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Chris O'Brien + Helen O'Reilly-Durand
Edito
The State of the French Tech Ecosystem 2024 report released last week reinforced the dominant role AI now plays in the French tech ecosystem. No surprise, of course. Still, there were plenty of interesting takeaways:
1. A Record Year for AI Investment: AI funding in France witnessed unprecedented growth in 2024, contributing 27% of the total venture capital raised by French startups. This marks an 82% year-over-year (YoY) increase. Without AI, the overall funding in France would have declined by 11% YoY.
2. AI Startups Attracting Larger Rounds: The median round sizes for AI startups were significantly higher than those for non-AI startups. Series A rounds for AI companies were 25% larger on average, and pre-money valuations for AI startups were 21% higher compared to their counterparts in other sectors. This trend reflects investor confidence in the scalability and transformative potential of AI solutions.
3. Focus Areas in AI Investment: AI funding was concentrated in key verticals such as:
- Foundation Models: Companies like Mistral, Poolside, and others raised substantial rounds to develop large language models (LLMs) and generative AI tools.
- Healthcare: Startups leveraging AI for drug discovery, medical research, and personalized healthcare attracted significant capital, with notable examples like Owkin and Aqemia.
- Vertical Applications: Industry-specific AI solutions, including tools for finance, insurance, and logistics, were among the top-funded segments.
- AI Infrastructure: Startups focusing on AI deployment infrastructure, such as Adaptive and ZML, gained traction by simplifying the integration of AI technologies for enterprises.
4. International Investment Surge: Foreign investors played a pivotal role in AI funding in France. They participated in 42% of the rounds and contributed 82% of the capital raised by AI startups, reflecting strong global interest in the French AI ecosystem. Prominent global funds, including Sequoia, Index Ventures, and Accel, led many of the high-profile funding rounds.
5. Paris: The Heart of AI Innovation: Paris emerged as a global hub for AI innovation, supported by its concentration of top engineering schools, public research institutions, and government-backed funding programs. Approximately half of the AI startups in France are based in Paris, and the city hosted 12 of the top 15 funding rounds in 2024.
6. Strategic Corporate Investments: Tech giants like Nvidia, Microsoft, and UiPath significantly increased their investments in French AI startups to gain early access to proprietary technologies and establish distribution partnerships. This trend underscores the strategic importance of AI solutions originating from France.
7. High Expectations for AI Startups: While AI startups enjoy higher valuations and larger funding rounds, they face heightened expectations. Investors demand robust traction, differentiated positioning, and compelling narratives around competitive moats and scalability.
Chris O'Brien
Headlines
🗞️ The Paris AI Summit (February 10-11) is fast approaching, and as such, the rhythm of announcements is accelerating and the hype is growing. Officials announced that India would co-chair the summit, which will focus on ethical AI use, regulatory frameworks, and fostering international collaboration.
Organizers also confirmed the presence of several tech personalities: Sam Altman (OpenAI), Dario Amodei (Anthropic), Arthur Mensch (MistralAI) and leaders of Aleph Alpha, Accenture, Mozilla and Signal. Nobel laureate in chemistry Demis Hassabis and Nobel laureate in economics Daron Acemoglu will also be present. Nearly a thousand heads of state, business leaders, think tanks, NGOs, research institutes, and artists were invited, including US President Donald Trump and Elon Musk. | Maddyness
🗞️ French AI startup Mistral has teamed up with Agence France-Presse (AFP) to enhance its chatbot, Le Chat, with accurate and up-to-date news responses. This partnership allows Mistral to integrate AFP’s reliable news content, ensuring users get factual, real-time answers. The move is part of Mistral's effort to stand out in the competitive AI landscape by prioritizing trustworthy information. As AI tools increasingly shape how people access news, this collaboration highlights the value of credible partnerships in combating misinformation. | TechCrunch
🗞️ A French woman fell victim to an elaborate scam where an AI-generated Brad Pitt impersonator sweet-talked her out of €40,000. The con artist, posing as the Hollywood heartthrob, spun tales of financial woes and romance, convincing her to fork over the cash. The scam, which took place over social media, cleverly leveraged AI technology to mimic the actor's voice and charm. Authorities in France have launched an investigation into the case, warning the public about the dangers of increasingly sophisticated AI scams. | The Local
🗞️ A new French study in collaboration with KPMG highlights how AI is transforming business, with 78% of companies surveyed already leveraging the technology. The report reveals that AI is driving efficiency, boosting innovation, and reshaping industries, but it also warns of challenges like skill gaps and ethical concerns. Businesses are particularly excited about AI’s potential in predictive analytics and automation, though many are still navigating the complexities of implementation. As AI continues to evolve, the study underscores the importance of balancing rapid adoption with thoughtful strategies to maximize its benefits. | eDirectIndustry
Other headlines
🗞️ Does Mistral—the French AI underdog—have what it takes to take on U.S. giants? | Fortune
Interviews
🗣️ How Maki Wants To Transform HR With Conversational Agents
The hot AI trend of 2025 is undoubtedly Agents. Paris-based startup Maki is hoping to prove the potential is more than just hype by developing conversational AI agents that transform how companies handle talent acquisition and management.
The company just raised its $28.6 million Series A round on the heels of rapid traction since its founding two years ago. The company now has its sights set on the U.S. market, where it hopes to demonstrate its ability to solve a practical challenge for HR departments.
"I think this will be a complete revolution," said CEO Maxime Legardez.
🗣️ Why Insight Bought AI Simulation Pioneer Cosmo Tech
Insight Partners' majority investment into Lyon-based Cosmo Tech late last year followed the playbook for what has become the most common type of large late -stage liquidity event in French tech: A global PE firm backs an established player with a long track record, solid tech, and strong fundamentals.
This latest deal highlighted both the opportunities and the ongoing hurdles faced by European startups seeking to scale globally. French companies continue to demonstrate they can build world-class innovations. However, attracting the capital needed to scale those products beyond the early stages to conquer global markets remains tough.
"Cosmo Tech, from my perspective, has the best tech in this space," said incoming CEO Philip Hazen. "But it has not had the investment horsepower it needed to go to market on a global scale."
AI Funding News
📇 Company: Bioptimus
🔍 Description: Building a reference multi-level foundation model for biology to transform multiscale data into actionable representations for breakthrough discoveries.
💻 Website: https://www.bioptimus.com/
📍 HQ City: Paris
🧗 Round: Series A
💰 Amount Raised: €37.27M
🏦 Investors: Bpifrance; Cathay Innovation; Emmanuel Cassimatis; Andera Partners; Sofinnova; Thomas Wolf; Boom Capital Ventures; Hitachi Ventures
👨💼👩💼 Founders: David Cahané; Eric Durand; Jean-Philippe Vert; Rodolphe Jenatton; Felipe Llinares López; Zelda Mariet
🗞️ News: Sifted
📇 Company: Maki
🔍 Description: AI-powered recruitment platform redefining KPIs for hiring by focusing on candidate skills and cultural fit.
💻 Website: https://www.makipeople.com/
📍 HQ City: New York City and Paris
🧗 Round: Series B
💰 Amount Raised: €26M
🏦 Investors: Blossom Capital, DST Global, Frst, GFC, and Picus Capital
👨💼👩💼 Founders: Maxime Legardez, Paul-Louis Caylar, and Benjamin Chino
🗞️ News: FrenchWeb
📇 Company: Hyperline
🔍 Description: Automated billing platform designed to streamline and simplify subscription-based businesses' financial operations.
💻 Website: http://hyperline.co/
📍 HQ City: Paris
🧗 Round: Series A
💰 Amount Raised: $10M
🏦 Investors: Index Ventures
👨💼👩💼 Founders: Lucas Bédout
🗞️ News: TechCrunch
📇 Company: Leakmited
🔍 Description: Locates water leaks in pipes using AI and satellite images.
💻 Website: http://leakmited.com/
📍 HQ City: Paris
🧗 Round: Series A
💰 Amount Raised: €5.00M
🏦 Investors: Starquest Capital; Banque des Territoires
👨💼👩💼 Founders: Juan Barragan; Hubert Baya Toda
🗞️ News: Maddyness
📇 Company: KAI
🔍 Description: Data cleansing solutions reducing storage costs and carbon footprint by eliminating up to 80% of dark data.
💻 Website: http://k-ai.ai
📍 HQ City: N/A
🧗 Round: Seed
💰 Amount Raised: €0.6M
🏦 Investors: Seed4Soft
👨💼👩💼 Founders: Quang Ngo
🗞️ News: FrenchWeb
📇 Company: Avicenna.ai
🔍 Description: Empowering radiologists with AI-driven solutions.
💻 Website: https://avicenna.ai/
📍 HQ City: La Ciotat
🧗 Round: Support Program
💰 Amount Raised: N/A
🏦 Investors: EIT Digital Accelerator
👨💼👩💼 Founders: Cyril Di Grandi
📇 Company: Zelros
🔍 Description: AI and machine learning solutions to help insurance advisors improve client service through upselling and cross-selling.
💻 Website: http://zelros.com
📍 HQ City: Paris
🧗 Round: Support Program
💰 Amount Raised: N/A
🏦 Investors: EIT Digital Accelerator
👨💼👩💼 Founders: Christophe Bourguignat; Damien Philippon; Fabien Vauchelles
Events
📆 Shaping tomorrow’s AI: Engineering the GenAI revolution | January 22 | Join us in Paris for an exclusive evening panel session with industry leaders at the forefront of AI innovation. | Registration
📆 Mistral AI Hackathon: Game Jam edition | January 24 | Mistral AI and the @spotlight team are excited to unite passionate game developers, builders and AI researchers for the next Game Jam in Paris. That's your chance to experiment at the intersection of AI and game development. The challenge: build a playable video game and innovate in gaming using Mistral AI models. No prior AI experience required - just bring your creativity and passion for gaming. | Registration
📆 From February 6 to 11 February 2025, a wide range of events are being organized around Paris as part of the "Action Week for Artificial Intelligence" in connection with the Paris AI Summit. More details here.
📆 Cathay Innovation Cocktail: AI for Finance | February 5 | As part of the AI Week organized by the Presidency of the Republic, culminating in the AI Action Summit, Cathay Innovation is pleased to host an event on the theme AI for Finance. | Registration
📆 AI in large organizations: state of play and 2025 perspectives | February 6 | Join us, as part of the AI Summit hosted by the Elysée Palace, for an exclusive restitution of the report on the integration of artificial intelligence (AI) by major groups, organized by the French Tech Grand Paris and Wavestone in partnership with Viva Technology and the Hub France IA. | Registration
📆 AI, Science, and Society | February 6 and 7 | As part of the AI Summit, the International Association of Researchers will bring together around 100 world-renowned AI researchers. You can listen to them at the "AI, Science and Society" conference at Institut Polytechnique de Paris which will highlight the scientific advances of AI and the advances of science thanks to AI. | Registration
📆 Culture and AI, challenges and opportunities | February 8 | The Bibliothèque Nationale de France will host round tables and workshops to explore the transformations generated by AI in several fields (copyrights, museum developments, architecture and spatial planning, heritage, journalism and information, audiovisual and cinema, etc.). | Information
📆 Creation and AI, exhibition and mediation | February 9 | "Machina sapiens" is an unprecedented artistic journey, which exhibits, on Sunday, February 9, about twenty original works that question AI. A stimulating proposal, which will make it possible to discover the abundance of universes in turn fascinating, mysterious, or simply seductive. An event not to be missed. | Information
📆 Artificial Intelligence (AI) Action Summit | February 10-11, 2025 | Heads of State and Government, leaders of international organizations, CEOs of small and large companies, representatives of academia, non-governmental organizations, artists, and members of civil society will gather in Paris to discuss the critical policy issues surrounding AI. | Information
📆 Entrepreneurs: AI a lever for growth | February 11 | As AI revolutionizes our economy, it is crucial for entrepreneurs to seize the opportunities offered by this technology. This afternoon will be an opportunity to discover concrete measures to support your digital transition and understand the central role of AI in regional and national economic strategy. | Registration
📆 France Digitale's AI Day 2025 | February 11, 2025 | Paris will be the AI capital of the world (at least for a week) during the AI Action Summit. With our AI Day — the official business side event of the Summit — seize this moment to meet and learn about the best in AI innovation made in Europe. | Information
📆 World AI Cannes Festival | February 13 -15, 2025 | For 3 days, the prestigious Palais des Festival of Cannes will become the world capital of AI, where decision-makers and AI innovators meet, where the most promising innovations and technologies get into the spotlight, where those who are currently building the world’s most game-changing AI strategies and use-cases will be on stages. | Registration
📆 AI Agent DAY @NFT Paris | February 15 | You're invited to Crypto AI:CON Day during NFT Paris 2025, where around 300 selected founders and investors will gather for an evening of meaningful connections and conversations in the heart of Paris. | Registration
📆 RAISE Summit 2025 | July 8-9, 2025 | RAISE Summit is the premier event for professionals seeking to disrupt, build, and connect in the AI landscape. This summit is the ultimate destination to validate AI strategies through real-world use cases, define a winning AI playbook, and find the right partners to deliver cutting-edge solutions. | Register
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