In a context of cooling on technology stocks, the EY barometer, published on Sunday July 17, of venture capital in France continues to surprise. With 8.4 billion euros raised in France through 362 operations in the first half, this is already 63% better than in the first six months of 2021.
Growth certainly slowed down compared to the same period in 2021 (90% compared to 2020), but which nonetheless makes it a record semester for the French new technologies sector, which ended 2021 with an amount 11.57 billion in funds raised. Given the level halfway, Franck Sebag, partner of the firm, has no doubt that this unprecedented level can be crossed again.
A few big deals got this off to a flying start in 2022: Qonto (financial services) raised €486 million in July; EcoVadis (corporate social responsibility performance assessment), €478 million in June; Back Market (reconditioning of electronic devices), 450 million euros in January; and Exotec (robotics), 305 million euros in January as well.
Competition between funds should slow down
In addition, the number of funding rounds above 100 million euros in France has never been so high over the period, while fundraising between 50 million and 100 million euros is taking a hit, both in volume (−77%) than amount (−58%). And even if the second quarter remains below the first (3.7 billion against 4.7 billion), it remains higher than the same period of 2021.
On a European scale, France continues to gain ground on the United Kingdom (12%, only at 18.4 billion euros in the first half) and outpace Germany (−20%, at 6. 3 billion euros), much more affected by the geopolitical context marked by the war in Ukraine.
However, Franck Sebag admits that competition between funds – with many foreign players, very present a few months ago – could slow down, in a more complicated financial context, and lead to a readjustment of the valuations of unlisted companies. “It will clean up the market,” he said, adding that this correction should not weigh on the ambitions of private investors.