Europe races to rescue its tech industry as start-ups fight for survival

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European countries are racing to save their tech start-ups as the region faces an impending economic downturn because of the coronavirus crisis.

France has led the pack in the continent, launching a 4 billion euro liquidity plan to support its start-ups' cash flows. The package includes short-term refinancing, investment into already-planned funding rounds and early payment of some tax credits.

On Wednesday, the German government said it would provide 2 billion euros in financial assistance to help keep its young tech businesses afloat. It's also considering a longer-term fund of 10 billion euros for bigger start-ups. Together, Germany and France are the leaders within the EU when it comes to hosting the best-funded tech sectors. Last year saw both countries attract $7 billion and $5.2 billion in venture capital respectively, according to figures from Dealroom.

Across the continent, though, they are second and third to Britain, whose privately-held tech firms pulled in a record $13.2 billion in funding last year. The U.K., which is no longer an EU member but still adheres to its trade rules, is facing calls from its own tech industry to bail out start-ups that could collapse in the coming months without access to government support.

 

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