Enjoy this weekly recap of the big news + funding in the French tech ecosystem this week.
In this edition:
🚀 Startup of the Week: CEO and Founder Roland Jais-Nielsen explains how Hero wants to democratize short-term financing for SMEs to address the challenge of payment delays.
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Chris O'Brien + Helen O'Reilly-Durand
Edito
👋 Farewell, Prime Minister Michel Barnier. We hardly knew ya...
The collapse of France's government, marked by the ousting of Barnier through a historic no-confidence vote this week, has plunged (re-plunged?) the nation into political uncertainty. I'm not going to give you the whole backstory, but basically no party has a legislative majority, France is under pressure to reduce its budget deficit, and ringmaster Emmanuel Macron is increasingly unpopular.
So, the country has entered into the great political unknown.
While it's troubling for the whole nation, this upheaval poses significant challenges for French startups and the broader innovation economy, sectors that have flourished under a stable and supportive governmental framework. Macron has been a de facto head cheerleader for squad French Tech since his days as Economy Minister. During his 7 years as El Presidente, he's pumped billions of euros into programs to accelerate the innovation economy through direct investment, grants, and tax breaks.
Now what?
Not only are French Tech boosters anxious that this generous support will be curtailed, but the political instability won't do much to help investor confidence, especially in the volatile landscape of startups and innovation.
Beyond cash, there is the concern that the dissolution of the government brings ambiguity regarding the continuity of pro-startup policies. Initiatives such as tax incentives, grants, and regulatory support, which have been instrumental in fostering innovation, may face delays or revisions. The absence of a clear policy direction could hinder the growth trajectory of startups that rely on these programs for development and scaling.
And will talent acquisition take a hit? A stable political environment is crucial for attracting and retaining top talent.
Finally, there is the matter of international perception and competitiveness. France has worked hard over the past decade to reboot its stodgy, anti-entrepreneur identity to claim a spot as one of Europe's leading startup hubs. Will the turmoil undo that goodwill?
-- Chris
🚀 Tech Talk 🚀
👨⚕️ French health tech pioneer Withings scored a significant investment from the French government to turbocharge its AI-driven medical devices. The company will receive a $22.5 million investment through the France 2030 initiative to launch “Project Deep” (DEvice as a hEalth Prevention platform). Known for making connected health devices like smart scales and next-gen health monitors, Withings will use the new project to accelerate the early detection and prevention of cardiometabolic diseases. | MassDevice ❤️
🧠 Cogny, the AI startup focused on document intelligence and data entry for the spreadsheet enthusiasts out there, has closed a "multi-million euro fundraising from Lakestar and Plug and Play," according to Les Echos. Created in 2023, Cogny automates the tedious work of extracting and entering data directly in Excel. It was co-founded by Sébastien Huppe, a former banker at BNP Paribas CIB.
New Fund Fun!
✈️ We start with Fly Ventures, which has closed its third fund at €80 million. This new fund reinforces Fly’s commitment to supporting inception-stage deep tech startups across Europe, targeting technical founders solving complex, high-impact problems. Fund III was oversubscribed, reflecting robust backing from existing institutional partners and previous portfolio founders. Fly Ventures – with partners based in Berlin, London, Paris, and Zurich – seeks out technical founders and positions itself as a key partner in the ideation and formation phases of new ventures. The firm invests €1-4 million in rounds ranging from €2-8 million, aiming to foster startups in fields like artificial intelligence, industrial tech, and developer tools. Approximately 45% of Fly’s investments have been directed toward AI, while industrial applications and dev tools account for 35% and 20%, respectively.
🌈 Time4 is a new diversity-focused fund created by 4 partners: Daphni, Live for Good, Les Déterminés, and HEC Paris. This new venture capital fund targets entrepreneurs from diverse backgrounds or rural areas. The goal is to close a €100 million fund with a first close in mid-2025. The mission, according to Daphni: "To invest €100K to €1M as first check in about 100 very early stage start-ups, simultaneously harnessing the expertise of the Time4 partners to deliver a support system that is both accessible and sustained over the long term." | Les Echos
👩💼 Virginie Morgon, former CEO of Eurazeo, is joining Ardabelle, an emerging player in the private equity landscape. Teaming up with former McKinsey executives, Morgon is set to play a pivotal role in scaling the firm’s operations and ambitions. The goal: raise a €500 million fund for energy transition SMEs. The move underscores Ardabelle’s intent to expand its footprint in private equity, with plans to double or even triple its size in the coming years. Morgon’s decision to join Ardabelle comes after her transformative leadership at Eurazeo, where she built a reputation for fostering growth and innovation. However, she was eventually pushed out over a disagreement over strategic direction. | L'Informe
Let's Make A Deal...à la française
For those who lament the lack of exits, this was a big week:
🏷️ Leboncoin for Sale? Could the beloved French classifieds site Leboncoin be up for grabs? Rumors of shareholder disagreements suggest a shakeup is in the works. | Les Echos
🤝 Ulule Acquires KissKissBankBank. French crowdfunding champions unite! Ulule and KissKissBankBank are joining forces to create a European powerhouse for creators and entrepreneurs. With 80,000 projects funded and €480M collected, the deal is potentially an important moment for the creator economy. | LinkedIn
🍽️ Deliverect, a Belgian software giant, has swallowed French startup Tabesto, known for its kiosk systems. This move signals the rise of smarter restaurant tech, one digital order at a time. | Les Echos
🤑 AI simulation trailblazer Cosmo Tech received a majority investment (aka, a buyout) from Insight Partners and ex-Accenture executives. With predictive modeling at its core, the new partners believe the Lyon-based firm is set to shake up decision-making processes worldwide. | BusinessWire
🤖 French robotic parking startup Stanley Robotics has sold a majority stake to South Korea’s HL Robotics. FrenchWeb
And finally...
🫦 France’s anti-porn site crusade hit a hilarious snag when technical issues caused unintended site bans. | L'Informe
Startup Of The Week: Hero's Fintech Journey
Fintech may have been on a rollercoaster in recent years, but even if investors have wavered there are still plenty of antiquated financial systems that have yet to experience a digital transformation.
Roland Jais-Nielsen, the founder and CEO of Hero, believes he's found one: Solving the short-term cash crunch that many small and medium-sized businesses periodically face. The company's mission is to democratize short-term financing for SMEs to address the challenge of payment delays. Eventually, the company aims to build the most comprehensive one-stop shop for SMEs in Europe, offering everything from basic banking services to sophisticated financing solutions.
Founded in 2021, Hero recently secured €11.3 million in funding and obtained a crucial French payment institution license, marking significant milestones in its journey.
"We bring particular value to companies in their growth phase. Often, they want to quickly reinvest their profits into growth, but they have to wait for their own customers to pay them first. We allow them to do it directly," said Jais-Nielsen, who described Hero as "the tool I would have dreamed of having as a business owner."
Funding
📇 Company: Orakl Oncology
🔍 Description: Tumor avatars to transform oncology drug development.
💻 Website: http://orakl-oncology.com
📍 HQ City: Le Kremlin-Bicêtre
🧗 Round: Seed
💰 Amount Raised: €11.0M
🏦 Investors: Bpifrance; Singular
👨💼👩💼 Founders: Diane-Laure Pagès; Gustave Ronteix
🗞️ News: https://www.maddyness.com/2024/12/03/orakl-oncology-leve-11-millions-deuros-pour-lutter-contre-les-cancers-digestifs/
📇 Company: Happydemics
🔍 Description: Providing a technology for marketing research.
💻 Website: http://happydemics.com/
📍 HQ City: Paris
🧗 Round: Series B
💰 Amount Raised: €13.0M
🏦 Investors: Adelie Capital; Wille Finance
👨💼👩💼 Founders: Amar Pandit; Tarek Ouagguini; Nicolas Trabuc
🗞️ News: https://happydemics.notion.site/A-Series-B-investment-to-eliminate-the-blind-spot-in-global-ad-spend-14d342514967806f8f89c9ee1b7cdf3b
📇 Company: Enakl
🔍 Description: A Moroccan and French urban mobility startup
💻 Website: http://enakl.com
📍 HQ City: Paris and Morocco
🧗 Round: Seed
💰 Amount Raised: €1.27M
🏦 Investors: Station F; Digital Africa; Renew Capital; Catalyst Fund
👨💼👩💼 Founders: Samir Bennani
🗞️ News: https://www.wamda.com/2024/12/enakl-secures-1-4-million-pre-seed-led-catalyst-fund
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