Last years saw the first FinTech investment valued over $50m recorded in the country
- FinTech investment in France reached £327.9m in 2018 across 29 deals, an increase of 16.6% compared with the previous year’s level. Additionally, Ledger, a Paris-based startup completed the first transaction of value over $50m. That deal accounted for 22.9% of the total capital raised in the country last year.
- Ledger’s $75m Series B round is the largest FinTech deal recorded in France to date. The Paris-based company provides security and infrastructure solutions for cryptocurrencies and blockchain applications. It offers a hardware wallet for the storage of various cryptocurrencies, and more than one million wallets have already been sold in 165 countries. The CEO Eric Larchevêque stated, “These funds will be used to keep investing significantly in R&D while scaling our operations and deploying our teams globally.”
- The second largest deal in 2018 was $37m raised by October, previously called Lendix. The SME lending platform planned to use the capital injection to further its global expansion plans. October currently operates in France, Spain, Italy and the Netherlands but plans to be operating in a total of seven countries by the end of this year.
- Deal activity, which peaked at 43 deals in 2016, decreased 26.8% from 2017 to 30 deals last year.
FinTech investment in Q1 2018 set a record with almost $140m raised
- The last quarter of 2018 saw $26.1m raised across 8 deals, which was 49.4% less investment compared with the corresponding quarter in 2017.
- The largest round in Q4 2018 was the $5.7m raised by Acorus Networks in a Series A round. The company offers software for protection from DDoS attacks and plans to use this new capital to expand its offering to more enterprises.
- Deal activity in the fourth quarter last year did not change compared with Q4 2017.
- The first quarter of last year saw the largest quarterly total funding level ever recorded in France with $138.0m raised across 10 deals. The success of Q1 2018 can be attributed to Ledger’s previously mentioned £75m Series B round, which accounts for 54.3% of total value invested in the quarter.
Companies in the Payments & Remittances subsector have attracted more than one in five deals since 2014
- Over the last five years, 35 out of the 163 FinTech transactions completed in France have been in the Payments & Remittances subsector. The largest deal recorded in that area was Wynd’s $31.7m Series B round in Q4 2016. Wynd is an omnichannel commerce platform that allows convergence between digital and points of sales. The three investors included French investment bank Bpifrance, corporate venture fund Orange Digital Ventures and Sodexo Ventures, the venture capital arm of French food services and facilities management company Sodexo.
- Companies in the second most popular subsector, WealthTech, were involved in 14% of deals. Two of the top three deals completed in this sector, which together raised £34.4m, were completed by Qonto. The company is a challenger bank for freelancers and SMEs. Qonto completed a $23m Series B round in 2018 with plans to use the new capital to double its workforce and expand into Germany, Spain and Italy this year.
- The Infrastructure & Enterprise Software and Data & Analytics subsectors also had a healthy proportion of investment; 13% and 11% respectively.
- The “Other” subsector, which constituted 12% of total deal activity, is compromised of the Cryptocurrencies, RegTech, Real Estate and Institutional Investments & Trading subsectors. One of the top 10 transactions over the last five years was raised by company in these areas, this was Ledger’s previously mentioned Series B round. Another large deal in the “Other” subsector was £7.9m raised by Stratumn in Q2 2017. The company utilizes blockchain and their own Proof of Process (PoP) technology to guarantee compliance, privacy, security and traceability.
Capital raised by the 10 most well-funded companies makes up more than half of total FinTech investment in France since 2014
- The top 10 most well-funded FinTech companies in France have collectively raised £551.0m, which constitutes 51.7% of total FinTech investment in the country over the last five years.
- The most well-funded company, Younited Credit, has raised $98.4m across three deals since 2015. The consumer lending platform is currently active in six countries including France, Italy, Spain, Portugal, Austria and Germany. Recently, Younited Credit has entered into a technology partnership with French investment bank Bpifrance for a new credit offering.
- Three out of the four top most well-funded companies, including Younited Credit, are in the Marketplace Lending subsector. One company in each of the Blockchain, Payments & Remittances, InsurTech, RegTech, Infrastructure & Enterprises Software, WealthTech and Data & Analytics subsectors makes up the remaining seven most-well funded companies. This includes digital health insurance company, Alan, which has raised $41.3m across three deals.
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. ©2019 FinTech Global