France is setting up a 4 billion-euro ($4.3 billion) package to help the country’s startups survive the coronavirus pandemic and maintain cash levels between fundraising rounds, reports Bloomberg.
“Our goal is for startups to pass that crisis and then continue with their growth,” digital minister Cédric O said on Radio Classique on Wednesday. “Startups represent between one-sixth and one-fifth of jobs created in France today, so it’s extremely important.”
The French Finance Ministry, together with state-backed investor and lender Bpifrance, said the plan will include 80 million euros for bridge funding, targeting startups whose fundraising plans were stymied by a contraction in venture capital activity.
The funds will be co-financed by private investors for a total of at least 160 million euros, the ministry said in a statement.
Another 2 billion euros will go toward providing state guarantees for loans so that borrowing will cost less. The rest of the package will come through in tax breaks.