French Government Highlights Top Startups with New Indexes

The government of France, alongside the La French Tech initiative, has recently published new indexes identifying the nation’s most promising startup companies. These indexes categorize businesses based on performance, with the top 40 designated as the Next40, and the broader top 120 forming the French Tech 120.

Second Iteration of the Indexes

These indexes are relatively new, representing only the second version to be released. A significant portion of last year’s French Tech 120 – 90 companies – have retained their positions in the current index. This year’s list includes 30 new entrants, bringing the total to 123 startups featured in the previous iteration.

Economic Impact and Growth

Collectively, the companies within the Next40 and French Tech 120 generate nearly €9 billion in revenue. They also employ a workforce of 37,500 individuals. Notably, revenue has increased by 55% when compared to the previous year’s French Tech 120.

Here is a visual representation of the French Tech 120:

Criteria for Inclusion in the Next40

Entry into the Next40 is determined by two primary criteria:

• Companies must have secured funding exceeding €100 million over the preceding three years (equivalent to $120 million at current exchange rates), or have achieved unicorn status – a valuation of $1 billion or more.
• Alternatively, businesses must demonstrate annual revenue of over €5 million, coupled with a year-over-year growth rate of at least 30% sustained over the past three years.

Selection Process for the French Tech 120

The remaining 80 startups within the French Tech 120 are selected based on the following:

• 40 companies have successfully raised more than €20 million in funding within the last three years.
• The other 40 are chosen based on their annual turnover and demonstrated growth rate.

Focus on Diversity and Inclusion

The indexes currently reflect limited female leadership; only a small number of startups in the French Tech 120 are led by women. The French government recognizes the need for improved diversity and inclusion within the tech sector.

To address this, a dedicated group will formulate a roadmap and provide recommendations to enhance representation. This group will include representatives from six French Tech 120 startups, alongside individuals from Sista, Tech Your Place, and Future Positive Capital.

Benefits of French Tech 120 Membership

Beyond the prestige of inclusion, membership in the French Tech 120 offers tangible benefits. These companies gain access to a network of French Tech representatives embedded within various public administrations.

This access streamlines processes such as obtaining visas for international employees, securing certifications or patents, and facilitating sales to government entities.

New Support Resources

Two new resources have been added to the French Tech network. Expertise from the Conseil d’État is now available to assist with legal compliance. Furthermore, a partnership with Euronext has been established to provide entrepreneurs with guidance on the process of going public.