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  • 🇫🇷 French Tech Updates — July 23, 2024. €55.6m in new funding for French companies.

🇫🇷 French Tech Updates — July 23, 2024. €55.6m in new funding for French companies.

What you need to know this week in France: 🤖 new models from Mistral AI, 🚪 a different kind of VC exit, 🤑 and a €155m acquisition

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

Where are the customers’ exits? 🚪

How much would you pay for an impenetrable safe filled with €1,000,000? It sounds like a trick question. And it is. Here’s the catch—there’s no way to open this safe. No key, no combination, and no way to crack it. Would you pay €500,000 for it? €100,000? €50?

The answer is likely something more than €0. You can’t unlock the money, but maybe you can unlock some value in another way by; selling the story of the uncrackable safe, by charging people to come see it…maybe by minting it into an NFT.

You probably wouldn’t pay €1,000,000 for this asset though. Not without a way to access the cash inside.

Imagine someone found a key to open the safe, except you have to wait 10 years to receive it.

Now now much would you pay?

Probably more than before. And, maybe even a more precise number than before. Those of you with a background in finance could apply a discount rate and calculate the net present value of the €1,000,000 inside, minus whatever return you’d like to receive for taking the asset off of someone else’s hands.

Either way, the value of the €1,000,000 went up once you were able to access it. Even if you have to wait a long time.

Buying the locked safe is the same as investing in a startup, and the key to unlock it is a liquidity event—the IPO or the acquisition that turns the value into something tangible.

While VC funding in Europe has recovered by 12% compared to 2023, IPOs and exits continue to lag. Some tech companies have begun accessing liquidity in other ways, like with Revolut’s upcoming secondary shares sale. But the question remains. How long will investors continue buying into these locked safes without a key in sight?

And with that, let’s make like Anne Hidalgo and jump into this week’s update!

What’s new this week in 🇫🇷

New Funding đź’¶

8 French companies raised €55.6 million in the last week.

Bridge.audio | €3m | Music

Paris-based Bridge.audio has raised €3 million from Bpifrance, LeanSquare, and business angels. The startup provides private workspaces for musicians and audio professionals to manage share, and connect their projects. With over 30,000 users, Bridge.audio's Sync Hub marketplace connects audiovisual professionals to licensable music using natural language searches.

Presti | $3.2m | GenAI

Paris-based Presti, founded in November 2022, has raised $3.5 million in a seed round led by Partech. Presti uses generative AI to transform a single furniture image into realistic lifestyle photos for retailers like Maisons du Monde—simplifying and reducing the cost of traditional photoshoots. Their approach relies on a specialized model trained on over 75,000 high-quality furniture images, allowing for accurate and customizable product visuals.

Syntetica | €4.2m | Textiles

Paris-based Syntetica raised €4.2 million in a seed round led by EQT Ventures, with participation from the Peugeot and ETAM family offices. The fashion startup focuses on innovative nylon recycling to reduce textile industry pollution, using a unique depolymerisation technique (say that 5x fast) to create fully recycled nylon materials. This method aims to lower carbon emissions and prevent textile waste.

Symalean | €5m | CSR Software

Vendée-based Symalean, a CSR software specialist, has raised €5 million from the Turenne Emergence fund to support international growth. The company, founded by Aurélien Castel in 2013, offers data analysis tools for managing quality, safety, and environmental impact with 400 clients including major accounts like Veolia and Vinci. With the new funds, Symalean aims to expand its team and increase its turnover to €4 million this year.

Stirweld | €6m | Materials

Rennes-based Stirweld has raised €6 million to accelerate the deployment of its friction stir welding (FSW) technology for aluminum. Founded in 2017, the company serves over 100 global customers in sectors like electric mobility and aeronautics. The funding will help Stirweld double its workforce, create four subsidiaries, and continue R&D for ecological innovations such as liquid hydrogen tanks and battery cooling.

Spotlight Medical | €6.2m | MedTech

Paris-based Spotlight Medical, a spinoff of Institut Curie, has raised €6.2 million in seed funding led by Kurma Partners and Heal Capital to enhance cancer treatment strategies with AI-powered prognosis tests. The startup leverages decades of patient data to develop tests that help physicians select the most effective treatments, aiming to prevent over or undertreatment and improve outcomes. This funding will support the clinical introduction of their first AI-based prognosis test, marking a significant milestone in precision oncology.

Nutriearth | €8m | Food & Beverage

Nutriearth, a producer natural vitamin D3 from edible insects, has raised €8 million from historical shareholders and new regional investors, including Demeter Investment Managers and Rev3 Capital, to expand production and international development.

Enerdigit | €20m | Energy

Nantes-based Enerdigit, a startup specializing in energy grid flexibility solutions, has closed a €40 round with €20 million in equity financing from Ring Capital, Bpifrance's France Investissement Energie fund, and Océan Participations, and €20 million in debt. Founded by Bénédicte Pléau in 2015, Enerdigit helps balance the electricity grid through load shedding to reduce consumption during peak demand.

Interesting Jobs 👩‍💻

👨‍💻 Enterprise Account Executive @ Payflows

What Else I’m Reading 📚

  • Losers: The Road to Everyplace but the White House (Michael Lewis)

  • The Secret, Magical Life of Lithium (Noema)

  • Gen AI: too Much Spend for too Little Benefit? (Goldman Sachs)