Inflation, falling tech stocks on the stock market, harder access to funding, French startups are subject to the same economic turmoil as their North American, German or British counterparts. But they are doing better on the recruiting side. This is one of the main lessons of the study by the American fund NGP Capital, which notably finances the micromobility operator Lime, the Getaround ride-hailing or the language learning app Babbel.
To carry out this analysis – which covers the first six this year – the financial sponsor collected data from around 12,000 start-ups and examined around 275,000 job offers. The analyzed companies are up to ten years old, are backed by venture capital funds and are headquartered in Europe, North America or Israel.
According to the report, with only 9% less recruitment, the young tricolor shoots would therefore be the most resilient on this front. In comparison, their German counterparts saw a drop of 60% and their British counterparts 38%. As for North American nuggets, open positions fell by 39%. These numbers are part of an overall downward trend, with 40% fewer offers. This equates to a weekly volume of opportunities increased from 15,000 to 8,800, according to the NGP calculation.
At the industry level, startups in the B2B industry are doing better than their B2C counterparts, with a 40% and 60% drop in job opportunities, respectively. In terms of profiles, sales positions are the most affected by the exhaustion of offers (-48%). Tech jobs (-45%) and operations-related jobs (-39%) are up.
Finally, the study shows that startups that only raised grades A or B see their recruiting ability more affected.
The “Most Robust” French Start-ups
This better resilience of France’s nuggets in recruitment doesn’t surprise Yann du Rusquec, managing partner of the growth team at French investment fund Eurazeo: “Overall, French startups have more robust business models than their North American counterparts. Even though tricolor nuggets make less money, they are more profitable. Entrepreneurs in France are also more cautious in their management and demanding in recruiting talent. Along with a more protective French labor law for employees, it is not surprising that country nuggets lay off less and recruit more. »
Overall, French startups have more robust business models than their North American counterparts.
Yann du Rusquec Growth of Eurazeo’s Managing Partner
Same story with Marianne Tordeux, Public Relations Director at France Digitale: “French start-ups are almost in the process of surpassing the amount of funds raised in 2021, when we are in the middle of 2022. When we know that a large part of the funds raised by start-ups are directly injected into recruitment, which is undeniably a good sign for French start-ups. »
Increase layoff plans
But it is worth remembering that, in general, the talent market among startups remains tense, with social plans multiplying. In the tech sector, there would be around 50 in May alone. These include Turkish grocery delivery company Getir (4,500 employees laid off), Swedish fintech company Klarna (700 people), online event specialist Hopin (138 employees) or German fast-food retailer Gorillas, which acquired the French Frichti scale in early 2022.
And Marianne Tordeux, from France Digitale, mentioned another problem, the shortage of talent in certain key professions: “Recruitment remains the main obstacle to the development of start-ups. (…) It is imperative to urgently implement an ambitious strategy, namely in terms of training, to compensate for the lack of technology profiles. The goal: to train at least 500,000 developers and IT specialists over the next 5 years. »