👋 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: With Ÿnsect rolling toward bankruptcy and Agronutris seeking court protection, France's ambitions for the insect-based food market may have been squashed. But Innovafeed is still in the game thanks to a very different strategy. We break down how its approach may yet position the company for success.

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Chris O'Brien + Helen O'Reilly-Durand

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🚀 Tech Talk 🚀

🐛 Ynsect, once a shining star of French Tech, is now on the verge of judicial restructuring after failing to secure a buyer or fresh investment. The insect-protein startup needed €130 million to complete its massive Poulainville factory and scale up production but couldn’t find the necessary funds. This is a major blow for the company’s 200+ employees and a symbolic loss for France’s push for sustainable, industrial innovation. The collapse is also a major disappointment for the French government and Bpifrance, which heavily backed Ynsect, contributing to its total €600 million in funding. More broadly, it raises questions about the sustainability of France’s attempts to leverage its Deep Tech prowess to re-industrialize the country. With economic uncertainty, state-backed loan repayments looming, and a tough fundraising environment, 2025 could see more high-profile failures in French Tech. | Les Echos, France 3, Sifted, Maddyness

😠🇫🇷 French startups are voicing concerns over recent government budget changes that could increase labor costs and stifle innovation. While the government maintained key tax exemptions for early-stage innovative enterprises (JEI), it tightened eligibility criteria, requiring startups to spend at least 20% of their budget on R&D instead of 15%. This shift could exclude hundreds of startups from benefits that previously helped them manage high employment costs, particularly for R&D teams. In an open letter to the Prime Minister, obtained by Maddyness, all the major associations representing French start-ups call on Prime Minister François Bayrou to preserve the previous status of the JEI. The changes come as France faces pressure to reduce its budget deficit, despite global competitors like the U.S. and China ramping up investments in strategic industries. Startup associations argue that these cuts could slow the ecosystem’s momentum and damage France’s attractiveness as a tech hub. While founders and investors welcome some stability, they worry that unpredictable policy shifts could undermine long-term confidence in the sector. | Maddyness,

💼 France's global tech consulting giant Capgemini reported a rough 2024 with revenues declining by 1.9% to €22.096 billion and an operating margin decrease of 1.9%. According to the company, this downturn was primarily due to sluggish client spending, especially in the manufacturing sector and European markets, leading to a cautious outlook for 2025. In contrast, competitors like KPMG reported a 5.4% revenue increase, driven by strong performances in their audit and tax divisions. "In 2024, the market proved weaker than we anticipated at the beginning of the year. Clients did not increase their discretionary spend," Capgemini CEO Ayman Ezzat said on an earnings call. However, the company is optimistic that demand for help with GenAI will drive business in 2025, noting that GenAI bookings accounted for around 5% of Q4 bookings and close to 4% full year. | Capgemini, Transcript

🏫 The French government has launched Je Choisis la French Tech Académie to help startups win more public contracts. This initiative, led by La Mission French Tech, will train startups on navigating the complexities of public procurement, an area where many struggle. By providing mentorship, workshops, and direct connections with government buyers, the program aims to boost French startups’ access to lucrative state contracts. This move is part of a broader effort to strengthen France’s tech ecosystem by ensuring more homegrown innovation is integrated into public services. | Maddyness, Le Figaro

🏢🟢 Deepki, a leader in ESG data aggregation for buildings, reported strong growth in 2024, reaching €55 million in annual recurring revenue—a 25% year-over-year increase. While the company achieved breakeven in September, it still posted an annual loss of around €10 million due to economic headwinds in real estate and growing competition. Deepki has focused on AI-driven energy audits and efficiency improvements while maintaining a steady workforce of 400 employees. The company serves 500 clients, managing €4 trillion in assets, but has prioritized larger accounts over smaller ones, leading to some client churn. Expansion continues in Europe and the U.S., though in America, Deepki emphasizes cost-saving efficiencies rather than ESG messaging. Looking ahead, the startup is considering another funding round or even an IPO, though it remains committed to its independence for now. | Les Echos

🥼🔬 Biotech startup Stilla Technologies was acquired by U.S.-based Bio-Rad for $225 million. Stilla, known for its cutting-edge digital PCR technology, had been gaining traction in the precision diagnostics space. This deal strengthens Bio-Rad’s position in molecular biology while marking another case of a promising French deep-tech company being snapped up by a larger American player. Despite the sale, Stilla’s technology and expertise are expected to remain key assets within Bio-Rad’s expanding portfolio. | Maddyness, Usine Digitale

💏🗑️ Bumble has shut down Fruitz, the French dating app it acquired in 2022, as part of its broader cost-cutting strategy. Despite Fruitz’s initial success with its playful fruit-based matchmaking concept, it struggled to compete in a saturated dating market. This closure reflects Bumble’s shift towards optimizing its core platforms while streamlining operations. | Maddyness

Deep Dive:
Can Innovafeed Salvage France's Alternative Protein Dreams?

The French insect protein industry was supposed to revolutionize sustainable food production, backed by hundreds of millions in funding and strong government support.

Now, industry pioneer Ÿnsect is on the brink of bankruptcy after burning through $440M, and rival Agronutris is fighting for survival.

Amid this carnage, Innovafeed has emerged as the last bug standing - deploying a different strategy that may have cracked the code for making insect protein work at a massive scale.

Here's how they're building a bug-based empire while their competitors collapse, and why even their success isn't guaranteed.

💸 Top Funding Deals 💸

📇 Company: 73 Strings
🔍 Description: AI-powered financial advisory platform optimizing valuation, risk management, and private market investments.
💻 Website: https://www.73strings.com/
📍 HQ City: Neuilly-sur-Seine
🧗 Round: Series B
💰 Amount Raised: €50M
🏦 Investors: Blackstone; Goldman Sachs; Golub Capital; Hamilton Lane; Fidelity International Strategic Ventures; Broadhaven Ventures
👨💼👩💼 Founders: Abhishek Pandey; Sambeet Parija; Yann Magnan
🗞️ News: FrenchWeb

📇 Company: EG 427
🔍 Description: Pioneering a new approach in gene therapy, called pinpoint gene therapy, focusing on targeted neurological applications.
💻 Website: https://www.eg427.com
📍 HQ City: Paris
🧗 Round: Series B
💰 Amount Raised: €27M
🏦 Investors: Bpifrance; Andera Partners
👨💼👩💼 Founders: François Giuliano; Philippe Chambon
🗞️ News: Benzinga

📇 Company: Spore Biotechnologies
🔍 Description: Reinventing microbiology testing with AI
💻 Website: http://spore.bio
📍 HQ City: Paris
🧗 Round: Series A
💰 Amount Raised: €23M
🏦 Investors: Singular; LocalGlobe; Station F; Famille C Venture; No Label Ventures
👨💼👩💼 Founders: Amine Raji; Mohamed Tazi; Maxime Mistretta
🗞️ News: LinkedIn, TechCrunch, Sifted

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