TL;DRFrench startups raised €6.7 billion in 2025, down 5% year on year, even as the US grew 38% and Europe 12%. Mistral accounted for 25% of all capital raised. AI drove 43% of funding, defence tech surged 148%, and exits hit a five-year low at €5.3 billion.
A new report on the French tech ecosystem by Alexandre Dewez, a partner at venture firm 20VC, paints a picture of a startup scene that is growing more dependent on a handful of AI companies while the rest of the market stalls. French startups raised €6.7 billion across 411 funding rounds in 2025, a 5% decline in capital and a 21% drop in deal volume compared with the previous year. The numbers stand in sharp contrast to the US, where startup funding grew 38% year on year, and Europe as a whole, which saw a 12% increase.
The report, based on roughly 100 slides of data covering funding, exits, unicorns, and sector trends, argues that France minted its first decacorn but is struggling to build the breadth of winners that would signal a maturing ecosystem. Mistral’s Series C at an €11.7 billion valuation was the headline achievement of 2025, but the AI lab accounted for 25% of all capital raised by French startups that year. Strip out Mistral and the picture looks considerably weaker.
