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France’s Macron to bet on the private sector in order to fuel and start the push

PARIS (Reuters) – France aims to raise up to 5 billion euros ($5.53 billion) in funding from private investors and the French companies have a leg up and help you to be the most promising ones to continue to grow, the President and Emmanuel Macron said on Tuesday.

FILE PHOTO: france’s President and Emmanuel Macron, on a flight to Bonneuil-sur-Marne, France, on September 10, 2019. Ludovic Martin/Pool via REUTERS/File Photo

Macron, who came to power in mid-2017, at a business-friendly platform, it has sought to encourage investment and to promote the French tech scene, and, inter alia, by a high-profile conferences, the collection of external venture capitalists and is a French start-ups.

“The capital city of struggle, is the key. If we want to fight this battle and win, we have to have in order to be successful in the raising of more capital, faster, and stronger,” he said at an event at the Elysee palace on Tuesday.

France has been pushing in other European countries, to attracting investors and emerging tech companies, and chip away at the heart of London as a startup hub, as Britain edges closer to leaving the European Union on Oct. 31, it is possible without using a computer.

Investment in French start-ups have increased dramatically over the past few years, on the back side of the lower tax rates on income from capital, and with high hopes for a more business-friendly administration under the Macron, a former investment banker.

Funding for the sector jumped 41 per cent to 3.6 billion in 2018, a year earlier, according to consulting firm Ernst & Young, which in France is on the third place in Europe after great Britain and Germany.

But in spite of this, a growing number of digital businesses in France have to have a substantial-tech firms are able to compete with Silicon Valley.

The government now wants to boost bigger start-ups with a chance to make their mark internationally, through the development of more so-called unicorns, or business that has a value of more than $1 billion.

“We need to promote the tech giants so that they will be able to compete on the same level as Uber or Airbnb,” the French minister for digital affairs, Cedric O), told Reuters in an interview before the race at the Elysee.

The US-based ride-sharing service Uber Technologies Inc. UBER.N), which is listed on the New York Stock Exchange earlier this year, and the rental site is on Airbnb is expected to go public next year.

France wants to lure the unicorns from the other parts of Europe, including Italy, the Netherlands, and to encourage them to keep their stocks in Paris, said.

The € 5 billion for the financing of the work will have to be made over the next three years, Macron said.

The funding will be gathered from a leading French institutional investors. Some 2 billion euros will be earmarked for late-stage start-ups, with the rest to spend on the ones that have already been mentioned.

A French official said the French insurers AXA SA (AXAF.PA) and CNP Assurances SA (CNPP.PA) and asset management Amundi SA AMUN.PA) and Natixis’s Investment Managers, were among the institutional investors that have undertaken to make a contribution.

Macron has been playing a balancing act as a champion for the tech start-ups, such as in France, is also a strong supporter of the imposition of an EU-wide digital tax the tech companies. It has taken a charge in the interior right now, so that the resistance of the US President, Donald Trump. ($1 = 0.9038 euro)

Reporting by Mathieu Rosemain; Editing by Sarah White and Peter Cooney

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