French Startups Raise Record-Breaking €5 Billion H1

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Nancy Heslin   Forbes Monaco

French Startups Raise Record-Breaking €5 Billion H1

According to EY Consulting, innovative French companies raised €5.14 billion in financing through venture capital during the first half of 2021. This is a 90% increase in value and 16% in volume compared to the same period of 2020.

The report published Wednesday by EY Consulting showed that since January, FrenchTech have carried out 416 fundraising operations. The Top 5 are Contentsquare (€408m), Ledger (€312m), IAD (€300m), BackMarket (€276m) and Alan (€185m).

“At this rate, the symbolic €10 billion mark should be crossed this year,” said Franck Sebag, head of the Ernst & Young Associates, Insurance, Middle Market, Fast Growing Companies leader, Western Europe.

The year 2020 had already been a good year for venture capital, with an increase of 7% compared to 2019 and a total of €5.39 billion raised across the year, despite Covid impacting the first half. Sebag stated “never has money been so abundant” thanks to the exceptional support measures of central banks, put in place in 2020 to deal with the pandemic.

A breakdown of sectors showed internet service companies account for more than 47% of funds raised in value with €2.4 billion (compared to €717 million in the first half of 2020). FinTech continues its breakthrough with a growth of 256% (€1,085m against €204m in 2020), followed by life sciences (€564m), software and IT services (€390m) and cleantech (€215m) sectors.

France ranks third as the most dynamic European country in terms of venture capital, with the U.K. leading the pack with €16.44 billion raised, followed by Germany, where start-ups have raised €7.83 billion in funding.

According the website Crunchbase, nearly €250 billion have been raised worldwide during this period—€100 billion more than in the second half of 2020.

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Nancy Heslin   Forbes Monaco

Nancy Heslin is an established journalist and lifestyle writer. She has been the Editor-in-Chief of Forbes Monaco magazine (bimonthly in English) , since the magazine's 2nd issue . Launched in November 2018, Forbes Monaco is part of the Forbes family, with its 7 million readers and 71 million monthly website visitors worldwide.