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French finance institutions join behind Macron's startup push

Following President Emmanuel Macron's pledge to raise 5 billion euros from private-sector investors to help startup businesses flourish in France, the major state investment arm, the Caisse des Dépôts has announced a 100 million-euro programme to help small caps in conjunction with the creation by Euronext of a new index for small tech firms.

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State-backed lender Caisse des Dépôts (CDC) said on Wednesday it was teaming up with Euronext, a pan-European stock exchange, to raise the profile of French startups and attract new liquidity, reports Reuters.

The announcement comes a day after President Emmanuel Macron’s pledged to raise 5 billion euros in funds from private-sector investors to give French startup companies a leg up and help the most promising ones grow further.

In a joint statement, CDC announced a 100 million-euros ($110.64 million) investment programme dedicated to small caps while Euronext said it was creating a new index, the Euronext Tech Croissance, for small tech firms.

“In rolling out this investment programme, we aim to step up our presence in the listed small-cap Tech segment and help keep the market active,” said Olivier Mareuse, CDC’s Chief Investment Officer.

France is jostling with other European countries to lure investors and budding tech companies and chip away at London’s lead as a startup hub, as Britain edges closer to leaving the European Union on October 31st, potentially without a deal.

Read more of this report from Reuters.