French start-ups are finding it increasingly difficult to raise funds.
French Tech’s Shifting Landscape: From Superlatives to Scrutiny
Paris has been eager to showcase its significance on the global tech stage, often resorting to superlatives. Station F is touted as the world’s largest startup campus, owned by Xavier Niel. VivaTech is hailed as the planet’s biggest tech event, according to its co-founder Maurice Lévy (Publicis).
However, the mood isn’t entirely celebratory for the “start-up nation,” a term favored by Emmanuel Macron. Fundraising, which surged until 2022 – reaching a record €13.5 billion that year – has been declining since: €8.3 billion in 2023, then €7.8 billion in 2024, according to EY. The early months of 2025 suggest that hopes for a rebound are fading, with investments projected to fall sharply in the first five months of the year (-30% compared to the same period in 2024).
Since January 1st, only three funding rounds have reached €100 million or more: Loft Orbital in space (€170 million), Powesco in energy (€150 million), and Alice & Bob in quantum computing (€100 million). Optimists believe that larger rounds could still materialize in the coming months. According to the Financial Times, Mistral, the French leader in artificial intelligence (AI), is reportedly in the process of raising a new $1 billion round (over €856 million).
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