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

🕺⬆️ Axeleo Capital has raised the first €125 million of a new fund aimed at green-tech industrial start-ups, targeting a final goal of €250 million. The fund addresses a critical financing gap for building start-ups' first factories, which are often underfunded. With support from major financial backers, including Crédit Mutuel and Bpifrance, Axeleo will focus on energy, sustainable materials, agriculture, and mobility innovation. Despite industry challenges, such as recent setbacks for companies like Ynsect and Northvolt, Axeleo aims to support promising projects across Europe. French industrial startups may need that money sooner than later because... 🏭 🟢 🔋

👨‍🏭👩‍🏭 🏭 ...a recent report by Start Industrie revealed that nearly half of France's industrial start-ups may soon face severe cash flow shortages, threatening their growth and survival. These young companies often struggle to secure the funding needed for production and scale-up, particularly in the green tech sector. Industry experts warn that this could hamper innovation in crucial fields such as renewable energy and sustainable manufacturing. The French government has been promoting the industrialization of Deep Tech products through several programs. But with a new government placing an emphasis on budget cuts, the purse strings are likely to be tightened for such efforts. 🫠

🔌 ↖️ Zeplug signed an €80 million financing deal with NEoT Green Mobility, a sustainable mobility investment platform, to fund electric vehicle charging points in residential and office buildings, according to Les Echos. Rather than raising capital, this financing arrangement allows NEoT Green Mobility to cover infrastructure costs each time Zeplug opens a new property, with gradual repayments by Zeplug. The deal enables Zeplug to install charging points across new properties and repay the investment gradually, supporting a goal to deploy 100,000 charging stations over the next five to seven years. This partnership, ongoing since 2019, will help Zeplug streamline deployment while relying on prior funding for operational expenses. 🚗

😎 👍 ZE Energy, which specializes in solar-plus-storage solutions, has raised €54 million in funding from Amundi Transition Énergétique, Demeter, and SORÉGIES. The financing will accelerate ZE Energy’s growth in solar energy production coupled with storage capabilities, supporting energy grid stability and renewable integration. This investment also aims to boost ZE Energy’s international expansion and innovation in energy storage. 🏃‍♂️

🎮 ⬇️ Facing challenges in balancing growth with maintaining its brand identity, Ubisoft is implementing strategic changes to stabilize its financial standing, according to FrenchWeb. The company has been exploring new revenue streams while trying not to compromise the creative integrity of its gaming franchises. However, investors and market competition continue to pressure Ubisoft's business approach amid rumors that China's Tencent may try to acquire the company. 🤯

Deep Dive:
SpaceTech Latitude Prepares For Lift Off With New CEO

France fell behind in the space race. Latitude is among a new generation of Space startups that hope to close the gap.

Founded in 2019, Latitude plans to launch its first commercial rocket in 2025. Just ahead of that milestone, the company announced this week that founder Stanislas Maximin would become executive chairman and be replaced as CEO by industry veteran Aurélie Bressollette. Maxmin said France must learn to go faster, but he remains optimistic about its chances of being an influential player.

"I'd say we have a better shot at winning this today compared to other countries," he said. "But we shot ourselves in the foot by taking way too long to act, which is the biggest issue regarding innovation. Now we are basically trying to catch up."

Funding

📇 Company: ZE Energy
🔍 Description: Independent renewable energy producer specializing in hybrid solar power plants that combine photovoltaic energy with battery storage solutions.
💻 Website: https://ze-energy.com/
📍 HQ City: Paris
🧗 Round: Growth Equity
💰 Amount raised: €54 million
🏦 Investors: Amundi Energy Transition; Demeter (Climate Infrastructure Fund); Sorégies; Marguerite; HTGF; ZE WAY INVEST
👨💼👩💼 Founders: Mathieu Lassagne
🗞️ News: ZE Energy raises €54 million from Amundi Energy Transition, Demeter, and Sorégies

📇 Company: Cintoo
🔍 Description: Offers the industry’s most comprehensive scan-BIM platform to compare a scan and a BIM model or a scan to a scan.
💻 Website: http://cintoo.com/
📍 HQ City: Biot-Sophia Antipolis, France, and Miami
🧗 Round: Series B
💰 Amount raised: €37.0 million
🏦 Investors: Partech; Amavi Capital; Armilar Venture Partners
👨💼👩💼 Founders: Dominique Pouliquen; Denis Thibaudin; Leonardo H. Fonteles; Anis Meftah; Rob Rasnic
🗞️ News: Cintoo secures €37 million in Series B funding

📇 Company: Alpagga
🔍 Description: Platform for safe buying and selling of new and used catering equipment.
💻 Website: https://alpagga.com/
📍 HQ City: Paris
🧗 Round: EARLY VC
💰 Amount raised: €6.0 million
🏦 Investors: 50 Partners; FJ Labs; Ring Capital; Acurio Ventures
👨💼👩💼 Founders: N/A
🗞️ News: Alpagga raises €6 million to extend the lifecycle of restaurant equipment

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