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- 🇫🇷 French Tech Updates — September 23, 2024. €437m in new funding for French companies.
🇫🇷 French Tech Updates — September 23, 2024. €437m in new funding for French companies.
What you need to know this week in France: 🛩 OpenAI to open in Paris, 👋 Thierry Breton departs from EU Comission, and ⚡️ France's nuclear advantage.
James Saulsky
September 23, 2024
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.
Power is the new power ⚡️
Here’s a story that caught my attention last week: Three Mile Island, a nuclear power plant in Pennsylvania that is most well known for narrowly avoiding a meltdown in 1979, will reopen to provide power for Microsoft data centers.
It turns out what AI needs even more than new sources of training data is new sources of energy.
While the current and predicted energy consumption levels for AI are difficult to pin down, the general consensus is somewhere between “a lot” and “more than we have now.” The need for more energy gets more complicated when you layer on net-zero promises from companies like Apple and Microsoft—which rules out many of the existing fossil-fuel power sources that could be quickly brought online or scaled up.
Caught in this dilemma, big tech is in urgent need of large, carbon-neutral sources of electricity. So, perhaps it’s not coincidental that nuclear energy is having a bit of a glow up moment lately (ok, ‘glow up’ maybe wasn’t the best choice of words 🤷♂️). Whatever the underlying reason, perception of nuclear power has quietly and steadily shifted in a positive direction this decade. Take, for example, this 2022 story about Californians protesting over a nuclear power plant. The headline sounds fairly standard for California, until you realize the protests were in favor of keeping a nuclear plant open in the face of a planned closure.
Two years later and nuclear energy is increasingly accepted as clean energy source which can ramp up our power supply without also ramping up carbon emissions. I suspect the Microsoft news is not the last time we’ll see a corporation getting involved in this area. But, notice the headline isn’t about building a new power plant but, rather, bringing an old one back online. While public perception is less of a barrier, construction of new nuclear plants still must overcome two major obstacles: time and money.
On average, constructing a new nuclear plant takes 11-12 years with costs measured in billions of Euros. Unless developments in construction techniques or Small Modular Reactors (SMRs) can cut down these inputs, adding more nuclear power to support growing energy demand will remain a lengthy and expensive process. All of this should put more of a premium on existing nuclear capacity.
This matters for 🇫🇷 France, the country with the most existing nuclear reactors in the European Union.
Not only does France lead Europe in nuclear power capacity, but also in excess power capacity, which allowed France to export the most energy of any European country last year.
France is also home to some of the most-well-funded AI startups in the world who are well positioned to benefit from this energy capacity.
Here’s one model for how this could play out over the next decade.
Corporations and countries have realized that AI is becoming a critical resource and the top players are now competing for access to the top models.
Creating the top models requires access to the top infrastructure (energy, data centers, etc.) to support training and running them.
In the race to create the top models some competitors will run up against a hard wall of energy constraints which slow down their development.
Companies without energy constraints can grow faster and larger, capturing more of the rising demand from countries and corporations as they grow.
Within a few years, these leaders dominate the market and the market will consolidate around them as the ultimate winners in the AI race.
There are, of course, other inputs into this equation like GPUs and the raw materials to create them, but the impact of energy in determining the AI winners shouldn’t be underestimated.
An early advantage in energy could also lead to an “Erie Canal” effect for France. What does that mean? In the early 1800s, New York City’s exports ($13 million) were on-par with Boston ($12 million). By 1860, New York’s exports had grown 11x to $145 million while Boston’s only reached $17 million.
The construction of the Erie Canal, along with geographic advantages of New York City’s harbors, allowed the city to secure an early lead in trade. That lead was then compounded when the railroads were built to connect to New York City, further solidifying its position as the premier trade hub in the U.S. This infrastructure not only brought more goods through New York’s ports but also attracted industries and population growth, creating a self-reinforcing cycle of economic dominance.
Similarly, the early advantage in energy for France could catalyze a wave of infrastructure investment and AI growth, making it difficult for other nations to catch up.
With that, let’s jump into this week’s update!
What’s new this week in 🇫🇷
📌 OpenAI to open a Paris subsidiary: The exact mission of the subsidiary remains unknown, but company creation documents from the end of August disclosed the subsidiarie’s intention to “commercialize, sell and distribute software products" and conduct research and development for these products.
👋 Thierry Breton, key figure behind EU tech policies like the Digital Services Act, has resigned from the EU Commission: Breton, a controversial figure, was reportedly pushed out by EU executive chief Ursula von der Leyen. During his time as French commissioner, Breton picked fights with Elon Musk, cracked down on disinformation, and attempted to galvanize microchip production in Europe.
New Funding 💶
21 companies raised €473 million in the last week including €2.5m by Drama Studios,€2m by My Digital Buildings, €1 by Cad 42, €800k by Hapiix, €450k by Luniwave, and €400k by DigitalKin.
Jinko | €2m | Healthcare
Jinko, a startup focused on improving the quality of life for cancer patients, has raised €2 million in a funding round led by 360 Capital, with support from AFI Ventures and various business angels. The company provides personalized supportive care, including dietary counseling and psychological support, through a network of certified practitioners. With this funding, Jinko plans to expand partnerships, enhance its visibility among patients and healthcare professionals, and improve its digital application.
Zelok | €3m | Proptech
Vendée-based Zelok has raised €3 million. Founded in 2019, the company offers a solution for tenant file creation and verification and allows real estate professionals to create rental applications in minutes using automated data retrieval and biometric verification.
Nopillo | €4m | Proptech
Two-year-old startup Nopillo, which offers services for property owners seeking to optimize their real estate investments and tax efficiency has raised €4 million. Following the fundraise, the company plans to hire 35 new team members and launch a new insurance brokerage service.
Bohr Energie | €4m | Energy
Bohr Energie, a Toulouse-based startup focused on optimizing energy assets in European power markets, has raised €4 million in a seed funding round led by Varsity, Founders Future, and AFI Ventures. Founded in 2020, Bohr Energie provides a platform for energy producers that includes real-time monitoring, streamlined billing, market insights, and performance analysis to enhance the sale of their output.
Probabl | €5.5m | Open Source Libraries
Probabl AI, the operator of an open source library for machine learning, has closed a community funding round totaling €5.5 million. This round included contributions from various community leaders, angel investors, and partners like Mozilla Ventures and Apertu Capital.
Samp | €6m | Digital Twins
Paris-based Samp has raised €6 million from Promus Ventures and Kvanted to expand its AI-powered digital twin solution, "Shared Reality," which provides continuous 3D monitoring of industrial sites. Founded in 2019, Samp helps improve safety, operational efficiency, and sustainability with a focus on companies in the energy and water sectors. Its technology quickly generates digital twins for real-time asset management to address challenges like outdated documentation and staff shortages across over 150 industrial sites.
Wegrow | €7m | Enterprise Software
Wegrow, a Paris-based software platform that aims to help companies share and build upon business best practices, has raised €7 million in a Series A round led by Nauta. With the help of AI, Wegrow enables businesses to identify, reuse, and expand on successful strategies across large organizations.
May | €7m | Healthtech
May, a France-based health app for parents and parents-to-be, raised €7 million in a round led by Eurazeo and Ring Capital amongst other investors. Founded in 2020, May supports families during pregnancy and early childhood, offering real-time health advice through a team of 80 professionals. With over 400,000 users, the app will use the funds to launch a pre-conception service and expand in Europe.
Imadis | €10m | Telehealth
Lyon-based Imadis Groupe, formed by the merger of telemedicine companies Imadis and Deeplink Medical, has raised €10 million to expand its tele-radiology services. Co-founded by radiologist Vivien Thomson, the group aims to become a leader in tele-imaging in France. Imadis specializes in emergency tele-radiology, while Deeplink Medical provides software solutions that support 24/7 radiological interpretation across the country.
Inbolt | €15m | Robotics
Paris-based Inbolt raised €15 million in a Series A round led by Exor Ventures to enhance its AI-powered 3D vision system for industrial robots. Inbolt’s technology improves production line efficiency by enabling real-time robot guidance, 100 times faster than competitors, across industries like automotive and electronics. With plans to expand in the U.S. and Japan, Inbolt will use the funds to boost R&D and scale its operations globally.
Brenus Pharma | €22.2m | Biotech
Brenus Pharma raised €22.2 million ($25 million) in a Series A round led by Angelor and supported by investors from the Auvergne-Rhône-Alpes region as well as Belgian funds Noshaq and Investsud. The biotech startup is developing a cancer vaccine with its lead candidate STC-1010 targeting metastatic colorectal cancer.
Pony | €23m | Mobility
Urban mobility startup Pony raised €23 million in a Series B round led by La Poste and Ademe. The funding will help the company, which offers station-free bike and scooter shares, scale its services from 10 cities to 40 in France in Belgium with an aim to triple its fleet size by 2027.
GCK | €40m | Hydrogen Engines
GCK, a vehicle retrofit specialist based, has raised €40 million to expand its operations into the U.S. market for hydrogen combustion engine production. GCK's approach supports smart mobility and the circular economy, aiming to enhance decarbonization efforts in transportation through advanced engine technologies. The company operates five production sites in the Puy-de-Dôme region and one in Provence and plans to raise an additional €10 million by the end of the year.
AKUR8 | €108m | Insurance
Paris-based Akur8 raised €108 million ($120 million) in Series C funding led by One Peak with participation from Partners Group and Guidewire—bringing its total funding to $180 million. Akur8 provides a cloud-based platform that uses machine learning to help insurers build pricing models faster and more accurately and serves over 250 clients globally, including insurers like AXA and Munich Re.
Alan | €173m | Insurance
Health insurance startup Alan raised €173 million in a large Series F round led by Belgian Bank Belfius (that’s fun to say!). The funding includes a distribution deal in which Belfius will offer Alan's insurance products to its clients. Alan, which already provides health insurance coverage to over 500,000 people, aims to expand its customer base in Belgium through the partnership.
Events This Month 🗓
Founders First: The EF approach to building talent-driven startups – September 26
Go Entrepreneurs Lyon – September 26
K-Startup Demo Day and Meetup – September 23
Networking for Entrepreneurs – September 26
Future Forward Paris – October 3
Célébrons le lancement d'Hymalaia – October 3
Interesting Jobs 👩💻
🙋🏼♀️ CEO Associate @ Phagos (Station F)
What Else I’m Reading 📚
Mistral, Poolside, Nabla: Meet the VC investing French billionaire Rodolphe Saadé’s fortune in tech (Sifted)
Venture chronicles: August 2024 (Alexandre Dewez)
Antarctica's ozone hole is set to recover fully by 2066 (IFL Science)
The AI summer (Benedict Evans)