France creates a €150M fund to protect home-grown tech startups from takeovers by foreign buyers, may increase it to €500M from early next year (Helene Fouquet/Bloomberg)
Helene Fouquet / Bloomberg:
France creates a €150M fund to protect home-grown tech startups from takeovers by foreign buyers, may increase it to €500M from early next year — – Finance Ministry sets aside up to 500 million euros for fund — Distressed tech firms may become ‘prey’ for foreign bidders
France is creating a fund to protect home-grown technology companies that may become “prey” for foreign buyers, adding the vehicle to its bailout package for startups.
The Finance Ministry has created an initial 150 million euro ($170 million) fund through state-backed lender Bpifrance Financement SA to invest in local companies if they’re approached by an unsolicited foreign investor, it said in a statement on Friday. The government may increase the fund to 500 million euros from early next year.
The new funding vehicle is part of an upgraded bailout package for the technology industry as France attempts to counteract an investor retreat. A series of financial measures were set up in late March to keep innovative companies afloat, part of a bigger 300 billion-euro package of state-guaranteed loans from the Finance Ministry, Bpifrance and the French Banking Federation.
France is also adding a 100 million-euro program for companies still in the research phase that don’t qualify for state-backed loans, it said Friday.