January ecosystem news by Chris O’Brien for the French Tech International Community

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Welcome back to our monthly French Tech News roundup. I am your host and guide, Chris O’Brien, an American journalist and the founder of The French Tech Journal newsletter.

We’re still catching our breath from an astonishing 2021 for the French Tech ecosystem. French startups in 2021 raised €11.3 billion compared to €4.7 billion in 2020, according to Eurazeo's Alexandre Dewez's annual report on the French Tech ecosystem.

What in the name of Gustave Eiffel is going on? There is a global flood of liquidity that is massively inflating investment in tech startups. Private equity firms and heavy hitters like Softbank have descended on the French ecosystem and transformed expectations. It wasn't that long ago that France was begging overseas investors to take it seriously. And now? About 50% of the amount raised by French startups in 2021 included a U.S. investor.

But there wasn’t much time to reflect on the past because January funding exploded and suddenly France seemed to be birthing a new unicorn every day. Back Market, the refurbished gadget platform, raised a $510 million round to become France's most valuable startup at $5.7 billion. Which dethroned neobank Qonto who had just reported a €486 million round at a €4.4 billion valuation the previous day. Which came just one day after the €250 million raised by Ankorstore and the $289 million raised by PayFit the previous week.

Then came news that Exotec, a warehouse robotics startup based in Lille, became France's 4th new unicorn of 2002 thanks to a round of $335 million for a $2 billion valuation. And then the next day Spendesk raised €100 million to become France’s 5th unicorn of the year.

Amid that flurry, France passed the magic milestone of 25 unicorns (though there is still disagreement on the official tally!). That number is more than just an arbitrary benchmark. About 3 years ago, President Emmanuel Macron announced what then seemed like an absurdly ambitious goal of 25 French unicorns by 2025. Amazingly, France reached that number 3 years ahead of schedule.

Macron's administration marked the occasion with a flurry of tweets and a YouTube video praising the ecosystem's progress.

In addition, Digital Minister Cedric O leveraged the moment by visiting Exotec's HQ to announce the next phase of the government's industrial and deep tech strategy that will include an additional €2.3 billion in spending to support the sector.

That's a lot of robots. But it remains central to French policy to create home-grown champions, particularly in the areas of production and manufacturing, to ensure control over its own economic destiny.

Celebrity

French startups got some celebrity love this month. Padmé Amidala, aka actress Nathalie Portman, was one of several business angels and VCs who invested in fakin'-bacon startup La Vie which raised €25 million ($28.3 million).

Meanwhile, fantasy football platform Sorare received the blessing of tennis megastar Serena Williams who joined its advisory board. Sorare, which has raised a bajillion dollars in venture capital, is riding the NFT wave. Having Williams on board should help the company attract more sports teams and players. The company is ramping up its U.S. operations as part of its ongoing world conquest plans.

And Finally...

On a more somber note, Sigfox filed for bankruptcy. For those new to the ecosystem, Sigfox was one of the early superstars of the French Tech revival, raising more than €300 million at a time when such amounts seemed unthinkable. The company built a communications network for connected devices, riding the hype around the Internet of Things. But the market never developed as once hoped, and despite some reorganizations, pivots, and a new CEO, the company couldn’t overcome the additional challenges of the pandemic. The future remains unclear, but Sigfox serves as a reminder for the current crop of unicorns that raising boatloads of cash is no guarantee of success.

On a lighter note, French Minister of Transportation Jean-Baptiste Djebbari has been getting jiggy with TikTok. The minister has become an unlikely superstar on TikTok where his lip-syncing mixed with announcements has earned him a following of 742,000. President "Big Mac Daddy" Macron has 2.8 million followers, though he is far less inclined to bust a move than Djebbari.

And now you’re all caught up!