4.8 billion dollars of investments in French startups in 2019

by bold-lichterman

As the end of year celebrations approach, it’s time to take stock for French and European Tech. And as is now the case every year, the London fund Atomico, launched by Niklas Zennström, co-founder of Skype, takes advantage of Slush, the last technological high mass of the year which is held in Helsinki, barely two weeks after the Lisbon Web Summit, to unveil its “State of European Tech” report which provides an overview of European Tech for the past year.

Carried out in partnership with Slush and the American business firm Orrick, this study highlights the funding of European technology companies on the verge of exceeding the $ 30 billion raised in 2019, against $ 25 billion in 2018. The year in price should thus end with 34.3 billion dollars invested in the European ecosystem in the framework of 4,608 operations. “The European economy may not be immune, but its tech companies have continued to break records over the past twelve months. European tech companies are now achieving a level of performance that many considered unthinkable when we started this report five years ago”, Notes Tom Wehmeier, partner at Atomico and author of the report.

The countries that captured the most investments in 2019. Credit: Atomico.

France gains momentum in late-stage financing

In France, this figure reached 4.8 billion dollars, up 42% compared to last year, which places French Tech in third place in Europe behind the United Kingdom and Germany. To reach this amount, France has been able to count on companies such as Doctolib (150 million euros in March), Meero (205 million euros in June) and ManoMano (110 million euros in April), which have carried out large-scale operations to integrate the very closed circle of tricolor unicorns.

According to the “Blooming Late” report carried out by Stripe with Tech.eu, on the sidelines of the Web Summit, France has also captured 2.7 billion euros in investments for its scale-ups on the occasion of mega fundraisers – over 100 million euros – over the past four years. European leader in early-stage investment, France only appears in fifth place in the late-stage financing segment. To appear on the podium, Emmanuel Macron announced in September an envelope of 5 billion euros over three years to support French start-ups in hypergrowth. With such a sum, the objective is to multiply the rounds of funding exceeding 50 million euros of future French Tech champions, and thus to reach the 25 tricolor unicorns by 2025.

DeepTech and Paris in great shape in France

In terms of the sectors that attracted investment in the French ecosystem, DeepTech has fared well. Indeed, this sector alone has collected a third of the funds received by French start-ups. With $ 1.4 billion raised by young French shoots specializing in DeepTech, France is the second most attractive ecosystem in Europe in this sector. It must be said that with 1.9 million scientists and engineers in its bosom, France is home to the second population of this caliber on the Old Continent.

A direct consequence of the current good form of French Tech, Paris appears to be the third largest hub in Europe in terms of start-up financing after London and Berlin. The capital of France, which hosts structures such as Station F, eFounders or even Founders Future, has seen the capital invested in the start-ups it hosts jump by 203% over the past five years, against 143%. in London and 70% in Berlin. Nationally, Paris has received 46 times more funding than Lyon, the second French city to receive the most. Toulouse, which notably houses the European research center of Hyperloop Transportation Technologies, completes the podium.

11.2 billion investments in the United Kingdom

If France is showing good growth, it is therefore indeed the United Kingdom, despite the political crisis across the Channel with a Brexit which is struggling to materialize, which continues to dominate the Old Continent. Great Britain has captured $ 11.2 billion in investments, far ahead of Germany and its $ 5.9 billion collected. As for the sectors that have the wind in their sails, we find FinTech ($ 9 billion), software ($ 7.5 billion), health ($ 3.6 billion), energy ($ 3 billion) dollars) and mobility ($ 2.3 billion).

Proof of the change in dimension of European Tech, there are now 99 unicorns supported by venture capital funds, against only 22 before 2015. This boom can be explained in particular by the boom in mega fundraising (more than 100 millions of dollars). There have been around 40 this year, up from just nine five years earlier. Although all the lights are green in the European ecosystem from a financial standpoint, the efforts to be made are still substantial in terms of diversity. Among the avalanche of data provided by Atomico, one speaks for itself: 92% of funding raised in 2019 was by exclusively male founding teams.

The key figures of the European ecosystem between 2014 and 2019. Credit: Atomico.

Margrethe Vestager, the most influential figure in European Tech

On a lighter note, European technology policy remains a mystery for many start-ups in the Old Continent. Indeed, 40% of the founders and employees of start-ups surveyed by Atomico believe that they are not sufficiently informed on this point to describe the absolute priority of the European Commission in terms of technology.

On the other hand, Margrethe Vestager, reappointed to the post of Commissioner in charge of Competition at the European Commission and a real GAFA nightmare with her investigations leading to spectacular fines, has caught the attention of the ecosystem. All respondents elected the European Commissioner as the person who has the most influence on European Tech in 2019, whether good or bad. Finally, European parliamentarians do not talk about FinTech and eHealth, two sectors in which investors have however injected 12.7 billion dollars in total in Europe this year. Between Brussels and the digital ecosystem, it is not quite that yet.