French Tech initiative launches visa programme

Established in 2013, the French Tech initiative is kickstarting a new programme, the French Tech Visa, aiming to attract foreign tech investors and talents to feed into the French startup ecosystem.

Available from mid-2017, the French Tech Visa was created following the model of the Passeport Talent scheme. Launched in November last year, Passeport Talent is a residence permit awarded to young graduates, skilled workers, researchers, business founders, investors or corporates. According to the French consulate, these are awarded to those "likely to make a significant or lasting contribution, through their skills or talents, to France's economic development or to its intellectual, scientific, cultural, humanitarian or athletic prestige, and directly or indirectly, to that of their own country".

Part of the Passeport Talent programme, the French Tech Visa maintains a similar concept, except it is focused on the tech sector. "The overall idea is to make the process of investing in France or coming to work here easier and more attractive," says David Monteau, who has been heading the French Tech initiative since 2013.

Far-reaching appeal
The French Tech Visa will appeal to three defined categories of applicants: foreign startup founders and employees, foreign talents willing to join a French startup, and foreign investors and business angels willing to invest in French startups. The visa is valid for four years on a renewable basis, grants a direct work permit and can be extended to the beneficiary's family. Under certain conditions, a fast-track procedure is also available in cases where, for instance, the applicant is to work for one of France's 100 most active startups, or if the applicant's own startup has been shortlisted by a French incubator.

Although the French Tech Visa will aim to encourage investments coming from abroad, it will not be starting from zero.

Venture capital investments have been almost multiplied by three, and where three years ago raising €20m was difficult for a French startup, we now witness such fundraisings almost every month" – David Monteau, French Tech initiative

In recent times, interest from foreign investors for the French tech scene has markedly intensified. According to data published by corporate finance adviser Chausson Finance, in the years 2015-2016, a total of 61 foreign investments were completed in French startups, up from 40 in 2013-2014 and 28 in 2011-2012. Within those, UK investors have been leading the way, representing as much as 35%, followed by the US with 32% and Germany with 9%.

Among the most active foreign funds, Switzerland-based Index Ventures was first with six investments completed during the 2015-2016 period, followed by US venture capital firm Accel Partners, which contributed to five rounds. Point Nine Capital and Global Funders, meanwhile, added four investments each.

One of the most recent examples of a large venture round involving an international investor was the €58m series-E round for Vestiaire Collective, led by Vitruvian Partners, marking the GP's first investment in France. In December last year, Ginko Ventures led a €100m round for high-end speaker maker Devialet, closing what was one of the largest funding rounds for a French startup. Other examples include a €26m series-C round for Doctolib in April last year led by Accel Partners, and a €31m series-C round for car rental service Drivy led by Cathay Capital the same month.

Monteau speaks of a "spectacular evolution" in the sector over the past two years: "Venture capital investments have been almost multiplied by three, and where three years ago raising €20m was difficult for a French startup, we now witness such fundraisings almost every month. Similarly, rounds above the €100m mark were previously almost non-existent, while in the past few years a handful of these were recorded."

According to Monteau, foreign VCs should benefit from the French Tech Visa in two ways: either through French portfolio companies that can get access to the permit, or as investors willing to establish themselves in France directly. Several funds have already started recruiting French representatives to get a better grip on the local market, including Atomico, Notion Capital, Eight Roads Ventures, Accel or Index Ventures.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• GPs
• France
• Top story
• France
• Venture