French FinTech companies closed a record number of deals in Q1 2017

The FinTech industry in France attracted $81.9m in total funding across 21 deals in the opening quarter of the year.

The FinTech sector in France has seen rapid expansion in the period 2012-2016. Last year set a record for both total investments and number of deals and this trend continued into the first quarter of 2017, where a record 21 deals were closed. Investment into the country in Q1 grew over five-times compared to Q1 of last year when only $15.6m was raised. Despite the strong showing in the first quarter of 2017 total investment remained below the high of $92.8 set in Q2 2016.

French FinTech investment saw a 12-fold increase since 2012

  • Last year saw a record $246m invested in the country across 60 deals.
  • The number of deals and total funding grew at CAGR of 46.1% and 64.4%, respectively in the period 2012-2016.
  • Q1 2017’s investment figures exceeded the levels reached in 2014 and already represent nearly a third of 2016 investment total.
  • BPIFrance was the most active investor in the last five years with six deals, followed by Aurinvest with three.

 

More FinTech subsectors attract investment as interest in Marketplace Lending companies diminishes

  • Last year over two-thirds of funding to the country’s FinTech sector went to just three subsectors: Payments & Remittances, Marketplace Lending and Infrastructure & Enterprise Software.
  • Marketplace Lending companies’ share of total FinTech investment in the country decreased by 23.2% since 2014. Despite this decline the total funding to the subsector doubled in absolute amounts in the period as the FinTech ecosystem in France grew.
  • The share of investment to other sectors surged last year, jumping to 29.5% of total FinTech funding in the country as investors are looking for opportunities in other areas.

Payments & Remittances companies comprise over a fifth of the French FinTech ecosystem

  • Over half of French FinTech companies fall into three subsectors: Payments & Remittances, WealthTech and Infrastructure & Enterprise Software.
  • Marketplace Lending companies hold only 8.3% of the overall FinTech ecosystem in France, although they have received 35.4% of the total funding since 2014.
  • The largest funding round in the Payments & Remittances subsector went to point-of-sale solution provider Wynd, which in late 2016 received $31.7m in a Series B round.

The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies in France as well as across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2017 FinTech Global

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