doctolib’s Agnès these startups could be a factor that USERS: 450+ enterprise companies Bazin. accelerates market consolidation,” says NORTH STAR METRIC: Reach of their Viva Technology’s Julie Ranty. “French network impact, measured by the number And while corporates in France startups are also seen more and more of companies that engage in sustainability aren’t as acquisitive as they could be as attractive targets for international TOP THREE COMPETITORS: Sedex, RBA (Société Générale’s acquisitions of companies, whether in tech or more and Higg Shine and Treezor in recent years and traditional players. That will also keep FUN FACT: EcoVadis awards companies a score — and a medal (the top one is BNP Paribas’ takeover of neobank bringing dynamism to the market.” platinum) Compte-Nickel in 2017 are notable exceptions), France’s bigger startups Perhaps the greatest testament are increasingly becoming acquirers to France’s growth dynamics is its Tehtris, a cyber startup, raised a in their own right — carpooling app performance through the pandemic whopping €20m Series A in November BlaBlaCar has expanded by taking over year. Of Europe’s three largest markets 2020. EcoVadis, a sustainability metrics bus ticketing platforms, while Doctolib by invested venture capital, France software frm, raised $200m (€165m) has consolidated by buying one of its grew the most, at 7%, ahead of the UK in January 2020 to support its global rivals. and Germany. 10 SIFTED REPORTS

Over the past decade, funding raised Fournier is confdent about France’s to power better healthcare, and how by French startups has been on a positioning in deep tech, a category humans can cope with the impact spectacular growth path, and the comprising complex engineering and of climate change. They’ll typically country has been able to both attract science-based felds like AI, robotics, develop breakthrough technology in more global investors and deliver bigger quantum computing and biotech, anticipation of future potential. funding rounds for its tech ecosystem. thanks to the country’s exceptional technical talent pool. “The last 20 years Recently, Covid-19 and the race to Thanks to the uptick in investment in have been about digital, but the next come up with a cure and engineer the 2020, France exceeded €5bn in capital decade will be about deep tech and we frst vaccine has heightened interest invested on an annualised basis for the have something to ofer in this new in deep tech, and biotech more frst time. Paris is now Europe’s number era,” says Fournier. specifcally. two hub for startup investment, behind London, and in the continent’s top “The last 20 years have “Covid has served as an accelerator in four destinations in terms of startup some markets,” says Christophe Tallec, network density, talent pool and been about digital, but general director of Hello Tomorrow, a investor sophistication, along with the next decade will be technology conference that launched London, Berlin and Stockholm. about deep tech and out of Paris and focuses on deep tech innovation. “In digital health for we have something to instance, the virus is helping knock CATCHING THE NEXT WAVE ofer in this new era” some barriers down and it has freed up access to a lot more data.” While France’s startup community Deep tech startups are often described is diverse, growth momentum is as the bridge between fundamental But beyond the current context, what proving especially strong in business- scientifc research and the potential deep tech is about essentially runs on a to-business (B2B) software, biotech, applications deriving from it — clock with an entirely diferent rhythm. digital health, clean tech and agri-tech, concrete products and services “Deep tech is all about long-term according to Paul-François Fournier, that can be sold to consumers or trends,” says Tallec. “It targets today executive director in charge of the businesses. These startups will typically the kinds of segments that will have innovation division at Bpifrance, the take an innovative stance on long- tremendous economic weight and state-owned investment fund and a term challenges like reducing our infuence [over] our lives in the coming major startup investor. carbon footprint, using data science decade.”

DeepTech VC Investment

Other VC Investment

DeepTech VC Investment (€bn), Portion of graduates in science, technology, 2015-2020 engineering and mathematics by country (%), 2018 Source: europeanstartups.co, dealroom.co Source: europeanstartups.co, dealroom.co THE FRENCH TECH REVOLUTION 11

Sometimes, that means fundamental THE CAPITAL CONNECTION Four research 20 years in the making in a geek-only lab can translate into French startups have momentum, and French tomorrow’s business goldmine. are positioned in all the right areas, but “In that respect, France’s strong the community still faces its share of deep tech suit is undeniably its talent pool of challenges. It needs to further deepen technology and science super brains,” its fnancing pool, and to catch up startups says Tallec. to much bigger markets for startup capital such as the UK and, farther to know France ranked 7th in a 2018 global ahead still, the US. study of AI startup formation. France is home to dozens of deep tech Moreover, its engineering talent pool Financing for later-stage growth is a startups ranging across felds from AI to robotics, space tech quantum is deep and comparatively cheap dominant worry. computing to biotech. Here are four compared to the now-comically names worth knowing: overpriced Silicon Valley, thanks in “We have pretty good part to tax incentives for innovative EXOTEC: Founded in 2015, it has early-stage investors raised €100m to build intelligent robot projects. feets that operate in 3D to enhance but for later stage, warehouse automation. “We can keep our R&D and tech say €50m to €150m, it in France because we have good KINEIS: Founded in 2018, it has raised engineers who are far cheaper than doesn’t happen enough” €100m to launch IoT nano-satellites into orbit. the West Coast,” says Pierre-François Thaler, chief executive of EcoVadis. “What is missing is the next-stage ALEDIA: Founded in 2011 as a spin companies, with fve or 10 billion of of from French atomic energy agency Talent is the frst reason cited by Tony revenue and at international scale,” says CEA, it has raised €171m and achieved world-frst breakthroughs in silicon Fadell when he talks about why he left Alan founder Jean-Charles Samuelian. chips that enhance microLED displays. Silicon Valley and moved to Paris a few “We have pretty good early-stage years ago to set up a deep tech fund investors but for later stage, say €50m OWKIN: Founded in 2016, it has raised called Future Shape. The inventor of to €150m, it doesn’t happen enough.” €68.2m and built a virtual lab — a the iPod, a former Apple executive and portfolio of AI models and solutions — where pharma companies and founder of smart home pioneer Nest, Access to funding from bigger, later- academics can access the best models which he sold to Google for $3.2bn stage investors is important on several and datasets to accelerate medical (€2.6bn), Fadell is one of the famous levels. Bigger funds can connect research. names of tech that has helped draw founders to a bigger network of other attention to France. entrepreneurs and partners, to share notes with and cooperate. When you get big investors on board “you are joining a family, and that access to entrepreneurs can be helpful”.

EcoVadis chief executive Pierre-François Thaler also notes the late-stage fnancing gap in terms of mergers and acquisitions. “What’s missing in France is this M&A ecosystem,” he says. “You can go quickly from Series A to Series B but then many companies look at M&A and the acquirers are still in the US. You tend to see companies going to million-dollar revenue and then having to turn to American companies.” Image: Exotec 12 SIFTED REPORTS

There were no French frms in the “It is one thing if one or two startups go European investors are also aligning top 10 acquisitions by value at exit, to NASDAQ, but if we are creating 20 or with what is the biggest trend in according to Atomico’s 2020 State of 30 in Europe, it would be unfortunate not startup fnancing: special-purpose European Tech report, although there to fnd a European solution, therefore we acquisition companies or SPACs, shell has been a positive trend of private are trying to push the debate on this.” companies that raise money through equity-led buyouts and majority IPOs to buy other companies. Xavier ownership transactions, as with “It is one thing if one Niel recently launched 2MX Organic, Mirakl, EcoVadis, Contentsquare and or two startups go which will focus on organic food Sendinblue. and sustainable consumer goods, to NASDAQ, but if we although the jury is still out on There are also signs of protectionism are creating 20 or 30 whether SPACs will help the startup that could limit startups’ access in Europe, it would be economy. to outside fnance. In June, the government created a fund to invest unfortunate not to fnd in home-grown companies if they a European solution” ATTRACTING TALENT receive unsolicited approaches from foreign investors. The country faces While European tech companies tend A second growth constraint is the a challenge in seeking international to list on the continent, hyperscalers talent pool, which is unbalanced. While capital for its startups and remains do not — those valued at over $1bn France performs strongly in technical suspicious of rival nations poaching its are fve times more likely to list on a US and engineering skills, it is weaker in best and brightest. exchange, according to Atomico. branding and product marketing, as well as those individuals who have The coming year looks set to be experienced this hyper scaling in the IPO CHALLENGE better both for Europe and France past and aren’t faced with it for the frst given bullish stock market trends time, a chicken-and-egg conundrum The IPO route could be stronger. While and the amount of money looking for any emerging ecosystem. France reportedly wants to attract for opportunities after a dire 2020. unicorns from across the continent A number of French startups are “We lack people that have experience, to list their shares in Paris, the reality rumoured to be considering an IPO, huge scale and that are creative and is that European tech fotations have including OVH, Doctolib and Swile. have worked in a big company at the been subdued of late, compared to the phenomenal procession of IPOs over the Atlantic. <$1B >$1B There were no French companies appearing among the top 10 European IPOs of 2020, and Europe as a whole had a dud year, with only 16 tech fotations through to September, the lowest rate in over a decade.

Startups could beneft from a European ‘NASDAQ’ to give them greater capital access, according to Bpifrance’s Paul- François Fournier.

“We are going to build stronger and stronger companies that need an exit strategy and, for some, going to NASDAQ is not going to be efective if they are not in the US market,” he says. Number of tech IPOs by market cap by country, 2016-2020 Source: Atomico THE FRENCH TECH REVOLUTION 13

beginning, like Snapchat employees, leaving some of the more mature Instagram employees,” says Yubo’s ecosystems like Silicon Valley, New Four Sacha Lazimi. “The engineering part is York and London,” says Roxanne strong, but in creative, marketing and Varza, the director of Paris startups French branding, we don’t have that many campus Station F. “Today, the Station F people.” community is one-third international, tech hubs with the US, China, Morocco and South Korea amongst the best represented outside of “The engineering countries on campus.” part is strong, but in Paris A stronger talent pool is likely to creative, marketing and BORDEAUX: This regional digital accelerate the development of tech branding, we don’t have health cluster in the south west of hubs across France too, away from the France boasts several prominent that many people” capital city. e-Health startups including DESKi, which develops AI analysis of medical imagery, and Lucine, which creates He adds that one downside of the “[Already] the growth of the French digital solutions to relieve chronic country’s tight-knit and collaborative ecosystem has been in cities all across pain. Many Paris-based startups community is a hesitance to poach France: Bordeaux, Marseille, Lile, have set up their “second ofce” talent from domestic rivals, leading Nantes,” says Bpifrance’s Paul-François here, including Back Market and companies to hire more from foreign Fournier. “Out of 4,000 startups a year, ManoMano. 25% of them are not in Paris. Startups countries or remotely. TOULOUSE: The Airbus BizLab, an have access to talent from all over the aerospace accelerator, brings together The permanent changes wrought by country. This is one of the key assets startups and Airbus ‘intrapreneurs’ the pandemic could, of course, play of the French ecosystem: it will not to explore innovations including satellite imaging, unmanned aerial into France’s hands here. The forced remain on a single front of Paris”. vehicles and cybersecurity. It has since transition to remote work has changed expanded to Hamburg, Bangalore and how some companies look at talent Madrid. acquisition and opened up their “Out of 4,000 start-ups geographic horizons. RENNES: This cybersecurity and a year, 25% are not in military intelligence hotspot combines Paris. Start-ups have research facilities, multinationals, “Recently we’ve started to see a SMEs and the French military, with an massive infux of global tech talent, access to talent from estimated 4,200 ICT frms. Rennes is including experienced entrepreneurs also the home of ComCyber, France’s all over the country” cyber defence command system.

NANTES: Launched in 2017, The University of Nantes’ Disrupt Campus Nantes programme has fostered the startup ecosystem in the city, along with local network and NGO initiatives that ofer resources to young entrepreneurs. Successes include La Cantine Numérique, which facilitates interaction between digital companies and students, and Atlanpole, the regional accelerator promoting startups in the deep tech feld.

For additional notable hubs, have a look at the map on the next page.

Image: Lucine 14 SIFTED REPORTS THE FRENCH TECH REVOLUTION 15

Lille 1.6%

Where are 2020 milestones France’s JANUARY: France broadens stock- Caen options and tech visa rules to make 0.4% itself more attractive for international talent. startups Paris The FT120 startups programme is 54.1% Strasbourg 0.9% launched, featuring 120 laureates and extra handholding measures across based? France. EcoVadis raises €165m. Rennes 1.3% France’s startups are MARCH: As the Covid-19 crisis hits, France unveils a €4.3bn emergency concentrated in Paris, liquidity support plan dedicated to its startups, stepping in to address the but there are many cash and other concerns. ecosystems outside of Nantes 1.6% MAY: ContentSquare raises about the capital €155m.

French departments shaded by % of startups AUGUST: Voodoo raises money from located within them, with top 15 cities Tencent for an undisclosed amount highlighted. and becomes a unicorn at a valuation of €1.4bn. Source: europeanstartups.co, dealroom.co. French companies that raised €1m+ as of Jan 2021 SEPTEMBER: A stimulus package of €100bn is unveiled, including a €7bn direct commitment to digital. Mirakl Lyon raises €247m. 4.4% OCTOBER: Ynsect raises €190m.

Grenoble DECEMBER: France exceeded €5bn 1.9% in capital invested on an annualised basis for the frst time in 2020. Paris Bordeaux became Europe’s number two hub for 2.3% startup investment, behind London.

Nice 0.7% Aix-en-Provence 2020 highlights 1% → €5.4bn raised in 2020 across the Valbonne Toulouse 0.7% ecosystem Montpellier 2.6% 1.5% → That’s 620 VC deals Marseille 1.8% → +7% growth in total raised vs 2019

→ VC money has grown x7 since 2014

→ 75% of investments focus on Paris and its region

→ IoT, healthtech and AI are the most common categories of French startups 16 SIFTED REPORTS THE FRENCH TECH REVOLUTION 17

of pharmaceuticals and cardiovascular diseases get accounts, payment intelligent scams autoimmune disease photographers with IGYXOS: pharmaceutical The FT120 diagnostics tests SCALITY: allows cards, loans, insurance transportation systems VOODOO: casual games KERANOVA: instruments clients products for human EYEVENSYS: platforms businesses to and gift cards for public passenger developer for mobile for ophthalmic surgery PERFECTSTAY: B2B tour reproductive health Every year, 120 French tech startups are for long acting non-viral easily manage their MIRAKL: online sector WYND: develops unifed KLAXOON: facilitates operator PHARMEDISTORE: selected to take part in the La French Tech gene therapy for ocular databases in the cloud marketplace platform WORLDIA: online travel commerce platforms interactivity within a SPARINGVISION: B2B marketplace for FT120 support programme. This is the 2021 diseases VESTIAIRE COLLECTIVE: and dropship solution agency group emerging therapy pharmacists cohort, sorted by their year of foundation. JOBTEASER: jobs portal marketplace to buy and S4M: connect brands OCTOBER: SME lending against central vision for students and fresh sell luxury, pre-owned with consumers 2014 platform loss graduates fashion products by bridging digital 2013 AGRICONOMIE: PAPERNEST: contract SPENDESK: smart spend 2018 1999 2007 WITHINGS: developer YOUNITED CREDIT: advertising and the AKENEO: Product e-commerce website management management software ALMA: guaranteed and of digital health and Online platform to real-world Experience for all farming needs platform to simplify for fnance teams and simple split payment MEILLEURTAUX: BLABLACAR: connecting wellness smart devices facilitate fnancial QAPA: connects job Management (PXM) BACK MARKET: online administration employees IZIWORK: interim jobs mortgage loan drivers with empty transactions between seekers and recruiters solutions marketplace dedicated PAYFIT: allows SMEs to SWILE: digital solutions platform fnancing broker seats to people looking lenders and borrowers with a matching ALL MOL: ticketing to refurbished products easily and quickly pay for employee rewards KINEIS: IoT network OVHCLOUD: for a ride 2009 algorithm network CITYSCOOT: electric their employees and benefts connectivity webhosting, cloud and ECOVADIS: AB TASTY: helps YNSECT: farms insects BIOSERENITY: smart scooters rental SHADOW: high-end QARE: on-demand, dedicated servers sustainability Rating marketers tailor UX and 2010 to make natural clothing that monitors DNA SCRIPT: synthetic computer accessible online-to-ofine virtual and Performance increase conversion IADVIZE: conversational ingredients for the health of people DNA through natural from any online device medical practice 2019 Monitoring rates marketing platform aquaculture and pet with epilepsy enzymes TALENT.IO: recruitment QONTO: online banking ANKORSTORE: online 2000 FINALCAD: mobile apps DEEZER: online music connects customers nutrition CYBELANGEL: DREEM: headband to platform for tech services for small B2B marketplace GEOSAT: land surveyor, and predictive analytics streaming service with experts via real- intelligence solution improve sleep profles businesses connects independent underground network for construction available on any device time messaging designed to detect data ENYO PHARMA: clinical VIRTUO: digital car TRUSK: last mile delivery shops and specialist detection, 3D scanning, LEMONWAY: payment EVANEOS: tailor-made PLATFORM.SH: 2012 leaks on the internet stage biotech rental service marketplace brands with MMS service provider for tours and travel with automated, continuous- AFYREN: microbiology DOCTOLIB: online MADBOX: mobile YUBO: social platform neighbourhood IVALUA: web-based marketplaces local travel agents deployment high- and bioprocess booking for medical games for Generation Z retailers spend management MICROPHYT: solutions FLEXFUEL: availability cloud engineering appointments MISTERFLY: online 2017 SKEEPERS: collection solutions to industrialise the environmentally friendly hosting solution AMARISOFT: provides INOTREM: develops travel agency BRUT: creates short- and publication of production of unique engine depollution SIGFOX: service LTE and NR software immunotherapies MOLOTOV: TV 2016 form video content customer reviews microalgae-based technology provider for IoT that runs on standard for the treatment of streaming service ALAN: digital health 2001 bioactives MISTERTEMP’: chain of hardware infammatory diseases ORNIKAR: online insurance platform HR PATH: human OPENCLASSROOMS: recruitment and temp CONTENTSQUARE: helps HAPPYTAL: digital driving school DYNACURE: treatments capital management online education agencies 2011 brands create customer platform for patients for patients afected technology platform MWM: designs and ALEDIA: develops and experiences on web, and services in health 2015 by serious orphan VEEPEE: members- SELECTRA: online markets mobile apps manufactures light- mobile and apps institutions disorders The FT120 in numbers only online shopping utility comparison for and connected objects emitting diodes COOPTALIS: assists HEETCH: ride-sharing CERTIDEAL: INNOVAFEED: produces → 37,556 people are employed by companies destination domestic and SME dedicated to music CORWAVE: implantable companies with talent app targeting late night marketplace for insect-based protein for from the FT120 listing customers OKWIND: designs, blood pumps based acquisitions and transportation seekers second-hand electronic the feed industry → 30% of those employees are based outside SENDINBLUE: all-in-one manufactures and on a breakthrough candidates with their SHIFT TECHNOLOGY: EKWATEUR: renewable JOONE: hygiene and France 2005 marketing platform for delivers smart and membrane tech mobility projects fraud-detection electricity and gas care products → And 62% are running fully on remote work BELIEVE: digital growing businesses connected solar HAPPN: mobile dating FLYING WHALES: technology for the provider KOVERS: ethical health distributor and label TALENTSOFT: HR trackers app using real-time environmentally friendly insurance industry FRICHTI: home-made insurance → FT120 companies plan to hire 10,000 people in 2021 services provider for software solutions for RECOMMERCE: trade geolocation cargo transport aircraft TISSIUM: biodegradable food production and LUKO: smart device to artists and labels talent management in, refurbishment and HOPPEN: multimedia LUMAPPS: social sealants and adhesives delivery improve home safety → 4 in 10 of all the FT120 current employees are female BIOLOG-ID: and learning resale of smartphones services dedicated to intranet for for wound closure GOJOB: digital and reduce electricity identifcation and electronics the medical industry collaborative suites ULTRA PREMIUM temporary work bills → But 7 out of 10 executive committee members are male technology to manage REUNIWATT: solutions LEDGER: security and MANO MANO: online DIRECT: food brand operations MEDADOM: video- and trace sensitive 2008 for cloud observation infrastructure solutions marketplace for DIY, for dogs and cats, ILEK: electricity supplier consults with doctors → 70% have some presence or ofce abroad health products DEVIALET: high-end and cloud cover for cryptocurrencies home improvement distributed online IMCHECK through web apps and → US, Germany, UK and Spain are top 4 EXOTEC: mobile robots audio hardware forecasting and blockchain and gardening VADE SECURE: security THERAPEUTICS: tele-connected kiosks foreign markets to help in warehouse manufacturer ROBOCATH: solutions applications products features against immunotherapy MEERO: matches → 38% of sales generated away from home management ENTEROME: developer for the treatment of LYDIA: enables users to UBITRANSPORT: sophisticated email for cancers and professional on average EdTech Ed

PerfectStay MisterFly Worldia Evaneos Ornikar Papernest Ivalua Lemonway Lydia October

T Data/AI/ TravelTech Meilleurtaux Cloud/SaaS Ubitransport Virtuo Blablacar Talentsoft PayFit Luko D Fin Lumapps FinTech/ Heetch Gojob HR Path AssurTech Qonto

Okwind Reuniwatt Ilek FlexFuel Ekwateur Wynd C Mistertemp’ CleanTech/ Klaxoon GreenTech

Flying Whales Logistics Akeneo Cooptalis Iziwork L Meero Swile JobTeaser HR iAdvize Trusk Mirakl Talent.io HR M Mobility Back Market Younited Credit Spendesk Platform.sh Selectra Open Cityscoot Certideal Classrooms Sendinblue AB Tasty Skeepers I Mar Industry/ MarTech Production S4M Contentsquare site Shift EcoVadis All Mol Technology A AdTech OVHcloud Exotec Brut

Alma Qapa Me Happn FoodTech/ Molotov MediaTech Eyevensys AgriTech Enterome Happytal F Robocath Alan Frichti Shadow Geosat Recommerce Biolog-id Entertainment E Pharmedistore Cybel Kovers Voodoo Angel Sigfox Scality Igyxos Ultra Premium Retail/ Agriconomie Direct E-commerce Amarisoft R MadBox Doctolib Joone IoT/Manufacturing TG Ankorstore IoT H Tel Tech for Good HealthTech/ Telecom BioTech/ ImCheck ManoMano Yubo Believe MedTech Therapeutics Ledger Devialet Keranova Construction Tech/PropTech Vade Vestiaire Ynsect Hoppen Co Secure Collective S MWM Deezer Finalcad Inotrem Security/Privacy BioSerenity Veepee Dynacure Afyren

ENYO Pharma Withings SparingVision Innova FoodTech/ Feed Dreem A AdTech F L Logistics Sp SpaceTech Corwave AgriTech Qare CleanTech/ FinTech/ Tissium Microphyt C Fin M Mobility T TravelTech GreenTech AssurTech

Construction HealthTech/ Co H Mar MarTech Tel Telecom DNA Script Tech/PropTech BioTech/MedTech

Data/AI/Cloud/ SpaceTech D HR HR Me MediaTech TG Tech for Good SaaS Sp Industry/ Retail/ E Entertainment I R Visual guide to the Aledia Medadom Production site E-commerce IoT/ Ed EdTech IoT S Security/Privacy FT120 2021 cohort by Kineis Manufacturing 20 SIFTED REPORTS

The next battle

An interview with Cédric O, minister of state for the digital transition and electronic communications

uilding French tech instead for the next one,” says O. “Yes, discussions today and because has been a trans- there are areas where we’re lagging otherwise Europe faces the risk of partisan priority for behind, but in others we’re on par with being kicked out of history,” says O. “Bover 10 years, and the US and China.” “He’s fully aware we have to invest we’re reaping the fruits now,” says more and accelerate.” Cédric O, the French junior minister Where Macron really diferentiates for digital afairs. “There are a few from previous French leaders has When Covid-19 hit France in early 2020, things we have to unlock still, but the perhaps been in his pragmatic the government quickly signalled that underlying trend is really good. There approach; he has an ability to turn the it wasn’t going to sit idly by and watch are no deal-breaker obstacles.” page on previous tech debacles and startups struggle. missed opportunities and look instead Soon after Macron was elected in to what lies ahead. After years of pumping state money May 2017, he started putting forward into growing the startup ecosystem, ambitious targets to make France Predecessors focused on how France, France rushed to pour in more and a ‘nation of unicorns’, while digital like most of its European neighbours, create a pipeline of support for minister Cédric O wants his country fell behind with the emergence entrepreneurs. to bounce back from its failure to of Google, Facebook and the data produce its own Ubers and Airbnbs by economy. Instead, Macron has made Mid-March, less than 24 hours after positioning itself to, as he says, win the it clear that he’s keen to not let Macron announced school closures next technology battle. history repeat itself. His view is that and a host of other measures that technology isn’t just about innovation would lead to a full lockdown, O was on “We shouldn’t be stuck on competing or even economic growth, but also a live Facebook event with founders, in the previous battle, we should aim about the sovereignty of nations. One answering questions and promising a of his main concerns is that France and boost from the government. Days later, Europe could once more be left behind, the government unveiled a €4.3bn consuming technology that is designed liquidity support plan dedicated to and built elsewhere — and giving up its startups, stepping in to address their data in the process. the cash concerns brought about by the coronavirus crisis, as well as to With that in mind, he has announced propose a furlough scheme and other plan after plan, each aimed at exceptional measures. federating talent, money and eforts around a key theme: artifcial “The power of big tech in the US was intelligence, the development built during the 2008 fnancial crisis,” of quantum technologies and says digital minister O. Now, there’s cybersecurity. Covid-19 and France wants “to use the stimulus package to build the French “We have a president who is willing to economy in the long term, to make commit himself to technology, because it more competitive in two priority tech is at the heart of international sectors: environment and digital”. THE FRENCH TECH REVOLUTION 21

The entrepre- neurial state

The French government has always sought to guide its economy and nurture strategic industries. Emmanuel Macron’s presidency has upped the game when it comes to applying these principles to its digital sectors.

What France has achieved → Tech has been a trans-partisan priority for over a decade, and it’s paying of → France has turned the page on the previous decade’s tech debacles and is looking ahead → Macron’s commitment to technology is an economic driver and sovereignty weapon → R&D tax credits have been maintained, helping attract international research investment → Administrative reforms, dedicated schemes like the French Tech Visa and a revised stock options regime, are supporting startups → Hard cash has been dedicated to startups to support Macron’s vision → Visibility and handholding for founders through the La French Tech network → Generous Covid-19 bailouts have helped to keep the ecosystem on course

What’s next? → Entrepreneurs want more simplifcation and further reform → Calls for change to France’s procurement strategy to favour local startups → Intention to make more of France’s €100bn stimulus package accessible to startups → A clearer regulatory line for tech in Europe → Deployment of government’s digital budget, including for AI, quantum, cybersecurity and deep tech more broadly 22 SIFTED REPORTS

rance’s government is artifcial intelligence, cybersecurity France’s famous for its economic and quantum computing as central interventionism — dirigiste, priorities for public spending. Covid-19 F deriving from the French ‘to direct’, became an economics textbook Of that, €3.7bn will go to strengthening relief for shorthand for state-led development startup fnancing, in particular models — but it took its time to through Bpifrance, the French national startups apply those ideas to its own startup investment bank created in 2012 by ecosystem. former president Francois Hollande France was one of Europe’s more that has brought patient capital to the generous countries when it came to shielding its startups from the “When Emmanuel Macron came to French market. economic fallout from Covid-19. Here power, he said, ‘we’re late and need is what it ofered: to invest in tech ecosystems or we It’s not just Covid that’s accelerating → A €4.3bn injection for startups will lose the better part of the century fnancing; there has been hard cash aimed specifcally at addressing and all the value will go to the US or on the table for a while to support cash concerns, including a Asia’,” says Thibaud Hug de Larauze, France’s vision. Most notably, short-term refnancing scheme (€160m), the early payment of cofounder of Back Market. Bpifrance has invested over €20bn some tax credits (€1.5bn), the across sectors including digital, life accelerated payment of already- And while Macron wasn’t the frst sciences, energy transition, medtech, planned investments in the sector to pump money into startups and fntech and agritech. Its importance (€150m) and guarantees over facilitate entrepreneurship — measures is clear when you consider that cash fow costs (€2bn) including tax breaks aimed specifcally Bpifrance contributes 18% to 19% → Social charges and tax payments at innovation have been around for of France’s total startup fnancing were pushed back several presidencies — startups and either directly or indirectly through → Mediators on ofer to help founders view the younger, tech-savvy contributions to investment funds and recover funds from customers president as more engaged in their other schemes. → State-backed credit mediators world than his predecessors. ready to intervene for companies that couldn’t make debt Bpifrance takes between 4% to 5% payments or loan insurance fees return on investment, compared to to their bank the 10% or more typical for regular → Government loans specifcally investors. While 50% state-owned, it adapted for startups and directly Back Market is stafed by private sector experts, on ofer via state-backed investor ensuring more commercially astute Bpifrance, and backing from THE ELEVATOR PITCH: Why buy new choices. Bpifrance as a guarantor to get a when you can buy refurbished loan from a bank MARKET: Consumer tech Executive director Paul-François Fournier → Rent, electricity, gas and water TOTAL FUNDING: €158m positions the bank in the context of a bills deferred or cancelled YEAR FOUNDED: 2014 broader shift in innovation from large → Temporary unemployment USERS: 1,000+ verifed sellers corporates, who once dominated the measures FUN FACT: Used laptops and Playstations were best sellers during Covid-19 landscape, to startups. “The digital world changed the paradigm,” he says. “In this era, where everything is connected, a PUT YOUR MONEY WHERE small group is more agile to manage the YOUR MOUTH IS innovation process.”

In 2020, France unveiled a stimulus Bpifrance built its strategy on package of €100bn, pointing supporting startups through study to industrial and technological tours to Silicon Valley and Israel and development and ecological transition now funds around 2,000 startups a as major targets. The budget included year, up from 800 in 2013. It is backing a €7bn commitment to digital, with critical startup communities essential to THE FRENCH TECH REVOLUTION 23

France’s comparative strengths like AI, “The French government has created which it pumped €368m into in 2019. a more pro-business environment The French and worked hard to simplify the visa The state-backed fnancier has access process for foreigners,” says Station Tech Visa to enormous pools of capital — in early F’s Roxanne Varza. “While the visa is 2020, it raised €4.2bn from investors easier to obtain, arriving in a foreign → A simplifed, fast-track scheme for non-EU startup employees, including Abu Dhabi’s Mubadala country is never easy. This is perhaps founders and investors to obtain Investment Company along with large where more can be done to improve a residence permit for France international and French institutional the experience.” → Aims to encourage tech talent to investors such as Covea and Axa, as join, launch or invest in a French well as family ofces such as Orange. Meanwhile, Macron has maintained startup Through this fund, Bpifrance plans to the R&D tax credits that have proved → Valid for four years invest in large and mid-sized companies extremely popular with entrepreneurs → No diploma requirements in France’s CAC and SBF indexes. over the years and even helped to attract research investment from → Costs a few hundred euros in administrative fees The government has also created its international giants, convincing own fnancial war chest. In September companies from Huawei to Facebook → As of 2020, eligible companies don’t have to be headquartered in 2019, President Macron secured a to set up labs in France. Tax credits France pledge from institutional investors to cover around a third of the cost of direct €6bn of capital into late-stage subcontracting with research institutes venture funds and listed tech equities. and can lower the cost of hiring PhDs. These funds will participate in growth “It is important to maintain these rates, rounds for tech companies. they are working well,” says Ÿnsect In 2020, France changed its stock- cofounder Antoine Hubert. options rules to expand the existing Support programmes are also in fscally advantageous scheme (so- place to make France a scale-up There is an 80% discount on taxes called “BPSCE”) to foreign businesses nation. La French Tech’s Next40/120 for engineers, according to Yubo’s with employees based in France. The programme supports 120 startups Lazimi. France has the highest direct change came as entrepreneurs across a year through measures including government funding and tax support for Europe, in a bid to help startups attract enhanced access to government business R&D of all OECD countries and talent on the global stage, rallied ministries, greater visibility through the generosity of its incentives increased behind the “Not Optional” campaign access to ofcial French delegations signifcantly between 2000 and 2019. for a new pan-European stock options overseas and help in connecting with public sector opportunities. Founders get handholding from a group of more Direct Funding of BERD than 50 dedicated correspondents Tax Support for BERD from government agencies, ministries Subnational tax Support for BERD and public services.

REFORMS

There have also been legal and regulatory reforms. Key changes in recent years include eliminating a wealth tax outside of property, introducing a fat tax on dividends, simplifying the process of winding down businesses and introducing a special tech visa for non-EU startups, Direct government funding and tax support for founders and investors. Business Enterprise Research & Development (BERD), 2018 As a percentage of GDP. Source: OECD R&D Tax Incentive Database 24 SIFTED REPORTS

framework. For startups, attractive you have to keep employees that want It illustrates how we should have stock options schemes are often a way to leave? If they want to go, shortening regulation at a European level and on to compete with the more generous that period can help you replace them top of that, a national level for certain salaries of bigger companies to hire more quickly and move forward.” domains,” says Paulin. A landmark the best talent. ruling in July 2020, Schrems II, put an end to the EU-US Data Privacy Shield, Regulatory tweaks have also helped EUROPEAN RULES which allowed companies to outsource stimulate specifc segments, such data processing from the EU to the US. as a 2018 law that allowed medical Of course, the regulatory context diagnosis and treatment to be is also a product of wider changes provided online, helping the digital in the EU, and the relationship of PROCUREMENT IS THE NEXT health sector. French entrepreneurs with the PIECE OF THE PUZZLE European regulatory environment has Even regulations that appear consistently been mixed. Expectations from entrepreneurs vis- reminiscent of old-school à-vis Macron are evolving. There’s little European labour markets can have The EU-wide healthcare passport, debate over the role of government entrepreneurial efects. For example, for instance, helped Alan to build its investment in creating a buzzing France’s unemployment beneft business far more efciently than if ecosystem and attracting investors payouts give 80% of your salary for two it were required to set up a license to from all over the world. But now, the years, which can be released as a lump operate in each country, says founder view from founders is that what the sum if you wish to start a company, Samuelian. But other areas like taxing ecosystem needs most isn’t necessarily according to EcoVadis chief executive digital giants and data privacy have more state funding. Expectations are Thaler. received criticism. focused instead on the idea that more business and contracts should be Macron’s labour market reforms, handed out to French and EU startups. a central plank of his presidency, have helped to address some of the OVHcloud A change in France’s procurement rigidities that previously held startups strategy, to favor local startups a little back, adds Alan’s Samuelian. THE ELEVATOR PITCH: European-born more and global technology providers cloud hosting, to rival AWS like Microsoft or Google a little less, is MARKET: Cloud “The direction is really good, although something founder grouping France TOTAL FUNDING: €250m we could simplify more,” he says. “One Digitale, among others, is calling for. DEBT FUNDING: €400m example is the three months notice YEAR FOUNDED: 1999 period to leave a company; why should “It’s important to get not just funding FUN FACT: Measured by surface area, money, but also contracts,” says OVH owns the world’s largest data centre Frédéric Mazzella, cofounder of BlaBlaCar and co-president of France Michel Paulin, chief executive of Digitale. “That’s money that boosts OVHcloud, says that more clarity is startups in more than one way, by Alan needed on pan-European cloud rules. helping them build a better product THE ELEVATOR PITCH: The next In the past, there has been controversy too — France needs to buy more generation of health care over a French health data centre European solutions.” MARKET: Healthtech set up to serve hospitals, clinics and TOTAL FUNDING: €125m healthcare sectors, because the data This is something that Macron has YEAR FOUNDED: 2016 itself was stored in the Netherlands, promised to address. Part of the answer USERS: 140,000+ not France, and, due to Microsoft’s lies in the fact that the digital sector NORTH STAR METRIC: members delight, involvement, a lot of data was spans across industries. With that in measured by NPS (73 for individuals, 78 transitioning to the US. mind, the intention is to make a lot of for companies) France’s €100bn stimulus package — FUN FACT: Alan’s mystery animal mascot has prompted speculation online about “There was a bit of a black box in far more than just the €7bn dedicated what kind of creature it really is terms of how the data was stored. to digital — accessible to startups. THE FRENCH TECH REVOLUTION 25

The French touch

French innovation carries its own distinct signature, from food and wine-tech to the AI pioneers drawing from the country’s long history of excellence in fundamental mathematics. But the French touch is also about startups tackling some of France’s deepest challenges, such as educational inequality.

What France has achieved → A distinctly French innovation DNA is emerging, one that is more consultative and collaborative than Silicon Valley’s disruption at any cost approach → Turning unique maths credentials into tech opportunities → Focused investment plans on key areas, including AI, cybersecurity and quantum computing → Seizing on food and the environment as growth engines for French innovation → Attracting global talent and interest from corporates thanks to the ‘tech for good’ movement

What’s next? → Bringing talent closer together through specialised clusters that hold their own on the global stage → Using more innovation and tech to overcome existing inequalities in French society → Create additional opportunities for underprivileged and underrepresented talent 26 SIFTED REPORTS

startup community builds Doctolib, for instance, crafted an innovation, we just want to provide on decades of economic, innovation model that is consultative, useful technology for them to be able technological, cultural helping doctors improve their ways of to focus more on the human aspect.” A and social context -— working rather than overturning the that’s true for fntech in London and entire healthcare model. There is lots of peer sharing and idea cybersecurity companies from Israel’s exchange too. France’s consumer tech military intelligence unit. community has its own Slack channel to share best practices and mutual aid, “A startup never comes out of thin says Yubo founder Sacha Lazimi. “That air,” says Nicolas Brien, head of France Doctolib is how we scale companies, by listening Digitale, Europe’s largest startup THE ELEVATOR PITCH: A lot of what to advice from other founders that advocacy group. “It relies on long- your doctor does can be done online have done the same,” he says. standing forces in the economic MARKET: Healthtech environment.” TOTAL FUNDING: €237m YEAR FOUNDED: 2013 A NATION OF That’s true for France too: the country’s USERS: 42m patients and 140,000 MATHEMATICIANS startup community refects, and is practitioners responding to, distinctive features of NORTH STAR METRIC: Video While the French talent pool is still the French economy and wider society. Consultations — they hit 8m in 2020 maturing, it is world leading in The country’s maths and engineering FUN FACT: Doctors are actually the the domain of mathematics and paying subscribers, patients can use prowess, built over decades of engineering. France has among the platform for free sustained investment and focus from the highest number of Fields Medal its leading academic institutions, winners — the Nobel Prize equivalent provides the know-how driving its “Something very specifc to our for mathematics, awarded to success in areas like AI, deep tech and innovation model is that we partner young researchers for outstanding clean-tech. with doctors, so we spend a lot of time achievement — on a per capita basis. in doctor practices, co-creating our Culturally, French business is more product,” says Agnès Bazin, Doctolib’s Paris-Saclay University is on par with consultative and collaborative, making chief development ofcer. “We don’t Princeton as the world’s best-rated it slower paced than Silicon Valley, but want to do ‘tech for tech’s sake’ or crazy mathematics school, according to with benefts in terms of partnership- based business models and idea sharing.

CREATIVE COMMUNITY

French startup culture is less aggressive and combative than in the US. Silicon Valley mottos, from Facebook’s ‘move fast and break things’ to Uber’s ‘always be hustling’, colour a world view centred on overturning established industries and powering ahead with new ideas without the need for a green light from the government. While some of this disruption ideology percolates into the French startup scene, many of the most successful cases are working with, rather than against, wider governance. Fields Medals per capita, 1936-2018 Source: International Mathematical Union and United Nations Population Division THE FRENCH TECH REVOLUTION 27

Four French quantum computing startups to know

ALICE&BOB: Builds quantum computers with proprietary self- correcting technology to help researchers solve some of the hardest problems across industries 2020 | Raised €3m

QUANTFI: A team of PhD researchers builds quantum computer algorithms Total volume of published AI patents, 2015-2018 for the fnancial services industry Source: AI Index 2019 | Bootstrapped

PASQAL: Builds highly scalable quantum processors with huge the Academic Ranking of World computing, with Paris ranking second calculation power to solve complex Universities. French institutions Pierre in Europe for startup density in problems across industries 2019 | Raised €7.3m and Marie Curie University, part of quantum. the Sorbonne ensemble, and PSL CRYPTONEXT SECURITY: Uses next University Paris are also featured in the In early 2020, the government issued generation cryptographic standards top 10. a national quantum plan to bring to make technology infrastructure together its heavy-hitting academic resilient to quantum computers 2019 | Undisclosed funding This institutional heft, and the skilled institutions: CEA, INRIA and the graduates it has created, are critical French National Centre for Scientifc to the country’s edge in deep tech, Research (CNRS) with the state’s artifcial intelligence and clean-tech. fnancial frepower via Bpifrance and the General Secretariat for Investment Further demonstrating its technical (SGPI). prowess, France ranks fourth globally by total volume of AI patents France Digitale’s Nicolas Brien believes says. “We have the knowledge to create registered between 2015 and 2018 (see the country missed the tech boom and implement powerful algorithms chart). The number of AI-related French of the 1980s and 1990s because because of this long-standing expertise startups grew to 432 in 2019, from 180 academic institutions focused on in fundamental maths’.” back in 2016. fundamental maths at a time when UK and US universities shifted resources to “France has top-notch mathematicians The country is also favoured by US applied maths and computer science. and AI experts, but it also has titans building their European AI While this left France on the sidelines world-renowned medical experts presence — Cisco and Facebook both of the digital revolution so far, “we and scientists more broadly,” says set up local AI operations in Paris. might have a revenge on history now, Christophe Tallec, general director France’s technical talent also positions because in AI, applied maths is not of the Hello Tomorrow technology it favourably in the transformative enough. AI is about huge data sets conference, which hosts several but early-stage feld of quantum trained by powerful algorithms,” he thousand entrepreneurs, executives 28 SIFTED REPORTS

and scientists at its events each year to THE GREEN TRANSITION software-climate nexus also birthed talk about deep tech and breakthrough Sterblue, a Y Combinator graduate, innovation. Food and the environment are a which builds software to help drones second growth engine for French inspect energy assets like wind “In fact, what we’ve seen over the innovation, built on the country’s turbines. years is that France is really good renowned food sector as well as at a lot of things,” says Tallec. “The the cultural and social premium Equally on-brand are the agri-tech problem is it’s not really extraordinarily placed on the environment. France’s players emerging in Bordeaux, the excellent at one of those things. gastronomical prowess is one of the wine region in south-west France. It What we need going forward is to reasons behind the country’s tasty food is home to a bustling community of bring talent more closely together and wine-tech boom. wine-tech startups, from drones to in specialised clusters that can really marketplaces and crowd-funding to stand out on the global stage — that’s “I don’t think we could have been product tracking. something that’s starting to emerge in from any other country other than some areas.” France,” says Antoine Hubert at Ÿnsect, More broadly, France’s sustainability which, like another player Jimini, is agenda has produced a platform Getting more out of France’s assets, to creating edible insect products for the for innovation in areas like ESG position the country at the forefront of consumer snack market. performance software. The French futuristic breakthrough technologies, government was an early mover in is something Emmanuel Macron’s “[France] has a mix of diferent factors,” creating pressure for corporations to government has been pushing for. he says. “It is one of the largest food better manage their sustainability, Macron designated AI, cybersecurity and agro-producing countries in the introducing mandatory extra fnancial and quantum computing as primary world, so we had very strong players — ESG reporting requirements in 2001 areas of focus for France’s future. from the French farmer co-ops to food and a 2015 law requiring investors to processors like Danone, Food Sodexo report performance, which prefgured “These segments have in common the and so on — and we have Michelin the EU’s sustainable fnancing massive economic weight that they will star chefs, so the food chain is one of framework and became a benchmark represent in the coming decade, and the most well-known, advanced and for other European nations. they’re all key to sovereignty concerns,” sophisticated.” says Hello Tomorrow’s Tallec. One of the global brand names in France has also produced a crop sustainability software, EcoVadis, was Bpifrance and Kima Ventures are major of agri-tech pioneers like Naïo born in 2007 out of the confuence of venture backers of the deep tech Technologies, which makes robots for governance reform and the demand sector, with early stage venture capital farmers, Agricool, a vertical agriculture from corporates for tools to help them funds also setting up shop in recent company, and Sencrop, a connected raise their game. years, for example Quantonation, farming ag-weather startup. The launched in 2018 to focus on ‘deep There is also heightened concern physics’. There has been a 20% to 30% about sustainability among the French annual increase in the number of deep public and the government has taken tech startups in France. a strong policy approach in response. Ynsect Former environment minister Nicolas Hello Tomorrow’s Tallec says that this Hulot spearheaded reforms that trend is set to continue. Covid-19, THE ELEVATOR PITCH: Growing bugs included a commitment to end the sale as food, guaranteeing food security for for one, is boosting interest in digital everyone of new gas and diesel-powered cars by health. But beyond the current MARKET: Foodtech 2040 and an ofcial pledge to achieve carbon-neutrality by 2050. context, there’s also unexplored TOTAL FUNDING: €360m potential in agriculture that can be YEAR FOUNDED: 2011 tapped if more innovation makes it France’s government has further NORTH STAR METRIC: Number of into that space and well-established vertical farms committed to achieving 100% plastics industrials work hand in hand with FUN FACT: Ÿnsect have built the world’s recycling by 2025 and ending oil and deep tech startups. biggest automated bug farm gas production by 2040, and has issued THE FRENCH TECH REVOLUTION 29

additional aspirational targets, such “There’s an increasing trend we’re world. “We don’t talk about diversity as making Paris a capital of ‘green noticing in terms of collaborations in the same way in Europe and the fnance’. It was the frst country in between startups and corporates US,” says Roxanne Varza, Station F’s the world to ban food waste and a around impact projects and solutions,” director. “For example, in Europe, it new circular economy law will be says Viva Technology’s Julie Ranty. “It’s is not legal to collect census data in rolled out in February to incentivise a typical case where collaboration will the same way and we don’t talk about product reuse and prohibit single-use help startups scale much faster.” race — instead we talk about socio- materials. economic or cultural background.”

The sustainability and circular economy INCLUSION, FAIRNESS AND As a prime example, the French agenda has provided momentum to DREAMS OF THE REPUBLIQUE education system is highly unequal, support a range of startups, from and seriously failing many students. BlaBlaCar, which is battling excess Equality was one of the three pillars Around 40% fail to achieve the pollution and congestion, to Back of the French revolution, and can still, baccalauréat, the foundational Market, a refurbished electronics along with liberty and fraternity, be academic qualifcation. France also has retailer. And France has produced its found emblazoned on everything from the highest proportion of low achievers share of food waste apps too, including coins to parking fnes. But the country in maths in the Erasmus+ network of OptiMiam and Graapz. is struggling to realise its aspirations, countries, at 40%, on par with Turkey, providing a stimulus to startups. a country with nearly half of its per Pierre-François Thaler, chief executive capita income. It’s been determined of EcoVadis, says that thanks to Industrial unrest, racial tensions, a that, in France, social background is Europe’s vibrant ‘tech for good’ perceived gap between Paris and more closely tied to academic success ecosystem he sees a growing number the rest of the nation, and a growing than any other factor (see chart). of North American engineers who now concern about women’s equality and want to work for European companies, safety are some of the social issues The government is taking some steps including in France, and that the rising in prominence in recent years, to address the issue. President Macron French diaspora is more keen to come and have been further underscored by has vowed to abolish the elitist Ecole home, partly to deploy their talents the pandemic. Nationale d’Administration (ENA), and solving social and environmental pledged to overhaul the baccalauréat problems. France has made moves to fx these and introduce more specialisation issues within its own cultural approach, in computer science and coding. Tech for good is also helping to attract which is very diferent from what goes Educational reforms include reducing corporates to the startup world. on in the US or other parts of the class size, changing the starting age

Venture investment into Paris region Variation in science performance (PISA scores) cleantech startups, 2013-2018 explained by student’s socio-economic status, 2015 Source: Cleantech.com Source: Equity in Education, OECD 2018 30 SIFTED REPORTS

of compulsory education from six to La Grande three and enhancing skills beyond the French national curriculum. The government Ecole du is also investing €15bn in upskilling via Tech the Plan Investissement Compétences Numérique and working with Grande École du Tremplin Numérique, a digital training scheme → → An estimated 1.3m people set up by the French government in Helps founders overcome in France are not active in socio-economic barriers to education, employment or 2015, and the French Tech Tremplin (or become tech entrepreneurs training (NEET), with 100,000 “Springboard”) to cultivate talent from → The programme is backed by the school dropouts every year diverse backgrounds. government and run by La French → There will be an estimated Tech 200,000 vacant positions in the French startups and entrepreneurs → Includes a fnancial boost of as digital sector by 2021-22 are also trying to tackle education much as €42,000, access to desk → Launched by the French inequality. Most famous is École 42, a space, experts and mentors government in 2015, Grande free coding school in Paris created by → About 345 startups have École du Numérique provides business angel Xavier Niel. Competition participated so far digital training, especially for disadvantaged students for places is ferce and merit-based, with 1,000 students a year accepted → By 2018, GEN reached 750 certifed training courses across from an estimated 40,000 applications. the country Its mode of delivery is unique: École 42 eschews teachers, instead relying early days, the school has reportedly on project work and peer-learning, achieved a 100% employment rate an approach tied to a 21st century among graduates. skills agenda. Despite scepticism in its Improving life outcomes for disadvantaged children also requires challenging the preconceptions of French corporates, says Samia Ghozlane, director of la Grande École du Numérique, adding that they are still too wedded to conventional diplomas from prestigious business and engineering schools. Ghozlane is working with corporates to highlight the merits of competencies over paper qualifcations. “French companies have to shift their way of looking [for talent] and open themselves up to diverse backgrounds,” she says.

PROMOTING FIGHTERS

The entrepreneurial ecosystem also bears the signs of inequality. France is not alone here, with all of Europe struggling. Last year, 85% of startup funding went to entirely male founding teams, and people from less privileged backgrounds are less likely to become Image: La Grande Ecole du Numérique THE FRENCH TECH REVOLUTION 31

entrepreneurs. Black founders made with Orange’s market lines and partner up only 1% of the 1,200 entrepreneurs network. “Fighter” surveyed last year, and 2% of this year’s respondents in Atomico’s European To tackle the imbalance in startups ecosystem report. Black founders entrepreneurship between the afuent received just 0.24% of venture capital and the disadvantaged, Station F worth in the UK in the last decade. created a “Fighters” scheme focused on supporting disadvantaged founders. knowing But France has some cause for Here are three startups that came optimism. It is one of the world’s “There are still far too few initiatives out of Station F’s Fighters programme best-performing nations in female to support underprivileged and for founders from underprivileged authorship of AI papers, for instance, underrepresented founders, but this backgrounds: and there is “great awareness about problem is not unique to France, the need for more diversity within it is a problem that is present DIGITALL Founded by Tally Fofana the ecosystem — gender diversity throughout the global ecosystem,” has been a central topic and a lot of says Varza. “Funds are beginning DigiTall makes anti-theft technology for cars that works progress has been made,” says Varza. to diversify their teams, which through a connected device “In 2019, almost all French VC funds will contribute to diversifying their controlled by a mobile application, signed an agreement to increase the networks and funding practices as well. which allows car owners to switch amount of funding allocated to female- their anti-theft device on and of remotely. Founder Fofana is himself a founded companies by 2025.” “At Station F, we are doubling the former professional car thief with 15 size of the Fighters Program for years of experience. But only 10% of startups are founded underprivileged founders to work by women. One incubator, WILLA, with even more teams. We believe LE FALAF’ founded in 2005, has accelerated over our Fighters have the hacker Founded by Khadija Salomon 550 startups founded or cofounded by mindset that entrepreneurs A social enterprise selling women. French telecom giant Orange need to succeed, and we hold the takeaway ‘brunch boxes’, as well as ‘happy hour’ snack has also formed a women founder Fighters to the exact same standards boxes, prepared by cooks who are accelerator to connect innovative ideas as all our other startups on campus.” refugees.

CHEZ VOS PRODUCTEURS Founded by Antoine Pineau

Chez Vos Producteurs is an online marketplace that sells fresh foods from local producers and farmers. Its objective is two- fold: to allow farmers to make a better living from their work; and to make sure that consumers have high-quality products on their plates.

FIBRANY Founded by Andy Cleraux

Fibrany is a monthly beauty subscription box for an underserved community: women with kinky, curly or frizzy hair. The boxes don’t include the usual sample-sized bottles, but rather full-sized products and goodies. The startup has the ambition of becoming the leading hair care brand for textured hair. AI papers by % of female authorship by country, 2018 Source: AI Index 32 SIFTED REPORTS

Predictions for 2021

We asked French entrepreneurs and investors what they think 2021 has in store for the world of tech. Here are eight trends to watch out for. THE FRENCH TECH REVOLUTION 33

1. CLEAR ROAD AHEAD FOR FRANCE

Call it self-serving or wishful thinking, but it’s clear French entrepreneurs are enthusiastic about their prospects in the coming months.

Yubo’s Sacha Lazimi, for one, sees the acceleration of the French and European ecosystem as proof of the kinds of opportunities that are up for grabs for startups in this part of the world. “The environment is favourable for the growth of a ‘third way’ and the emergence of new champions competing with the US and China’s leading companies,” he says.

“The tech ecosystem will continue to Image: Back Market team grow ever faster with the investments President Macron is making here in France,” adds Back Market’s Thibaud Hug de Larauze. 2. ‘TECH FOR GOOD’ FOR As a result, there will be more ‘tech EVERYONE for good’ startups joining the ranks of France’s biggest and fastest growing “The tech ecosystem Tech with a purpose, including more companies, especially as they emerge will continue to grow environmentally friendly innovation, as winners even amid Covid-related ever faster with is gearing up to be the most popular economic turbulence, predicts Ÿnsect’s trend of 2021, based on predictions by Antoine Hubert. the investments entrepreneurs. President Macron “In 2021, more companies will realise is making here in The Covid-19 pandemic has boosted that making a tangible impact is not support for a greener, fairer and possible unless they reduce emissions France” more equal society, says Back Market across the value chain,” says Pierre- founder Thibaud Hug de Larauze. François Thaler, chief executive of That echoes predictions by Station F’s EcoVadis. “The trend will be accelerated Roxanne Varza, who thinks that the rise “The refurbished tech industry is by corporate and social initiatives, new of tech in France and other European thriving in France and we will see regulations and increased constraints countries will contribute to a further it rise across markets, and other on fossil fuels.” shift of power away from Silicon Valley. countries follow in France’s footsteps — for instance, the UK is driving “As far as France is concerned, I think towards a green recovery in 2021,” “More companies will we’ll also continue to see more and he says. “In France, the government more foreign investors waking up to is making advancements on tackling realise that making the local opportunities,” says Varza. “In the ever-growing e-waste problem by a tangible impact the past few years, we’ve seen more introducing a ‘repairability index’ for is not possible and more tier one funds investing in electronic products and incentives unless they reduce France-based companies. I’m expecting to shift spending habits to used this trend to continue and competition electronics. We predict that other emissions across the to heat up.” governments will follow suit.” value chain” 34 SIFTED REPORTS

3. MORE HEALTHTECH… BUT also techno-sceptics and taking time 5. AFTER GREENWASHING, ALSO MORE SCEPTICS to explain what we’re doing has never “DIVERSITY-WASHING” been so important.” It’s not surprising amid Covid-19 to In 2021, “diversity-washing will become hear predictions that health will be at the new greenwashing,” says Pierre- the heart of people’s preoccupations in 4. AGRICULTURE IS THE NEXT François Thaler, chief executive of 2021. HOT TECH TREND EcoVadis.

Bpifrance’s Paul François Fournier says Agriculture is one of the sectors that And just like greenwashing — in short, that there will be increased appetite for will see signifcant innovation this making eco-friendly announcements “healthcare technologies, whether they year. Technologies for “agricultural and investments only for show, not as are innovative therapeutic solutions precision” and leaps in the kinds of a refection of a sincere, deeper change or devices, or transformative digital equipment used for production as — “diversity-washing” just isn’t going technologies”. It’s also a trend that well as product control — for organic to cut it. Christophe Tallec, the head of deeptech products for instance — will get a lot conference Hello Tomorrow, is betting of attention, says Bpifrance’s Paul on. François Fournier. And just like greenwashing — What is perhaps less obvious is Ÿnsect’s Antoine Hubert expects we’ll whether greater interest translates see “more regenerative and ecological “diversity-washing” into further changes in behaviour from agriculture that includes a strategy for just isn’t going to consumers. Tallec’s warning: brace for soil conservation, and the emergence cut it. the sceptics. of large-scale carbon-neutral vertical farms to produce more and better with “When you take into account that less resources”. “Consumers, investors and France has one of the highest anti-vax stakeholders will focus less on surface- levels in the world, it’s an important And while bugs from Ÿnsect’s insect level diversity issues and require point our ecosystem should keep in farms today are used to feed animals, companies to provide complete mind,” says Tallec. “Innovators have a Hubert predicts that the industry transparency into workforce and responsibility to handhold people into more broadly will move towards new supply chain practices and behaviors,” these new trends, because there are markets, including feeding humans. says Thaler. “Minority ownership labels will become less important in sourcing and investment decisions — emphasis will be placed on workforce diversity, how employees are treated and commitments to diversity, at both the brand and supplier level.”

6. THE YEAR OF THE VERY VISIBLE HAND

Entrepreneurs expect that the role of government and regulators will become more important in the coming months. Part of that comes from the need to cope with the fallout from Covid-19, for which governments are doing a lot of the heavy lifting with Image: Ÿnsect stimulus plans of all sorts. But it’s true beyond Covid too. THE FRENCH TECH REVOLUTION 35

“2021 will be a pivotal year from to the strict guidance on worker organisations to improve operations a regulatory perspective, as the safety that they implemented at the with predictive analytics, to build new European governments and the EU beginning of the pandemic. added value services or products,” he Commission work together to improve says. the online safety and data protection of “Next up is the economic hangover, every European citizen, and to allow a with many industries looking at multi- fair competition within the sector,” says year recoveries and immense pressure “Data is the new Yubo’s Lazimi. to perform,” says Thaler. “Large, global goldmine” companies, especially those in slower For EcoVadis chief executive Thaler, recovering sectors, must be extremely “the visible hand will return”. He attentive to their suppliers and As a result, in 2021, data localisation expects more environmental increase focus on human rights and and sovereignty will become a major regulation and policy geared towards social issues to ensure corners aren’t strategic factor for businesses, feeding sustainability targets in 2021, and in cut to survive.” into the demand for a trusted and the rest of the decade to come. sovereign European cloud, says Paulin.

8. DATA LOCALISATION AND “The European DNA is very strong on “The visible hand SOVEREIGNTY GAIN GROUND data protection and individual rights,” will force the he says. “In Europe, we want to have In recent years, data storage has an open IT ecosystem, where we sustainability become critical for companies’ control the location of data but also its laggards to change business imperatives and costs, as portability and interoperability. There is to survive” well as managing risks related to a strong push towards local innovation compliance, says OVH’s Michel Paulin. to avoid being dependent on external “Data is the new goldmine, as it allows sources for the most sensitive data.” “The tone will be set in Europe with the EU Green Deal, and in North America with the US’s expected return to the Paris Agreement,” he says. “The visible hand will force the sustainability laggards to change to survive, while further propelling leaders forward and opening up new doors around investments, M&A, growth, earnings and more.”

7. MORE DEMANDING EMPLOYEES

“We are going to see individuals asking more of their companies in terms of what they are going to do to support their mental and physical health,” says Jean-Charles Samuelian, chief executive and cofounder of Alan.

EcoVadis chief executive Thaler adds: “The economic fallout of Covid-19 will put social practices to the test.” Last Image: OVH year, employers had trouble sticking 36 SIFTED REPORTS

Sifted would like to extend special thanks to France’s minister of state for the digital transition and electronic communications, Cédric O, for agreeing to be interviewed for this report.

We would also like to thank the following people for their participation:

Agnès Bazin, chief development ofcer, Doctolib

Nicolas Brien, chief executive, France Digitale

Pierre Dubuc, cofounder, OpenClassrooms

Paul-François Fournier, executive director, Bpifrance

Samia Ghozlane, director, la Grande École du Numérique

Antoine Huber, cofounder and chief executive, Ÿnsect

Thibaud Hug de Larauze, cofounder, Back Market

Sacha Lazimi, cofounder and chief executive, Yubo

Frédéric Mazzella, founder, BlaBlaCar

Michel Paulin, chief executive, OVHcloud

Julie Ranty, managing director, Viva Technology

Jean-Charles Samuelian, cofounder, Alan

Christophe Tallec, general director, Hello Tomorrow

Pierre-François Thaler, chief executive, EcoVadis

Roxanne Varza, director, Station F

This report was written by Adam Green and Marie Mawad, edited by Becca Lipman, designed by Gaétan Nivon, illustrated by Dessy Baeva and produced by Chris Sisserian.

Copyright © Sifted 2021 La French Tech is France’s startup movement, powered by its ecosystem and bolstered by its government. They bring together these two radically diferent worlds bound by a single mission: make France a great home for global mission-driven tech champions. President Macron set the objectives: 25 unicorns by 2025, but not at the price of inclusion, gender equality and the planet.

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