Paris on the way to become the European capital of start-ups ahead of London

by bold-lichterman

  • Between the second and third quarters, funding for start-ups in France increased by 200% to reach $ 857 million in total funding across 145 deals.
  • In the third quarter, Paris is only 7% behind London ($ 919 million).
  • Between the second and third quarters of 2016, capital invested across the Channel fell by $ 76 million.

In 2016, French tech companies hit a new record, passing the $ 1.5 billion mark in funding. This is what the report highlights “Tech Funding Trends in France»Produced by La French Tech and CB Insights. Between the second and third quarters, financing thus increased by 200% to reach $ 857 million in total financing on 145 transactions. This increase is partly explained by the effects of Brexit.

These figures allow France to reposition itself against the United Kingdom and Germany. Lagging behind in 2015, the financing of start-ups in France recovered in 2016. In the third quarter, France passed ahead of Germany with $ 857 million in funding, against $ 462 million for German Tech. France even appears in the retro of the United Kingdom since Paris is only 7% behind London ($ 919 million).

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$ 76 million less for the UK

British start-ups are suffering heavily from the effects of Brexit. Between the second and third quarters of 2016, capital invested across the Channel barely increased by $ 76 million, against an increase of $ 584 million for France. By way of comparison, funding for start-ups in the UK was around $ 1.5 billion in the last quarter of 2015, when France was content with just $ 198 million. In this context, Paris is in an ideal position to snatch the title of European start-up capital from London.

To explain this temporary catching-up with the British, France benefited from the opening of the capital of the host OVH with KKR and Towerbrook which made it possible to raise $ 279 million. This is the biggest operation of French Tech in the last three months. If the exceptional fundraising carried out by the Lille host weighs in the balance, the indicator Frenchweb Invest the months of July and August showed that by excluding it from the calculation, the amounts invested nevertheless increased by around 30% compared to the previous year.

France was also able to rely in the third quarter on the attractiveness of Paris, which made it possible to raise 304 million dollars of investment in 65 operations, or nearly a third of the total capital invested in France in the third quarter. Octo Technology ($ 61 million), BlaBlaCar ($ 24 million) and Zenly ($ 23 million) occupy the top three of the largest investments in the French capital over the past three months. The month of September surpasses all the other months of the year, both in number of operations announced and in amounts invested, according to the Frenchweb Invest.

Read also: [FW Invest] With 220 million euros raised in Tech, transport and FinTech are the star sectors in October