France announces $4.3 billion support package for startups

Bloomberg

France is setting up a 4 billion-euro ($4.3 billion) package to help the country’s startups survive the coronavirus pandemic and maintain cash levels in between their fundraising.
“Our goal is for startups to pass that crisis and then continue with their growth,” Digital Minister Cedric O said on Wednesday. “Startups represent between one-sixth and one-fifth of jobs created in France today, so it’s extremely important.”
The French Finance Ministry, together with state-backed investor and lender Bpifrance, will detail the plan on Wednesday. The package includes bridge funding, innovation-spending related tax breaks and treasury loans.
France has a growing, but still relatively small startup scene. Funding for startups was trending upward until a few weeks ago when most business came to a standstill as the country battled the coronavirus. President Emmanuel Macron presented a $5.5 billion plan last year to get investors to step up funding for French tech companies, with the goal of having 25 unicorns, companies valued at more than $1 billion, in the country by 2025. Today there are five, according to CB Insights.
Now, as the global economy teeters, Bpifrance Chief Executive Officer Nicolas
Dufourcq said in a recent TV interview that French businesses are currently experiencing “a cash flow heart attack.” The Covid-19 lockdown has hit particularly hard in France, where the entire country has been asked to go outside only for short exercise breaks or essential trips, and more than 800 people have died from the virus.
The plan for a startup cash injection comes as French Finance Minister Bruno Le Maire, Bpifrance and the French Banking Federation are also set to launch 300 billion euros of state-guaranteed loans on Wednesday.