French AI Ventures were Riding High, Until ‘Election’ Popped their Bubble!
“French AI Startups Felt Unstoppable. Then Came the Election”
“In 2017, if you were an AI startup in France—home to mathematicians, well-known research institutions, and a generous government tax credit known as the crédit impôt recherche—you might have felt pretty darn invincible.”
Oh, France. The land of red wine, croissants, and… AI startups? You heard it right. Back in 2017, who wouldn’t have been lured into the thriving tech ecosystem of the country with its rich reservoir of mathematicians, renowned research institutions, and a government tax credit extremely beneficial for research? A venture in the field of Artificial Intelligence (AI) seemed unstoppable. Ah, those were the days!
Make no mistake, this was no random frenzy. The sophistication and rigor offered by French research institutions were, and continue to be, no small fry. The benefits of the crédit impôt recherche, a.k.a the research tax credit, was no less than winning the jackpot for these startups. Imagine this – your company needs to spend money only on salaries, social security contributions and operation expenses, with an extra 30% tacked on for ‘expenses.’ Not the worst deal on the planet, is it?
However, this grand narrative hit a bit of a snag when the French Presidential election knocked on the door. And boy, did things get dicey! Suddenly, the indefatigable AI startups started grappling with the electoral uncertainties, having the future of AI in France precariously hanging in the balance. Oh, the drama!
Emmanuel Macron’s election was a mixed bag for these ventures. Although the new President did have a soft spot for startups, his approach toward labor laws and the tax credit left many entrepreneurs scratching their heads. It was a bit like going to a party only to find out there’s no cake. He instituted reforms that took a harder line on labor and unfortunately, bid adieu to the research tax credit. Talk about raining on the parade!
The semi-conclusion here? The French AI startup scene is not exactly cruising down sunny boulevards, croissant in hand. With the uncertainties around labor laws and the sudden disappearance of the research tax credit, it’s safe to say, the party isn’t in full swing anymore.
But hey! Remember that resilience is built into the DNA of any startup. And when you’re part of the vibrant tech ecosystem in the land of Molière and Coco Chanel, perhaps even the touch-and-go political scenery can’t put out your spark. So here’s to navigating the ups and downs of this roller coaster ride. C’est la vie, non?