Tech funding in France has cratered by 52% according to a report. During Q1 2025, early-stage tech ventures raised $820 million, a 52% decline compared to Q4 2024 when $1.7 billion was reported.
According to the France Tech Q1 2025 Funding Report, published by Tracxn, there was a “broad pullback” in France:
- Seed Stage received $53M in total funding in Q1 2025, a 53% drop from the $113M raised in Q4 2024 and a 59% drop from the $128M raised in Q1 2024.
- Early Stage received a total of $727M in Q1 2025, a drop of 48% compared to $1.4B raised in Q4 2024 and a drop of 52% compared to $1.5B raised in Q1 2024.
- Late Stage witnessed a total funding of $30M in Q1 2025, a drop of 81% compared to $161M raised in Q4 2024, and a decline of 91% compared to $335M raised in Q1 2024.
The report states that Enterprise Applications, Fintech, and Life Sciences were the top-performing sectors.
- Enterprise Applications sector raiseda total funding of $240M in Q1 2025 which is a drop of 77% when compared to $1.1B raised in Q4 2024 and a drop of 72% when compared to $843M raised in Q1 2024.
- Fintech saw a total funding of $236M in Q1 2025, which is an increase of 67% compared to $141M raised in Q4 2024 and an increase of 105% compared to $115M raised in Q1 2024.
- Life Sciences raised total funding of $211M in Q1 2025, an increase of 134% compared to $90.0M in Q4 2024 and an increase of 52% compared to $139M raised in Q1 2024.
Paris-based firms accounted for 79% of the funding.
Bpifrance, Kima Ventures and Idinvest Partners were the top venture investors in the French tech ecosystem, according to the report.
Founders Future, Techstars and LocalGlobe were the top Seed stage investors in for Q1 2025. Daphni, Cathay Innovation and Kurma Partners were the top Early stage investors for the quarter and Woven Capital emerged as the top Late stage investor.
Among VCs, France-based Daphni led the most investments in Q1 2025 with five rounds, while United States-based fund Cathay Innovation added two new companies to its portfolio. Late-stage VC investments saw Japan-based Woven Capital add one company to its portfolio.