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France Allocates Massive Startup Funds to Ensure Digital Independence
France has announced about $5.5 billion in funds for startups in the country. This move is being perceived as a significant move towards achieving digital supremacy.
Fremont, CA: Earlier this month, France had made announcements regarding the allocation of funds worth about $5.5 billion for the startups in the nation. About $2.2 billion of this are for the French venture funds to in turn permit them to join larger rounds as far as later-stage companies are involved.
Mostly, until now, a French startup seeking next series of funding after the A–series tends to consider overseas options. However, lately, there appears to be a change in this approach. The governing bodies have noted this change and are making efforts to speed up this evolution as a priority.
Importantly, the allocated funds are not inclusive of tax money. A wide range of asset management and insurance companies have been asked to contribute.
The fundamental objective behind this new objective is to compete against the dominance of foreign companies and nations as a source of funding. France government seems to orient their approaches towards creating their own champions across a wide range of technological sectors. This fear of losing dominance in the technology space to the U.S or countries like China is prevalent not only in France, but across the European region.
It is expected that more than 7000 employment opportunities will be created in France in the imminent months by startups that are more prominent. The total jobs created by all startups would be around 25,000 in the same time frame. This immense growth in startups is evident and is also likely to impact the overall technological growth of the nation.
The move is also an attempt to stay ahead of the technological revolution and an unparalleled rise of innovative technologies such as artificial intelligence and autonomous vehicles. France is also trying to protect them from the emerging disruption facilitated by revolutionary progress, while simultaneously leveraging its strength to create social and economic opportunities.