€300 million. This is the total amount raised by French start-ups in July and August 2024. As in previous years, it was a particularly quiet summer. However, some sectors stood out over the summer. Here is an analysis and explanations from the experts at AURIS Finance, an M&A advisory firm.
Of the €300 million raised in the summer of 2024, €225 million was raised in July. Unsurprisingly, August was a particularly quiet month, with French start-ups raising a total of €74 million. Overall, the amount raised in July and August 2024 was close to the level seen in 2023 (€316 million raised over two summer months). However, the longer-term trend for funding is downward.
It should be remembered that the years following the covid pandemic were record years in terms of funding for innovative companies in France and abroad. Against a backdrop of geopolitical crisis and inflation, funding then fell sharply. In 2023, French start-ups managed to raise €8.3 billion, compared with €13.5 billion a year earlier, a year-on-year drop of 38%. The figure for 2024 is expected to be similar. In the first half of the year, fundraising amounted to €4.3 billion, which is half the amount raised in the first half of 2022.
Leading the way are biotech, greentech and cybersecurity
The biotech and greentech sectors took the lead, with €72.7 million raised over the summer, followed by cybersecurity (€51.3 million) and Web3 (€46 million). Against an uncertain global macroeconomic backdrop, these market sectors continue to attract funding, demonstrating their capacity for growth and innovation. A trend confirmed in September, when Abolis, a Paris-based biotech specialising in the design of industrial solutions based on micro-organisms, raised €35 million. In the greentech sector, hydrogen mobility start-up HysetCo raised €200 million from Hy24, a dedicated hydrogen infrastructure fund.
Artificial intelligence is a standout
Artificial intelligence remains the most attractive sector. According to global data aggregated by ALTIndex, AI start-ups raised $48.4 billion in 2024. This represents an increase of 25% in one year. French start-ups are no exception to this widespread enthusiasm. Following Mistral AI’s record fundraising (€600 million in June 2024), French start-up H Company has completed a €200 million funding round. Other start-ups are expanding rapidly: Poolside has raised €125 million to develop AI solutions in software development, while AI-based communications company Ava has raised €5.3 million.
Our experts at your service
Against this backdrop of constraints, funding is drying up. The amounts raised are well below the levels seen in the post-covid years. However, some sectors are holding up well. Innovative companies with successful solutions remain attractive. Within the AURIS Finance group, our experts are specialised by sector. They can help you to raise funds. Whatever your project: finding a financial partner, identifying a target to acquire new technological solutions, we are there to advise you.
