Jump to content
  • Guest
    Guest

    Sign in to follow this  

    Europe Fintech Scene: Paris vs London – who wins?

    The competition for the top tech spot is fierce in Europe right now. The Parisian start-up scene has been growing drastically in the last few years, but the advantage remains with London which is already celebrating a record year for investment in 2017. There are two reasons for Paris to challenge London’s lead: the winning combination of a successful Fintech universe with highly qualified professionals moving from the City Of London; and the entrepreneurial spirit which makes it a magnet for international talents and investors.

     

    The Paris tech scene has done remarkably well in 2016, almost catching up with London with a record €2.9 billion invested in the French-Tech (+80% yoy) versus €3.5 billion for British start-ups. Government policies and investments in infrastructure paid off: the bureaucracy around setting up companies has been simplified, generous tax breaks on R&D drove down the cost of labour in the tech sector, and the BPI (Banque Publique d’Investissement) a mostly government funded investment fund invested approximately 2 billion in start-ups over the last few years. Last but not least, billionaire Xavier Niels has been an excellent PR for promoting Paris, and he opened the world’s largest incubator: Station F last year. As expected, this significant effort favoured a huge wave of young local entrepreneurs, and 2016 was their coronation year.

     

    The London tech scene, on the other hand, is more mature than Paris as demonstrated by the valuations of successful exits in 2016, £41 billion in the UK versus €3 billion in France. The success of London is built on two pillars: first, the City of London with its technical complexity and its huge international talent pool. The investment and finance industry has been in constant change and restructuring during the past 9 years. This has created opportunities. In 2016, 22% percent of investments in British start-ups were made in the Fintech sector versus 7% in France. This is just the tip of the iceberg as many professionals move on from the financial sectors to tech start-ups operating outside of the Fintech industry. The second pillar is the SEIS program offering huge tax reliefs to angel investors. The second pillar is the SEIS program offering huge tax reliefs to angel investors and hence making it easier to get a first seed in start-ups. As of 2016, the UK had 16,000 registered angel investors versus 8000 in France.

     

    It’s fair to say that the French way is substantially based on government investments, the BPI alone accounts for about 25% of investments in French Start-ups. The British system, as described above relies more on incentivising private investors with significant tax relief; a minimum of 50% of the money invested and when remaining invested for 3 years no capital gain tax. Both amount to the government providing a financial boost but each lead to different outcomes. This is not new, French capitalism has always worked this way, and the government has always seen the return on its investments with a high number top-notch global companies. On the downside, capital gain taxes (among others) are higher in France than anywhere else in Europe, and from a foreign entrepreneur perspective, getting into the public investment programmes requires networking, understanding of the bureaucracy, administration, and local culture even though you can apply in English. In other words, a foreign entrepreneur coming to France meets the inconvenience first and the advantages later. For as long as we live in an open world, I believe these drawbacks will always give London the edge over Paris.

     

    To conclude the Paris vs London debate: the key to success is in international talent. London wins for now.



    Sign in to follow this  

    Share this  

    Member Feedback

    Recommended Comments

    There are no comments to display.



    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now

  • Our picks

    • With Investment Management being increasingly impacted by the growth of FinTech, the industry needs to better understand how people feel about these changes. 
       
      We would appreciate you completing our short survey, and sharing it with your friends and colleagues. We will publish the results in the community in the near future.
       
      Share this       Share this  
       
       
      If you have any issues you can also complete the survey here
        • Like
      • 0 replies
    • So with all the discussion ongoing, it is difficult to keep track as to what the timelines are, so I thought that I would pull together an overview of it based on various articles in the media 
       
        • Like
    • In the Deloitte Millennial Report 2018, a clear step change was noted. It stated this particular generation is ‘feeling uneasy about the future. The growth of Industry 4.0 technologies—from robotics and the internet of things to artificial intelligence and cognitive—has altered the nature of work, while political upheavals challenge the established world order.’ 
       
      Against this daunting backdrop however there appears to be quite a clear resolution to these issues and this comes in the shape of mentoring. 
        • Like
      • 0 replies
    • Here at AlgoMe we know that one of the best ways to grow our community is through the recommendations of our existing members.
       
      That's why we're offering members the opportunity to win an iPad by simply inviting your friends and colleagues to join the community*.
       
      To be eligible, use the inbuilt invite function, which you can find in the user-bar at the top of the site or app when signed in (), to send personalised invitation emails. When your invitee signs up using the unique link or invitation code they receive, they will appear under your list of successful invites and you will be in with a chance to win.
       
      Each successful invite gives you an additional chance to win.
       
      Please invite people who will be valuable members of the community and have an interest in or experience of Investment Management, Asset Management, FinTech or associated industries.
       
      If you are not already a member, you can register here for free and join in the competition.
       
      Good luck!


       
      iPad model may differ from the image shown
      *Entry is subject to the agreement of the full Terms & Conditions
        • Like
      • 0 replies
    • The Investment Association recently gave the industry a boost when it announced the launch of Velocity, its FinTech accelerator.  Designed to identify, develop and accelerate best in class firms with innovative solutions, Velocity will champion and facilitate the wider adoption of technology across the industry.
       
      And AlgoMe will be involved in this too, which is why I’m excited to announce we are now a member organisation of the Investment Association as an official FinTech member and have been named a "company to watch" by Velocity.
       
      Challenging Times
      The Investment Management industry faces major challenges and opportunities from forces such as digital technology, pressure on fees and increased regulation, while at the same time there are widespread changes in the workforce and their expectations.
       
      To date, Investment Management has both been fairly insulated from the challenges posed by agile FinTech competitors, but also distant from the opportunities offered by the new technologies and ways of thinking that such companies bring.
       
      Bringing FinTech closer
      Velocity is a fantastic step towards accelerating the adoption of FinTech. It has received support and endorsements from both inside and outside the industry, including from the Chancellor of the Exchequer, Phillip Hammond, who was enthusiastic about the initiative at a recent City event.
       
      To drive change and innovation, the industry needs to connect across different disciplines and areas of expertise, driving new ways of thinking and fostering cultural change.
       
      Without the benefit of emerging FinTechs and their external expertise, it will be hard for incumbents to harness the benefits of emerging technologies such as Straight Through deal Processing (STP), Distributed Ledger Technology (DLT), and Artificial Intelligence (AI) in areas such as risk and compliance, securities trading and investment decision making.
       
      Our Mission
      AlgoMe's mission is to connect the Investment Management industry and empower professionals to manage their careers. Our new product, AlgoMe Community, is placed to become the hub for the discussion between FinTechs and the companies and professionals in the wider Investment Management ecosystem.
       
      Join AlgoMe Community today
       
      AlgoMe Community - community.algome.com
        • Like
      • 0 replies
  • Categories

  • Related Content

    • Eva Keogan
      By Eva Keogan
      AlgoMe is pleased to announce that we are partnering with Cass Business School for a panel on the Impacts of FinTech to careers in Investment Management. The discussion will explore how the growth of FinTech within the Investment Management Industry will change the way of working for the next generation and what this means.
       

       
      Alongside regulation and pressure on fees, technology is the main factor that individuals looking to enter or progress careers in Investment Management in 2019 and beyond need to understand.
       
      Joining Rob Carter (CEO, AlgoMe) on the panel will be Ruben Lara, Chief Data Office of Standard Life Aberdeen, and Olivia Vinden, FinTech and Innovation Practice lead at Alpha FMC. Both Ruben and Olivia are also members of the Advisory Panel for Velocity, the FinTech accelerator of the Investment Association, which AlgoMe joined last year, and so have excellent insight into the way that FinTech is reshaping the Industry.
       
      Attendance is open to students and alumni of Cass, and we will be sharing highlights of the discussion with the AlgoMe community.
       
      During the event we will share some of the early findings from our FinTech, Investment Management and future careers Survey. If you have not already done so, there’s still time to be part of the report by spending a couple of minutes to share your own insights.
       
      If you have any questions that you would like to be put to the panel, please comment below, or send them to us via our other social media channels.
           twitter: @thisisalgome
           linkedin: algome
       
      Panelists
       
      Olivia Vinden
      Olivia leads the UK Fintech and Innovation practice at Alpha FMC, a leading consultancy to the asset and wealth management industry, where she advises on emerging technology and its impact on operating models. Olivia has over 10 years’ experience of large transformational change programmes within investment management and has implemented a number of solutions covering the front, middle and back office. Olivia holds the MIT Fintech Certificate and sits on the advisory panel of Velocity – the fintech accelerator from the Investment Association.
       
      Dr Ruben Lara
      Ruben is Chief Data Officer at Standard Life Aberdeen. Prior to joining Standard Life Aberdeen in 2016, Dr. Lara held senior positions at Vodafone, where he was Head of Big Data Analytics, and at Telefonica, where he was Head of Big Data Product Development and Innovation. Ruben started his career in financial services, working as a technology consultant specialised in data and analytics. Ruben holds a PhD in Artificial Intelligence, and has received the First National Award in Computer Science from the Spanish Ministry of Science and Education and sits on the advisory panel of Velocity.
       
      Rob Carter 
      Rob is co-founder of AlgoMe and is an experienced Front Office change consultant with a diverse skill-set built during almost 15 years working in Financial Services. Rob has worked across the complete project delivery lifecycle over a range of Investment Management and regulatory focussed initiatives; including leading investment integration work streams of mergers between a number of major asset managers. He was formerly Head of Fixed Income and Equities Platforms at Aberdeen Asset Management and is a CFA Charterholder.
       
      Moderator
       
      Luuk Jacobs
      Luuk is co-founder of AlgoMe and a multilingual Senior Executive with over 20 years’ experience working within Investment Management. Luuk has operated within a wide variety of roles covering business processes redesign, risk and control structures, strategy and change management, organisational restructuring and integration. Luuk has worked on major initiatives across Investment, Operations, Risk and Technology departments and has experience of all major asset classes, he was previously the Chief of Staff to the CEO of Aviva Investors. Luuk is a chartered account and alumni of Chicago Booth and IESE.
       
       
    • Andy Milner
      By Andy Milner
      London's largest startup event
      7,000 registered to attend | 200 startups
       
      Looking for the next big thing in tech? How about premier access to the startup everyone’s talking about? Or simply want to explore everything this startup scene has to offer? Whether you’re an investor, member of the press, user, developer, job seeker, corporate or someone in between, attending TechDay gives you an exclusive look into today’s latest and greatest tech with direct access to the startups & partners making it all happen.
       
      TechDay London - Home
      TECHDAYHQ.COM    
×

We use cookies to give you the best possible experience. If you continue, we’ll assume you are happy with this. For further information, see our Privacy Policy.