Fundraising for start-ups: the French exception

Fundraising for start-ups increased by 30% in France in the first three quarters of 2022. In contrast, they fell in China, the United States, Great Britain and Germany.

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

According to figures from Avolta, venture capital funding for tech start-ups in France increased by 30% in the first three quarters of 2022, while in other parts of the world it tended to decline, sometimes very significantly. : – 56% in China, -29% in the US, – 19% in the UK, – 27% in Germany…

Avolta also forecasts a strong increase in fundraising amount for the full year 2022 to €15.5 billion compared to €12.3 billion in 2021. However, the increase (+26%) will be much less strong than between 2020 and 2021 at the Fundraising had more than doubled. The slowdown trend is evident in the third quarter with total fundraising at 2.5 billion, down from 5 billion in the first quarter.

Numbers driven by “sustainably” oriented start-ups

For Avolta, the largest operations continue at a “more or less normal” pace. But it’s the small fundraisers that take place early in the young sprout’s life that fall sharply.

By sector, software publishing or finance, traditional fundraising drivers, are stagnating, while “sustainable”-oriented start-ups are driving the stats up, notably the operations carried out by Innovafeed (insect-based proteins, €250 million raised in September) or Zeplug (Charging stations, €240 million raised in September).

According to Avolta, mutual funds value healthcare startups the most, with company values ​​set at 8 times their sales (median). Real estate and finance start-ups follow with 6.3 and 6.2 times the turnover (median value) respectively. Transport and food start-ups, on the other hand, are valued the least at 2.3 and 2.5 times their sales (median value).

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