Are you a startup founder that are considering expanding your operations to France? Or are you just looking for a local Venture capital firm for your startup?
We have compiled a list of VC firms in France.
Last Updated:
23 Aug, 2024
From seed and early-stage investors through to later stage investment rounds, Venture capital firms in France offer entrepreneurs a diverse array of funding choices for getting their businesses off the ground. Different types of funds have different structures, risks, rewards and goals in mind, and entrepreneurs should consult industry professionals for advice on which fund best suits their particular situation.
Whatever the goal, it is no exaggeration to say that startups have access to a lot of venture capital opportunities in France.
In recent years, the venture capital industry in France has seen some remarkable successes, with many investments resulting in innovative, impactful projects and businesses.
From social enterprises backed by major funders to companies built from scratch or rising up through the ranks, there are a number of inspiring stories originating from France's venture capital industry.
2023 has seen significant growth in venture capital activity in France. According to a recent report by KPMG, the total value of venture capital investments in France more than doubled from €4.9 billion in 2020 to over €11 billion in 2023. This growth was driven by strong performance from both local and international investors, with French companies receiving funding from countries such as the United States, Japan and China.
The number of deals funded by venture capitalists also increased significantly during this period, rising from roughly 300 transactions in 2020 to over 500 transactions in 2023. This increase can be attributed mainly to an overall improvement in market conditions since the global financial crisis of 2008-2009, as well as increased awareness among investors about the potential of investing in French startups.
In addition to the growth in venture capital activity, the sector has also seen a surge in the number of specialized funds and incubators that provide early-stage financing for French businesses. These include Angels & Entrepreneurs (A&E), France Digitale, K Fund and Daphni, among others. These organizations have helped to create a more vibrant ecosystem for entrepreneurs by providing access to funding and resources as well as mentorship and networking opportunities.
Overall, the venture capital landscape in France is continuing to grow and develop at an impressive rate. With this increased investment comes great potential for startups in France to receive financial backing and support from experienced investors that can help catalyze their success.
The most active venture capital firms in France include Idinvest Partners, Partech Ventures, Serena Capital, and Ventech. These organizations have been major players in the French startup ecosystem for many years, having invested millions of euros into promising companies across multiple industries. These firms are also well-connected to other investors around the world and provide invaluable advice and resources to their portfolio companies.
Other notable French venture capital firms include Alven Capital, Xange Private Equity and AXA Venture Partners. In addition, the newly launched French Tech Seed Fund has already established itself as a major player in the early stage funding (Seed & Series A) space since its launch in late 2020.
Finally, there are dozens of smaller venture capital firms that specialize in specific sectors or regions. Examples include Airlight Ventures, which focuses on drones and other aerial technologies, and Kima Ventures, which specializes in seed-stage investments in the French tech landscape.
Overall, France has become a major hub of venture capital activity over the past decade, with numerous firms investing substantial sums into promising startups each year. With this increased investment comes immense potential for entrepreneurs to find success by leveraging the resources that these organizations provide. Therefore, it is no surprise that venture capitalists continue to flock to France as more businesses emerge and seek funding.
The hottest sectors for venture investment in France are currently digital health, fintech, enterprise software and artificial intelligence (AI). These sectors have seen a massive influx of capital over the past several years, as investors recognize the potential of these technologies to revolutionize industries.
Digital health has been particularly attractive to investors due to its ability to improve patient outcomes while simultaneously reducing healthcare costs. Numerous startups in this space have raised large amounts of money from leading venture capital firms such as Idinvest Partners, Partech Ventures and Serena Capital.
Fintech companies have also received significant attention from investors recently due to their potential for disruption in the financial services industry. Companies such as Lydia Solutions, Curve and Leetchi Group have all raised large amounts of venture capital to fuel their expansion thorugh their different stages of funding.
Enterprise software and AI are both highly sought after by venture capitalists as well. Companies like Octo Technology and Deezer have been able to raise substantial rounds of financing from investors looking for the next big thing in technology.
In recent years, the venture capital landscape in France has undergone a major transformation. The amount of venture capital funding raised by startups in France tripled between 2013 and 2018, reaching €2.8 billion in 2018 alone. Notably, much of this investment came from international investors such as SoftBank and Sequoia Capital who have seen great success investing abroad.
The increased activity is also reflected in the number of venture capitalists now operating in France, with numerous new firms launching over the past five years. For example, Idinvest Partners was founded in 2011 and is now one of the leading VCs in Europe; Partech Ventures launched its first fund in 2014 and has invested over €1 billion since then; and Xange Private Equity launched its first fund in 2016 and has since raised two more funds totaling €300 million.
The increased activity has also led to the emergence of new funding sources in France, such as public-private partnerships, corporate investors and impact funds. This has allowed startups to access a wider range of capital than ever before, enabling them to scale more quickly and pursue more ambitious projects.
The venture capital landscape in France has gone through tremendous changes over the past few years, with investment reaching record levels and numerous new firms entering the market. This increased activity is set to continue as international investors look to leverage the growing tech ecosystem in France. As a result, it looks like the French venture capital landscape is only going to get even hotter in the years to come. The venture capital scene in Amsterdam is very competitive and diverse, with numerous high-profile firms investing in the region. The city has a strong infrastructure for startups, with several incubators and accelerators providing resources to help entrepreneurs launch their companies. In addition, there are several government initiatives that support innovation in the region.
At the same time, Amsterdam still lags behind some other European cities in terms of venture capital investment activity. London, for example, attracted more than $9 billion in VC investments between 2018 and 2020. Meanwhile, Berlin drew nearly $7 billion over the same period. Although Amsterdam is becoming an increasingly attractive destination for investors, it still has room to grow when compared to these two cities.
The most active lead investors in France include Idinvest Partners, Partech Ventures and Serena Capital. These three firms have invested in a wide range of startups across multiple sectors, including digital health, fintech and enterprise software.
Idinvest Partners has made numerous investments in French startups over the past year, such as medical app Doctolib, fintech Lydia Solutions and AI-based cybersecurity company Coralogix. They currently manage €5 billion of assets and are one of the largest venture capital firms operating in Europe today.
Partech Ventures is another leading investor based in France that recently raised its fourth fund totaling €800 million. Their investments this past year included e-scooter company Bolt Mobility, analytics firm Sqreen and online marketplace Back Market.
Serena Capital is a smaller venture capital fund that has invested in numerous French startups such as delivery service Stuart, job platform Lengow and IoT startup Ewattch. Their investments have helped to develop the tech ecosystem in France and have been instrumental in the success of numerous companies.
In conclusion, it’s clear that venture capital firms play an important role in fostering innovation and growth in France. With more international investors entering the market and an increasing number of deals being done each year, it looks like the future of VC investing in France is bright.
Some of the most successful venture-backed companies in France include Doctolib, Lydia Solutions, Coralogix, Bolt Mobility, Sqreen, Back Market, Stuart, Lengow and Ewattch.
– Doctolib is a digital health startup that helps medical professionals manage their appointments and offers telemedicine services. It recently raised €150 million in funding to expand its services across Europe.
– Lydia Solutions provides mobile payment solutions for both businesses and individuals. It has raised more than $90 million since it was founded in 2013 and is now one of the leading fintechs in France.
– Coralogix operates an AI-based cybersecurity platform for enterprises. It has raised more than $35 million since its founding in 2018 and is now used by companies in numerous countries.
– Sqreen is an analytics startup that helps companies protect their data from hacks and breaches. It recently raised €37 million to help scale its operations and expand into new markets.
– Back Market sells refurbished electronics at a fraction of the price of new devices. The company recently raised €115 million for further expansion, making it one of the most successful French startups today.
– Stuart provides same-day delivery services across Europe and was recently acquired by Carrefour for €100 million.
– Lengow is a job platform that connects employers with job seekers in France. It has raised over €80 million since it was founded in 2011 and is one of the leading players in this space.
– Ewattch specializes in IoT solutions and has raised over $25 million since its founding in 2016. The company offers connected products such as smart thermostats, smoke detectors and security cameras.
Each of these companies have been able to leverage venture capital investments to help them scale and expand their operations, demonstrating the impact that VC funding can have on entrepreneurial success.