France is a leading country when it comes to the development of small and medium-sized enterprises (SMEs) and most of their success is based on gathering funds through venture capital. This is how venture capital has become an important branch of the financial sector in France. Foreign investors who want to start a venture capital business here, can rely on our French company formation consultants.
There were more than 523 venture capital deals which were concluded in the first 3 quarters of this year with a total value of 2,6 billion USD. The funds raised for French SMEs during this period of time increased by 79% compared to the same timeframe of 2016. Also, the amount raised rose by 42%.
Another important threshold surpassed by France is the position it reached after this record increase in venture capital fund raising: the country now ranks second after the United Kingdom and thus outranking Germany in terms of transactions.
The industries gathering the most important amount through venture capital are Internet of Things (IoT), mobile internet and telecommunications and the electronics sector.
The end of 2017 is expected to bring a total growth of 3,5 billion USD for venture capital companies, up by 70% compared to the total amount registered in 2016.
Our company registration agents in France can explain how to set up a venture capital company.
Venture capital raising has helped French companies not only to develop, but also to hire more personnel which helped them develop at a faster pace. According to the National Institute of Statistics, the commercial sector registered the highest number in employees since the beginning of the year.
This is good news not only for the commercial industry, but most of all for SMEs for which a new law which aims at helping them expanding their activities on international markets is expected to come into force in the spring of 2018. The Businesses Bill as it is currently known will help SMEs export their products.
If you want to start a business in France and need assistance or information on the legislation, please contact our company formation representatives.