French fintech transport $ 2.45 billion gives hope to budding tech hub
The news: Fintechs in France have raised 1.9 billion euros (2.17 billion dollars) this year, in September, more than double the € 711 million ($ 810.7 million) they drew last year, by Sifted.
Focus on the French fintech scene: Here are three reasons why fintech financing is booming in France.
- Government initiatives. The Macron presidency has been particularly supportive of the local tech scene. In 2019, he revised technological visas to facilitate the importation of talent. And during the pandemic, he distributed 4 billion euros ($ 4.56 billion) to bail out local startups, one of the most generous policies in Europe, which has made it possible to avoid any disruption of the scale.
- A slew of mega-towers. Innovative startups across a range of financial services have won big awards, highlighting cross-industry growth, like the peer-to-peer payment platform Lydie ($ 131 million), insurtech Alain ($ 223 million), and crypto wallet Ledger ($ 380M). Funding also shows few signs of slowing down: NFT market So rare raised $ 680 million just this week.
- Growing ecosystem. Foreign fintechs are growing in France, prompting more investors to explore the country in search of business opportunities: Commercial republic and Main auction launched in France this year, and Square targets merchants with its e-commerce payment solutions. And last week the banking service provider opened Yapily landed in France to help banks and fintechs build more personalized services.
Looking forward: France is now aiming for the UK’s top spot, but it is unlikely to come close to the level of financing and maturity of fintech anytime soon.
- Germany attracted 2.6 billion euros (2.96 billion dollars) in fintech funding this year with the UK far ahead 9 billion euros (10.26 billion dollars).
- Despite the gaping gap, France believes that Brexit could give it an advantage …Minister Delegate for Digital Cédric O waits Paris will overtake London as a European technology hub.
- We also had concerns that leaving the UK would make it harder for UK fintechs to attract foreign talent and scale. But nine months later, it’s clear the UK is still dominant.
- Paris now has more than 1,200 fintechs, by Sifted, but the UK has three times more. The United Kingdom is also the third-the biggest unicorn hub in the world, with more startups with high added value than Germany, France and the Netherlands combined.
- And the British government takes not to mitigate the consequences of Brexit, such as improving its regulatory sandbox and reforming its public listing requirements.
At the end of the line : While the UK will attract the bulk of EU funding for the foreseeable future, the boom in FinTech across the Channel points to important scaling opportunities for startups and incumbents.