Why France's largest VC is government-owned
In just over 10 years, Bpifrance has reshaped the French startup ecosystem
A century-long collaboration
In 1923, the French government set up the Crédit National Hotelier to help the country’s tourism sector recover from WWI’s pandemonium. Almost a century later in 2012, through the merger of various state-owned entities, the French government created Bpifrance to help French entrepreneurs revitalize the country’s economy.
Bpifrance’s formation wasn’t a trivial matter. It came in response to a worrying observation surrounding France’s deindustrialization. Epitomized by the “Rapport Gallois”, French public authorities started waking up to the risks of an unproductive economy. The onus was put on boosting France’s industry, whose decline jeopardized jobs and economic competitiveness.
“There can't be a strong economy without a strong industry” - Rapport Gallois
Since its founding, Bpifrance has been led by the same man, Nicolas Dufourcq. The former telco executive seemed fit for the job. He has been one of the leading advocates against, and analysts of, France’s industrial decline. He even wrote a book about the topic.