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EY ’s overview of French start-ups

In order to better understand French entrepreneurs, what their start-ups achieve, and how they manage to do it, EY asked a number of venture capitalists to give them data on start-ups they invest in. As a result, EY received the 2012 and 2013 performance statistics of 116 French start-ups, 5 years-old on average.

Here is an overview of the facts and dynamics EY found relevant.

Who are the French innovative entrepreneurs?

Most of them are both highly educated (92% have at least a master degree) and experienced (46% are serial entrepreneurs). They are 42 years-old on average and only 6% are women.

What do their start-ups achieve?

Because they innovate, take risks and go global, they create valueIn one year, they have managed to increase their revenue by 43%. The revenue generated abroad, which now accounts for 39% of total revenues, has doubled!

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Because they create value, they also create jobs: 1376 in 2013, which represents a raise of 22% in the number of employees. They create lasting and stable jobs (91% are permanent contracts) for the younger generation (the average age of their employees is 32).

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How do they manage to do it?

They get funded. More and more investors are putting their money in inspiring French start-ups. 24% of respondents already have a foreign venture capitalist investing in their firm.

They get subsidized. 77% use French Research & Development Tax Credit, and 54% have the “Young Innovative Company” status.

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They are not focused on short-term profit. This is why 96% never distributed dividends.

They manage to assemble dedicated teams. Start-up managers are passionate about their work: 89% of them are also founders of their own companies. In order to make their team care as much as they do, they share value by using equity instruments (90% do) and reward their co-workers with desirable wages (the average ratio between management and staff salaries is 2).

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Let’s hope these amazing men and women will thrive and inspire others!

We will provide the full EY survey as soon as we get it!