A recap of the big news + funding in the French tech ecosystem this week. Subscribe to The French Tech Journal to access all the articles and archives.
Tech Talk
Xavier Niel Takes Control of Troubled VC Firm New Wave | Xavier Niel has taken over the venture capital firm New Wave through his holding company. The move comes after an acrimonious split earlier this year that saw Pia d'Iribarne push co-founder Jean de La Rochebrochard out of the early-stage fund. With d'Iribarne leaving, de La Rochebrochard will take the helm to manage the existing portfolio but plans to raise a second fund have been scuttled. | Sifted, Les Echos, FrenchWeb
No Exits: The European venture capital landscape faces significant challenges | Advisory firm Avolta reports that a sharp drop in exits, particularly through IPOs and M&As, is causing concern for investors seeking liquidity. IPOs have been scarce since 2022, and M&A activity has also decreased, though total exit values remained high in 2024, with major deals like LumApps and BeReal acquisitions. Startups have increasingly become acquirers to gain technologies and market presence, reflecting an adaptive strategy amid exit scarcity. Private equity firms now play a larger role in providing exits, especially for startups with SaaS models, filling a gap left by a weak IPO market. Despite current challenges, venture capitalists remain cautiously optimistic, anticipating improved exit opportunities and market stability in the coming year. | Avolta
Ubisoft Faces Potential Tencent Acquisition | France's Ubisoft, the gaming giant behind titles like Assassin’s Creed, is facing mounting pressure as Tencent, the Chinese tech conglomerate, explores a potential acquisition. The move is seen as a way for Tencent to increase its foothold in Western gaming markets. However, concerns are rising over the influence this acquisition might have on Ubisoft’s creative direction and independence. Industry analysts suggest that Ubisoft has limited options to maintain autonomy, and the deal could reshape its strategic approach to key franchises like Star Wars: Outlaws. | Variety
Space Marine 2 Brings Historic Success for French Publisher Focus Entertainment | Focus Entertainment, a French video game publisher, has hit a landmark success with Space Marine 2, part of the Warhammer universe. This latest release marks a significant win for Focus, as Warhammer’s popularity brings both critical acclaim and a commercial windfall. | Le Figaro
Record Failures Among French Startups | Maddyness reports that France has seen an unprecedented wave of startup failures, raising questions about the factors behind these closures. According to data from the Banque de France, between January 2023 and May 2024, 5.6% of mature start-ups closed. In addition, 128 innovative start-ups have gone bankrupt over the past 18 months. This surge in closures could reshape the French startup ecosystem, prompting a focus on stronger financial strategies and resilience. | Maddyness
Devialet Expands Despite Economic Challenges | Despite a challenging economic climate, Devialet, the French luxury audio brand, continues to push forward with its high-end product lineup. The company introduced its latest product, Devialet Astra, an amplifier to "(re)discover sound in its infinite richness and reveal the emotions of music". Known for its premium speakers, Devialet is navigating rising costs and market headwinds while focusing on product innovation and quality. The brand’s expansion reflects a commitment to luxury tech and brand differentiation in a competitive field. | Maddyness
Ledger, a leader in crypto-asset storage, has been fined €750,000 by CNIL | The sanctions were for inadequate data protection following a 2020 data breach affecting over a million customer records. The breach exposed customers' names, phone numbers, emails, and physical addresses, leading to scams, including fake Ledger devices sent to steal cryptocurrencies. Although Ledger's core crypto storage technology remained secure, CNIL cited the company for failing to properly secure and retain data as per GDPR requirements. This case arose from around fifty complaints, highlighting privacy and security concerns. Ledger acknowledged the penalty and committed to continually enhancing its data protection measures. | The Big Whale
French battery recycling project shelved as electric vehicles sector struggles | The French mining firm Eramet has paused its plans to build a battery recycling plant in France, citing uncertainty in the European electric vehicle (EV) market and supply chain challenges. This project, initially in partnership with Suez, faced issues such as a lack of local EV battery supply and recycling demand for materials like cathodes, forcing Eramet to reconsider its investment. Had the plant proceeded, recovered minerals would likely have had to be shipped to Asia, which Eramet deemed economically unfeasible. This suspension follows another halted recycling project by Orano and Stellantis, signaling broader difficulties in Europe’s EV recycling ambitions as the industry confronts slower-than-expected growth and logistical challenges. | The Local
The French government is considering legalizing online casinos | The proposal is part of its 2025 budget, aiming to curb illegal gambling and align with regulations in other EU countries. This proposal, introduced by Prime Minister Michel Barnier, has sparked significant opposition from addiction experts and the traditional casino industry, who worry about increased gambling addiction and economic impacts on brick-and-mortar casinos. Proponents argue that regulation could generate substantial tax revenue and better protect consumers. However, critics also raise concerns about whether regulation alone can mitigate risks associated with online gambling. The measure, currently under parliamentary debate, will see a final decision by the end of the year. | RFI
Deals + Deals | Paris-based Gamestream, developer of a video game streaming platform, was acquired by Netgem. Kinomap (see our profile of the SporTech company) acquired Fit Immersion.
La Climate House: Paris’s New Hub for Green Tech | La Climate House, a new center for green technology within the French tech ecosystem, has opened in Paris to foster innovation in environmental sustainability. The hub offers resources and networking opportunities for startups focused on climate impact. The project aligns with France’s broader commitment to sustainable development and tech-driven environmental solutions. By supporting green startups, La Climate House is poised to become a focal point for eco-friendly initiatives, attracting investors and entrepreneurs interested in creating a greener future. | Les Echos, Maddyness
Funding
📇 Company: Granular Energy
🔍 Description: Creating market solutions that facilitate 24/7 clean energy sourcing and generate new price signals for clean energy
💻 Website: https://granular-energy.com/
📍 HQ City: Paris
🧗 Round: EARLY VC
💰 Amount raised: €1.0M
🏦 Investors: JERA
👨💼👩💼 Founders: Bruno Menu; Samuel Cheptou; Toby Ferenczi
🗞️ News: https://www.granular-energy.com/insights/jera-investment-and-pilot
📇 Company: GreenGo
🔍 Description: The responsible alternative to Booking and Airbnb that selects the best accommodation in France
💻 Website: https://www.greengo.voyage/
📍 HQ City: Paris
🧗 Round: SEED
💰 Amount raised: €2.5M
🏦 Investors: Inco Ventures
👨💼👩💼 Founders: Mathieu Ravard; Guillaume Jouffre
📇 Company: Company: Fungiball
🔍 Description: Fantasy tennis platform
💻 Website: http://fungiball.io/
📍 HQ City: Paris
🧗 Round: Pre-Seed
💰 Amount raised: €2.2M
🏦 Investors: Business angels Adrien Dassault and Stephan Altmuller, Cliff Capital, and Bpifrance
👨💼👩💼 Founders: Jean Matias and Romain Boudré
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