Government Attempts at Catalysis

The French government, recognizing the digital gap, launched various initiatives during this period. The 2003 "Plan RE/SO 2007" aimed to develop the "information society." The 2008 "France Numérique 2012" plan set ambitious targets for broadband access and digital services. State investment funds like CDC Innovation and OSEO began tentatively funding tech startups.

Yet these efforts often felt disconnected from entrepreneurial reality. "Government officials would announce grand plans, but when you actually tried to start a company, you still faced the same bureaucratic nightmares," remembers one entrepreneur from the period. "It took months to incorporate, the paperwork was insane, and don't get me started on trying to give employees stock options."

The creation of the "Young Innovative Company" (JEI) status in 2004 provided some tax breaks and reduced social charges for qualifying startups. The Research Tax Credit (CIR) made R&D more affordable. But these measures felt like tweaks to a system fundamentally unsuited to entrepreneurship.