Total investments fell by 32.2% QoQ in Q3 but remained higher than the total capital committed during the same quarter last year
Total investments in French FinTech companies were up by 1.6% YoY in Q3 2017 mainly due to a $24m deal to budget managment app Linxo in September. Investors in the round included; Crédit Agricole, Crédit Mutuel Arkéa and MAIF. Linxo is not the only company to close a deal valued larger than $20m in the last 5 quarters. Q2 2017 saw an HR & Payroll company HR Path close a $31.9m funding round from Société Générale Capital Partenaires, Activa Capital and Ardian. Despite the increase in total investments the number of deals has fallen by 40% year on year having progressively fallen from a high of 23 deals in Q1 2017 to a 5-quarter low of only 9 deals in the last quarter.
FinTech Investments in France are on track to surpass the record funding from last year
- French FinTech companies received 87.2% of the total amount invested in 2016 in the first three quarters of this year, putting 2017 on track to surpass the total funding committed in 2016.
- FinTech Investments in France have increased year on year during the period 2014 – 2016 at a CAGR of 56.4%. 2015, 2016 and 2017 have seen several large deals valued over $20m closed including a $38.97m private equity deal to Microcred Group finalised in Q2 2016.
- Alongside total investments the number of deals increased almost three-fold between 2014 and 2016. However, deal activity is set to slow down this year after only 43 deals were closed in the first three-quarters of the year.
The Top 10 investors participated in more than 30% of all deals to French FinTech companies since 2014
- Between 2014 and Q3 2017 the top 10 investors in French FinTech companies participated in 62 deals worth a total of $309.9m.
- In this period, the top ten investors co-invested alongside other most active investors on nine occasions. An example of this is the $7m investment to Ledger closed in March 2017. The round was led by MAIF Avenir with participation from other top 10 investors Kima Ventures and XAnge. Digital Currency Group, Libertas Capital, Nicolas Pinto, GDTRE, The Whittemore Collection, Wicklow Capital and BHB Holdings also participated in the round.
- All the Top 10 most active investors are based in France with seven of the top 10 based in Paris. This suggests that the French FinTech ecosystem has enough sources of domestic capital to support it.
The data for this research was taken from the FinTech Global database. More in-depth data and analytics on investments and companies across all FinTech sectors and regions around the world are available to subscribers of FinTech Global. ©2017 FinTech Global