👋 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: Why Europe Needs Its Own AI Infrastructure: Arnaud Muller, Founder & CEO of Cleyrop and vocal advocate for European technological independence, explores how Europe can build a sovereign AI future.

🤔 Digital Diplomats: U.S. Startups are reaching $100M ARR with less than 50 employees thanks to AI. French startups risk being squeezed if they don’t adapt. Marjolaine Catil, an Investment Director at Newfund, and the French Tech Journal's Chris O’Brien analyze how startups are getting ultra-lean – and whether French startups can keep up.

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Chris O'Brien + Helen O'Reilly-Durand

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🚀 Tech Talk 🚀

🌊 CuspAI Pulls in AI Giants: LeCun and Google Talent Join the Party CuspAI is making waves! The Cambridge and Amsterdam-based startup, which is revolutionizing material discovery with AI, has just landed Meta’s French AI mastermind Yann LeCun on its advisory board. Fresh off poaching top-tier talent from Google DeepMind, including three big names, CuspAI is positioning itself as the next big player in both AI and sustainability. With $30M in seed funding and world-class experts on board, this young startup is rapidly becoming a force to reckon with. | Sifted

⬇️ 💸 French Tech Funding Takes a Dip in February. Looks like French startups had a bit of a rough February—raising just €294 million. That’s a drop in the bucket compared to previous months, and definitely not the kind of “Vive la Révolution” you’d expect after all the pomp at the AI Action Summit.

🏭😣 In 2024, French industrial startups faced challenges, with a 32% decrease in funds raised compared to the previous year, totaling €2.83 billion across 212 funding rounds. Despite this downturn, 38 new industrial sites were inaugurated, indicating resilience in the sector. However, Bpifrance anticipates that 2025 will remain under pressure, with a significant recovery expected only in 2026. | Maddyness, Les Echos

⬆️💰 Sofinnova Partners, a leading European venture capital firm specializing in life sciences, has raised a €1.2 billion fund to support the next wave of innovation in healthcare and sustainable development. This funding increases the firm's assets under management to over €4 billion, doubling in five years. The capital will be used to finance 50 to 60 new companies across biotech, medtech, industrial biotech, and digital medicine. Sofinnova has also integrated AI into its investment process, enhancing its ability to identify and support disruptive technologies.

🙅‍♀️🤦‍♀️ With International Women's Day about to hit, the news on the tech front is not good...According to Pitchbook's latest report Women are Still Underrepresented in the European Tech Ecosystem. Despite some progress, women founders and investors in Europe are still fighting for a bigger slice of the VC pie. In 2024, women-led startups raised €10.2 billion—yay! But, hold on, that’s just 20.6% of the total VC investments in the region. And the funding gap? It’s still massive: male-only teams bagged a whopping €38.3 billion. And don’t even get started on valuations…Startups with 100% female founders average valuations often come in way lower than their male counterparts. It’s clear: while women are definitely showing up, they’re still not getting the fair shot they deserve. 😖 | Maddyness

💅🤑 Speaking of women-led startups, Jolimoi goes from Beauty Buffs to Bottom Line Brilliance crossing the profitability line with a €20 million revenue haul in 2024. The beauty social-selling platform—founded by a team of entrepreneurial powerhouses—is making it rain (well, for them and their 10,000 beauty pros across France and Belgium). While the social selling model is booming, they’re keeping things structured and secure in a sector that can sometimes be a bit… unpolished. With a 20% growth in 2025 on the horizon and a newly launched brand under their belt, they’re proving the beauty biz can be both a passion project and a profit-making machine. | Les Echos

⚽🥼 Paris Saint-Germain (PSG) has launched PSG Labs, a global innovation hub aimed at accelerating technological advancements in sports, fan engagement, and performance. The first branch is set to open in Doha, Qatar, reflecting the club's ties with Qatar Sports Investments. PSG Labs will focus on areas such as sports performance and health, fan engagement, stadium modernization, artificial intelligence, Web3 and blockchain, audiovisual media, cybersecurity, and sustainability. Selected startups will participate in a three-month intensive "Boot Camp" program, collaborating closely with PSG's ecosystem to rapidly develop and validate their solutions. | La Revue Digitale, Maddyness

Deep Dive: Why Europe Needs AI Infrastructure

As AI accelerates, Europe faces a crucial question: Can it build its own AI infrastructure without relying on foreign giants like AWS and Microsoft?

In this deep dive, we explore why Europe needs a sovereign AI ecosystem and how companies like Cleyrop are shaping the future of AI-powered innovation, security, and sustainability.

With AI’s energy demands set to skyrocket and geopolitical risks on the horizon, Europe must act fast to secure its place in the digital future.

Digital Diplomats:
AI is Making Silicon Valley Startups Leaner and Meaner. Can French Founders Keep Up?

In Silicon Valley, a new wave of ultra-lean AI startups is achieving remarkable revenue milestones with minimal staff. Companies like Anysphere and ElevenLabs have reached $100 million in annual recurring revenue with as few as 20 to 50 employees.

For French startups, this evolution poses both challenges and opportunities. To remain competitive, French founders must adapt by integrating AI to enhance productivity and streamline operations. This involves rethinking traditional business models and embracing AI-driven strategies to achieve similar efficiencies. The shift necessitates a fundamental change in mindset, focusing on scaling with fewer resources while maintaining or increasing output. Failure to adapt could result in French startups being outpaced by their leaner, AI-optimized counterparts in Silicon Valley.

💸 Top Funding Deals 💸

📇 Company: Flowdesk
🔍 Description: Digital asset financial technology provider building a trading infrastructure to provide market-making services for web3 players.
💻 Website: https://www.flowdesk.co/
📍 HQ City: Paris
🧗 Round: Extension to Series B
💰 Amount Raised: $52M
🏦 Investors: HV Capital; ISAI Ventures; Eurazeo; Cathay Innovation
👨💼👩💼 Founders: François Cluzeau; Guilhem Chaumont; Paul Bugnot; Balthazar Giraux
🗞️ News: LinkedIn, Blog Post

📇 Company: Netforce
🔍 Description: Law enforcement technology development company
💻 Website: https://www.nexstun.com
📍 HQ City: Mauguio
🧗 Round: Growth Equity VC
💰 Amount Raised: €45M
🏦 Investors: Global Emerging Markets
👨💼👩💼 Founders: Laurent Mollinari
🗞️ News: Financial Post

📇 Company: Satisfy
🔍 Description: Premium running apparel designed to enhance performance and creativity, exclusively available online.
💻 Website: https://satisfyrunning.com/
📍 HQ City: Paris
🧗 Round: Series B
💰 Amount Raised: €11.3M
🏦 Investors: Bpifrance
👨💼👩💼 Founders: Brice Partouche
🗞️ News: Fashion United

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