Billionaire's Paris Startup Hub Growth Shows Ecosystem Progress
(Bloomberg) -- Billionaire Xavier Niel’s 250 million-euro ($285 million) bet that mega-campus Station F would help Paris become a global tech startup hub may be starting to pay off.
Entrepreneurs working out of Niel’s institution have collectively raised more than 567 million euros since the June 2017 inauguration, more than half of which arrived over the last financial year, Station F Director Roxanne Varza said in an interview. And in a move similar to WeWork’s expansion into communal residences, Station F is now adding housing for members, with three buildings opening to host 600 entrepreneurs with competitive rental prices.
"France’s image is changing and starting to be perceived as more business-friendly,” Varza said, adding that 41% of the 1,000-plus startups on campus have now tapped investors.
Built on the site of an old train station and financed by Niel’s own money, the 34,000-square-meter venue has expanded from desks for rent to host venture capitalists and corporate-backed programs for entrepreneurs, from Facebook Inc.’s data-focused “startup garage” to an artificial intelligence program by Microsoft Corp.
Station F’s growth comes as co-working giant WeWork Cos. snaps up real estate at a rapid clip in Paris (it has eight sites in the French capital, with seven more listed as opening soon according to its website), and has already started offering communal residencies and even a private elementary school arm in the U.S.
Putting the French capital on par with Silicon Valley for technology investment and innovation is ultimately Niel’s goal. While that’s still far off, the French investor and telecom tycoon has managed to attract some U.S. talent to Station F. American entrepreneurs are the second biggest group, after French people, and make up about 7% of people at the Paris campus.
France’s startup ecosystem also attracted record levels of VC funding during the first three months of 2019, with nearly $1 billion raised during the quarter, according to data compiled by KPMG.
“The ecosystem is still in takeoff stage -- I think it can grow into something much bigger still,” Varza said. “It’s already getting a lot of interest from international investors though, and Paris is being compared more and more to Silicon Valley.”
While France still needs to demonstrate its ability to churn out world-dominating technology companies, it’s extending its list of homegrown unicorns, with recent additions including photoshoot platform Meero Ltd. and doctor-appointment booking app Doctolib.
Recent rounds by companies with a Station F footing include cybersecurity provider Alsid’s 13 million-euro raise in April, and e-sports contender group Team Vitality’s 20 million euros in November.
To contact the reporter on this story: Marie Mawad in Paris at mmawad1@bloomberg.net
To contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate Lanxon
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