Should France even want to be another Silicon Valley anyway?

If there’s one thing I have a low tolerance for, it’s France-bashing. Sadly, it seems to be a default sport for many journalists. Whenever they have nothing better to write about, a little critique of the oh-so-traditional French Republic will surely fill up the sapce. Take The Economist, for example. It’s a magazine that I actually still highly admire. But I remember reading this one article not too long ago about how London was just all the more attractive for the young, French population – because “France itself is hardly booming.” Uh, right.

Having second thoughts ?

(Some  anti French-bashing humor to lighten the mood)

But then, as if the magazine had suddenly woken up to reality, it decided to follow-up with an article on how startups are actually helping to jump-start reform in the economy. Yes, the media actualy finally picked up on what the article refers to as France’s “silent majority.” This is “the France that does not go on strike…” the France that casually gets ignored whenever the press discusses anything even mildly France-related.  And even better, the article even includes a nice little interview (in English with a twist) with Vente-Privée founder Jacques-Antoine Granjon to prove that yes, good ideas and determination can make big companies – even in France. Now, I don’t want to get ahead of myself, but if the rather traditional Economist is going to change its view of France (even ever-so slighly), maybe it means something.

Still not your average piece of cake.

That being said, France is still not an entrepreneur’s heaven. It’s got its fair amount of administrative headaches and complications. But I’ve said it before and I’ll say it again: US entrepreneurs have it easy. Sure, there are some that think that France will never be like Silicon Valley – but then there are some, like serial entrepreneur Gilles Babinet, that would argue that it is in fact possible.

More than on the right track.

Gilles published a fantastic article in Les Echos -just after the French Government awoke to the fact that Internet companies were responsible for over 700,000 jobs in France -where he made some bold suggestions on how France could help local entrepreneurs make the country an industry leader. Some of his suggestions include developing official university courses dedicated to the Internet industry and multiplying public and private partnerships between universities, research centers and small and large companies. Most of what he proposes actually isn’t foreign to France – it just isn’t as developed or valued as it should be. For example, 3 of France’s top entrepreneurs obviously recognized the need for university cirriculum dedicated to the Internet industry – which is why Xavier Niel, Marc Simoncini and Jacques-Antoine Granjon are launching the Ecole Européenne des Métiers de l’Internet. But in such a centralized State, some of these initiatives may need to be actively promoted by the local administration.

No longer dreaming about Silicon Valley.

But Gilles doesn’t just draw on inspiration from the US to make his suggestions – but from other international models as well (like the Ministry of International Trade and Industry in Japan). Silicon Valley, as incredible as it may be, is not necessarily what France should be trying to be. In fact, France – like all other European countries, currently including the UK – has already tried to make its own Silicon Valley (see the video below, in French).

Fortunately, the country seems to have now recognized that you cannot just cut and paste what works in California on the sunny French Riviera. Therefore, some initiatives – entirely unique to France – have been put into place and prompted innovation and investment in their own way. Some of these include the Crédit d’Impot Recherche, the Statut Jeune Entreprise Innovante – and maybe even the weath tax (ISF) credit for investing in a startup. It takes a little bit of trial and error but I can’t say that these initiatives haven’t had a positive impact in one way or another. But if there is one thing I don’t get, it’s why the Government likes to change some of these startup-oriented benefits on a rather regular basis.

If at first you don’t succeed…

Sure, the Silicon Valley does seem to provide a lot of inspiration for the tech world, whether it be product innovation or stories of rags to riches. France has definitely taken some of the models that have worked abroad and tried to adapt them to the local environment – it’s only natural. And slowly but surely, they seem to be tweeking them to fit the local environment.

Euhhhhh, it’s better when it’s (not only) French.

If there is one thing that the French often take a lot of heat for, it’s being “too” French. I remember in the US, many entrepreneurs used to tell me “but isn’t France is only for French people?” As a foreigner who has known many foreigners in France, the answer is simple: no. There are some hot-shot US entrepreneurs that have left the States to launch projects in France. I also know of some very successful local entrepreneurs and investors that are not of French origin (Spanish, Moroccan, etc.). France may seem somewhat less cosmopolitan than London, but the integration model is also very different and mirrors that of other continental European countries. The entrepreneurial crowd is unique and recognizes the value of being more internationally oriented.

LeBridge.eu

I’ll leave you with a quick word on a new initiative I recently got involved with – because I think it’s a nice way to show how the local tech scene is coming out of its shell. It’s called Le Bridge and it’s an organization that aims to help connect the various European entrepreneurial scenes through events (in English!) and whatnot. For now, it’s primarily targeted towards bridging Paris and London but additional European cities will likely follow. And I wouldn’t be surpirsed if an interconnected European startup scene doesn’t catch the eye of our friends in Northern California…

PS/ Yes, Axelle’s article is what prompted me to write this – but I think deep down inside she was trying to communicate a similar message 🙂

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13 hot French entrepreneurs under 30

I’ve been wanting to do a post on this topic for a while – because whenever someone tells me that it’s insanely difficult to launch a start-up in France, I chuckle to myself and think: “Hey, if 20-something-year-olds are doing it fresh out of school, it can’t be that hard, right?” I also have recently noticed that becoming an entrepreneur from a young age is becoming more à la mode – so here is my list to set the record straight.

Hot or not?

The trouble is there are actually a lot of young entrepreneurs out there. This list is insanely far from exhaustive and is just a few names that I think are likely to stick around for a while. As the entrepreneurial community is predominantly male, I should also probably clarify that by “hot”  I am referring strictly to their start-ups. After all, this is not my attempt to be the Franco-version of Valleywag. PS. You’ll notice that I’ve chosen 8 companies and 13 names.

1. Jonathan Benassaya & Daniel Marhely (Deezer).

The Deezer boys are behind one of the hottest – if not the hottest – online music company to come out of France. While they are still incredibly young, Daniel (25) and Jonathan (29) kicked off their entrepreneurial careers in 2004 and 2005 respectively. Yep, Daniel was still a teenager at the time.

2. Eric Bennephtali (MediaStay).

As the story goes, this 26 year old started his internet career in middle school. He then went on to drop out of school at the age of 13 to launch the internet performance marketing company we currently know as MediaStay – which is also the publisher of games sites like Kingolotto and Grattages. Yes, that makes another one for the drop-out club!

3. Ronan Pelloux & Julien Mechin (Creads).

The 25-year-old team is behind the online participative ad and logo creative platform, Creads, that gives internet allstar Gilles Babinet’s Eyeka a run for its money. Oh, and the 2-year-old company already counts international offices in Spain and Japan.

4. Simon Istolainen (PeopleforCinema, MyMajorCompany, Architurn…).

Yes, he’s been an entrepreneur since 2008 and the 25-year-old is already on his 3rd company (he just announced Architurn, after MyMajorCompany and PeopleforCinema). The participative investment platform model seems to have been very good to him, in both the music and film distribution spaces. But my favorite part about this kid’s success story is that he studied the farthest thing from entrepreneurship and tech in school: that’s right, anthropology.

5. Céline Lazorthes (Leetchi).

Leetchi is the first company of this 27-year-old lady and she’s already got big names like Oleg Tscheltzoff, Jérémie Berrebi and Xavier Niel backing her platform for group gift purchases. Nice.

6. Stéphanie Pelprat (Restopolitan).

The 26-year-old founder of a French company, Restopolitan, that dares to compete with OpenTable has entrepreneurial energy spewing from her veins. As she’s got a few more tricks up her sleeve, she’s not likely to disappear.

7. Boris Saragaglia, Paul Lorne, Jérémie Touchard (Spartoo).

The Spartoo trio (Boris pictured) started right out of school, back in 2006, when the sum of their ages was less than 75 (I’ll let you figure this one out). Today Boris (27), Paul and Jérémie run the très successful French/European equivalent to Zappos. These kiddies also scored €12 million in January. Hello, Jeff Bezos?

8. Hadrien Gardeur & Loic Roussel (Feedbooks).

The 26-year-old team (Hadrien pictured) started their digital publishing/distribution platform, Feedbooks, back in 2007 with a very international vision. The company definitely knows what it’s doing in the English-speaking market, as does Hadrien who is brilliantly bilingual.

More than Mark Zuckerberg.

There are definitely numerous companies that I could add including the boys at Owlient, Ykone, Cafédelabourse or the coed team over at Likiwi. And another one that almost made the list: Benjamin Bejbaum from DailyMotion. Feel free to add more youngster entrepreneur names that come to mind in the comments.

A Penny For Your Thoughts?

This is a really quick post regarding this week’s upcoming TechCrunch Paris event at LaCantine on March 24th. The event is currently sold out.

Huh?

As I’m moderating the women’s panel, I thought I would take the opportunity to get any lingering questions/comments prior to the event. Take a look at who is on the panel:

Céline Lazorthes

The 27-year-old behind Leetchi.com, who recently raised a round with Xavier Niel and Jérémie Berrebi’s Kima Ventures.

Béatrice Jauffrineau

The founder of Femmes Business Angels, an organization which has helped women invest in companies like Jiwa and Alenty – as well as women-founded companies.

Marie Ekeland

The only lady partner on Elaia Partners team, a French VC firm which has made killer investments including Goojet, Criteo and Wyplay.

Olivier Billon

The 26-year-old male co-founder behind online female fashion guide, Ykone. Oh, and also one of the first success stories to come out of the Sciences Po incubator.

Questions. Comments. Concerns.

Wonder what problems female entrepreneurs and investors run into in a male-dominated tech space? Or maybe what issues a male entrepreneur may run into in a women’s fashion market?  Perhaps being of a minority gender presents secret strengths? If there is something you’d like our panel to share or discuss, feel free to slip in a comment or shoot me an email – my contact details can be found here.

Have You Seen Me? 9 French Entrepreneur Names to Know

Talk to anyone from Silicon Valley about French names in hi-tech and you’ll systematically get the 3 same answers: Loic Le Meur, Jeff Clavier and Pierre Omidyar – if you’re lucky.

But how about French entrepreneurs in France?

In an earlier post I suggested putting French entrepreneur success stories on milk cartons to remind us all of the home-grown sensations. So why not take a minute to consider 9 home-grown French hi-tech names-to-know ?  The list is ideally in some type of order, but then again not really.

Gilles Babinet.

This man is a French serial entrepreneur to know – creating his first company at age 22 back in 1989 (a few years ahead of Zuckerberg?). Some of his success stories include Absolut (acquired by Euro RSCG) and Musiwave (acquired by Openwave and later Microsoft). He recently co-founded 3 hot start-ups including Eyeka, Digicompanion and MXP4.

Jérôme Rota.

This guy is the mastermind behind DivX – the technology and now the company. While he later went on to co-found DivX, Inc. in San Diego, California, Rota initially developed the technology back in 1998/1999 in Montpellier as a 20-something-year-old. But I don’t need to convince anyone that French engineers are la crème de la crème, do I?

Roland Moreno.

Yes, ok, it’s not exactly hot off the press but it’s far from trivial. Wonder why France is so ahead of the US when it comes to electronic ticketing? This is the French face behind the invention of the smartcard in 1974 – now used in just about everything. The following year, he went on to launch Innovatron. And last I heard, he gave everyone a scare in 2008/2009 with rumors of a risky health situation.

Xavier Niel.

The co-founder of Iliad (who has the ugliest website ever – not like it matters) is part of the reason I pay far less for internet in France than I ever did in San Francisco – but I’ve applauded his contribution to the invention of triple-play Freebox before. In addition to Iliad, he also co-founded WorldNet, which was bought by KapTech (Neuf Cegetel) for €40 million in 2000. He recently co-founded seed-fund, Kima Ventures, with Jérémie Berrebi. Oh – and if I’m not mistaken, he’s also part of the college drop-out club. Nice.

Pierre Chappaz.

This guy was not only of the co-founders of Kelkoo (acquired by Yahoo) but has also been behind the successes of Wikio and Netvibes.

Yves Guillemot.

Guillemot is one of the 5 faces behind France’s video game giant, Ubisoft. The Guillemot brothers have also founded a number of additional companies (7 total) – including Gameloft and Guillemot, which both went public along with Ubisoft.

Marc Simoncini.

Another serial entrepreneur to know. Simoncini, like Babinet, founded his first company in 1985 at the age of 22. His first real success came with iFrance, which was sold to Vivendi in 2000. He then went on to create Meetic, which has done a great job at blowing everyone else out of the European online dating market and bought Match.com’s European activities last year. Like Niel, he also recently launched a seed-fund, Jaina Capital, with Michel Kubler.

Pierre Kosciusko-Morizet.

The brother of the current Minister of Digital Economy, Kosciusko-Morizet is one of the co-founders behind e-commerce success, PriceMinister. He, too, got an early start – launching his first company in his (incredibly) early 20’s.

Jacques-Antoine Granjon.

Anyone that gets a €2 billion acquisition offer from Amazon’s Jeff Bezos (and additional offers from Gilt and eBay) should definitely make the list – 47-year-old Jacques-Antoine Granjon is the long-haired founder of French success story Vente-privée.

Educate me.

Did I miss someone uber important? There are definitely another 50 people I could easily add. The list is obviously far from exhaustive and highly influenced by my non-expert knowledge. Feel free to add to the comments and enlighten me.

Le Seed: FCombinator and the TechEtoiles

Last week, Zlio’s Jérémie Berrebi and Iliad’s Xavier Niel announced the launch of their new seed fund, Kima Ventures, which I wrote about in TechCrunch Europe. Kima’s aim is to invest between €5,000 and €150,000 in 100 start-ups within the next 2 years.

Uh, that’s a lot of seed.

There’s been a lot of whispering about whether or not this is a good idea. How on earth do they plan to manage 100 companies, let alone make that many investments? With something like 52 weeks/year, Kima would need to make roughly 1 investment per week to reach their goal.

A dime a dozen.

Personally, I don’t really understand the criticism. It isn’t exactly raining seed money in France. And while Niel and Berrebi may be more occupied with making investments than actually managing them, entrepreneurs will have the added benefit of working with 2 of the hottest names in French tech – and their networks. What’s not to like about that? And the relationship comes with a check – better than lining-up at OSEO, no?

Two of a kind.

Funny enough, Marc Simoncini of Meetic announced the launch of a similar seed fund, Jania Capital, only several months before (be sure to check out their gorgeous website). If nothing else, I think France’s seed situation is about to dramatically improve.

FCombinator and the TechEtoiles.

The one model that seems to be locally MIA, is the YCominator or TechStars-type model: also known as mentorship with seed money.  Obviously there is Seedcamp, which is pan-European, but what about a YCombinator program for France? The Founder Institute, which just launched its Paris program, offers the mentorship component without the seed. So until someone decides to put this system into place, Kima and Jaina are essentially the next best thing for seed funding in France.