Bpifrance's Bold Vision for Financing France's Deep Tech Revolution

In a significant initiative to bolster innovation and technology in France, Bpifrance, led by General Director Paul-François Fournier, is intensifying efforts through its Deep Tech program, which aims to elevate the country's startup ecosystem. As emphasized in a recent interview, the objective is ambitious: to increase the creation of Deep Tech startups from 160 to a target of 500 per year. By 2024, the initiative has already yielded 385 startups, indicating a strong start in reshaping France's technological landscape.

However, Fournier notes that the current funding model remains heavily dependent on public financing, which presently sustains a large portion of the Deep Tech ecosystem. He advocates reducing this reliance to around 20%, similar to that in the digital sector. To achieve this, there is a pressing requirement for approximately €30 billion over the next six years, targeting funding rounds for Series A and B startups to stimulate private investment, particularly from European sources.

Furthermore, Bpifrance is venturing into the cryptocurrency domain with the establishment of a €25 million fund dedicated to digital assets. This fund is designed not to engage in speculative investing but to gain a comprehensive understanding of Web3 technologies, focusing on identifying robust technological frameworks beneficial for financial operations and secondary markets.

In terms of defense innovation, Bpifrance has introduced two critical funds—Definvest and Innovation Défense—to support companies that blend civil and military technology applications. Fournier highlights the need for a cultural shift in large corporations and the defense industry, advocating for a proactive approach toward startup collaboration to spur growth.

Fournier also stresses the importance of fostering a competitive yet collaborative climate among European nations, including France, Germany, and the Netherlands. His call for a unified European venture capital strategy aims to develop substantial funds attractive to international investors, promoting a more effective capital market.

For the future of Deep Tech in France, Fournier underscores the necessity for industrial exits, which he believes are crucial in enhancing the environment for flourishing startups. This transformation is essential for large corporations to engage more significantly in investments and acquisitions within the innovation landscape.

As Bpifrance continues to navigate these challenges, the overall outlook remains geared toward creating a vibrant, self-sustaining Deep Tech landscape in France.