The French Startup Ecosystem Investment Report, prepared by StartupCentrum with the leadership of La French Tech Istanbul and sponsored by TEB and TAV Airports, comprehensively examines investment trends, sector growth, regional hotspots, and the demographic makeup of innovative leadership from 2018 to 2023.

Overview of 2023

In 2023, French tech startups received $8.95 billion in investment. This amount was distributed across 1,042 investment rounds involving 949 tech startups. The most funded sectors were sustainability and environment, materials and manufacturing, and healthcare and biotechnology. The sustainability and environment sector attracted the highest investment amount at $2.55 billion, followed by the materials and manufacturing sector at $2.15 billion. The healthcare and biotechnology sector received $1.66 billion in investment, securing its significant position.

Regional Distribution

When examining startup investments regionally in France, Île-de-France stands out as the region attracting the most investment, with $5.23 billion, accounting for 58% of all investments. This region is followed by Auvergne-Rhône-Alpes, which received $1.84 billion in investment. Provence-Alpes-Côte d’Azur also emerged as a notable region with $402 million in investment.

Women Entrepreneurs and Investment Stages

In 2023, 20.6% of the startups that received investment had at least one female co-founder, while the overall percentage of female founders stood at 12%. These figures indicate an increasing presence of women entrepreneurs in the ecosystem. When analyzing investment stages, there is a growing interest in seed investments, with early-stage investments showing a steady upward trend. However, after peaking in 2021, late-stage investments experienced a decline in 2023.

Major Investments and Sectors

Among the startups receiving the most significant investments in France in 2023, Verkor leads with $907 million. This is followed by Mistral AI with $534 million and Ynsect with $175 million. The most funded sectors include sustainability and environment, materials and manufacturing, and healthcare and biotechnology.

Conclusion

France's startup ecosystem continues to offer an attractive environment for investors, thanks to its strong technological infrastructure and startup-friendly policies. The trend towards more selective and strategic investments, particularly in early-stage startups, helps maintain the dynamism of the ecosystem. France remains a compelling investment destination for domestic and international investors, demonstrating its strong position in innovation and entrepreneurship.

2023 - French Startup Ecosystem Funding Report

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