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Why French startups lead in govt. funding
Govt. VC funding is highest in France, the startup creating hydrogen jets with government funding, and more...
France leads in public VC funding
France attracts the most government startup funding in Europe despite lagging behind on overall VC investment.
What makes France rely on public funding?
This Week’s Trends
France leads in govt. funding
The startup creating hydrogen jets
A16Z closes its UK office and more
Read Time 3 minutes
The Startup Trend
Govt. VC funding is highest in France
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Government funding for VC funds is the highest in France & Benelux, with $1.3B committed in just the first half of 2024 and a total of $14.5B since 2015.
> The region is home to the European Investment Fund (EIF) which contributes more than half of all government funding to European startups.
> Apart from this, the French govt. has also launched strategic initiatives like the Tibi initiative, aimed at mobilizing institutional capital for tech startups.
💡 Despite this, the overall startup funding in France remains lower than in the UK and Germany due to limited contributions from private investors and VCs.
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Startup Feature
Hydrogen Jet Takes Off with Government Funding
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Beyond Aero, a French startup founded in 2020, is creating the first hydrogen-powered business jet. The startup has secured over $44 million in funding, backed by Giant Ventures and the French sovereign fund to turn its ambitious vision into mass-market technology for sustainable air travel.
“We believe hydrogen-electric propulsion is the future of sustainable aviation. Our goal is to make business jets cleaner and more efficient, proving that hydrogen can be a viable alternative to traditional fuels.”
Building the First Hydrogen-Powered Jet
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Beyond Aero was founded by CEO Eloa Guillotin, along with Hugo Tarle and Valentin Chomel, to push aviation toward a cleaner future. The startup intends to bring to market a hydrogen-electric aircraft capable of carrying six to eight passengers over 800 nautical miles. This range is five times greater than that of traditional battery-powered aircraft, making it a viable alternative for business aviation rather than fully electric.
“Our recent funding and successful manned hydrogen-electric flight are major milestones. They demonstrate the feasibility of our technology and pave the way for larger, mass-market aircraft in the future.”
With its recent funding, including a Series A that raised $20 million last year, Beyond Aero has now grown to a team of over 50 engineers across Toulouse, Paris, and Los Angeles. The startup plans to add 40 more as it scales. This expansion follows its first manned hydrogen-electric flight, proving the technology's feasibility.
Beyond Aero is following a strategy similar to Tesla's early approach with the Roadster by launching with a high-end product before moving into a larger market. It is starting with business jets to prove the potential of hydrogen-electric propulsion and establish credibility in the industry. By focusing on this segment first, Beyond Aero can refine its technology and generate the funding needed to develop larger, mass-market aircraft in the future.
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Government-Backed Startup Expansion
Beyond Aero is now moving beyond prototype testing and preparing for large-scale production. With $914 million in Letters of Intent for 108 aircraft, demand for hydrogen-powered aviation is growing. The next challenge is turning commitments into deliveries while ensuring regulatory approval for what is still in the early stages of testing.
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“Aviation will be electric; my job is to make it happen.”
Despite being a rather ambitious startup, the French government has a key role in backing Beyond Aero through initiatives like Deeptech 2030, which supports startups building breakthrough technologies. With funding from Bpifrance, the startup has secured the resources needed to develop its aircraft in a highly competitive industry.
With plans to deliver its first hydrogen-powered business jet by 2030, the startup faces rising competition from U.S. startups. It remains to be seen whether government support from Europe can rival the risk tolerance and capital of Silicon Valley investors.
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Headline News
This Week In Startups ✍️
Founders
> Alice & Bob, a french quantum computing startup, secures €100 million to create the first universal, fault-tolerant quantum computer.
> OCELL, a Munich-based climate data startup secures €10 million to create digital twin of forests using artificial intelligence.
> TravelPerk, a Barcelona-based travel platform, raises $200 million Series E round at $2.7 billion valuation.
Investors & VCs
> Andreessen Horowitz, one of the biggest VC firms in the world, is set to close its UK office less than two years after announcing it would set up shop in London.
> Shift4Good, a VC based in Singapore and Paris, has closed its first fund of €220 million fund to target sustainable transport innovation across Europe and Asia.
> Fuel Ventures, has just secured £20 million from two Chinese LPs; Shijingshan Modern Innovation Industry Fund and Zhongguancun Development Group.
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Cheers,
Odin Lund & Hari Mohandas
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