Here are the top-performing French startups to watch out for

Here are the top-performing French startups to watch out for

Every year, La French Tech, the French government-backed initiative, has always made it a duty to share two French startups rankings, the Next40 and the French Tech 120, annually.

The startup rankings involve the 40 and 120 leading performing startups in France.

This year’s list is making it the third time the French government has put together the lists. Of the 120 startups, 84 are in this year’s index, while 36 debuted on the list.

This is the 2022’s French Tech 120. The red logos are part of the Next40:

To be accepted in Next40, here are two methods to follow;

  • You ought to have raised over €100 million in the past three years (accumulating to $112 million at the current rate). 

Or you’re a unicorn. This means your firm’s valuation is up to $1 billion or even more.

  • You generate over €5 million in profit with a year-over-year increase rate of 30% or more in the past three years.

And for the rest of the 80 startups in the French Tech 120, here are the selection guidelines:

  • Forty of the start-ups have raised over €20 million across the funding round in the past three years.
  • The 40 were selected according to their yearly turnovers and increase rates.

Note that these indexes are restricted to private French firms operating in the innovation sector. 

In another vein, it’s correct to say that 2021 has been a tremendous year for tech funding globally, including in France. This is seen in tech investment and the number of funds raised.

For instance, French startups raised €2.5 billion and €12 billion in 2017 and 2021, respectively. Also, 2 IPOs were worth more than €1 billion in 2021. This is more than several IPOs gained over €1 billion in the past 25 years.

More so, some consolidation was achieved. For example, Luko acquired Coya, Doctolib acquired Tanker, and Gorillas, a Berlin-based startup, acquired Frichti.

In addition, a French Tech representative is available for 60 different administrations. They help startups obtain visas for foreign workers, get a patent or certification, and sell products to public administration.

Meanwhile, the French government believes tech startups should act more in inclusion and diversity. 

There are 14 female founders in the French Tech 120 rather than 7. Consequently, Cédric O expressed, “we have to do more when it comes to promoting women in the ecosystem.”

Generally speaking, 26 startups achieving unicorn status has shown that the French Tech ecosystem has been doing well lately. In 2021, the number of unicorns globally rose from 569 to 959 unicorns.

The two metrics show that the tech sector is becoming more vital in the French economy. 

Many French startups are now on the path to becoming global or European leaders in their industries. It’ll be interesting to see which one will turn its local achievement into a global success.

Photo by Headway on Unsplash