Why France is a good country for startups...
I am about to launch a project based in the Ethereum ecosystem which I believe has big (shouldn’t say unicorn, right? :-) ) potential. I have been recently involved in debates about what's missing in my home country (Italy) in order to create a more vibrant startup scene. My answer was: just have a look at how they do it in France!
On top of a well-developed VC/Angel ecosystem, France has a unique, well functioning governmental support system for startups, based on:
- A 3-layer (local, regional, national) project evaluation network which can provide quickly credible entrepreneurs with sizeable funding, even at the pre-seed stage,
- An R&D Tax Credit system which, unlike the Italian one, is RELEVANT to startups, as tax credits are paid in cash to R&D-performing startups which have not yet taxable profits…
- A government-funded, thematic “innovation cluster” system, which offers companies valuable networking opportunities with potential partners and investors (at negligible cost),
- Additional (substantial) support measures for companies willing to open subsidiaries abroad and test new markets.
In 2012 I cofounded a company in France (www.terabee.com ) which greatly benefitted from the above system, so I am talking out of personal experience.
Creating a favourable ecosystem for startups in Italy (or anywhere else in Europe) is not about black magic…Just identify best practices (see e.g. above) and lobby politicians into putting them in their agenda.
I dont understand it but best of luck to you!
hmmmm - is that a joke?
lol... in an interantional ranking you are more or less an extremist when do that. Tax wise you have to prevent in meantime central Europe when want to sell your company too. Of course it depends on business but when I invest I would definately force them to move to Canary islands with their company & IP in box.
That lead to a 4% tax company in Europe - with holding even only 2%. Thats more competitive than any tax heaven on whole planet. France - lol
Not a joke, man, or I've been joking for 5 years :-) Tax rates can become a bit of an obsession, I know, but they don't tell the whole story. I am talking about tech startups, which typically don't have taxable profits for the first 3 years or more. Then, tax rates are not what you need to focus upon. Obviously if we are talking about pocketing royalties from an existing business, or similar, then it's a different story...
Yeah - totally agree with you and it was of course a bit sarcasm inside :-)
Like you and I said... depend totally on the business. Anyway great post!
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R&D tax credits are a great help to startups. Here in the UK we have a R&D tax credit incentive that rewards companies during the development phase by paying cash tax credits equivalent to 33% of the qualifying spend.
So a company with £100,000 spent on dev team salaries could see a payment from the tax authorities of £33,000 - within just 30 days of filing.
It's a good system and a big financial help to startups and fast growing companies.
Good luck with your venture!
Lucky you. Belgium is not a good country for startup :(