Author
ARTHUR PORRé
Date
Jan. 09th, 2025
2024 marks a turning point for the French Tech ecosystem after the 2021-2022 euphoria and the 2023 reality check. With €7.3bn raised across 668 deals, French startups faced a 17% YoY decline in fundraising value and a 36% drop in volume, suggesting higher average deal values.
The fundraising market shows signs of maturity with larger but more selective deals. While early-stage rounds remain dynamic, growth rounds have become more concentrated, reflecting investors’ focus on proven business models and path to profitability.
Enterprise Software, including AI companies, leads fundraising with €2.2bn secured, while Industrial Tech follows with €1.5bn. The sector’s dynamism is evidenced by the emergence of new French unicorns like Poolside, Pigment, and NewCleo.
US investors maintain their leadership in foreign VC investments, even as foreign funds’ activity in France declines. Bpifrance continues to lead the market with 146 deals in 2024, followed by Kima Ventures (82) and UI Investissement (34).
Exit activity remains stable in value at €12bn despite a 15% decrease in volume to 353 deals. Strategic M&A continues to dominate the exit landscape, with North American acquirers, despite representing a small number of deals, accounting for over 50% of exit value.
This landscape suggests a maturing ecosystem prioritizing quality over quantity, with a clear shift towards sustainable growth and profitability.
Arthur Porré, Managing Partner, 9th of January 2025