Sci-Tech

5.4 billion euros raised by French startups in 2020

What if 2020 hadn’t been so bad for business? According to the annual health barometer of the French startup ecosystem published by EY, French Tech raised 5.4 billion mutual funds this year. Not bad ? This is 7% better than in 2019, which was nonetheless a record year. However, we should not stop at this positive number alone. If we compare ourselves with the growth of previous years, we see a significant decrease since 2019 fundraising increased by 39% compared to 2018 and 41% in 2018. Compared to our neighbors In Europe, France ranks second: just ahead of Germany (5.2 billion euros), but very far behind Great Britain (12.7 billion euros).

Source: EY Risk Capital Barometer in France, 2020 annual report edition.

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Less fundraising, but bigger amounts

Now, if we take a closer look at the numbers, the total number of fundraisers is down 16% (to 620 fundraisers). However, the latter managed to mobilize higher amounts averaging 8.7 million euros at the end of the round. There have been more fundraisers over 50 million, according to EY (21 in 2020 versus 16 in 2019). A trend that, according to the auditing company, sends out a good signal, which is hoping for an increase in fundraising to over 100 million euros in the coming years. A hope that is not fueled by a desire to catch up with the UK in terms of volume, but rather to reduce the risk of promising startups disappearing. The latter would thus have the opportunity to develop independently instead of being bought by a large, often international company.

Software and IT services: the big winners of 2020

In terms of the most promising and fashionable sectors in 2020, unsurprisingly, we find the software and internet service providers concentrating more than 50% of the raised funds in terms of value (1.42 billion euros for the first and the first 40 billion for latter). In particular, this finding can be explained by the need for companies to equip themselves with collaboration tools to encourage teleworking and develop remote customer relationships during a period of incarceration. Next up are life sciences (851 million) and fintech financial and payment services (622 million), which are slowly but surely continuing their rise. It should be noted that three quarters of the companies involved in the fundraising are from the Ile-de-France region, which in turn reflects a certain concentration of technology in the capital.

Source: EY Risk Capital Barometer in France, 2020 annual report edition.

Regarding the top 5 most important fundraising drives, the award goes to the mobile game studio Voodoo, which would have raised 400 million euros from the Chinese giant Tencent. However, the estimates have not yet been officially confirmed. The publisher of software for marketplaces, Mirakl, comes in second place (256 million euros) and the manufacturer of animal feed from insects, Ynsect, completes the podium (190 million euros). Euro). Next up are the sustainable Ecovadis label (182 million) and the Content Square tool for experience analysis (173 million). If you are also the founder of a startup, we wish you a bright future as well as these 5 examples whose journey is interesting to understand how to successfully fundraise.

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