08 Dec What is the future of French Tech industry?
Future of French Tech – France may have left too soon from the Euro 2020 football championships unexpectedly earlier this year but “les Bleus” are still in the game for the Tech industry.
In 2021, French start-ups have raised a record €5.6bn from VC funds, more than the €5bn in all of 2020 – up nearly threefold since 2015, proving France has become one of the hottest tech hubs.
When looking at growth rates along several parameters, it also becomes clear that France is right in the middle of its impetus rather than reaching some sort of “slowdown” stage. From 2013 to 2018, over a mere 5-year period, venture capital investments from the United States into France have tripled in volume, from 16 billion euros to 49 billion. From 2013 to 2019, the amounts raised by French companies have grown at a startling 34% compound annual growth rate.
According to the Financial Times, French tech start-ups are on a roll. Statistics show that of the main European tech hubs, France is breeding unicorns at the fastest rate. between the years 2019 and 2021, the number of unicorn start-ups (valued at more than 1 Bil Euro) has tripled in France, Compared to a growth rate of 69% for the UK and 44% for Germany. With a 165% growth rate, closest to France, is Sweden.
Since 2018, more than 22 new venture capital and growth teams have been created in France. The average size of France’s venture capital and growth funds has more than doubled over the past 10 years.
While it is accurate that the UK and Germany still record more VC investments than France, Founder of Dealroom – Yoram Wijngaarde – said there was something happening in France. Seeing tech investors from US propelling local start-ups to unicorn status, he added “Within Europe’s big tech hubs – London, Paris, then Berlin – Paris is the fastest growing.”
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