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  • 🇫🇷 French Tech Updates — October 28, 2024. €22.8M in new funding for French companies.

🇫🇷 French Tech Updates — October 28, 2024. €22.8M in new funding for French companies.

What you need to know this week in France: 🤖 an AI IPO, 😱 VC drama, and a potential 🚀 €150M fundraise for Europe's SpaceX competitor.

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.

Light on funding, heavy on drama 😱

This past week was relatively quiet on funding announcements, but there were plenty of other developments in the French tech ecosystem including upcoming AI IPOs and current VC drama.

Microsoft CEO Satya Nadella was also back in Paris, once again speaking about artificial intelligence and meeting with tech leaders from The Institut Curie, Doctolib, and others. In May, Microsoft announced plans to invest up to €4 billion in France “to accelerate the adoption of artificial intelligence (AI) and cloud technologies, increase the country’s competitiveness by fostering digital technology made in France.”

Microsoft CEO Satya Nadella speaking in Paris.

Elsewhere, the petition in favor of creating an “EU Inc” legal entity has gained over 11,000 signatures and the 2025 budget debate in the Asemblée National continued with full intensity leading up to the formal vote this Tuesday.

Without further delay, let’s jump into this week’s update!

📝 Quiz: Klarna is the European fintech with the most startups created by former employees. How many companies have Klarna alumni started?

(answer at the bottom of the newsletter)

  • A.) 12

  • B.) 38

  • C.) 57

  • D.) 62

What’s new this week in 🇫🇷

🌍 Headlines from around the world

  • 🤑 General Catalyst raises $8 billion to invest, with a focus on the US, Europe, and India (TechCrunch)

  • 🕵️‍♀️ The UK has started an investigation into Apple and Anthropic’s partnership (Euro News)

  • 🛟 Northvolt nears rescue $300 million rescue package, lays off 1,200 staff (Bloomberg)

  • 🛩 German eVTOL innovator Lilium has run out of cash (Robb Report)

  • 🚖 Alphabet’s robotaxi division Waymo closed $5.6 billion in Series C funding (CNBC)

New Funding 💶

11 companies raised €22.8 million in the last week, including €450K by Airway and €185K by Candix.

Letxbe | €1.3M | Document Management

Letxbe, which uses generative AI to automate data extraction and structuring from large volumes of unstructured documents, has raised €1.3 million in pre-seed funding. The round was led by Takara Capital and Holnest with participation from several business angels.

Ramdam Social | €1.3M | Food & Beverages

Ramdam Social, based in Bordeaux, has raised €1.3 million, primarily from Asterion Ventures, to expand its range of food products combating food insecurity. The startup offers snacks that contribute to charitable initiatives, ensuring that each purchase helps fund meals for those in need. With plans to launch nine new products made in France, Ramdam Social emphasizes accessibility and social impact—aiming to integrate social responsibility into its business model while keeping production efficient and cost-effective.

Linkbycar | €1.4M | Automotive

Linkbycar, a startup specializing in connected vehicle data, has raised €1.4 million to expand its automotive data platform across Europe. Led by Ethias Ventures and LeanSquare, this funding will enhance Linkbycar’s SaaS platform—which aggregates data from various vehicle brands to support insurance customization, fleet management, and vehicle maintenance. Key features include real-time accident detection, stolen vehicle geolocation, and electric vehicle battery analysis.

Toasty | €2M | Retail

Toasty, based in Paris, has raised €2 million to promote eco-friendly private sales and ethical consumption, with €1 million secured from private investors and the remainder from a crowdfunding campaign on Sowefund. Launched in 2022 by co-founders Arnaud Willieme, Antoine Tezenas, and Renan Bronchart, Toasty gamifies the shopping experience by offering rewards for eco-conscious purchases. With 1,000 partner brands and 200,000 users, the funds will fuel app improvements, community growth, and eventual international expansion—including plans for the U.S. market.

Fungiball | €2.2M | Gaming

Paris-based Fungiball raised €2.2 million in pre-seed funding from private investors, including Adrien Dassault and Stephan Altmuller, along with Cliff Capital and BPI France. This funding will support expanding the tech team, adding new features like free-to-play and fiat payment options, and beginning international expansion, with a focus on North America. Launched in January 2024, Fungiball’s fantasy tennis platform, which includes ambassadors Daniil Medvedev and Alexander Zverev, has already attracted over 5,000 users and aims to reshape fan engagement in tennis.

GreenGo | €2.5M | Travel

GreenGo, a platform for eco-friendly accommodation and sustainable tourism, raised €3 million to enhance its technology and expand GreenGo Explore—which helps users plan low-carbon travel by integrating transport, accommodation, and destinations. The funding will support technology development, European expansion, and increased brand visibility, with plans to recruit five new team members, including a marketing director. GreenGo currently offers 15,000 accommodations and has attracted 3 million visitors in 2024.

RAMDAM | €3M | Advertising and UGC

Paris-based Ramdam has raised €3 million in seed funding, led by The Moon Venture, Paris Region Venture Fund, and Data Tech Fund, with BPI's support. Founded in 2023, Ramdam's AI-driven platform automates the production of user-generated content (UGC) for brands, connecting them with micro-influencers to enhance ad performance. The funds will support technological growth and expansion in the U.S. and Europe, with the platform already active in 50 countries and over 100 brand partnerships.

Coda | €4M | Education

Coda, a state-recognized computer science school, has raised €4 million to expand into rural areas, aiming to open 10 campuses outside major cities. The new funds will support a campus network, including upcoming locations like Dijon in 2025. Coda currently operates in Orléans with over 100 students and plans to exceed 1,000 by 2027, offering bachelor's and master's programs focused on regional workforce needs and green IT.

Quiet | €4.5M | Application Studio

Quiet, a consumer app startup founded by former TapNation CMO Anouar, raised €4.5 million in a seed round led by Varisty with participation from investors like Jean Canzoneri and Guillaume Lestrade. Since its 2022 launch, Quiet has achieved profitability with over €10 million in revenue, and 150 million downloads. The funding will support app development, partnerships, and acquisitions.

Upcoming Events 🗓

Interesting Jobs 👩‍💻

What Else I’m Reading 📚

  • 13 French startups to watch outside of Paris, according to VCs (Sifted)

  • France Tech Update – Q3 2024 (Dealroom)

  • PitchBook-NVCA Venture Monitor (PitchBook)

  • The future of farming is here (HEC Incubateur)

  • Three Extracts from the Diary of a Week (Letitia Elizabeth Landon) – a bit different from what I usually share but I saw part of this poem on a grave in the Cimètiere du Père-Lachaise and it’s stuck with me all week.

  • AI Arms Race: France Wants To Be A Data Center Paradise (French Tech Journal)

Quiz Answer: D.) 62

The number of Klarna-alumni-founded startups nearly doubled in the last twelve months from 32 to 62 to surpass former leader Revolut. An impressive run considering the Swedish BNPL’s is a full decade older than Revolut. No French fintech has yet broken into the top 10, but Qonto (founded in 2017) is getting close with 15 startups created by alumni.