France copies British tax relief scheme to boost angel investment in tech startups

Inspired by the UK’s successful SEIS and EIS tax relief schemes, France is launching a new scheme in 2024 to attract more angel investment in tech startups.

Individual investors who invest in companies with the JEI label (jeunes entreprises innovantes) will get a 30% income tax break. Investors in deep tech startups will get a 50% tax break for investments up to €100,000 per year, while investors in other startups will get a 30% tax break for investments up to €150,000 per year.

The new scheme is expected to generate half a billion euros in additional fundraising every year for startups. It is similar to the UK’s SEIS and EIS schemes, which have helped startups close their rounds faster and de-risked angel investing.

Angel investors who take advantage of these schemes also provide significant support to the founders, which can be harder to get from institutional funds.

The new French scheme is a welcome change for the French tech ecosystem, which is experiencing a slowdown in traditional VC investment. It is expected to boost early-stage funding and help startups grow.