Key French FinTech investment stats in Q3 2023:
• French FinTech deal activity reached 30 deals in Q3 2023, 42% drop from Q3 2022
• French FinTech companies raised a combined $270m in investment during Q3 2023, a 29% decrease YoY
• InsurTech was the most active FinTech subsector in France during Q3 2023 with a 23.3% share of all transactions
French FinTech has seen a continued drop in both deal activity and investment during Q3 2023. In the third quarter of 2023, French FinTech deal volume amounted to 30 transactions, reflecting a 42% decrease compared to the same period in 2022. During the third quarter of 2023, French FinTech firms collectively secured $270m in investments, marking a YoY decrease of 29%.
ChapsVision, a data analytics company, had the largest FinTech deal in France during Q3 2023 after raising $85.1m in their latest Private Equity funding round, led by Qualium Investissement. The funds will be used to strengthen the Group’s presence both in France and internationally in two key business areas – Cyber and Customer Engagement – through new acquisitions that will be complementary to our portfolio of solutions. ChapsVision will also pursue the development of Argonos, the Group’s operating system for large-scale, heterogeneous data.
Artificial Intelligence (AI) has been a hot sector within FinTech in 2023 and President Macron has unveiled an ambitious plan in June 2023 to position France as a global leader. This initiative, funded by France 2030, includes the “AI-Cluster” flagship program with a 500m euro budget. The plan aims to establish AI centers of excellence across France, doubling the number of AI specialists by 2030 and having 5 to 10 universities and schools leading in AI. The project seeks to bolster several French institutions into the top 50 global universities in AI, harness the power of supercomputers, and launch the IA Booster France 2030 program to aid SMEs and mid-tier companies in AI adoption with a €25 million state-funded initiative. Additionally, a large-scale international challenge will be launched to promote global AI teams. In total, nearly 2.2 billion euros will be dedicated to AI over the next five years, with a substantial portion coming from public funding and private co-financing.
InsurTech was the most active FinTech subsector in France during Q3 2023 with seven deals, a 23.3% share of total deals. Blockchain & Digital assets and WealthTech were the joint second most active Fintech subsectors in Q3 with four deals each, a 13.3% share of deals each.