France will roll out a 4 billion euro ($4.33 billion) liquidity support plan for start-ups in the wake of the coronavirus pandemic, junior minister Cédric O stated Wednesday.
Investments in early-stage digital firms have boomed in France in recent years, helped by tax cuts and business-friendly measures put in place by President Emmanuel Macron, who has vowed to show the nation right into a “begin-up nation”.
“We’re asserting a specific plan to assist the liquidity of begin-ups,” O instructed French radio station Radio Classique. “In total it will be a plan for 4 billion euros.”
The cash released by venture capital funds into French start-ups jumped 30% over the first three quarters of 2019 from a year earlier to 3.9 billion euros, in accordance with Dealroom, a data provider.
The French government’s liquidity plan for start-ups features a short period refinancing scheme (160 million euros), the yearly fee of some tax credit (1.5 billion), the accelerated fee of already-planned investments within the sector (250 million) and ensures over money move prices (2 billion).
“Given the worldwide financial scenario, there’s a danger that some traders could turn into cautious,” O stated, including that he would meet some venture capital funds this week in an attempt to scale their aid for French startups.