Intro to France's Startup Ecosystem by the Embassy of France and FKCCI Seoul at Startup Korea Roundtable 2Q 2015 at D.CAMP.

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The French ecosystem for startups
and innovation
“ENTREPRENEUR” IS A FRENCH
WORDRENEUR” IS A FRENCH WORD

2. 29/04/2015 2
Agenda
France’s startup ecosystem
- Key Facts
- Private initiatives
- Government policy
Ideas for building common paths between Korea
and France in order to benefit startups and
entrepreneurs of both countries
- The French Tech

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A huge pool of skilled and cost-
effective talent
 The “French Touch” in mathematics, a world-class system:
13 Fields Medals (out of 55 - at least 1 French winner at every
awards ceremony since 2002)
 70,000 PhD. Students every year (of whom 41% are foreign)
 100,000 engineers are trained every year in France (15% are
foreign). Paris alone is home to 38 engineering schools.
 16,900 patents in 2013 (8% of worldwide patent production
 Major US universities have set up in France: Stanford (Lille,
Paris), Georgia Tech (Metz).

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A supportive environment to found a
tech startup
2nd largest venture capital ecosystem in Europe
(USD 1.2 bn in 2013).
France has 86 companies in the Deloitte Technology
Fast 500, making it the leading country for the 4th
year in a row (example: Weezevent ranked 1st in
2014 with a +43,202% growth over 5 years).
Paris alone is home to +4,000 tech-startups. 100,000
square meters of co-working spaces just in Paris.

5. 29/04/2015 6
French Tech growth
French
Startups
2013 vs 2012
+43 % of revenue
39 % generated abroad
+100 % of WoW revenue
+22 % of employees
* Barometer 2014, France Digitale/EY

6. 29/04/2015 7
New international leaders
across segment
#2 IN THE WORLD
FOR IPTV
€3.7B REVENUE
IN 2013
INVENTOR AND
WORLDWIDE LEADER
OF SMART CARDS
€2.4B REVENUE IN 2013
ACQUIRED BY IBM FOR
$340M IN 2009
ACQUIRED BY RAKUTEN
FOR €180M IN 2010
ACQUIRED BY SAP FOR €4.8B
BIGGEST SOFTWARE
ACQUISITION IN EUROPE
>20% OF SAP REVENUE
INVENTOR OF PRIVATE SALES
>€1.B SALES (2013)
>$4B VALUATION
INVENTOR OF AD RETARGETING
$2B VALUATION UPON IPO
WORLDWIDE REACH
$160B ACQUISITION
BY ORANGE GROUP
LEADING MUSIC PLATFORM
>$150M RAISED
OVER $300M SALES
$50M INVESTMENT FROM
ACCEL PARTNERS
LEADER IN OPEN SOURCE
$40M RAISED IN 2014
WORLDWIDE LEADER IN
HUMANOID ROBOTICS
$100M ACQ. BY SOFTBANK
DEVELOPER OF AORTIC VALVE
REPLACEMENT
>$700M ACQ. BY MEDTRONIC
ONE OF THE BIGGEST
ACQUISITION BY ADOBE IN
EUROPE ($600M)
CONNECTED HEALTH INNOVATOR
$30M RAISED IN 2013
>500 PEOPLE
JUST ANNOUNCED THE ACQ. OF
JEUXVIDEOS.COM FOR >$120M
BIG DATA STORAGE LEADER
STRONG DEVELOPMENT IN THE US
TALENT MANAGEMENT SUITE
$20M RAISED IN 2013
INNOVATOR IN CONNECTED
OBJECTS NETWORK
$20M RAISED IN 2014 (INC. INTEL)
WEB SECURITY INNOVATOR
$22M RAISED IN 2014
(INC. BESSEMER)
EUROPEAN LEADER IN SOCIAL
COMMERCE
INVESTMENT FROM CONDE NAST
INNOVATING IN CLOUD ENTERPRISE
SOLUTIONS
$18M RAISED IN 2014 WITH ACCEL
INNOVATING IN CLOUD ENTERPRISE
SOLUTIONS
$18M RAISED IN 2014 WITH ACCEL
DEVELOPER OF THE FIRST
ARTIFICIAL HEART
LISTED IN PARIS
GLOBAL EXPERT IN LASER SYSTEMS
$37M TRANSACTION
Source: Go4Venture / Clipperton France

7. 29/04/2015 8
At the Consumer Electronics Show in January
2015, 25 % of all start-ups attending were French

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BIG COMPANIES with a global impact can be clients,
partners or buyers of startups

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OCT 2014: Xavier Niel has invested €200m alongside
the French governemnt, to launch the construction
work of La Halle Freyssinet, that will become the
largest business incubator in the world welcoming
more than 1000 startups in 2016
The world’s largest digital business incubator: 33 747 m²

10. 29/04/2015 11
Ecole 42
Ecole 42: « REVOLUTIONARY COMPUTER
TRAINING FREE AND OPEN TO ALL”
Objective:
 Train the best talents of their generation in the field of
computer science and to do so on a broad scale
 Create 1,000 jobs directly per year.
Main characteristics:
 Innovative teaching methods in technology training: Peer-to-
Peer
 Training that is free, open and accessible to all.
 42 is open to anyone who is between the ages of 18 and 30,
whether possessing an academic degree or not.
 Training takes place over a period of 3 to 5 years.
 The very best in terms of IT resources
 4200 m² open 24/7, it offers the students a friendly
environment, with collaborative spaces that are both pleasant
and functional.

11. 29/04/2015 12
Orange Fab
Objective
“Help start-ups grow their businesses and build amazing products
and services from which Orange and its customers will benefit.”
Duration: 3 Months
Demo day in Paris
and access to the
international
network of Orange :
• Press
conference
• Investor
meetings
• etc
Once a month,
mentors will be
present in the offices
of the Orange Fab
France to share with
startups.
Workshops on basic
+ applications on
startups projects.
Friendly moments of
sharing and
exchange between
Orange Fab France &
start-ups.
Access to the
issuance of
convertible bonds up
to € 15k (subject to
eligibility).
Free access to
events sponsored by
Orange France Fab.
Access to consumer
feed-back from
Orange catalogue.
Coworking spaces

12. 29/04/2015 13
Cap Digital & Futur en Seine
Objective
Cap Digital is the French business cluster for digital content and
services. Our 700 members are primarily innovative SMEs but also
major universities, higher education establishments, research labs,
and corporations focused on a specific technology-driven industry.
• It aims to create or foster links across market players;
• To support collaborative research, development and
innovation;
• To contribute to the dynamics of creative industries in
France and internationally
Futur en Seine
Futur en Seine is an event organized every year by Cap Digital
since 2009. Firstly a biennal festival, Futur en Seine became
annual in 2012.
As an International Festival, during ten days it shows each year
the latest digital innovations to French and international
professionals and to the general public. Futur en Seine attracts
each year nearly 80,000 visitors and numerous international
delegations contributing to make the Paris region, one of
the first digital regions in Europe.
FKCCI proactive in innovative collaboration between
France & Korea:
FKCCI accompagnied Seoul Metropolitan Government in 2012
to discover the innovative ecosystem of France during Futur en
Seine.

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Public money to finance startup
and innovation
The most business friendly
Research Tax Credit in the world
(Credit Impôt Recherche) covering
30% of all R&D expenses up to €
100m and 5% above this threshold:
€ 5.2bn of corporate tax savings for
R&D and innovation
17,000 business recipients each
year including
+2,000 foreign companies
 BPI France, France’s Public
Investment Bank, offers companies,
especially innovative SMEs and mid-
size companies, a tailored funding
service to support them at every stage
of their development, including €5bn
injected into VC firms and
innovation financing.
 The 2nd phase of the “National
Investment Program” has also been
launched with additional funds of
€12bn, on top of the initial €3.5bn
to boost strategic sectors : big data,
cloud computing, nano-electronics,
digital health care, medical bio-
technology, green materials…

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A strong political commitment to
boost innovation and enterprise
Since 2012, the French government has decided on 40 new startup-and-VC-
friendly measures, including:
 71 competitiveness clusters in France, including 11wordlwide poles
of excellence.
 Ultra High-Speed Internet Plan: €20bn being invested to roll out
ultra high-speed internet. 100% nationwide coverage by 2022.
Priority given to business parks for the roll-out of fiber-optic
connections.
 Crowdfunding Act enabling startups to raise up to € 1m in
crowdfunding.
 €500m “Large Venture” fund for venture capital injections
 €5bn injected into VC firms and innovation financing via BPI France

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« New generation » public policies
 The “French Tech” initiative: a shared effort by French
businesses and the French government which supports them.
 € 200m “French Tech Acceleration” fund, Axeleo to invest
in startup accelerator programs.
 € 15m to promote the “French Tech” ecosystem and startups
internationally.
 9 French Tech cities in a single network with Paris: Lille,
Nantes, Rennes, Bordeaux, Toulouse, Montpellier, Aix-
Marseille, Grenoble, Lyon.
 Foreign entrepreneurs and startups are eligible for €
30,000 of funding through the “French Tech Ticket” scheme.

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JUNE 2014: the French President gives it official
support to French Tech startups and foreign
investors

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