The French tech ecosystem has matured, now boasting over 25,000 startups across deep tech, healthcare, and biotech sectors, creating 1 million jobs and a growing pipeline of unicorns — Neoen (total funding of $75M at a valuation of $11.4B), Mistral AI (total funding of $1.1B at a valuation of $6.4B), Back Market (total funding of $1B at a valuation of $5.7B) — and the emergence of programs like French Tech Next40 and French Tech 120, solidifying France’s position as a leading European innovation hub.
Recently, TFN interviewed key startups to gain insight into the Paris ecosystem’s landscape. Here’s what we uncovered.
Innovation driver: a network of engineering schools and research institutes
At the heart of Paris’s competitive advantage lies its network of engineering schools and research institutions. ParisTech brings together prestigious institutions, including École Polytechnique, Mines ParisTech, and ESPCI Paris – PSL. At the same time, Institut Polytechnique de Paris combines five engineering powerhouses: École Polytechnique, ENSTA Paris, ENSAE Paris, Télécom Paris, and Télécom SudParis.
This educational ecosystem’s impact is evident in stories like Pivot, a modern P2P tool that raised €20M in Series A from Oliver Samwer, Visionaries Club, Anamcara Capital, and Emblem VC in December 2023. Speaking to TFN, Pivot’s CEO Romain Libeau explains, “France is home to a highly skilled talent pool, with graduates from top engineering schools like Polytechnique and CentraleSupélec. These technically adept professionals have been crucial in building Pivot’s advanced architecture and AI-driven features.” The company’s ability to attract talent from tech giants like Meta, Dropbox, and Zendesk underscores the ecosystem’s growing appeal.
Research institutions play an equally vital role in the ecosystem’s growth. Guillaume Vandenesch, co-founder and CEO of Generare, which secured €5M in seed funding from Vives Partners, Galion.exe, Better Angle, SynBioVenn and Teampact Ventures in October 2024, emphasises the importance of their INSERM spin-off status: “While Paris is still developing its spin-off culture, the research landscape offers exceptional talent and cutting-edge facilities.”
The healthcare sector also benefits from this robust ecosystem. Alexandre Boulanger, co-founder and CEO of Metyos, a healthtech startup that secured €2.3M in seed funding from Kima Ventures, Bpifrance, Cenitz, and Advans Lab in March 2024, notes that “the Parisian ecosystem is vivid with many hospitals and patients for market research in healthcare (APHP is the biggest hospital in the world), investors, talents, suppliers, and corporations.”
Strategic hubs: incubators and lab space accessibility in central Paris
Station F, the world’s largest startup campus, has become a cornerstone of Paris’s startup infrastructure. Its impact is shown by companies like Spore.bio, which raised €8M in seed funding from Roxanne Varza, LocalGlobe, Mehdi Ghissassi, EmergingTech Ventures, Famille C Participations and No Label Ventures in December 2024. Amine Raji, co-founder and CEO of Spore.bio reflects their journey: “We were born in Station F, built our first lab at Agoranov, and hired our first scientist teams at PC’Up (ESPCI Incubator). In the chaos of the early stage, having strong advisors, exit founders and renowned scientists by our side was a huge asset and allowed us to make good decisions quickly.”
Plus, the city’s deep tech infrastructure is particularly robust through two major players, PC’Up (ESPCI-PSL) and Agoranov, which are transforming how technical startups access essential resources. These facilities solve a crucial business challenge: providing affordable lab space in central Paris while connecting startups to the scientific ecosystem. Similarly, Paris-Saclay further strengthens this infrastructure advantage, housing the world’s highest concentration of researchers and functioning as a premier R&D hub.
Government as a catalyst for growth
France’s government has become a powerful ally for startups, providing a stable and supportive environment through several key initiatives. For example, Bpifrance, the country’s public investment bank, offers diverse funding options across multiple stages—from seed funding to venture and growth capital in digital technology, life sciences, and energy transition.
The Research Tax Credit (Crédit d’Impôt Recherche, CIR) has driven a 15-18% increase in R&D expenditure since its 2008 implementation and positively influenced patent filing activities. Vandenesch emphasises, “The tax benefits provided by the Research Tax Credit scheme have played a crucial role, enabling heavier investment in our high-risk, high-reward scientific developments.”
The French Tech Visa program streamlines immigration procedures for international tech professionals, with over 1,200 companies adopting the program. Pivot’s experience highlights this impact, as CEO Libeau explains: “The French Tech Visa has been a game-changer in helping us attract highly skilled international talent to our Paris-based office. Over 50% of our team comprises foreign talent, drawn to the city’s vibrant, multicultural atmosphere, especially appealing to tech and AI specialists.”
The French Tech Next40/120 program identifies and nurtures the country’s most promising startups. These startups, like Pigment, which raised $145 million at a valuation of $1 billion in Series D funding from Greenoaks Capital Partners, Institutional Venture Partners, Meritech Capital Partners, Felix Capital, SBV Venture Partners and ICONIQ Growth in April 2024, collectively generated € 10 billion in net revenue in 2023 and received targeted assistance for domestic and international growth.
VC landscape: evolution of investment approach and a new generation of investors
The Paris venture capital scene has matured significantly, with specialised deep tech investors targeting high-growth sectors like artificial intelligence, quantum computing, and biotechnology. These investors deliver strategic value beyond capital injection through their technical expertise and established industry networks. Furthermore, major U.S. venture capital firms are executing market entry strategies in Paris through local office establishments, driven by the globalisation of innovation hubs and the competitive advantage gained through local market presence.
Vandenesch notes, “This market development has generated increased competitive dynamics and diversification of investment approaches. French funds leverage their embedded position in local scientific and industrial networks, combining deep R&D expertise with strategic deployment of country-specific advantages such as CIR and established tech transfer mechanisms.”
A growing trend in the Paris VC landscape is the emergence of successful entrepreneurs transitioning to investment roles. These operator-investors demonstrate enhanced capability in evaluating deep tech opportunities and show increased risk tolerance for longer development cycles, prioritising breakthrough potential over immediate returns.
Paris ecosystem maturation and future growth drivers
The Paris startup ecosystem is entering a new phase of maturation, driven by experienced operators transitioning into entrepreneurial roles. This talent pool, comprising former executives and early employees from successful French scale-ups, brings substantial operational expertise to new ventures.
Deep tech is emerging as a significant sector, leveraging the city’s strong academic heritage. As Raji notes, “We’re witnessing an unprecedented generation of deep tech entrepreneurs taking bolder strategic risks—a fundamental shift in the French innovation landscape.” Similarly, the techbio sector is thriving, benefiting from second-time founders. Vandenesch explains, “These entrepreneurs are accelerating execution in new ventures while simultaneously participating as business angels and venture capitalists. This founder-driven dynamic is instrumental in positioning Paris as a global biotech innovation hub.”
Crespo emphasises the importance of larger French companies, especially those within CAC40, investing in French technology for continued growth through collaboration with innovative players and financial support for new technology development. As private funding continues to grow, it’s expected to eventually support the creation of tech giants, mirroring the US model.
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