Investments in French FinTech companies slowed down in Q3 2017 after a strong first half of the year

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fintech insurtech wealthtech regtech ai cybertech esg news

Total Investments fell by 32.2% QoQ in the third quarter 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 due to a $24m deal closed midway through September to Linxo, which has developed a free app to help individuals manage their budgets. Investors in the round included; Crédit Agricole, Crédit Mutuel Arkéa, 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 Q3 2017.

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 since 2014 with a CAGR of 56.4% between 2014 and 2016. 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 Top 10 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, 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.

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