In 2024, France ranked 7th globally with $5.6B in total funding raised. Companies like Mistral AI, Poolside, Electra, H Company, and Alan each secured funding above $100M during this period, according to the Tracxn report. The data shows that the French tech ecosystem’s total funding has reached $66.8B, with $12.7B raised in the last 24 months and a cumulative unicorn valuation of $65.7B.
Tech Funding News delved into the ecosystem, speaking with leading French VC Partech and top-funded companies — Pigment and Akur8 — along with other market players. Read on for more!
What’s fueling French tech’s rise?
2024 marked a year of significant growth: The French tech scene saw 313 funding rounds—including 184 Series A+ rounds and 135 first-time-funded companies. The ecosystem welcomed 3 new unicorns, 34 soon-to-be unicorns, and 4 IPOs. Alice Albizzati, co-founder of Revaia, told us: “The growth of AI startups in France in 2024 was driven by proactive government initiatives, increasing VC funding across all stages, and a dynamic pool of European and US capital. Strategic policies supporting AI research, startup incubators, and major investments in foundation models played a key role in accelerating the sector’s expansion. France’s strong academic and talent network and a growing number of AI-first startups have also reinforced its position as a major player in the European AI ecosystem.”
In a conversation with TFN, Samuel Falmagne, CEO and co-founder of Akur8, explained: “Akur8’s growth in 2024 was driven by multiple factors, with our Series C funding representing one of the largest investments in insurtech last year. Strong market demand and our deep product expertise fueled our expansion and solidified our leadership in insurance pricing.”
Reza Malekzadeh, General Partner at Partech, shared this perspective: “The long-term actions of the government and French Tech have contributed significantly by creating a streamlined framework for launching and operating companies and accessing capital. However, true growth stems from market and customer adoption. French Tech companies have developed excellent solutions for market needs, especially in B2B enterprise applications.”
Three key pillars have driven this success: innovation, government support, and access to capital. Dinal Kurukulasooriya, CTO and co-founder of Coachello, noted: “The French startup ecosystem has flourished thanks to supportive government policies, increased capital availability, and a strong focus on innovation and talent. President Macron’s first-term pro-immigration policies have been crucial in attracting global talent, enriching our talent pool, and sparking innovative ideas.”
French Tech Next40/120, a government initiative supporting the startup ecosystem, has gained significant traction. Edouard Beaucourt, Head of EMEA at Pigment, told TFN: “While several factors drive our growth, product innovation leads the way — particularly our advanced AI capabilities and expansion into new use cases — enabling us to meet evolving business needs. The French Next40 initiative has provided vital government support, creating opportunities for innovation while helping us tackle societal challenges like climate change, workplace parity, and inclusion.”
One thing is clear – access to capital has been vital to this success. In 2024, an impressive 36% of the capital raised by French startups came from U.S. investors, showing strong international confidence. Additionally, Bpifrance, the French public investment bank, has played a crucial role in financing venture capital funds, accounting for about 30% of France’s seed and venture capital investments.
Paris: capturing two-thirds of France’s tech funding
In recent years, Paris has consistently attracted global talent and flourished as an innovation hub. According to the Tracxn report, Paris-based tech firms command 68.32% of all funding across France. In 2024, Paris secured $3.8B in investments, with other cities following at a distance — Lyon ($291M), Toulouse ($162M), Mergifnac ($160M), and Grenoble ($131M).
Kurukulasooriya highlighted an emerging trend in other cities: “Paris maintains its position as the nucleus of French tech financing, benefiting from a rich concentration of investors, robust infrastructure, and seamless access to international markets. However, the investment landscape is evolving. Regional hubs like Lyon, Marseille, and Toulouse are emerging as attractive alternatives, offering competitive costs and vibrant local ecosystems that promise to diversify and strengthen the national tech scene.”
Malekzadeh added: “France is, naturally, a very centralised geography, and Paris dominates most markets, not just funding. But it’s encouraging to see other strong hubs emerging and growing. Talent is spread throughout the country, and I believe more startups will be created in regions around these talent hubs.”
Albizzati concluded: “Paris is expected to remain the leading hub for AI investment in France, thanks to its concentration of top-tier talent, capital, and research institutions. However, AI innovation is also gaining momentum beyond the capital, with emerging hubs across France’s regions benefiting from strong local ecosystems and government-backed initiatives. As AI adoption expands, we anticipate a more balanced distribution of funding, reinforcing France’s position as a key AI powerhouse.”
Paris will maintain its funding dominance within France in 2025, powered by its status as Europe’s second-largest tech hub (after London), its concentration of AI startups (over 50% of which are headquartered in Paris), and its strong fundamentals and international appeal.
French AI Startups Lead Europe’s Tech Race with $1.3B Investment
In 2024, AI technology alone brought $1.3B of total funding to the French tech scene. The Revaia, Chausson Partners, and Galion.exe report, endorsed by France’s Minister Delegate for Artificial Intelligence and Digital Affairs, Clara Chappaz, identified over 400 emerging AI startups, with Mistral AI’s $640M funding round leading the way.
Albizzati shared: “France is undoubtedly one of Europe’s most dynamic AI ecosystems, ranking second in AI investment in Europe(capturing 22% of total European AI funding). Its government support, world-class research institutions, and the emergence of global AI players strengthen its position.”
The French government has been instrumental in fostering the AI ecosystem through a €2.2 billion investment plan to make France a “champion of artificial intelligence” by 2025, €500 million earmarked for AI development in 2025, and the creation of a dedicated AI foundation to develop and promote open-source AI models.
Falmagne observed: “AI continues to be the driving force in insurtech, but the real differentiator lies in how companies integrate it. While many new AI-driven startups are emerging, few are truly machine-learning-native.”
The report revealed that vertical applications dominate the AI startup landscape with 200 companies, particularly in healthcare AI. This trend extends to climate and sustainability applications.
“Emerging AI ventures—exemplified by foundation models (LLMs) breakthroughs like Mistral and mission-specific fine-tuning solutions from innovative startups — are at the forefront of this technological shift. In this evolving landscape, integrating sophisticated AI capabilities has become essential for maintaining a competitive edge and achieving operational excellence,” noted Kurukulasooriya.
“As AI becomes table stakes in technology adoption, we will see more growth in high tech, enterprise applications, and fintech. The solutions will continue providing strong customer benefits,” concluded Malekzadeh.
French tech’s triple focus: AI innovation, compliance, and green solutions
As France enters 2025, three key trends are shaping the tech landscape: the widespread adoption of generative AI across industries, enhanced regulatory frameworks aligned with EU guidelines, and a growing focus on sustainability-driven AI solutions for climate challenges. Additionally, there’s increasing convergence between AI capabilities and regulatory compliance, particularly in contract management and risk assessment.
“In the coming years, we’ll see deeper integration between AI and regulatory compliance, streamlining processes like contract management, risk assessment, and automated governance. French companies must embrace AI to remain competitive —those who don’t risk falling behind in efficiency, innovation, and compliance,” concluded Antoine Fabre, co-founder of Tomorro.