Employees receive 84% to 100% of their salary - the government will reimburse companies.Īnd yet, startups are always on the verge of bankruptcy. ![]() More importantly, if your company has to stop its operations, France has a short-time working scheme to avoid layoffs. The French government is mobilizing $320 billion (€300 billion) in liquidity support, which should make it much easier to get a loan as the government is backing loans. French companies that are facing revenue issues can skip tax payments as well as rent and utility bills. “They are also working on innovative products and services that have been particularly useful during the lockdown, such as telemedicine appointments, remote work solutions or deliveries.”įrance has already announced a widespread economic support plan. ![]() ![]() “Startups represent a growing part the economy - especially when it comes to jobs,” Cédric O said in a statement. The French government wants to temporarily bridge that gap with refinancing and liquidity measures - overall it represents $4.3 billion (€4 billion). Some French startups are going to face revenue issues as well as funding issues in the coming months. "France’s Ministry of State for Digital Affairs Cédric O and public investment bank Bpifrance announced a comprehensive support plan for startups this morning. It is worth presenting the commentary published by Techcrunch in full: The French government has recognised the jobs created by the ecosystem and the important contribution tech is making to keep the economy functioning during the pandemic. He has recognised the role of the French innovation ecosystem, and backed it with a $4.3billion package. The UK was among the first to invest in digital to transform its government service delivery of services to the public and has a thriving innovation ecosystem that has grown strongly since the GFC. “If we want the foundation for a recovery to be there after the virus, action has to be taken now. “Early-stage growth businesses are crucial to Britain’s future, but they are being short-changed.” He goes on to say that “Start-ups are in freefall as there is no debt or equity support,” said Jasper Smith of Vala Capital. The UK's stimulus has not yet responded to the startup sector in which so much has been invested and from which so much is expected. We do it all - online, and while observing social isolation, thank goodness we can. We have turned to tech to learn, to communicate, to be informed, to be entertained, to shop, to pay our bills. The innovation and entrepreneurship ecosystem is the backbone of the new economy.īrought into sharp relief is the fact that without it, our economy and our society can no longer function. How did it come to this? Such is the catastrophic financial impact of COVID-19, that no sector, least of all the one that takes the greatest risk, is immune.īefore you write off the startups, scaleups and their high growth success stories, as just the 'tech bubble' bursting, take a moment and think about the where we as an economy and society have turned in this crisis? The tech sector is the economy The infrastructure that supports them is showing signs of stress. Perfectly sound startups are wobbling and desperately holding on as long as possible - thanks to the COVID-19 pandemic. ![]() So when the headline shrieks " Coronavirus: start-ups facing funding collapse" do you put it down to hysteria because we know startups fail all the time. Where do you draw the line? How much stimulus is enough? Who misses out? These are impossible questions to answer when an economy is faltering and people are losing their jobs as a global pandemic unfolds.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |