In the second quarter, amounts raised by startups stabilized, with a rise in industrial startups and a fall in fintechs.
Elisabeth
June 29, 2023
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Some characteristics of fundraising by startups in the second quarter, from data collected in the Trendeo France database.
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Three points: general trends, industrial startups and fintechs 👇🏼
- The quarter saw a stabilization in fundraising: compared to the first quarter, startup fundraising was up 3%, in terms of amount - for 1,256 million euros raised, through 163 fundraisings. This is still 48% down on Q2 2022, but Q1 2023 was down 63% year-on-year.
- Fintechs accounted for just 5% of total funds raised, or 64 million euros, well below their average share since January 2015 of 10% of total funds raised.
- Industrial startups, with €344m, secured 27% of amounts raised, up sharply on the average amount raised since 2015, which stands at 7%.
Bpifrance is playing its part in this trend, accounting for 10% of the funds raised by industrial startups in the second quarter, and 5% of those raised by fintechs.
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The quarter is not completely over and these figures will vary slightly, but the trend is quite clear and is unlikely to change. Rising interest rates are weighing heavily on startups' ability to obtain financing. Fintechs are affected by this trend (as we found out during a demonstration of our database's "trend report" function).
Within this general downward trend, we can observe the rise of industrial startups. This is a welcome development, and should contribute to the industrial renaissance underway. However, as industrial startups have greater capital requirements than purely digital startups, it is possible that funding for these startups is insufficient.
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NB : As startups as defined by Trendeo are up to 7 years old, our data includes other fundraising by more mature companies, and comparisons with other sources on amounts raised should be made with this in mind (in Q2, we counted 1,256 million euros raised by startups, for a total of 2,325 million raised).
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The data comes from Trendeo's employment and investment observatory, and our users will be able to find in the database details of almost three hundred fundraisings in the second quarter, more than half of them by startups.
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