“The current French digital model struggles to meet the high ambitions of a European Silicon Valley creating its own Big Tech” | EUROtoday

HASWhen the BIG (Bpifrance Inno Génération), the annual commerce honest of the funding financial institution Bpifrance, is held on October 10, doubting the potential success of start-ups has turn into trendy once more. Criticize the function of public authorities within the area too.

However, regardless of a low success fee for start-ups (10-20%), stories equivalent to these from the Banque de France and EY present the nice dynamics of start-ups in France: + 3,500 start-ups in twelve months, a rise in turnover of 27%.

However, 129 start-ups went bankrupt, and a few, like Cityscoot, Navya [reprise par Gaussin, en redressement judiciaire] or Ynsect, will not be doing effectively. In the United States too, notable closures, equivalent to these of Tally, Mindstrong and Tessera, illustrate the difficulties of small know-how firms in surviving. The variety of startup closures within the United States hit a brand new document within the first quarter of 2024, with 254 enterprise closures, a rise of 58% from the earlier yr, in keeping with analysis agency Carta. .

This makes it troublesome for start-ups to realize a foothold out there, compete with established rivals and make a revenue, not to mention break even. Between 2020 and 2021, many start-ups and buyers raised important funds, however enthusiasm for tech has since waned. Additionally, there’s a international slowdown in fundraising in 2024.

Disappointment and mistrust

As for the mistrust in public insurance policies in France within the area of digital know-how and synthetic intelligence (AI), it comes from the frustration created by expectations which might be too excessive. Comparisons with Silicon Valley reinforce this impression and the criticism.

In Europe, the ambitions displayed are incremental, and the ecosystem just isn’t shifting in direction of offbeat tasks or akin to moonshotsthe large, daring and financing-intensive Californian know-how bets. Maintaining the concept future Big Techs will emerge in Europe is questionable. Even within the United States, solely Silicon Valley has given beginning to tech giants, and makes an attempt to clone it elsewhere, equivalent to in Miami after the Covid-19 disaster, have failed.

In France, the State encourages the creation of start-ups, however this leads to the creation of many SMEs with out succeeding within the emergence of Big Tech. The Californian mannequin, the place start-ups are financed by enterprise capital to develop shortly, appears culturally troublesome to breed in France.

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