The rationale for an expanding supply
O 26 unicorns from the end of 2021 remind us that the economic stakes of the start-up world are particularly important. A rush that takes different forms and turns depending on the entrepreneurs’ initial motivations. Mainly aimed at carrying out innovation, the societal context induces certain trends, such as a real desire to contribute to society. For this, start-ups offer solutions in all sectors of activity and in particular in new trends such as industrialization and French sovereignty. From electronic service to industry, through sustainable development and computer applications, start-ups constitute a very extensive catalog that, for several years, has interested the giants to boost their growth.
Large groups that need flexibility
as the group A dot, mergers and acquisitions with the objective of expanding their existing presence in a market is something recurrent, but we cannot consider the same issues for the acquisition of start-ups. The latter are by no means a market share, but an innovation: the acquisition of a start-up reflects a desire for change within a structure. This materializes in the possibility of attacking new markets, as the examples of Tesi through the acquisition of sweep in (in the digital sector) and boiron in the acquisition ofABBI (in the pharmaceutical sector).
From another perspective, the innovation brought by start-ups is seen as an opportunity for large groups to modernize their processes and, indirectly, ensure their sustainability. This is the recent choice of multiplayer like TF1 when acquiring It played but also Doctolib with the acquisition of Tanker. It played and Tanker are startups specializing in their respective fields, marketing and cybersecurity. The purchase of these companies makes it possible to recover an operational payroll and minimize the risk of hiring in a legislative context that does not offer flexibility in the matter.
Between flexibility and social restrictions
How the budget of 2.3 billion allocated to French start-ups with the aim of increasing France’s industrial capacity, the government supports these innovative players, in particular through a turnaround plan. They make the economy more dynamic, which makes it possible to overcome structural problems such as the flexibilization of employment, which directly impacts risk-taking in launching new projects for large organizations. For France and Europe, start-ups make it possible to explore new avenues 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 vision that completely breaks with the subsidy policy of recent years. Perhaps, then, it is an open door to the end of an excessive taxation system. Like the automotive sector whose taxes keep rising until manufacturers align with the government’s projection for France of tomorrow. It is an open door for a government that invests in French companies, with the aim of supporting companies in accordance with government policy. A way of supporting the economy by investing in innovation, which for the agricultural sector would be a way of evolving in the face of social, ecological and economic issues. Extrapolating the concept, the fact that the government has one foot inequity it would then be a good way to keep your technologies away from foreign acquisitions.
With multiple crises in terms of employment, health and resources, the question of adaptability is no longer demonstrated: it has become an essential issue. The fact is that start-ups are no longer necessarily initiators of new products and services, but are supported by institutions to overcome the structuring problems of the private sector. The issue today is to be aware of this angle of the board to show versatility in matters of economic intelligence (public tenders, monitoring, project management, competitive positioning). It is in this budgetary and structuring dynamics that the acquisition fever will not stop.
Adrian Daugan for the AEGE Start-up & Innovation Club