During the second quarter of 2021, fundraising by French start-ups reached new heights. Between April and June, they convinced investors to disburse 3.2 billion euros, a record in the French Tech sector.
A very dynamic first half
According to a study by Avolta Partners, French startups raised 3.2 billion euros from investors in the second quarter of 2021.
In the first half of the year, between January and June, they obtained 4.6 billion euros, almost as much in 6 months as in the whole of 2020.
Moreover, 2020 was already a record year: despite the health crisis, France topped the European league table for fundraising, with a total amount of 5.4 billion euros.
Growing interest from foreign investment funds
Foreign investment funds have shown particular interest in French startups. These include Sequoia, Advent International, SoftBank, General Atlantic, 10T Holdings and Coatue Management.
During the 2nd quarter, which was marked by major fund-raising by almost all the key players in the French Tech sector, at least one foreign investor was present in 45% of cases.
In April, startup Alan raised 180 million euros, compared with 100 million euros for Ornikar and 96 million for BlaBlaCar. In May, Contentsquare raised 408 million euros, breaking the record for the largest fundraising in the history of French Tech, while Back Market secured 276 million euros, and Shift Technology 182 million euros.
In June, Ledger raised 312 million euros, Aircall 101 million and Malt 80 million. These fund-raisings enabled 4 French startups - Back Market, Ledger, Alan and Shift Technology - to enter the circle of unicorns, with a valuation in excess of one billion dollars.
Last but not least, the IPO of startup Believe sent a positive signal to players in the French Tech sector, which is often criticized for its low volume of exits, whether in the form of resales or IPOs.