French Startup Deals Have Doubled

French Startup Deals Lead Europe

France now leads in late-stage startup deals in Europe and the new regulations might be the reason behind it.

What is driving these deals and how do regulations come into play?

This Week’s Trends

 • French median late-stage deals grew 2.4x
 • $450 million acquisition and more on Weekly News
 • 5 most promising startups raising capital

Read Time: 2 minutes

The Startup Trend
French late-stage deals doubled

France & Benelux is leading Europe across late-stage VC deals with the largest median deal values at €8.0 million from Q1 this year. This is a 2.4x increase from a median deal size of €3.3 million in 2023.

UK & Ireland had smaller deal sizes at €2.8 million, this follows as a consequence of lower overall valuations for startups for 2024 with a 9.1% decrease from 2023.

> Large-scale deals for startups like Mistral AI, H Company, and Pasqal in the French market have mostly driven this growth, highlighting the strong investment climate in the region.

> France received the highest foreign direct investment in Europe in 2023, amounting to $42 billion. The share of non-European investors in French startups grew to 32.7%, indicating a strong international interest in the French market.

💡 The January 1st, 2024 changes to French FDI regulations that simplify startup investments have provided larger incentives for cross-border investments into France. This includes raising the equity threshold from 25% to 30% before a mandatory investment notification is required.

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Odin Lund & Hari Mohandas