FinTech investments in France reached $297.8m across 41 deals in 2017
- Investment in French FinTech companies increased rapidly at a CAGR of 47.8% between 2014 and 2017. The total amount invested in 2017 reached a record high of $297.8m.
- Despite the growth in capital invested, there was only a modest increase in deal activity in 2017; 41 deals were closed in total, just one more than the previous year. As a result, the average deal size jumped 32% during that period from $5.9m to $7.8m.
- The largest deal in 2017 went to consumer lending platform Younited Credit. The company raised $47.8m in a Series F round in Q3 2017. Participating investors included, among others, Bpifrance, Zencap Asset Management and Eurazeo.
FinTech investment in France slowed down in Q4 2017 after hitting a record the previous quarter
- Q3 2017 was a record quarter for FinTech investment in France with $103.2m-worth of funding. This surge in funding was driven by Younited Credit’s $47.8m Series F round, as well as finance management platform Linxo’s $24m venture round.
- Capital invested returned to a historically healthy level of $68.1m in Q4 2017. This is within range of the same quarter in 2016.
- Deal activity remained steady in Q4 2017 with 9 deals closed, the same total as the previous quarter.
- The largest deal in Q4 2017 went to insurance fraud detection provider, Shift Technology. The company raised $28m in a Series B round led by General Catalyst and Accel Partners with co-investment from Iris Capital and Elaia Partners.
Deals valued between $5-10m nearly doubled in share in 2017
- Aside from the appearance of deals valued over $25m in 2015, there was little evidence of a definitive shift towards larger deals between 2014 and 2016.
- However, in 2017 deals valued under $5m decreased in share by 16.5%. This fall in smaller deals was taken up by those in the $5-10m category which increased in share by 1.9x over the same period.
- Notable investments in the $5-10m category in 2017 include cryptocurrency wallet provider Ledger’s $7m Series A round led by MAIF Avenir, as well as robo-advisor Yomoni’s $5.4m funding round from Crédit Mutuel Arkéa and Iéna Venture.
The top ten French FinTech investments in 2017 raised almost 70% of the funding for the entire year
- The top ten FinTech deals to French companies in 2017 raised a total of $203.2m which equates to 68.2% of the total amount invested during the year.
- The largest investment in 2017 was the previously mentioned $47.8m deal to Younited Credit. This was followed by a $31.9m deal to HR Path, an HR solutions provider. Its venture round in Q2 2017 saw participation from Société Générale Capital Partenaires, Ardian and Activa Capital.
- All top ten deals went to companies based in Paris with the exception of Linxo which is headquartered in Aix-en-Provence. Linxo, a personal finance management service, raised $24m in a venture round from MAIF, Crédit Mutuel Arkéa and Crédit Agricole.
- Four of the top ten deals in 2017 are within the ten largest FinTech deals in France to date.
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. ©2018 FinTech Global