In an unpredictable macroeconomic and financial environment, some growth companies are managing to pull through. In the first half of 2023, what are the biggest fundraising operations carried out by French start-ups? AURIS Finance, a consultancy firm specialising in mergers and acquisitions, provides you with an update.
Power now rests with investors. The dynamic investment market of the post-Covid years has given way to a more wait-and-see attitude on the part of investors. 2022 marks a significant decline in the amounts raised by start-ups and innovative companies. 2023 follows the same trend: in January 2023, the total amount raised by French start-ups was around €758 million, compared to €2.6 billion a year earlier. A real downward trend was confirmed in February, with €450 million raised, compared to €710 million in February 2022.
A sharp decline in amounts
In addition to the uncertain macroeconomic environment, there is the threat of a banking crisis. The failure of Silicon Valley Bank, the sixteenth largest bank in the US and banking partner to almost half of all publicly traded venture capital-backed start-ups in the US, has taken a heavy toll on the global innovative business financing industry. Investors are more selective about the companies they invest in. While the amounts committed are lower, the requirements of the investment funds are higher. Investors are making informed choices and are now focusing mostly on promising sectors.
MedTech and Deep make their mark
Not all companies are under the same pressure. Some stand out in the French ecosystem. This is the case of Amolyt Pharma, which today holds the record for the largest fundraising by a start-up in 2023. The biotech, which specialises in the treatment of rare endocrine diseases, has raised €130 million from a trio of investors. Also in the healthcare sector, Medtech Volta Medical, which specialises in developing artificial intelligence software to help surgeons identify and treat cardiac arrhythmias, closed a Series B financing round of €36 million. Another notable fundraising was that of Pasqal, a French start-up developing quantum computers, which closed a €100 million financing round.
Human resources and ecological transition
Other sectors are now drawing the attention of investors. The recruitment sector in particular is being scrutinised by investors who know that companies are looking for innovation as they face recruitment difficulties. In this context, employment specialist Welcome to The Jungle recently raised €50 million. In the same vein, Brigad, a start-up specialising in connecting freelancers and companies, has signed a €33 million Series B financing round. Start-ups proposing major innovations to accelerate the ecological transition are also in high demand. GreenWaves Technologies, a Grenoble-based company specialising in the manufacture of ultra-low-power processors, has just raised €20 million, while Verso Energy closed a €50 million financing round at the end of January.
Getting the support you need
Raising funds is a crucial step in a company’s development and nothing should be left to chance. Experts at AURIS Finance are specialised by sector. From finding investors to determining the amount to be raised, our experts will assist you in your operations.
