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  • 🇫🇷 French Tech Updates — September 30, 2024. €165.61m in new funding for French companies.

🇫🇷 French Tech Updates — September 30, 2024. €165.61m in new funding for French companies.

What you need to know this week in France: 🛍 a mixed bag of startup news and 🏭 France's biggest founder factory.

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.

A mixed bag 🛍

So far 2024 has been a mixed bag in startup land. D’un côté, departures are outpacing hiring, Seed and Pre-Seed funding (which remained relatively stable post-2020) are lagging behind compared to last year, and bankruptcies are on the rise.

D’un autre côté, pre-product AI startups have raised €200+ million seed rounds, late stage funding is tracking towards some recovery vs. 2022, and—anecdotally from the stories I cover here—a more diverse group of companies are attracting investor support.

This week’s big stories reflect the mixed nature of this year, with one large French company expanding to new markets and another entering restructuring. Whether this dynamic represents a return to normal after the peak-days of 2021-2022 or the start of a new trend remains to be seen, but as we enter Q4 we’re one step closer to finding out.

With that, let’s jump into this week’s update!

📝 Quiz: BlaBlaCar is one of the most prolific ‘founder factories’ in Europe with company alumni going on to found new startups. How many companies have former BlaBlaCar employees founded?

(answer at the bottom of the newsletter)

  • A.) 12

  • B.) 15

  • C.) 27

  • D.) 31

What’s new this week in 🇫🇷

  • 🤕 Ynsect enters into procédure de sauvegarde: Despite raising a €160 million Series D 14 months ago, the heralded insect-based food startup has run short of funding for continued expansions and will be placed under observation for six months to arrive at a restructuring plan.

  • 🇪🇺 Qonto expands to four new markets: After a brief test over the summer to gauge demand, the French-HQ’d fintech has decided to move forward with expansions into Austria, Belgium, The Netherlands, and Portugal. Qonto is also reportedly eyeing additional M&A opportunities across all eight markets they now serve.

New Funding 💶

16 companies raised €165.61 million in the last week including €650k by Kiosk

BatiFire | €2.1m | PropTech

BatiFire, a creator of building security solutions, has raised €2.1 million, led by investment firm Cita. BatiFire offers advanced tools for managing building regulatory compliance and has developed a platform to facilitate communication with security and rescue services. Founded twelve years ago, the company plans to hire around 50 new employees to enhance its services and operations.

InSpek | €3.5m | Biomanufacturing

Paris-based startup InSpek has raised a total of €6 million. The funding includes a €3.5 million seed round co-led by Breega and Wind and a €2.5 million grant from the European Innovation Council. The company develops a Raman-on-chip spectroscopy sensor that enables real-time monitoring of bioprocesses in industries like pharmaceuticals and biofuels. By continuously tracking key factors such as cell growth and nutrient levels, InSpek claims to help manufacturers make quick adjustments, improving efficiency and reducing delays in production.

La Solive | €4m | Education

La Solive, an energy renovation school based in Paris, has raised €4 million in a Series A round led by Partech, with support from Brighteye Ventures and business angels. Founded in 2021, the school provides hands-on training for individuals looking to work in energy efficiency with a goal of addressing the shortage of skilled technicians in the building sector. The new funding will help expand its reach by opening 8 to 10 new campuses in cities like Toulouse and Marseille and launching additional training programs over the next two years.

Phacet | €4m | AI Implementation

Paris-based AI startup Phacet has raised €4 million to support the creation of AI tools for small and medium-sized businesses (SMEs). The company helps these businesses identify how AI can improve their operations and offers hands-on support to build customized applications.

Dotfile | €6m | RegTech

Paris-based Dotfile has raised €6 million in funding, led by Seaya Ventures, with participation from existing investors Serena and Hexa. Dotfile uses AI to automate customer onboarding and compliance with anti-money laundering regulations and aims to speed up the complex Know-Your-Business process.

Lokki | €6.3m | Equipment Rental Marketplace

Equipment rental marketplace Lokki has raised €6.3 million in Series A funding led by Blisce. In addition to their marketplace, Lokki also offers a SaaS platform designed for equipment rental companies with tools for stock management, scheduling, and payments. Lokki has already facilitated nearly €600,000 in turnover for its clients and plans to use the new funding for a planned expansion into two to three additional European countries by 2025.

Quai des Notaires | €7m | LegalTech

Quai des Notaires has raised €7 million to improve its digital platform for notarial processes. Launched in 2019, the startup helps notaries manage and automate legal documents, having already facilitated over 110,000 deed signings with 24% of notarial offices using its services.

Kestra | €7.2m | Open Source Software

Kestra has raised €7.2 million ($8 million) to enhance its open-source data orchestration platform in a round led by Alven with participation from existing investors Isai and Axeleo. Kestra’s software helps organizations automate and manage complex data workflows, acting like a train station manager for data processes.

Micropep Technologies | €9.85m | BioTech

Microprep Technologies, a startup focused on using tiny proteins called micropeptides to protect crops in a more sustainable way, has extended their Series B financing by €9.85 million ($11 million), bringing the total funding for the round to $40 million. The additional capital comes from a new investor for Microprep, Corteva Agriscience, through their Corteva Catalyst platform. The first part of the Series B round, $26 million, initially closed in July.

Sydev | €9.9m | Construction Management

Grenoble-based startup Sydev has raised €9.9 million to enhance its management software and pricing databases tailored for the construction industry's technical trades. Sydev offers three integrated software solutions designed to simplify project management for professionals, ensuring compliance with industry regulations.

Jump | €11m | Freelancer Benefits Platform

Jump, which provides freelancers with benefits like employment contracts, social protection, and health insurance, has raised an €11 million Series A. The round, led by Breega, will help Jump expand its offerings, including payment processing and a new free solution for beginners called Jump Open. Jump currently serves 2,000 freelancers working across 3,000 companies.

SURGAR | €11m | MedTech

SURGAR has raised €11 million to support its augmented reality solutions for minimally invasive surgery. The funding round, led by Mutuelles Impact, will help launch U-SURGAR, a software for treating female patients with fibroids, and finalize solutions for liver and kidney cancers. SURGAR’s technology uses a patient’s digital twin with real-time laparoscopic views and aims to significantly reduce surgical complications and improve precision.

Synovo Group | €13m | MedTech

Strasbourg-based Synovo Group has raised €13 million from Lauxera Capital Partners to support its international expansio with a focus on English-speaking markets. Founded in 2012, Synovo develops software solutions for medical transport, including systems for ambulances and hospitals that improve patient mobility. This funding will also help advance their artificial intelligence technology, enhancing the efficiency of healthcare transportation services.

Qantev | €30m | InsurTech

Qantev has raised €30 million in Series B funding led by Blossom Capital, with support from Elaia, Omnes, and RAISE Ventures. Founded in 2019, the company offers an AI-driven platform that helps health insurers analyze their vast data to improve decision-making. With this funding, Qantev plans to further develop its platform and expand its presence in the U.S., Europe, and Asia.

VELA | €40m | Maritime Transport

VELA has secured €40 million in funding led by Crédit Mutuel Impact, 11th Hour Racing, and BPI France. VELA specializes in 100% wind-powered maritime transport (yes, sail boats) and aims to revolutionize transatlantic shipping with its sailing cargo trimaran—which promises faster transit times and high reliability. This investment will help launch the construction of their first vessel with a target transatlantic crossing time of 15 days including loading and unloading cargo.

Upcoming Events 🗓

Interesting Jobs 👩‍💻

What Else I’m Reading 📚

  • How French unicorn Back Market turned its business around in the funding crisis (Sifted)

  • PitchBook Analyst Note: Global VC Ecosystem Rankings (PitchBook)

  • The AI supply chain tug of war (David Cahn)

  • When will startup hiring come back? (Peter Walker)

  • France finally has a new government. What does it mean for startups? (Sifted)

  • Do We Have Free Will? with Robert Sapolsky & Neil deGrasse Tyson (StarTalk)

Quiz Answer: D.) 31 companies

The 31 businesses started by BlaBlaCar alumni span from fintech to fashion and are spread across the globe from France and Germany to Mexico, India, and The United States. Only a few European giants like Skype (39 companies) and Rocket Internet (36 companies) have seen as many startups founded by former employees.