Startup Velouté
Station F director Roxanne Varza on the secret sauce behind the world’s largest startup campus
Britain has no shortage of support initiatives for early-stage startups. More than 400 incubators and 300 accelerators were reported in the country in 2022, double the number from five years earlier. But while these efforts have valuable impact, it would be a challenge to pinpoint a select few that have managed to grow into clear focal points for the British startup community.
Some are already thinking bigger. The Pro-Vice-Chancellor for Innovation at the University of Cambridge wants an “innovation hub to rival successful schemes in France and the US that have attracted billions of dollars of investment into early-stage companies.”
But if the UK does add another hub to its entrepreneurial ecosystem, it shouldn’t simply be more of the same. To build a concentrator of innovation, the bar for scale and impact must be set ambitiously high.
Just a quick Eurostar away, lies an obvious source of inspiration: Station F, in Paris. Founded in 2017 by French businessman Xavier Niel, it’s the world’s largest startup campus with over 30 programmes, space for 1,000 startups, a vibrant community, and even accommodation. It’s a whole entrepreneurial ecosystem under one roof.
I asked Roxanne Varza, Station F’s Director, what sets it apart and how it has shaped the French startup ecosystem. Roxanne is also part of the team preparing the next AI Summit in France, so we touch on AI and broader tech policy questions too.
What we discussed
Ingredients of Station F’s secret sauce
Foreign-born entrepreneurs building global companies
Station F’s international strategy
AI Action Summit preparations
Response to the EU AI Act from the French tech ecosystem
What AI means for European climate tech
France’s approach to scale-up funding
Policy lessons, and what the UK and France are missing
Lessons for a vibrant entrepreneurial ecosystem
Startup incubator success playbook
Aim for scale and bring everyone under one roof. Including startups, corporates and universities.
Build strong links with the wider ecosystem, and keep powerful players in close proximity to have a high concentration of well-known brands and partners.
Establish deep connections with the government. Give it something to champion and show how you can help deliver on its goals.
Think outside the box (and borders). Leverage it to add value to the ecosystem beyond multiplying startups – be it through building international links, consulting work, or getting every person visiting the building, no matter who they are, to care about startups.
Regularly review your offerings and partnerships. Ensure you address the changing needs of founders and the ecosystem.
Advice to the government
Don’t try to do everything yourself. As a government, you need to know where to go and who to get excited. To entice private investment, target the right people and show them what’s possible.
Seek out innovators for government roles. It needs people who have been in the private sector and worked on the ground. They understand the ins and outs of the impact policy decisions have on companies.
Expand the focus of immigration policy beyond founders. It often prioritises founders, but it can be challenging to start a company without any on-the-ground experience. Making it easier for companies to hire from abroad is an investment in cultivating future founders.
De-risk entrepreneurship to make it cool to innovate. Leverage policy to create an environment where entrepreneurship doesn’t feel like an extremely risky undertaking.
Haste makes waste. The government must take time to deeply understand the ecosystems it seeks to support, avoiding rushed, misaligned policies that fail startups and industries.
Connect the British and French ecosystems better. Today, they are siloed. Building organisations that work in both ecosystems could help.
Full interview
Station F incubates a lot of startups, but what do you think it brings to the health of the French ecosystem? How much of a difference has it made?
When we launched Station F, our objective was to put France on the map and make its startup ecosystem visible. This ecosystem existed before Station F, but we turned it into something very identifiable. Our brand has an international appeal, and we want people to recognise that something significant is happening in this ecosystem, even if they are not here and may not know much about France.
We’ve now been open for seven years and have had over 7,000 companies pass through Station F. Several unicorns have emerged too. Last year, for the second consecutive year, our companies raised €1 billion, which is about 15% of France’s total funding volume.
We are helping attract international entrepreneurs, this is helping attract international investors, which is driving both funding and startup creation. This international angle is enabling the creation of global companies, making France even more attractive to investors. So, I think we’ve significantly raised France’s standing on multiple levels.
Of course, we haven’t achieved this alone. The government has played a key role. France has also gone through a big cultural transformation. It has become very cool to have a startup, which was not the case ten years ago. I like to think that Station F has contributed to this.
What do you think makes Station F different, compared to other startup incubators, so that it has become such a hub for the ecosystem in Paris and France? What is the secret sauce?
If you look at startup facilities, many usually share some basic elements: Wi-Fi, co-working space, they have a couple of partnerships and resources. Our scale, obviously, makes Station F very different.
We have a very high concentration of well-known brands and partners. When people visit, they often say that it feels like the only place in the world where you can find companies like Google, Amazon, and Microsoft working within just 200 square metres, and alongside startups.
Also, Station F has become a gateway to the French ecosystem. A lot of people now know that this is where you start when you want to visit startups. We have very deep relationships with the rest of the ecosystem outside of Station F, which reinforces our role as a natural starting point.
What also differentiates us is our close relationship with the government. So, when high-level visitors come to France, we also benefit from that. Many people ask why we need government officials walking through our building. And I say, “we need to get every person we can walk in this building, care about startups, and build startups.”
Station F appears incredibly dynamic. I follow you on social media, and frequently see hackathons, workshops, or talks taking place. I’ve also noticed that your events are often co-hosted with well-known names, which make them look particularly exciting. What is your approach to curating such partnerships, and what value do you think they bring?
We want to get as many companies in the door as possible. So we organise a variety of event formats on different topics – anything that we think can be beneficial to innovators. We’re also looking to collaborate with brands and organisations that our companies want to work with. That’s essentially the filter we use: Does this interest companies? Does this get companies in the door? Does this provide some kind of value to them? That’s what guides us.
What about university students? Does Station F engage with them in any way?
Yes. Out of 30 programmes at Station F, one third are run by corporates and one third by universities. We host incubators from top business and engineering schools here, and they also do a lot to bring their students and alumni to our campus.
The remaining third of our programmes are run by ecosystem players, like Entrepreneur First, whose focus is building startups.
Station F is already doing a lot, but do you see any opportunities that are still untapped? Is there anything you wish Station F could do more of, or something entirely new, that could help it realise its full potential?
Each year, we look at how we can strengthen our offerings to help more companies succeed at Station F. We review who our partners are, what resources we have, and if there’s something we’re not addressing that we need to be. This regular assessment is especially important now, given the momentum in the French ecosystem and the emergence of a new wave of more experienced founders. We need to ensure we’re addressing their needs.
The second part is that Station F has always had an international perspective. But these days in particular, we’re being aggressively contacted by various entities around the globe wanting to launch Station F in their countries. We’re exploring how to approach international work in a meaningful way and how to build relationships with the right ecosystems that share our values and are preferred by our companies.
We also have several development projects underway. A few years ago, we started investing in our companies, and we want to continue growing that effort. We’re also looking to enrich our online experience because we know people don’t come to the office every day, especially in a post-COVID world.
Lastly, we have extension projects in Paris to ensure that our facilities offer enough services and better environments for our companies.
Could you tell me more about your international work? Does Station F have any immediate international expansion plans?
Currently, our focus is more on attracting people to Station F rather than expanding elsewhere. This summer, we announced that we have 65 different nationalities represented at Station F. Earlier this year, we launched international programmes with the Korean and Japanese governments, which involve sending companies from those countries to us. We’re seeing increasing demand for this from other nations as well.
We also have a two-day programme for ecosystems that want to learn from the Station F model – essentially, how we do what we do. So far, about ten to fifteen companies and countries have gone through that programme.
We’ve also started doing consulting work. For example, we provided consulting for Station AI, a SoftBank-led project in Japan. They recently opened, and we’re looking at how to develop it.
Our dream would be to help establish another Station F somewhere else, but we’re going to be very selective about that ecosystem.
I’d like to get your views on some broader tech policy questions too. Station F was built because of a generous private investment from a person who really cares about this. But not all countries are as lucky. What can they do to stimulate their startup ecosystems?
Not every country is as lucky to have someone like Xavier Niel, but many countries do have billionaires who may not realise the benefits that supporting a startup ecosystem could bring them. We’ve actually had some countries bring delegations of billionaires to showcase what they could build in their own countries.
That said, I believe it’s possible for governments to create something like Station F. While not every government is credible, some are particularly well-positioned to strike the right balance with the private sector. Often, when governments try to do everything themselves, they lose credibility. There have been past attempts that haven’t worked out. As a government, you need to know where to go.
Now, what can be done to stimulate the ecosystem? I think each ecosystem is different, so I don’t want to suggest simply copy-pasting what has worked in France somewhere else. But I will say what has helped this country.
First of all, France has had a digital minister for at least 15 years, which shows how important entrepreneurship and innovation are to the government. So, a digital minister carries a voice of entrepreneurs and innovators inside the government.
We also have incredible public funding in France, and I think this has really gone a long way. This is not adaptable to every ecosystem, but the government is very involved in funding, be it early-stage or late-stage. The vehicle that’s used for startup funding here is investing in funds and companies.
I’ve mentioned the cultural shift before, and it really is essential to be in an environment where it’s cool to innovate, and where it is somewhat de-risked. Station F aims to make entrepreneurs feel more comfortable and credible, effectively reducing their perceived risks. Governments need to think how they can create such an environment where entrepreneurship doesn’t feel like an extremely risky business.
International visas have also gone a long way in this ecosystem for founders and the talent working in those companies. Often, governments focus just on founders, but it can be incredibly challenging to start a company without any on-the-ground experience. So you should approach this almost backwards.
Could you tell me more about the later-stage support the French government provides?
France launched an initiative called Tibi, which was recently renewed. The government actively engaged with major insurance companies, and although France doesn’t have the same pension fund system as the US, it managed to secure around €4 billion for late-stage investing.
I mentioned earlier that public funding also goes into late-stage companies. The French government has become heavily involved in providing it.
In terms of private funds, France still has only about three funds capable of handling growth stage investments. To address this, France is attracting many international multi-stage funds, like SoftBank, Temasek, ICONIQ Growth, to support companies when they reach that stage. While this might not be optimal for sovereignty today, it’s important to recognise that companies want to be international and funded by the best funds in the world.
What you’ve just said relates to government policy. But what about bottom-up actions that ecosystem players themselves can take to mobilise activity and support ecosystem development?
A lot of it starts with evangelising entrepreneurship. For example, back in the day, Startup Weekend was organising events every week all over the country, run by volunteers. These were small events for people thinking, “I want to quit my job and start a company, but what does that actually mean?” People could spend a weekend and see what that is like. I think they did a tremendous amount to really evangelise entrepreneurship and get the community going, get people meeting, talking, and connecting.
I think the people who organise events play a very key role in the ecosystem, because every company starts with people meeting and having an idea. And they’re not going to do that if they’re sitting at home, not meeting anyone.
Since this spring, you have been part of the team preparing the next AI Summit in France. What lessons have you learned from that experience so far?
What’s been incredible is that there is excitement around AI from literally every sector. People who will be organising AI Summits in the future need to be ready to meet just about everyone. This requires a lot of organisation and the ability to listen to people from different backgrounds and industries. We’ll see how the Summit goes, but what I’ve learned so far is just how much interest there is, how quickly things are moving, and how organised you need to be.
On the topic of AI, what are you hearing from the French ecosystem about the impact of the EU AI Act?
There is a possibility that AI regulation will impact innovation in Europe. Quite a few people have spoken out against it, including prominent AI figures like Yann LeCun, and many Americans have also expressed concerns.
The funny thing is, when you talk to some of the entrepreneurs here on the ground in Europe, they actually don’t feel the impact yet. Their businesses are potentially not affected, so maybe people here have already adjusted to what might be coming.
But I do think we need to be cautious. We don’t want to negatively impact our entrepreneurs and innovators. At the same time, I think we are gaining consciousness as an ecosystem about the need to protect individuals too. Unfortunately, what often happens in policy-making is that because the subject isn’t well understood, people start with policies that don’t seem to reflect an understanding of what they are dealing with, and then they have to adjust as they go along. I think the beginning will be the most painful, and hopefully we will be able to adjust properly and quickly so that we don’t harm the ecosystem.
What I’ve been pleased to see this time is that many of our entrepreneurs are mobilising, paying attention, listening, and staying in contact with lawmakers and people working in Brussels. I don’t know how much Brussels has been able to integrate what they said, but at least there are those connections now that we may not have seen as much in the past.
Are there any AI-adjacent areas that you find particularly promising for Europe to lead?
We’ve talked about AI regulation as potentially hindering innovation, but in the climate space, we actually feel that this gives an opportunity for climate companies to thrive. It’s really interesting to look at how regulation could impact different industries and also accelerate innovation in some areas.
Europe is very climate-conscious from a consumer standpoint and from a regulatory standpoint. Organisations are being asked to be more mindful about their energy sources. We’re now having to roll out carbon footprint assessments with different scopes. In contrast, in the US, they don’t care as much. We’ll have to see where the new US administration stands on climate issues, but I think there is a real opportunity for Europe. Climate tech businesses could have way bigger and stronger markets here.
Going back to AI, we can marry compute and climate in very interesting ways. The US is not really going in that direction at the moment. Many tech companies seem to assume market forces will regulate energy use, because it costs something. But in Europe, we’re actively thinking how we can innovate for climate friendliness. So we’re seeing frugal AI and climate-friendly data centers. There are a lot of new innovations because of this. Where climate is concerned, Europe does have an opportunity to lead.
What are your thoughts on tech executives moving into government policy roles? For example, in France, the former director of La French Tech Clara Chappaz has recently become the Secretary of State for AI and Digital Technologies.
I think the government 100% needs people who have been in the private sector and worked on the ground. They need to understand the ins and outs of policy-making decisions and their impact on companies. Who better than people who have lived it and experienced it? In Europe, we have a particular way of thinking about government. People usually become specialised for government roles, and they lack that on-the-ground experience, which is somewhat the opposite in the US. But you need that understanding and experience to create policies that are going to be beneficial.
What do you think the UK could learn from France’s approach to tech policy? Or is there anything you see happening in the UK that you wish France could learn from? Are there any unique actions by either government that you find particularly effective?
I was in the room when we made the decision to launch La French Tech many years ago. At the time, we were looking at Tech City UK, now called Tech Nation, and it just seemed like we had to do everything the UK was doing. In so many ways, it’s such a strong, advanced ecosystem, and there are things that France can learn.
The UK has been very successful with EIS (Enterprise Investment Scheme) and SEIS (Seed Enterprise Investment Scheme). France has an equivalent, but it has a more timid approach. I know there have been proposals to launch something as ambitious, but they haven’t really gone anywhere yet.
The UK has always been the financial hub for Europe’s tech scene. Things may be changing now. I saw that the non-dom policy has changed, and some investors might be leaving as a result of that, as well as the capital gains tax changes. France can learn from that.
Is there anything that you think both our ecosystems are lacking?
My wish would be for these two ecosystems to be better connected. Today, they are really siloed. More broadly, a lot of European ecosystems are very siloed. I think we need to build more organisations that work in multiple ecosystems in Europe. I think this is going to be helpful to the startups. Niklas Zennström launched Atomico several years ago to help scale-ups unite in multiple countries. I think these types of initiatives are definitely missing.
We ask all our guests the same closing question: what’s one interesting thing you’ve read or listened to recently that you’d like to share with our readers?
I really enjoyed the book The Culture Map – an excellent read for people working in a multicultural environment.