[France Q2-21] VC/M&A Tech Trends

If anyone still had lingering doubts about the French Tech’s ongoing success , Q2-21 is convincing proof of this. French startups have raised 2x more in Q2-21 (€3.2bn) than in Q1 21. In the first 6 months of 2021, they raised €4.6bn, which is almost identical to the 2020 full year figure (€5.4bn).

So why such a rush? 3 main reasons to that:

1. A startup-friendly legislation since 2013 has created a positive framework for Tech investments in France
2. Funding is no longer an issue for French startups: due to its business enhancing legislation, France has become more attractive for foreign high profile investors
3. French founders can be much more confident and aggressive in the way they run their businesses knowing funding will not be as challenging an issue as in the past (if that is they meet VC’s very specific investment criteria). Building a €bn startup out of France is no longer a delusional dream

In terms of market exits, significant improvements are appearing with Believe Digital’s IPO, aka the first billion € Tech exit (€1.9bn at opening) on Euronext Paris since Dassault Systèmes (1996) and Worldline (2014) went public.

Arthur Porré, Co-Founder and Managing Partner, Jul. 9th, 2021