Significant drop in fundraising over the first 5 months of 2023

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Significant drop in fundraising over the first 5 months of 2023, according to Trendeo data for France

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A recent discussion on the downturn in fund-raising sent us back to an article from last April, by SylvainRolland of La Tribune. Out of curiosity, we updated the data to the end of May.

In the first quarter, the article noted a 68% drop in funds raised.

Our own data, very similar in terms of amounts and trends, showed a -63% drop at the end of March.

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At the end of May, as shown in the graph opposite, the decline was slightly less, at 56%, with total fundraising for startups (less than 7 years old) at €2.2 billion.

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The number of startups raising capital fell only slightly (-3%), but the average amount raised fell by 55%, from €16.7 million to €7.5 million.

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By sector, the biggest declines were in real estate services, fintech and healthcare.

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There's a consequence in terms of jobs: job creation announced when startups raise funds fell from 5,404 in the first five months of 2022, to 2,244 in the same period of 2023, a drop of 58%.

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