👋 Welcome to our weekly recap of the big news + funding in the French tech ecosystem this week.

In this first edition of 2025, we look back and look ahead as the French tech ecosystem searches for hope amid an environment that remains...challenging.

🚀 Deep Dive: After a rocky 2024, we take the pulse of France's VC community for 2025.

🚀 Deep Dive: It's CES 2025 in Vegas, baby, and the latest edition includes the annual invasion of French entrepreneurs pursuing their American dreams.

Subscribe to The French Tech Journal to access all the articles and archives.

Chris O'Brien + Helen O'Reilly-Durand

🚀 Tech Talk 🚀

⬆️ 😓 Clara Chappaz retained her role as France’s Minister for Artificial Intelligence and Digital Affairs, signaling continuity in the government’s tech strategy. Chappaz was appointed last fall as part of a new government, but attached to the Higher Ed and Research Ministry. There was some doubt about her future after that government collapsed. Following the creation of a new government in December, Chappaz was re-appointed, but she’s moving her base of operations to Bercy, home of the French Ministry of Economy and Finance. Chappaz, the former head of La French Tech mission, has been instrumental in shaping France’s digital policies and ensuring the nation remains a key player in tech innovation. Her reappointment reflects the government's focus on building AI expertise while fostering public-private collaboration. | Maddyness + Usine Digitale

🚀 🌠 French startup Latitude unveiled its ambitious space roadmap, promising low-cost, high-performance orbital launch solutions. Known for its Zephyr micro-launcher, Latitude aims to address the growing demand for satellite deployment services. Its innovative approach includes eco-friendly propulsion systems, setting it apart in the "new space" sector. With eyes on competing globally, the startup is poised to disrupt the space industry and cement its position as a key European player. | Maddyness

🤑 360 Capital has launched a €140 million fund, 360 Life II, dedicated to climate-tech innovation. The fund aims to invest in startups tackling urgent environmental challenges, from renewable energy to carbon capture. Backed by prominent institutional and private investors, the fund’s first close marks a major step for sustainable tech financing in Europe. With climate change a top priority, 360 Capital is doubling down on its commitment to green entrepreneurship. | EU Startups

⬆️ 🏦 Qonto, the French neobank, soared in 2023 with a massive 180% revenue increase, achieving a net profit of €71 million compared to a €212 million loss the year prior. Key drivers included client migration from acquired German rival Penta, subscription revenue, and interest income boosted by rising rates. The fintech expanded its offerings with split payments and appointed a new GM for France, Philippine Rougevin-Baville. With 500,000 clients and €620 million raised since 2016, Qonto is becoming a French tech powerhouse. | Les Echos

🏧 💰 French banking group BPCE has officially entered the crypto space after securing regulatory approval. The bank plans to offer cryptocurrency trading and custody services, reflecting the growing institutional embrace of digital assets. BPCE’s move aligns with France’s proactive regulatory stance, which is fostering innovation in the crypto sector. This seems like great timing because... |

🕵️‍♂️ ⚖️ ...French authorities reported that cryptocurrency scams are costing victims a staggering €500 million annually. The rise in sophisticated fraud schemes, including fake investment platforms and phishing attacks, has left regulators scrambling for solutions. To combat the issue, officials are increasing public awareness campaigns and tightening oversight of crypto exchanges. As France works to balance innovation and security, tackling crypto fraud is becoming a top priority for regulators. | Coinspeaker + Coinspeaker

💪 🛒 OVHcloud, led by Octave Klaba, is in the running to acquire InterCloud, a major player in secure cloud connectivity that filed for bankruptcy last year. The move aligns with OVHcloud’s strategy to bolster its global cloud offerings and compete with industry giants. InterCloud’s expertise in interconnecting enterprise IT systems could give OVHcloud a significant edge in the hybrid cloud market. | L’Informé

🎮 🏷️ French gaming giant Ubisoft has appointed financial advisors to explore strategic options following speculation of a potential buyout. The move comes as the company faces mounting competition and shifting industry dynamics. While no formal offers have been confirmed, Ubisoft's future could involve partnerships, mergers, or even a sale. Fans and investors alike are watching closely as the iconic developer charts its next chapter. | CNBC

😱 ⬇️ Meta CEO Mark Zuckerberg sparked outrage this week with his shock announcement to end Facebook content moderation. In a classic U-turn, Zuckerberg says, “Let the people decide!”—because what could possibly go wrong with internet users playing referee? Critics worry this move will turn Facebook into the Wild West of misinformation, while fans of chaos are already stocking up on popcorn. The French government has officially expressed concern. 🍿 Stay tuned!

Let's Make A Deal!

🤝 EssilorLuxottica acquired Pulse Audition, a French AI startup specializing in hearing solutions, to expand its health tech portfolio. This move strengthens the optical giant’s position in the broader wearable tech market, combining vision and hearing innovation under one roof. | Maddyness

🤝 U.S.-based retail giant Bamboo Rose acquired Verteego, a French AI-powered sustainability platform, to enhance its supply chain optimization tools. This deal highlights the growing demand for AI-driven solutions in retail, particularly in reducing environmental impact and improving efficiency. | Maddyness and FrenchWeb

🤝 Agritech leader ISAGRI acquired Sencrop, a French startup known for its connected weather stations, to accelerate the digital transformation of agriculture. The partnership aims to provide farmers with cutting-edge tools for real-time data-driven decision-making and sustainability. | FrenchWeb

🤝 Jeito Capital, a French private equity fund, announced significant investments in Aviceda and XyloCor Therapeutics to drive biopharma growth. Aviceda focuses on glyco-immunology, while XyloCor develops gene therapies for cardiovascular diseases, highlighting Jeito's commitment to cutting-edge medical breakthroughs. These investments align with Jeito’s strategy of supporting promising global biotech companies to accelerate patient-focused innovations. The move underscores Europe’s growing role in shaping the future of healthcare through strategic funding. | EU Startups

French VC Outlook 2025:
Big Bets on AI, Climate Tech, and a Dash of Optimism

As the dust settles on a turbulent 2024, it's probably fair to say that the past year wasn’t exactly the smoothest year for French venture capital.

Fundraising became more painful and the industry saw its second consecutive year of decline as deal values dropped by nearly 15% in 2024 according to Pitchbook’s latest European VC report and according to Avolta’s 2024 FrenchTech Trends and Multiples report, French startups startups raised around €7.3 billion—a noticeable dip from the €8.8 billion raised by French Startups in 2023.

So, what’s the mood for 2025? We asked some of France’s top VCs what sectors they’re betting on, what’s catching their eye, and—on a scale of 1 to 10—how optimistic they’re feeling.

Gaze into the crystal ball

CES 2025:
French Invasion Includes Connected Objects, AI, and Robots

Withings announced its connected mirror Omnia at CES 2025

The love affair between the French and CES – the Gargantuan Tech Trade Show in Vegas – continues this year. In addition to swarms of Frenchy entrepreneurs flocking to Sin City, French journos are also on hand to cover the chaos.

You can see the full list of French startups attending here:

Here's a roundup of coverage

Funding

📇 Company: Usual
🔍 Description: Innovative protocol redefining finance with transparency and inclusivity.
💻 Website: http://usual.money
📍 HQ City: Paris
🧗 Round: Series A
💰 Amount Raised: €9.09M
🏦 Investors: Wintermute; Fasanara Capital; Coinbase Ventures; Binance Labs; LeadBlock Partners; Amber Group; Krypital Group; Galaxy
👨💼👩💼 Founders: Pierre Person; Adli Bataille; Hugo Sallé Chou
🗞️ News: Finyear

📇 Company: Syroco
🔍 Description: Syroco EfficientShip is a software platform that builds digital twins of ships using physics modeling, data, and AI.
💻 Website: https://syro.co
📍 HQ City: Marseille
🧗 Round: Series A
💰 Amount Raised: €7.50M
🏦 Investors: Seventure Partners; Alter Equity
👨💼👩💼 Founders: Florent Boutellier; Bertrand Diard; Yves de Montcheuil; Olivier Taillard
🗞️ News: Maddyness

📇 Company: Happydemics
🔍 Description: Providing technology for marketing research.
💻 Website: http://happydemics.com/
📍 HQ City: Paris
🧗 Round: Series B
💰 Amount Raised: €13.00M
🏦 Investors: Adelie Capital; Wille Finance
👨💼👩💼 Founders: Amar Pandit; Tarek Ouagguini; Nicolas Trabuc
🗞️ News: Silicon Canals

See the full list

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