The rationale for an emerging offer
The 26 unicorns by the end of the year 2021, reminding that the economic stakes of the world of start-ups are particularly important. A rush that takes different forms and turns depending on the initial motivations of the entrepreneurs. Mainly towards the realization of change, the social context motivates certain trends such as a genuine desire to contribute to society. To this end, start-ups offer solutions to all sectors of activity and specifically to new trends such as industrialization and French sovereignty. From e-services in the industry, through sustainable development and IT applications, start-ups are forming an immense catalog that, over the years, has been interested in giants to boost their growth.
Large groups that need flexibility
Like the group One point, mergers and acquisitions with the goal of expanding its previous presence in a market are recurring objects, but we cannot consider the same issues for acquiring start-ups. The latter does not in any way constitute a market share but rather a change: the acquisition of a start-up reflects a desire for change within a structure. This occurs with the possibility of attacks on new markets, such as examples of Thesis by taking sweep (in the digital sector) and Boiron in obtainingABBI (in the pharmaceutical sector).
From a different perspective, the innovation brought about by start-ups is seen as an opportunity for large groups to modernize their process and not directly ensure their sustainability. This is the recent choice of some players like TF1 when earned Gamed but also Doctolib in obtaining Tank. Gamed at Tank are specialized start-ups in their respective fields, marketing and cybersecurity. The purchase of these companies will make it possible to recover an operational payroll and reduce the risk of acquisition in a legislative context that does not provide any flexibility on the issue.
Between flexibility and social constraints
Like the budget of 2.3 billion allocated to French start-ups with the aim of increasing the capacity of France’s industry, the government supports these innovative players, primarily through a recovery plan. They stimulate the economy, making it possible to overcome structural problems such as job flexibility, which directly affect risk taking in launching new projects for large organizations. For France and Europe, it makes it possible for start-ups to take advantage of new approaches in half mast sectors such as the agricultural sector. Faced with a crisis in the agricultural sector, France is playing the adaptation card and implementing a view that completely violates the subsidy policy in recent years. Perhaps this is an open door towards the end of an excessive taxation system. As the automotive sector that taxes continue to rise, until manufacturers align themselves with the government’s projection for France tomorrow. This is the open door to a government that invests in French companies, with the aim of supporting the companies in accordance with government policy. One way to support the economy is by investing in innovation, which for the agricultural sector is a way to thrive in the face of social, ecological and economic issues. Extrapolating the concept, the fact that the government has one foot in theequity would be a great way to keep its technologies from foreign acquisition.
In so many crises about employment, health and resources, the question of flexibility no longer remains to be reflected: it has become an important question. The reality is that start-ups are no longer necessarily initiators of new products and services but are supported by institutions to overcome the structural problems of the private sector. The question now is to be aware of this angle of the chessboard to demonstrate versatility in economic intelligence issues (calls for tenders, monitoring, project management, competitive positioning). It is in this budgetary and structuring dynamics that the acquisition fever will not soon stop.
Adrian Daugan for AEGE Start-up and Innovation Club