Fundraising for start-ups: the French exception

Fundraising for start-ups increased by 30% in France during the first three quarters of 2022. By contrast, it decreased in China, the United States, the United Kingdom and Germany.

Fundraising for start-ups continues to increase in France despite economic uncertainty, while the global trend is rather downward, according to a barometer published on Monday by investment bank Avolta.

According to figures from Avolta, venture capital funding for tech startups increased by 30% in France during the first three quarters of 2022, while it tended to decline, sometimes very significantly, in other parts of the world: -56 % in China, -29% in the United States, -19% in the United Kingdom, -27% in Germany…

Avolta also forecasts a strong increase in the amount of fundraising throughout 2022, to €15.5 billion, up from €12.3 billion in 2021. But the increase (+26%) will be much less strong than between 2020 and 2021. , when fundraising had more than doubled. The slowdown trend is clear in the third quarter, with a total collection of 2,500 million, while in the first quarter it was still 5,000 million.

Figures driven by “sustainable” oriented start-ups

For Avolta, the largest operations continue at a “more or less normal” rate. But it is the small fundraisers, the ones that occur early in the life of the young shoot, that are in significant decline.

By sector, software publishing or finance, traditional engines of fundraising, stagnated, while “sustainable”-oriented start-ups drove the statistics, highlighting the operations carried out by Innovafeed (proteins based on insects , 250 million euros raised in September ) or Zeplug (charging stations, 240 million euros raised in September).

According to Avolta, healthcare start-ups are the most valued by investment funds, with company values ​​set at 8 times their turnover (average value). They are followed by real estate and financial start-ups, with 6.3 and 6.2 times their turnover, respectively (average value). On the contrary, transport and food start-ups are the least valued, with 2.3 and 2.5 times their turnover, respectively (average value).

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