Fund of support of technology startups of France

History

2020: Creation of fund

At the beginning of June, 2020 France created fund for protection of the domestic technology companies which can fall prey of foreign buyers.

The Ministry of Economics and finance of France created initial fund in the amount of 150 million euros ($170 million) through the creditor of Bpifrance Financement SA financed by the state. This fund will invest means in local strartapa with which "bad" foreign investors enter negotiations, Bloomberg reports. The government is going to increase fund to 500 million euros by the beginning of 2021.

France decided to buy up the startups for the state account that "bad foreigners" did not get them

The new funding mechanism will become a part of the updated packet of measures of support of the technology industry using which France tries to counteract outflow of investors. At the end of March a number of financial measures for deduction afloat of the innovative companies was accepted - they received a large packet of the loans of 300 billion euros guaranteed by the state from the Ministry of Finance, Bpifrance and the French bank federation.

In March the minister of digital development of France Cedric told About (Cedric O) that in France 16-20% of all jobs are created by startups therefore it is so important to support them during crisis. France also presented the program with fund in 100 million euros for the companies which still are at a stage of development and have no right to the credits financed by the state.

Legislators of the USA use other approach to protection of small and medium business. In April senator Elizabeth Warren and the member of the House of Representatives Alexandria Okasio-Cortez (Alexandria Ocasio-Cortez) urged the White House and the U.S. Department of the Treasury to impose the moratorium on merges and absorption before the end of crisis COVID-19. In case of approval this measure will prohibit transactions on merges and absorption until Federal trade commission does not define that small enterprises, workers and consumers are not in serious financial difficulties any more.^[1]

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