Investment Strategy for France: Portfolio Allocation Guide
France presents a unique opportunity for international investors: Europe’s #1 FDI destination for six consecutive years (EY), with a €54B sovereign innovation program, the continent’s most generous R&D tax incentive, and a maturing venture ecosystem producing 25+ unicorns.
Recommended Allocation Framework
| Sector | Allocation | Thesis |
|---|---|---|
| AI & Digital | 30–40% | Mistral AI effect, sovereign AI, €109B summit pledges |
| Energy Transition | 20–25% | Nuclear + hydrogen + batteries, policy tailwinds |
| Health & Biotech | 15–20% | Doctolib-scale outcomes, biomanufacturing |
| Enterprise SaaS | 10–15% | Contentsquare, Pigment, PayFit category leaders |
| Climate & Deeptech | 10–15% | Quantum, semiconductors, space |
Entry Vehicles
Direct VC: Co-invest with Bpifrance or local GPs. Fund-of-Funds: Allocate to French VC managers through Bpifrance’s LP program. Strategic M&A: Acquire French deeptech companies (semiconductor, AI, cyber). FDI: Establish R&D presence to access 30% CIR and JEI benefits.