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The writer is chairman and co-founder of Founders Forum Group, Founders Factory and Firstminute Capital
One of the most exciting companies in the world right now is Mistral, an artificial intelligence startup based in Paris. In just one year, it has gone from an idea in the minds of its founders to a well-funded company that can compete with companies like OpenAI.
Some of the world’s best international tech talent, including former senior figures from Nvidia and Tesla, are now choosing to start their companies in Paris. Last month, the French tech conference VivaTech attracted more than 165,000 visitors – a new record.
These are all signs that the French technology ecosystem has reached a turning point. We have come a long way from the (once mentioned) stuffy, isolated France of ten years ago, when you could count the number of exciting start-ups on one hand.
What has changed? According to attendees gathered at a small post-VivaTech event we’re hosting, the answer isn’t policy, but something even more powerful: marketing. More specifically, industry figures in France mention France’s youthful President Emmanuel Macron, who has been a passionate advocate for the technology ecosystem since his election in 2017.
“The most important change we have seen in French technology is the election of a young, pro-business president,” said Xavier Niel, the billionaire telecom entrepreneur and investor. “It’s not what he actually changed that mattered most – it’s the image of France that he completely changed.”
Niel’s comments sparked a discussion among attendees, including World Wide Web inventor Sir Tim Berners-Lee, Meta’s chief AI scientist Yann LeCun, Charles Gorintin (co-founder of Mistral) and Jim Breyer, the American billionaire investor, about the power of politicians to shape the image of technical ecosystems for better or worse.
Their conversation left me wondering what the priorities of Britain’s next government are. Will the future Prime Minister shout that Britain is open to entrepreneurship?
While Britain remains Europe’s most vibrant tech ecosystem, crowns could be lost. Some parts of the country’s policies have deteriorated. For example, support for entrepreneurs has fallen from a lifetime cap of £10 million under Gordon Brown to £1 million. Recent administrations have not always had reports on the technology.
Recently a senior British politician told me that there are “no voices in the technology sector”. Does this inspire confidence in our country’s future as a world leader in the sector? Combine that with draconian changes abroad, proposed increases in private equity taxes, burdensome worker protection laws and a looming crackdown on skilled immigrants, and it’s no wonder we’re under threat.
Meanwhile, the French are becoming increasingly founder-friendly. They are copying some of the UK’s pro-entrepreneurship policies, such as the Enterprise Investment Scheme, and going further in other areas. Policies such as the “assignment-cessionThese rules allow founders to reinvest their capital tax-free within two years. Also the “Pact Dutreilcan reduce corporate inheritance taxes by as much as 75 percent. Holding structures also allow for capital protection until dividends are paid. They are also at the forefront of pension funds investing in private assets, with their stock market now positioned to compete with Britain’s. And friendly policies such as the “impatriate” tax regime are more attractive than the British four-year equivalent.
I would like to see the next British Prime Minister make technology-friendly policy decisions. But just as importantly, I would like them to recognize the enormous power of being a champion for the UK tech scene on the world stage.
Labor will soon announce its technology policy and I hope it will be bold, long-lasting and not populist. On the Conservative side, Prime Minister Rishi Sunak is hamstrung by some fanatics in his party, but he is clearly fluent in the technology. He could use this skill to take Britain’s innovators to the next level and turn the country into a global talent magnet. He has already achieved notable success with the UK AI Summit. Britain’s entrepreneurs have many ideas, but the country needs to build a stronger voice.
London Tech Week takes place this week and we’re hosting our annual Founders Forum Global, an event that brings many of the world’s best founders to the UK. It could be an opportunity for French and British technology communities to deepen their collaboration and partnership. But I hope politicians from both sides of the aisle will be inspired to think about how they can amplify the work of the companies mentioned.
I consider myself one of Britain’s biggest cheerleaders. As an immigrant who has chosen to live here for over 45 years, I want this country to continue to prosper. In my opinion it is still the best place in Europe to start a technology company. Yet the winds of change are threatening. We cannot be complacent.