Banque Populaire and Pramex International have recently carried out an exclusive study about the strong international development of French startups abroad.
Key facts and figures about the French startups
While the number of startups is sharply increasing in France, no less numerous are the ones willing to expand internationally.
- The number of new startups has increased at an annual average of 20% since 2006.
- The number of internationalisation projects led by startups has increased at an annual average of 37%.
- More than 50% of the startups have more than 2 subsidiaries abroad. In 2016, the French startups accounted for 20% of the projects of subsidiary creation abroad.
- In average, the launch of a first subsidiary abroad for a startup occurs only 4 years after its creation.
Which countries and cities are targeted by the startups?
- The French startups expanding internationally target neighbouring markets at first: 42% of the creation of subsidiaries occurs in an European country, mainly in the UK, Germany, Italy or Spain.
- 26% of the implantations occur in the US, making it the most popular destination. Asia is also well popular with Singapore, Hong Kong or China.
- More than 70% of the implantations are focused on only 15 cities. London is the most popular destination, followed by New York, San Francisco, Madrid, Barcelona, Sao Paolo and the Asian cities like Singapore (8th), Hong Kong (10th) and Shanghai (15th).
Which activities drive the international expansion of the French startups?
3 main sectors:
- The AdTech (digital advertising) and MarTech (marketing) sectors: 33% of the implantations
- Leisure activities, tourism and fashion: 9% of the implantations
- Transportation, smart cities and infrastructure: 8% of the implantations.
According to André Lenquette, CEO at Pramex International, in the past three years, 1/3 of the international expansion projects were related to a first settlement abroad, suggesting that the number of these projects is expected to rise sharply. To cope with this trend, Pramex International has recently set-up new offices in Barcelona, San Francisco and Singapore to better serve the French Startups in their international development, along with other 14 offices worldwide.
You can download the PDF version of the study (in French) here: www.implant-up.com/landing-pages/etude/
PRAMEX INTERNATIONAL LIMITED
See below for more content from the French Chamber.