France pledges €4bn cash injection to new business startups

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France is rolling out a €4bn liquidity support plan dedicated to its startups, stepping in to address the cash concerns brought about by the coronavirus crisis.

“Because of the specificity of their development model, dedicated emergency measures had to be taken,” said Cédric O, France’s minister of state for digital affairs, in a statement on Wednesday.

“Startups will benefit from nearly €4bn to improve their cash position.”

The French government has already unveiled a series of measures, from tax breaks to unemployment aid, aimed at helping businesses cope with the impact of the coronavirus pandemic, and the imposed confinement meant to contain it.

The latest announcement addresses financing issues more specifically, as investors take a colder approach to fundraising. It includes financing bridges between two fundraising rounds, treasury loans, and more on tax breaks and grant payments.