What the rest of Europe can learn from France about defence startups
France has emerged as a leading European hub for defense startups, driven by significant regulatory and financial reforms. Over the past two years, the French government has implemented changes across immigration, venture capital, and procurement, creating a more attractive environment for companies focused on defense and dual-use technologies. This transformation reflects a strategic initiative to bolster European innovation in a time of geopolitical instability. A key element of this transformation is the simplification of regulations, notably through the French Tech Visa. This fast-tracked "Talent Passport" offers founders, employees, and investors a streamlined path to residency, accelerating visa processing times. Further reforms, effective since June 16, 2025, have improved immigration procedures and expedited EU Blue Card issuance. A "one-stop shop" for startups, the Agence Innovation Défense (AID), was launched by the Ministry of the Armed Forces. AID streamlines the process for startups to interact with the defense sector, providing a clear entry point for submitting ideas, receiving feedback, and securing funding. In Q1 2025 alone, AID received around 75 project proposals and allocated about €20 million in grants. The French startup ecosystem has attracted considerable investment. Between 2022 and 2023, French startups raised approximately €13.5 billion, a figure that climbed to over €15 billion between 2023 and 2025. This financial influx has positioned France as the second-largest venture capital market in Europe, signaling strong confidence in its tech sector.
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