An upsurge in entrepreneurial ambition in France

[Incredibly, the] most striking case of fresh growth is in Paris. Mention of France has long elicited sighs from venture capitalists. Its rigid labour laws and hefty taxes on wealth and on stock options have meant that Silicon Valley has more than its fair share of entrepreneurial French immigrants.  

Thus writes The Economist, that, in spite of France's "rigid labour laws and hefty taxes on wealth and on stock options," we are seeing how

The rise of “deep-tech” is boosting Paris’s startup scene (The capital now leads Europe for the number of venture-capital funding rounds).

That leads to the following reaction:

Home of the entrepreneur

Your article on French entrepreneurs (“Less misérable”, February 25th) suggests that France has become Europe’s most active destination for venture capital thanks to changes in French mentality, the rise of “deep-tech” startups and private initiatives. All your arguments are true but there is one other crucial point: public policies over the past 20 years should also be credited for this success. The French administration has created a tax haven for innovative tech companies. I am an entrepreneur and founder of a firm employing 50 people. The combined assistance of a tax credit for research, the improved status for startups and a state-backed interest-free loan helped us grow. In our first five years we gave nothing back to the state, though that assistance has now been largely returned.

The Economist often criticises the inefficiency of the French state, but on this topic it should delve deeper.

GILLES TOULEMONDE
Chief executive
Inova Lyon