IN DEPTH

FRENCH FLAIR

SPOTLIGHT

Unleashing French Diversity

They’re cowards, they’re lazy and they’re arrogant… there are many misconceptions in how France and the French are sometimes

perceived abroad. But let’s not forget that France is also seen in a positive light, particularly for its world-famous cuisine and chic luxury goods. And today, increasingly, that’s not all… On January 22 this year, President Emmanuel Macron proved to the business world just how impressive France is, and how much has been done to move the country forward, at a special “Choose France” summit for foreign investors. The event was held at the Palace of Versailles and was attended by more than 140 of the world’s most influential CEOs, who were en route to Davos, where the World Economic Forum was being held two days later.

Publisher : Business France • Editors : David Williams, Peter Stewart • Design and layout : Hopscotch • Illustrations : Lionel Tarchala • Printed on recycled paper • Circulation : 4,000 copies in English

03NEED TO KNOW

Accelerating the future

04

CHANGE IS IN THE AIR, CAN’T YOU TELL?

After decades of ‘French bashing’, the tide is turning. Of course, everyone already knows how good French infrastructure is – you only have to look at our high-speed rail and internet networks. What’s more, France is home to a million engineers, as many as in Germany, despite its greater population. We’ve always had the talent and resources required to succeed, all we needed was change. And it’s now on its way…

After 13 years working for Apple, I launched my own venture capital fund C4 Ventures; after being immersed in the European startup scene, it was a natural opportunity to use my experiences to further the ongoing political, social and economic transformations in France.

The French government is focusing on many areas, making the labor market more flexible, straightforward and efficient, reforming taxation to promote investment, supporting industry, innovation and entrepreneurs, and improving education and professional development.

Now, as Business France’s Chairman and Ambassador for International Investment, I intend to spread the word and make it easier for international investors and startup founders to understand France’s new regulatory and tax framework.

This country is no longer resting on its laurels, and the world is starting to sit up and notice. A report by Portland Communications published last summer ranked France as the world’s top soft power, ahead of the United States. France has so much to offer, and its time really is now!

by PASCAL CAGNICHAIRMAN OF BUSINESS FRANCE

viewpoint

Internationally renowned French chef Alain Ducasse prepared a gourmet meal for chief executives of companies including Goldman Sachs, JP Morgan, Facebook, Rolls Royce, UPS, Bosch, Google and Alibaba in the majestic Gallery of Great Battles. This enormous room, with its large cornice, Corinthian columns and vast paintings depicting major French military successes, was chosen by President Macron himself as the ideal place to showcase French prowess and encourage foreign investors to choose France.

The all-out charm offensive proved very successful, with Toyota announcing plans to invest €300 million in its production facility in Valenciennes (northern France), which will also receive a grant worth €15-€20 million from the French government. Other big-name investors included Facebook, which will spend €10 million on an artificial intelligence research center in France, and Google, which is also investing in AI and new personnel at its Paris offices. The pharmaceutical group Novartis

A DAY WITH

Azzura Lights

PORTFOLIO

PACA region

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Is France really becoming A NATION OF ENTERPRISE?

PUBLISHED IN PARIS — SPRING 2018

WITH THE GLOBAL ECONOMY PERFORMING BETTER AGAIN, POSITIVE MOMENTUM IS BUILDING, AND FRANCE IS WELL SET TO MAKE THE MOST OF IT.

T he three co-founders of Hopstay, aged just 26, have already been on an amazing journey. Mitch was working as

a data programmer in audiovisual systems while Lucas and Charles were in their final year of law school when they decided to create their own business. Together, they developed a content platform to help tourism companies communicate through various different channels. After working together for one year, they started thinking about the European market, “but not seriously though,” says Lucas Lowell, who saw a post about “this great French Tech Ticket program” on Facebook and decided to apply.Looking back a year later, he remarks:

“We were accepted in early December 2016. We literally had five weeks to pack up our lives in Australia and move everything to Paris.” Provided with visas and all the practical advice they needed, they joined the Welcome City Lab incubator. “I think it’s great that they assigned us to an incubator for a whole year,” Lucas explains. “It has made us learn a lot about our own product and understand better where we fit in the market, making us think how we need to be at the cutting-edge.”Hopstay is currently working for organizations such as Lyon tourist office. “We enable travel companies or hotels to upload content and then distribute it via a wide range of different

communication platforms, from email to Facebook Messenger, Chatbots, WhatsApp, and soon WeChat for the Chinese market.” And even if their French Tech Ticket program has now come to an end, their journey certainly hasn’t.“We decided last November that we were going to stay in France and continue to grow our business out of Paris. We were still working on the logistics of that when Welcome City Lab offered us the chance to stay here,” he says. “From a business point of view, we’ve no reason to go back to Australia. We feel confident and comfortable about staying here indefinitely.”

reaffirmed its intention to acquire the French biotech firm Advanced Accelerator Applications for €3 billion, and to invest €900 million over the next three years. It appears that 2018 will be the year to remember that “entrepreneur” is indeed a French word. President Macron is determined to transform the country into a startup nation – or, at the very least transform its image abroad, as contrary to what some voices might have you believe, entrepreneurship in France is already well on the up.Half a million companies are created every year in France – including 554,000 in 2016, a 6% increase on 2015 – thanks to favorable administrative and financial conditions, particularly for startups. It is now quicker to create a business in France (3.5 days on average) than in the United Kingdom (4.5 days) or Germany (10.5 days). What’s more, France is now the 10th best country in the world for e-government. As a result, foreign investment came to €45 billion in 2016, compared with €11 billion in 2014, while government funding for new businesses, in the form of 62 different grants, amounted to €10 billion.It is also clear that new momentum is building throughout France. In March 2017, a survey revealed that 52% of French people would be interested in creating their own startup if they had the chance. With Brexit loo ming, and

economic growth on the rise in France, now is the ideal time to raise the country’s profile. As it happens, the new French president has his own ‘business plan’ that he has been working on ever since he was elected. Last June, during VivaTech, the French equivalent of the Las Vegas Consumer Electronics Show, President Macron set the tone of his period in office by saying that “France is becoming a startup nation. I want to anticipate this movement and take it forward. France is the place to be, France is where you should invest.” He promised that France’s public investment bank, Bpifrance, would provide €10 billion to fund French companies at key stages in their development, and also announced updated plans for Talent Visas that would make it easier for foreign talent to come to France. Eligible startuppers (and their families), master’s graduates and foreign investors can now apply online for a French Tech Visa, which lasts up to four years.One month later, in July, he announced that he was scrapping the highest 20% rate of a special payroll tax paid by companies not subject to VAT, that compensation and bonus schemes would no longer be included in the calculations for severance pay, and that plans to extend the financial transaction tax to include intraday transactions would not go ahead. The benefits of these first few measures were quickly felt, with 60% of chief executives of foreign companies operating in France saying that the country was now “more attractive

IN DEPTH continued from cover page

since the Presidential elections”. These new measures were also welcomed by the French people themselves; a survey carried out in June revealed that 68% thought that the government was adding new momentum to entrepreneurship and enterprise creation. Encouraged by this support at home, Emmanuel Macron invited twenty foreign investors last October to the Élysée Palace for a special dinner, during which he detailed the reforms already implemented since his election. This opening gambit proved to be a successful ‘dress rehearsal’ for the government to prepare for the larger Versailles “Choose France” summit. For this initial meeting, the president and the prime minster summoned 15 ministers to fulfil 15-minute appointments, during which they went through the new reforms and initiatives to attract foreign investment. This strategy has already paid off, since each one of the twenty guests now has an investment project they would like to pursue in France, according to government sources.“For the first time, international investors are viewing France in a truly positive light,” says Brice Teinturier, Executive Director at Ipsos, France’s largest market research firm. A report published in December 2017 by Ipsos showed that France was now ranked as the world’s third most innovative country, and the leading country in Europe. As far as business is concerned, France’s future has rarely looked brighter.

Business France: How would you explain the benefits of Qwant to a regular web user?It’s a search engine that doesn’t hold information on users’ health, political views or sexual orientation, which stops aggressive ads from being able to target them. You don’t need to hand over reams of personal data to have a pleasant internet experience.

BF: How did you come up with this idea?In 2010-11, Google started pushing its own products, with YouTube, Google Shopping and Google Maps all taking over. That’s when we decided to come up with an independent search engine that would provide a full list of results, rather than just a select few. What’s more, we were the first search engine to introduce a social media search category, offering even more results.

BF: What have been your biggest successes to date?For the past twenty years, no one has ever managed to capture any meaningful market share from Google. In 2000, they had 95%, but their share is now 6% lower, 4% of which has gone to Qwant.

BF: Do you feel that the current business environment will help you continue to thrive? Yes. In fact, we’ve been able to speed things up a bit lately, having created new partnerships on a visit to China as part of the “La French Tech” initiative. This program has given us access to a pool of resources, such as information on funding, existing accelerators, and loans provided by Bpifrance, the French public investment bank. France’s research tax credit has also proved useful, enabling us to hire more staff. The French Tech Pass simplifies things with Bpifrance and helps us bring new talent to France.

Eric Léandri

15 MINUTES WITH…

NAMEEric Léandri Founder of Qwant

COMPANYQwantA European search engine that provides users with results from the web and social media on the same page, without recording any of their personal data.

NUMBER OF EMPLOYEES

150All based in France

“France is becoming a startup nation. I want to anticipate this movement and take it forward. France is the place to be, France is where you should invest.“

Emmanuel Macron,President of France

UNLEASHINGFRENCH DIVERSITY

On October 17 last year, 35 startups received awards as part of the inaugural edition of French Tech Diversity, a

program created by the government to promote social diversity within the French startup ecosystem. “A good idea should never fall by the wayside just because the person behind it doesn’t know how to develop it further,” says Louis Schweitzer, the government’s chief investment commissioner. The 274 projects and 422 candidates were judged in terms of their startup’s level of innovation, but their individual backgrounds also played a part in the selection. “Most startuppers are men, and 90% of them are graduates from business or engineering schools. […] When choosing the winners, many factors were taken into consideration, including the founders’ motivation, whether they are receiving any state aid, like a scholarship, and whether or not they come from a disadvantaged background,” says Marie Gallas-Amblard, head of communication at “La French Tech”.

Did you know? 13 different types of businesses featured in the first French Tech Diversity program.Each of the 35 winners were rewarded with a grant worth €45,000, and will be supported by a business incubator for one year. Sixty percent of the winners were women, three of whom are featured below.Charlène Guicheron is the co-founder of N-Sens, a web development agency that she created while still at university. In 2017, she launched Kreezalid, a SAAS (software licensing and delivery model) solution that enables anyone to create an online marketplace in just a few minutes.In the same year, Charlotte Ogé co-created Ambulix, a platform where users can book an ambulance online

when they can’t go to a medical appointment by themselves. This website can also be used by businesses to improve their communication and management skills, thanks to its in-built planning, geo-tracking and billing tools.Loubna Ksibi is the 25-year-old co-founder of Meet My Mamma, a social innovation startup which empowers women, while offering consumers some of the best exotic cuisine in France. The catering company’s chefs are “mammas”: women who are either refugees or French citizens of foreign origin living on the breadline. They come from far and wide, from countries such as Somalia, Syria, Morocco, Sri Lanka, Malaysia and India, which means that the possibilities are endless for anyone seeking original dishes for an event.

France leaves no stone unturned when it comes to promoting

innovation. To ensure that everyone gets the opportunity to improve the

world we live in, the “La French Tech” initiative has come up with a specific

program to advance diversity.

“My partners and I started from scratch. We would work together in cafés, and thanks to the internet, we managed to get a lot done in the first six months. That is how we were chosen for the French Tech Diversity program, due to which we now have an office at Station F. It’s open 24/7 and it’s a great place, which has really boosted our productivity. Our mammas now cook in a production space in the Parisian suburb of Asnières-sur-Seine, where they have gone from three to eight chefs,” she says. Ksibi is also the organizer of “Startup weekend banlieues”. As a former participant in the pre-existing “Startup weekend” initiative, she decided to apply the concept to the suburbs (banlieues) of Paris. At the end of September, she and Faizel Nguyen, who is now the organization’s president, met people who are interested in creating their own startup but lack any form of business awareness, and taught them what a business plan is, thereby empowering them to make their dreams come true.With this initiative, she is proof that when more people are given a chance, they then share their knowledge with others. This cycle is changing mindsets across France, with innovation now becoming open to anyone.

CASE STUDY

When Lucas Lovell, Charles Inglis and Mitch Pascoe launched their startup HOPSTAY in Adelaide (Australia)

in 2016, they didn’t expect their business venture to take them halfway around the world. But where else could they

find better solutions to tourism infrastructure problems than in Paris, one of the world’s leading tourist destinations?

A

20%tax credit

has been created for startups to spend on

innovation (up to €400,000 in eligible

expenditure).

1

A

10billion

innovationfund has been

set up to support innovation and

digital companies.

2

France GDP grew

1.9%in 2017

compared with 1.1% in 2016,

resulting in the country’s strongest performance since

2011.

3

France plans to invest

20 billion

over the next 10 years in its high-speed broadband roll-out, with the

help of service providers, local authorities and

central government.

4

Created in 2015, the new French Digital

Agency is composed of a team with an

average age of

31

5

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SPOTLIGHT

HALF A MILLION COMPANIES

ARE CREATED EVERY YEAR IN FRANCE

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ACCELERATING THE FUTURE

NEED TO KNOW LESSONS LEARNEDClément Moreau is a French engineer who used to work for Inventel, a startup acquired by Technicolor. In 2009, he co-founded Sculpteo with Eric Carreel and Jacques Lewiner. Sculpteo is a 3D printing service company that enables customers to create their own prototype, have it printed (in plastic, sterling silver, brass, etc.) and order it from the cloud.

1

FIND YOURSELF A GOOD TEAM

It is essential to have people from different backgrounds, as the

pressure can be too much for one person to bear alone. Every time

I meet a young entrepreneur, I tell them to find people who can

complement them.

2

PERSEVEREI created my company in 2009

thinking things would get easier. But the bigger you get, the harder

it gets. You simply need to persevere. One thing that all these

years have taught me is that you have to be willing to carry on.

3

ALWAYS STAY AHEADAn idea in itself is valuable, but it

can be worth so much more, provided it is properly developed.

Competition is fierce, and as a company grows, it is easy to get

distracted. Always innovate to make yourself stand out from the crowd.

1

DON’T OVERLOOK THE FINANCIAL ASPECT

Being an engineer by trade, I overlooked it at first. We hired an administration and finance director later on in the process

than we should have done.

5

EMBRACE MISTAKESNo matter what, a startup will at some point make mistakes. You

need to be ready for it to happen, be forgiving, and implement

policies to limit their impact. Every little mistake has the potential to help the entire company to grow.

HERE AND THERE

FRENCH TECH CENTRALThis special meeting place and information center symbolizing the changes brought about by the French Tech program was inaugurated on December 7, 2017 inside Station F, the world’s largest startup incubator in eastern Paris. For the first time in France, all the authorities involved in founding and running a startup can be found in a single place, where they are ready to answer your questions. https://medium.com/station-f/welcome-aboard-french-tech-central-at-station-f-7c37e385aaa0

NOVAGRA WINS NEW AWARDNovaGray won the “Best Tech Startup of the Year” award during EmTech, Europe’s largest conference on emerging technologies organized by MIT Technology Review, which was held in Toulouse last October. Specializing in a new generation of companion diagnostic tests to improve radiation therapy planning, NovaGray seeks to improve quality of life for cancer patients both during and after treatment.

CES 2018With over 320 startups and scaleups, including more than 274 at Eureka Park (nearly 100 more than in 2017), “La French Tech” was by far and away the leading foreign startup delegation at the 2018 Consumer Electronics Show in Las Vegas. https://meetlafrenchtech.com/french-tech-at-vegas-the-best-is-yet-to-come/

ARTIFICIAL INTELLIGENCE FACEBOOK has hired French scientist Jérome Pesenti to lead its expansion into artificial intelligence (AI). IBM’s former chief scientist for big data has been vice president of Facebook’s AI division since January 2018, and will help the social media giant to double the size of its Paris-based AI lab.

VISITCome and have a look around Station F, the world’s largest startup campus, on either a group visit or private tour. Groups are limited to 15 people, but the tour is free of charge. You can book here:https://stationf.co/visits/

CREATE While you’re in Paris, why not create your own avatar? You can then use it to do everything from monitoring your body size, and changing your look, to virtually trying on clothes and accessories, as well as creating and customizing your own character for video games. Exens is a startup that has invented a 3D photo booth to instantly create your very own realistic digital clone, reproducing your features and body shape. Find out more on their website: https://www.exsens.eu/

SURFThinking about moving to France? Then head to the French Tech Visa website to find out how you can benefit from this program and create your startup in France. You’ll learn all about the simplified, fast-track procedures for international tech talent who are eligible for the Talent Passport residence permit. https://visa.lafrenchtech.com/

SHOPLooking for an investment that is both profitable and ethical? Then trees might be the answer. The French startup EcoTree enables anyone to buy one or several trees. Every year, the value of the tree grows by 2%, and when it is cut down, the investor collects all the profits generated from the sale of the wood. Since the startup was founded in 2016, more than 24,288 trees have been planted, and 4,147,702 kilos of carbon dioxide have been absorbed. Head to https://ecotree.fr/ to find out more.

KEEP AN EYE OUTIn 2018, for the very first time, the call for participants in the Innov’up project will be open to foreign startups and SMEs. The aim is to support the creation of new innovative prototypes in Paris. Ten to fifteen projects will be selected, with the chance to win €100,000 and the opportunity to present prototypes during the Paris Region Smart Weeks event in May 2019. Applications will open in spring 2018.

FIND OUT MORE…

PACA REGION: A BREEDING GROUND FOR STARTUPS

Between 2012 and 2015, the number of startups created in France increased by 30%, which is 10 times higher than for

regular companies. This sharp rise would not have been possible without the help of both public and private business incubators, which have provided startups with training and office space, as well as expert knowledge and support.

French entrepreneurs have been quick to understand the importance of these players in the business ecosystem, with the country now home to more than 300 private accelerators. The good news is that more will appear in the next two years, as the government-created French Tech Acceleration Fund plans to invest €200 million in business incubators by 2020.

From Station F to The Camp, each one of these incubators has its own identity, including NUMA, the very first one to appear in France. Now a

global company operating in eight countries, NUMA was founded in 2015 as the very first organization for entrepreneurs, co-working space and startup accelerator in France. Its primary aim is to help startups find solutions to the world’s biggest problems by 2030.

“There’s a lot at stake for mankind in the next 12 years, with problems relating to education, healthcare, access to food and clean water, energy and social mobility. We’ve taken it upon ourselves to support the companies working to solve these issues,” explains Paul Moreau, project manager at NUMA.

“Every year, more than 3,000 startups from across the globe apply to take part in one of NUMA’s programs. This number has continued to rise in the past few years, which shows real enthusiasm for what we’re doing. We have a role to play here, to help structure and finance

startups, and to help them create and manage long-term projects.”

Ultimately, only 2.5% of all candidates who apply are selected by NUMA, but Paul Moreau doesn’t see failure as something to be afraid of: “Those who have doubts about taking the plunge should bear in mind that failing isn’t frowned upon in the startup ecosystem, but standing still certainly is. We encourage entrepreneurs to experiment as much as possible.”

The lucky few who make it through will take part in one of NUMA’s three ongoing projects: Tech For Tomorrow, Tech For Planet and DataCity. Paul Moreau oversees the international development of these projects, which aim to use data and digital technology to address recurring urban issues and find ways to build more sustainable and efficient cities.

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With its unique setting and timeless appeal, the Provence-Alpes-Côte d’Azur (PACA) region is a magnet for countless tourists, making it one of the most popular destinations in the world.

The region’s attractiveness has led it to become home to one of the highest concentrations of technology and brain power in Europe, with thriving businesses

in a wide range of sectors, including telecommunications, microelectronics, digital technology, life sciences, aerospace, marine technology, multimedia technology, agri-food, perfumes, chemicals and logistics.

Provence-Alpes-Côte d’Azur is also a buoyant startup region, home to four of France’s 17 “French Tech” cities:

- Aix-Marseille French Tech focuses on the local economy, urban planning and citizen-led initiatives. The area is anticipating leverage effects, along with all the benefits the digital sector brings to the mainstream economy and public services, including boosting its standing and quality of life for its inhabitants.

- Côte d’Azur French Tech has a robust digital ecosystem, with synergies between microelectronics, telecommunications and software.

- Avignon-Provence French Tech Culture: the golden triangle of digital culture.

- Toulon Metropolis French Tech: a network for digital professionals.

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SELERYSTHE LATEST TECHNOLOGY THAT LOOKS TO THE SKY!Founded in 2014, the startup Selerys uses innovative technology to forecast bad weather.

The sensors and software, designed and produced in Rousset, near Aix-en-Provence, are distributed to the major “weather-dependent” companies, enabling them to prepare for all bad weather up to an hour before it occurs.

In 2016, Selerys struck a deal with the Lacroix Group to help farmers cut the risks of hailstones ruining their crops. The technology has proved very beneficial to the region’s farmers, and as well as forecasting bad weather, it can also be used with smart balloons and hygroscopic cloud-seeding flares, enabling farmers to stay one step ahead of climate change.

French Flair

‘TEACH ON MARS’ ROCKETSEES PACA REGION GO INTERPLANETARYIn June 2013, Vincent Desnot founded ‘Teach on Mars’ with three other colleagues. The startup was incubated by Paris Tech Telecom later that year at the Sophia-Antipolis technology park, before becoming a member of the Secure Communication Solutions (SCS) innovation cluster, the major ICT and digital technology player in the region.

Today, Teach on Mars is a European leader in mobile learning following the launch of a ‘training platform for a mobile world’, with

more than 500,000 users, across 35 countries, benefiting from Teach on Mars technology.

Nothing seems to be able to halt Teach on Mars’s stellar rise. It’s one of France’s most innovative EdTech startups, with a team of 40 employees and a desire to expand abroad, following the creation of an international department in 2017.

Even after winning the 2018 PACA French Tech Pass award, Teach on Mars is still constantly innovating, and has just unveiled the ‘Teach me up’ app at the 2018 Consumer Electronics Show in Las Vegas.

“Our latest innovation enhances the user experience by providing a hands-free learning process that adapts to their environment. This means that learners can make the most of time they lose in traffic jams, for example, and learn more about a subject of their choice,” explains Vincent Desnot, CEO of Teach on Mars.

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A DAY WITH:

AZZURA LIGHTS

7AM The day starts at 7am, when the Azzura Lights team meets for breakfast to discuss what’s on the agenda for the day ahead. It’s also the moment when they discuss plans for designing different educational guides.

10AM At 10am, they have a meeting with partners. The startup is fully committed to respecting

the three pillars of sustainable development, as can be seen by its projects, and its overall approach to them. Fostering community ties is written into the DNA of Azzura Lights, which always does its utmost to support local economics and protect the environment, no matter what procedure is being followed. Jessica Pelligrini meets up with her partner who is responsible for the educational guides, which are distributed to her clients during the coaching workshops. These guides are always

produced by printers in Nice who use plant-based ink, on recycled, PEFC-certified paper.

1PMLunch takes place at around 1pm in front of our screens, while we work! We schedule appointments and monitor the production teams. The afternoon starts at 2pm in the field, with an energy-based educational session for schools in the region. Azzura Lights has been teaching children energy-saving tips for over three years now, and aims above all to make it fun for them. The children learn about renewable energy, fossil fuels, energy transition, and the impact that human activity can have on the environment and nature.

5PM At 5pm it’s time to prepare for an energy poverty session with a local community. Azzura Lights show different communities how to implement a system that can help their poorest citizens. Energy poverty is a real social issue, but very few tangible measures have been introduced to address the problem. Azzura Lights, since it was founded, has worked hard to help families overcome these difficulties. To date, Azzura Lights has helped 2,200 families change their day-to-day behavior and lower their energy bills as much as possible.

Company profile

Jessica Pelligrini runs the startup Azzura Lights, which she founded in 2014.Specializing in energy efficiency and performance, Azzura Lights creates a range of services, products and training courses to make a success of energy transition. And how do they do this? By making learning fun, via educational workshops.Azzura Lights’ clients include businesses, communities and academia.

All photography © Benjamin Boccas