In the previous year, the French government, alongside the government-supported program La French Tech, introduced a directory of French startups designed to simplify their identification. The highest-performing 40 startups are recognized with the Next40 designation, while the leading 120 startups are categorized within the French Tech 120 – a reference to the well-known CAC40 and SBF 120 stock market indexes.

Below is a listing of the 40 privately-owned companies included in this year’s Next40:

This streamlined access is particularly helpful when navigating administrative challenges, such as securing visas for international employees, obtaining certifications or patents, or facilitating sales to government entities, allowing for quicker resolution of issues.

“The most valuable aspect is their ability to request assistance with virtually anything: ‘I’m preparing for business development in China,’ ‘I’m preparing a rocket launch and require access to a testing facility,’ or ‘I’m recruiting 50 individuals and need to arrange relocation for them and their families,’ ” explained Kat Borlongan, director of La French Tech, in a previous conversation.

Currently, the government is undertaking a revision of the index, requiring interested parties to reapply and meet the same criteria as in the prior year.

To be considered for inclusion in the Next40, startups must demonstrate they are independently operated French businesses and meet one of the following conditions:

• They have secured funding exceeding €100 million within the last three years, or their company is valued at $1 billion or more, automatically qualifying them for the Next40.
• They have completed a significant funding round in the past three years and have generated over €5 million in revenue, accompanied by a year-over-year growth rate of 30% or higher over the same period.

Regarding the remaining 80 startups that comprise the French Tech 120:

• 40 will be chosen based on having raised more than €20 million in funding during the previous three years.
• The remaining 40 will be selected according to their annual revenue and growth rate.

The composition of the Next40 is dynamic, with some companies potentially leaving the index while others join.

“Over time, some companies will cease operations, while others will be acquired by both French and international organizations. This is a natural and positive development,” stated France’s Minister for Digital Affairs, Cédric O, during a press conference.

Two recent developments are noteworthy. First, the government has partnered with Euronext to provide education to entrepreneurs regarding the process of becoming a publicly traded company. France currently has a limited number of publicly listed tech companies, and the government aims to encourage more to pursue this path.

Second, in January 2021, the government will also identify 20 greentech startups to grant them access to the same expedited support programs. This will be a distinct, separate listing.