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I don't have hard data, but only a feeling that it should be easier to bootstrap in France than in US. Assuming you have worked previously, you can get unemploy
by seren 11y ago
I don't have hard data, but only a feeling that it should be easier to bootstrap in France than in US. Assuming you have worked previously, you can get unemployment benefits, around 60% of your previous salary for a year, and are covered by universal healthcare. So even if you need to have open heart surgery, you won't bankrupt your family for the next 7 generations.
Actually someone (very brilliant) in my team is leaving next month to found a start up.
That being said, I also have the feeling that if you have some initial traction, it will be harder compared to US to get some early funding.
PS: I know that trying to compare to SV is a pretty futile exercise, since globally this is a big outlier.
- p0nce 11y ago> around 60% of your previous salary for a year Two years actually, provided you have the right contract termination.
- david_p 11y agoit's more than 70% actually.
- mackwic 11y agoIt's not exclusive. I know many startups who have one foot in the states, one foot in China (when some hardware is needed), and the head in France.
- Mimu 11y agoIf you are a founder without a salary then you get none of that. You are considered unemployed during the whole time you manage your company.
- david_p 11y agoOur startup was created in France 2,5 years ago. Here is our experience: Some of us started working on the project while getting unemployment benefits (huge boost). We get (very) affordable office spaces from the city and various incubators (we are located in Paris). We are able to live on first customers + 0% loans from the state + hundreds of thousands of euros in various grants for innovation (http://www.bpifrance.fr/ http://www.bpifrance.fr/), so we don't need to dilute our shares by raising funds too early. We get no income taxes for the first years. Employees have social security. Healthcare is cheap and very good. Why would we want to start run company anywhere else?
- vixen99 11y agoSo one wonders why there's a problem because evidently there is.
- david_p 11y agoCould you elaborate? Because I see this: http://techcrunch.com/2014/07/01/blablacar-raises-a-massive-100-million-round-to-create-a-global-ride-sharing-network/ http://techcrunch.com/2014/07/01/blablacar-raises-a-massive-... And this: http://1000startups.fr/?lang=en http://1000startups.fr/?lang=en And I see Paris being startup-heaven in a couple of years. And things are already pretty nice!
- fche 11y agoThat degree of risk-eliminating subsidy should indeed light a fire under entrepreneurship (while the gravy train can keep moving). Do you suppose the benefits are commesurate with the costs? IOW, are there enough new companies thusly incubated that become self-supporting or better?
- david_p 11y agoWhat would you say are the costs to compare to the benefits? In my opinion, it would have be extremely difficult to bootstrap our company anywhere else. As everyone knows, getting out of cash is what kills early stage companies. We go access to "free cash" (0% loans and more than 100k€ in grants) and some of our employees got paid on unemployment benefits .. I mean, how much further could you go? We survived thank to this benefits.
- gozo 11y ago"Why would we want to start run company anywhere else?" Rent? And living expenses in general. It's going to be you largest expense bootstrapping, especially since it's post tax. It also gets harder to invite people you know to come work with you and getting a larger/better suited apartment in general (location, contract terns, layout, furnished etc). Not that this is that different from other big cities and I personally think Paris is one of the few that lives up to the hype. Still not preferred for early startups.
- deleted 11y ago[deleted]