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👋 Welcome to our weekly recap of the big news + funding in the French tech ecosystem this week. In this week's French Tech Wire,
👀 Deep Dive: The climate crisis is reshaping risk, and the insurance industry is struggling to keep up. As disasters become more frequent and severe, businesses - and the people who rely on them - are paying the price. Yet, traditional climate coverage is shrinking. So what happens when insurers say no? Kevin Dedieu, Chief Scientific Officer at Descartes Underwriting, tells us how this scale-up is rethinking protection with AI-driven, data-powered parametric insurance.
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Chris O'Brien + Helen O'Reilly-Durand
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🚀 Tech Talk 🚀
🍿 Nothing like a juicy little scandal to lighten the mood in dark times. This week, the unlikeliest of spy farces emerged in a dramatic face-off between HR tech giants Deel and Rippling. Or, as local media put it:
This tale comes with a French twist because Deel was co-founded by French entrepreneur Alex Bouaziz, who has been one of France’s highest-profile expat unicorn success stories. As of its last reported funding round in 2023, Deel was valued at $12 billion. The company has raised over $680 million in total funding from prominent investors, including Andreessen Horowitz, Coatue, and Spark Capital.
That valuation positioned Deel as one of the most valuable startups in the French tech ecosystem.
Now comes word of some potentially unsavory shenanigans courtesy of a lawsuit filed by rival Rippling, accusing Deel of corporate espionage. The lawsuit alleges that a former Rippling employee was really a mole for Dell and stole trade secrets and confidential information, including code, product plans, and customer data. According to the lawsuit, Rippling execs ensnared the mole and Deel officials via a "honeypot" set through Slack.
Deel has denied all wrongdoing and claims the messages were taken out of context. | WSJ, TechCrunch
😱 After much wailing and gnashing of teeth, it appears that some of the changes to French laws impacting entrepreneurship are not as radical as once feared. Clara Chappaz, France's AI and Digital minister, took to LinkedIn to clarify that rules regarding stock options (BSPCE taxation) had only undergone some minor, technical revisions. Employees who don’t use a holding company remain taxed only at the time of liquidity, while those contributing shares to a holding face immediate tax on gains but defer capital gains tax until sale. Meanwhile, the government had controversially abolished the "Jeune Docteur" R&D tax incentive, which encouraged hiring PhD graduates by offering enhanced tax credits. Innovation leaders, including a 250+ stakeholder coalition led by F.initiatives, warned this move could harm France’s competitiveness in fields like AI and quantum. French Assembly member Paul Midy is also urging the government to reinstate the tax credit, calling it "a good scheme that allows innovative start-ups and SMEs to hire high-level talent in the service of innovation. It is an essential human link between public research and private companies. To abolish it is to slow down the integration of young PhDs into the professional world and to weaken our technological competitiveness." | LinkedIn, LinkedIn
🅿️ 🚗 Yespark has acquired Zenpark and will now manage 100,000 parking spaces across 6,000 locations in France, Italy, and Belgium. While Yespark has primarily focused on long-term parking subscriptions via partners such as landlords and commercial real estate, Zenpark specializes in short-term, on-demand parking reservations. It enables users to book parking spaces for hours or days, targeting drivers looking for flexible, temporary parking. Over the past decade, Zenpark has raised about $19.8M in venture capital, with institutional investors EDF Pulse Holding and RATP Capital Innovation. Last summer, Zenpark changed its capital structure to issue more shares, suggesting it might seek another round of funding, though it granted EDF and RATP Capital Innovation preferential rights such as board representation and enhanced financial reporting access. Zenpark has never publicly disclosed its finances. Zenpark has raised $30.8m over its history, primarily in a 2022 round that included Ring Capital, Founders Future, Banque des Territoires, Sofiouest, and NEoT.
✈️ ⚖️ Telegram’s Pavel Durov Gets a Temporary French Getaway! In a plot twist that could rival any Netflix drama, Pavel Durov, the founder and CEO of Telegram, had a brief run-in with French authorities after being arrested on August 24, 2024. The charges? Apparently, Telegram’s been accused of hosting some not-so-friendly content, like child abuse material and drug trafficking. 🙄 After coughing up a €5 million bail (nice), Durov was initially told to stay put in France and check in with les flics (cops) twice a week. But in true “tech mogul” style, he’s now been given permission to chill in Dubai, where Telegram is based, while the investigation keeps rolling. Looks like the only thing that’s definitely getting a message through is Durov’s escape plan!📲 | New York Times
🎵 🎧 “Don’t Stop Believin’”: French Tech’s Old Guard Is Rocking the Charts. Two legends of French tech are proving they’ve still got it, with some seriously upbeat results. First up, Deezer hit a high note, with a 12% revenue growth in 2024, reaching €542 million and exceeding its target. For the first time ever, the streaming giant notched up positive free cash flow (€7M) and broke even on EBITDA in the second half of the year. Credit goes to a slick brand revamp, clever partnerships, and subscriber gains in France. Deezer’s now eyeing positive adjusted EBITDA in 2025 – so let’s hope they keep the hits coming!
Meanwhile, Believe, which went private last year after a turbulent ride on the Paris Stock Exchange, has bounced back in style. The company raked in €988.8 million, up 12.3% despite battling currency headwinds. Adjusted EBITDA surged 33.5% to €67.1 million, pushing profitability to a 6.8% margin. Believe wrapped up the year with €139.8 million in net cash, plus €7.1M in positive free cash flow. Looks like they’re back to hitting all the right notes!
🌬️💅🏆 Blowing Up the French Tech Scene! French Tech media Maddyness has been stirring things up this week with its Maddyness Awards, dishing out trophies to the top investment funds, asset managers, and partners backing the French tech ecosystem. Seven lucky winners took home bragging rights across categories like VC of the Year, Best Family Office, and Female Investor of the Year. Among the big names? CVC Sopra Steria and rising star Wind, a climate adaptation fund that - fittingly- seems to have le vent en poupe (wind in its sails, for the non-Francophiles) 🌪️💨. Maddyness
Descartes Underwriting: Doubling Down On Climate Risk As Insurance Industry Retreats
As climate-fueled disasters escalate, traditional insurers are pulling out of high-risk markets, leaving homeowners and businesses stranded. But Descartes Underwriting sees opportunity where others see danger. Powered by AI, the French insurtech is betting big on the future of climate risk. Can it rewrite the rules of insurance?
Chief Science Officer Kévin Dedieu: "AI represents between 2-5% of our tech investments. Next year, we’re increasing that by 10%, with more resources dedicated to AI and using it for our core models. The cost of AI is relatively low, but its impact is huge.”
💸 Top Funding Deals 💸
📇 Company: Dalma
🔍 Description: A French insurtech company offering comprehensive pet insurance solutions for dogs and cats, featuring instant reimbursement and 24/7 veterinary support.
💻 Website: https://www.dalma.co
📍 HQ City: Paris, France
🧗 Round: Series B
💰 Amount Raised: €20 million
🏦 Investors: Breega; Northzone; Anterra Capital; Bpifrance Digital Venture
👨💼👩💼 Founders: Alban de Préville; Raphaël Sadaka; Harry Belinga
🗞️ News: EU Startups, Maddyness, L'Usine Digitale, La Tribune
📇 Company: Galam Robotics
🔍 Description: Specializing in modular robotics, optimizing logistics flows in small spaces through its Tak-One automated storage system.
💻 Website:
📍 HQ City: Villeneuve-la-Garenne
🧗 Round: Series A
💰 Amount Raised: €10M
🏦 Investors: SuperNova Invest (via CAIT fund, backed by Crédit Agricole); Bpifrance; Polytechnique Ventures
👨💼👩💼 Founders: Samuel Perez, Jonathan Lévy
🗞️ News: L'Usine Digitale, Maddyness
📇 Company: Spring
🔍 Description: Specializing in eco-friendly household cleaning products.
💻 Website: https://www.wespring.com/
📍 HQ City: Paris
🧗 Round: Series A
💰 Amount Raised: €10M
🏦 Investors: Aglaé Ventures, Ring Capital, Eutopia, Circular Innovation Fund
👨💼👩💼 Founders: Ben Guerville, Laure Favre, Philippe CANTET
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