Regardless of the prevailing economic climate, the public sector consistently emerges as a desirable and sought-after customers for businesses. French Tech start-ups are well aware of this, and more and more of them are responding to calls for tender. To facilitate this, they are increasingly turning to support programmes and artificial intelligence solutions. Here are some explanations and an analysis from the experts at AURIS Finance, a consultancy specialising in mergers and acquisitions.
In the coming months, public-sector orders are expected to decline. This is due to the new budget constraints and the impact of inflation. The downturn is already evident, with public-sector orders experiencing a 5.3% decline in the first half of 2024 and over the past year. Despite this, public procurement remains a significant component of the French economy, accounting for 10% of GDP and reaching €180 billion in 2023. Local authorities remain the primary contracting entities, accounting for approximately 67% of public purchases, with a notable focus on public works (accounting for 53% of purchases).
New participants
An increasing number of innovative companies are responding to calls for tenders, as winning a public contract can guarantee long-term contracts and recurring sales. However, the level of success varies among companies. Public decision-makers require substantial guarantees before committing. In this regard, it is essential for companies to demonstrate a proven track record in order to stand out in the selection process. For instance, the Alan unicorn was awarded a call for tenders from the French Ministries of Ecological and Energy Transition in June 2024. In September 2024, the online insurance company was awarded a contract to provide insurance for civil servants. Competing against established public mutual insurers within the civil service, Alan secured the contract as part of a reform of social protection for civil servants. This success follows similar collaborations between innovative companies and government departments. For instance, Swello, a start-up from Toulon, secured its second contract in November 2024 with the Government Information Service for its social network management platform.
Dedicated tools
In order to assist start-ups in responding to calls for tender, Bpi France has launched the ‘Je choisis la French Tech’ initiative, a programme designed to support innovative companies in their bid to win contracts. The objective of the initiative is to double the use of start-up solutions by public and private sector players by 2027. Alongside this programme, there has been a notable rise in the use of automated systems for responding to calls for tender. Indeed, the requirements of calls for tender are technical in nature. It is essential to be able to interpret a CCTP (special technical specifications), understand a CCAP (special administrative specifications) and fill in a BPU (unit price list). The use of AI has made all these elements much easier to navigate. Several companies have identified this niche and are offering turnkey solutions.
Our experts at your service
In order to grow and develop, a company needs solid partners. Thanks to public orders, French Tech companies can rely on recurring sales. They now have automated systems to help them apply more quickly to public tenders. AURIS Finance’s sector-specialised experts stand ready to assist in the formulation and execution of your growth strategy. Whether it’s identifying financial partners or integrating a new target, our team is dedicated to facilitating your success.
