Investment into the country in Q1 grew over five-times compared to Q1 of 2016 when only USD 15.6 million was raised. Nevertheless, total investment remained below the high of USD 92.8 million set in the Q2 of 2016.
Since 2012, French fintech investment saw a 12-fold increase. In 2016, France saw a USD 246 million invested across 60 deals. The number of deals and total funding grew at CAGR of 46.1% and 64.4%, respectively in the period 2012-2016.
The Q1 of 2017’s investment figures exceeded the levels reached in 2014 and already represent nearly a third of 2016 investment total. BPIFrance was the most active investor in the last five years with six deals, followed by Aurinvest with three.
In 2016 over two-thirds of funding to the country’s fintech sector went to just three subsectors: payments and remittances, marketplace lending and infrastructure and enterprise software.
Marketplace lending companies’ share of total fintech investment in the country decreased by 23.2% since 2014. Despite this decline the total funding to the subsector doubled in absolute amounts in the period as the fintech ecosystem in France grew.
The share of investment to other sectors surged in 2016, jumping to 29.5% of total fintech funding in the country as investors are looking for opportunities in other areas. Payments and remittances companies comprise over a fifth of the French fintech ecosystem
Over half of French fintech companies fall into one of these three subsectors: payments and remittances, wealthtech and infrastructure and enterprise software.
Marketplace lending companies hold only 8.3% of the overall fintech ecosystem in France, although they have received 35.4% of the total funding since 2014.
The largest funding round in the payments and remittances subsector went to point-of-sale solution provider Wynd, which in late 2016 received USD 31.7 million in a Series B round.
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