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- 🇫🇷 French Tech Updates — January 19, 2026. €264.4M in new funding for French companies.
🇫🇷 French Tech Updates — January 19, 2026. €264.4M in new funding for French companies.
What you need to know this week in France: 💰 Pennylane's upcoming $200M announcement, 🦄 American unicorn in Paris, 📊 how much € goes to AI in Europe?

Welcome to French Tech Updates! Your weekly source of startup, VC, and tech news and insights. I’m James, a startup-obsessed American living in Paris.
What’s new this week in 🇫🇷
Less than one year after raising €75 million, the accounting and banking solution for SMEs is already close to securing their biggest round yet. Bloomberg first hinted at the news in late November and an official announcement is expected soon what will value Pennylane north of $4 billion — potentially 2X or higher from the €2 billion valuation reached in April last year.
The new round will be led by the American VC Technology Crossover Ventures (TCV), a 31 year old fund which has previously backed a huge range of successful companies including Airbnb, Facebook, Spotify, LinkedIn, and Revolut.
There’s a new unicorn in town, but this one speaks with a funny accent. Harvey, a San Francisco-based company named for a character on Suits, is coming to Paris. The four-year-old startup, which provides specialized AI tools for law firms, announced the planned opening of a new Parisian office within the next five months as part of a broader push to grow their customer base in Europe.
The announcement comes hot on the heels of their latest $160 million fundraise which pushed Harvey’s paper valuation to $8 billion. Several new job openings for the Paris office have already been posted in sales, customer success, and engineering.
Most companies make money when their customers use their product. French online bank Sumeria plans to do the opposite starting in March. If you leave your money untouched for too long, Sumeria would like you to pay €3 a month (thank you very much). Starting March 12, the online bank launched by payments startup Lydia will charge this “inactivity fee” to users on its free plan who haven’t made any transaction in the last two calendar months.
The move impacts former Lydia accounts migrated to Sumeria and adds a new layer of friction to a product that launched less than two years ago with a promise of simplicity. With more than six million Lydia users in France, the decision is a reminder that dormant users are increasingly seen as a cost, not an asset.
🙋♂️ Quiz: In 2025, AI deals captured 65.4% of deal value in the US. What % of deal value in 2025 did AI deals capture in Europe?
(answer at the bottom of the newsletter)
A.) 28.1%
B.) 35.5%
C.) 47.9%
D.) 71.2%
🌍 Headlines from around the world
MrBeast raises $200 million for Beast Industries (CNBC)
Targeted ads are coming to ChatGPT (TechCrunch)
Google integrated Gemini into Gmail (Semafor)
Germany’s DTCP raise €300M for new defense fund (Sifted)
TikTok will tighten age checks in Europe (Reuters)
Cloudflare acquires AI data marketplace Human Native (CNBC)
New Funding 💶
10 companies announced €264.4M in new funding last week including €900K by BioAz (🐷 Healthtech) and €500K by The Gentle Factory (👕 Fashion)

Windcoop | €1.4M | 🛣️ Transportation
Lorient-based Windcoop raised €1.4 million in its third crowdfunding round to help finance its first wind-powered container ship, now under construction in Turkey. The cooperative aims to launch service between France and Madagascar by 2027, claiming up to 60% lower CO₂ emissions than conventional cargo routes. The round brought in 657 new members, pushing total funding from citizens and partners to €7.7 million since 2022.
Viti-Tunnel | €2M | 🌾 Agritech
Bordeaux-based Viti-Tunnel raised €2 million to scale its retractable canopy system, designed to protect vineyards from fungal diseases and extreme weather without pesticides. Already in use at top estates like Cheval Blanc and Lafite, the system cuts pesticide use by over 90% and shields vines from hail, frost, and heavy rain. The funding, led by Demeter’s VitiRev Innovation fund, will support industrial production and international expansion.
The Sanctuary Group | €4.7M | 🏅 Sports
The Sanctuary Group, located in Paris, raised €4.7 million in a new round led by Blast, the investment club of entrepreneur Anthony Bourbon. The startup operates boutique fitness studios — each focused on a single discipline like boxing, yoga, or dance — and plans to expand across France and into Europe. The group currently runs 15 studios and recorded €10 million in revenue in 2025.
Éclaircie | €6.9M | ⚡ Renewable Energy
Lorient-based Éclaircie raised €6.9 million to fund 17 solar projects for farms across Brittany and Pays de la Loire. The startup builds solar-equipped agricultural buildings via construction leases, modernizing infrastructure while producing clean energy. Backed by Arkéa and 1,787 citizen investors via Enerfip, construction starts in February 2026.
Mycophyto | €16M | 🔬 Deeptech
Grasse-based Mycophyto raised €16 million in a Series A round to scale production of its AI-optimized mycorrhizal fungi (say that 5 times fast), which help crops retain water and grow in poor soil. The company plans to open its first factory and expand into Spain, Morocco, and West Africa. Backed by Bpifrance’s Deep Tech 2030 fund, Mycophyto taps into growing demand for regenerative agriculture as Europe braces for more climate-driven drought.
SunLib | €25M | ⚡ Renewable Energy
Paris-based SunLib raised €25 million from Épopée Gestion to scale its solar subscription model across France. The startup lets households and businesses use solar panels via a monthly fee, removing upfront costs and installation headaches. With over 300 installer partners, SunLib plans to equip 100,000 customers by 2030 — betting that subscription is the path to mass solar adoption.
FineHeart | €35M | 🩺 Medtech
Bordeaux-based FineHeart raised €35 million in a Series C round to support the development of FlowMaker, its fully implantable device for treating severe heart failure. The round unlocks an additional €48 million in public funding through the European IPCEI Tech4Cure program, bringing total financing to €83 million. FlowMaker works with the heart’s natural rhythm, doesn’t require external wiring, and could help 200,000 patients annually.
Harmattan AI | €172M ($200M) | 🪖 Defense
Paris-based Harmattan AI raised €171 million ($200 million) in a Series B round led by defense giant Dassault Aviation. The startup, which is now valued at $1.4 billion, builds autonomous defense systems, like AI-powered drones, and has already secured contracts with the UK and French Ministries of Defence. The deal includes a strategic partnership with Dassault to develop AI tech for future air combat systems. Emmanuel Macron called the partnership “excellent news” for France’s strategic autonomy as questions linger about the US’ willingness to support its European allies on defense.
Upcoming Events 🗓
Lancement d'Impulse Healthcare, par Bayes Impact – January 19
2 ans Raise Sherpas Association X Climate House – January 20
SheEOs x Sistafund x Sowefund – January 20
🆕 AI Developer Meetup on Coding Agents – January 20
🆕 Pitch Your Thesis: Robotics Edition – January 21
🆕 Dust Engineering Night #11 Bio Edition – January 28
🆕 AI Film Hackathon – February 7
Maddy Invest Awards – February 19
Interesting Jobs 👩💻
What Else I’m Reading (and Watching) 📚
GTM Strategies for an AI Era (Paul Irving)
Rules Matter More Than Insight (The Financial Pen)
The Oligarchs Pushing for Conquest in Greenland (New Republic)
TechpressoWhy you’ll like it: Daily updates on the latest tech and AI news in an easy-to-read format. Stay in the know while finishing your morning coffee. | A Smart Bear: LongformWhy you’ll like it: Practical insights from building two unicorn companies, covering product, growth, prioritization, and much more. |
Quiz Answer: B.) 35.5%



