Fundraising by French banking and insurance start-ups fell sharply in 2023, victims of the scarcity of financing caused by the rise in interest rates, but “fintech” has adapted in this way. together, according to two studies published Wednesday and Thursday.
The Fintech Observatory – which works with KPMG, eToro and Mastercard – has identified 136 operations since the start of the year, with 1.1 billion euros raised, an amount down 57% compared to 2022.
According to the professional association France FinTech, the amount of fundraising until December 13 fell by almost 70% over one year, to 939 million euros.
There fintech suffers like other sectors of the tech the scarcity of financing in a context of rising interest rates, but the year is part of a form of continuity of the ecosystem because 2021 and 2022 had been atypical in their excess of liquidity, estimates Mikal Ptachek, president of the Fintech Observatory.
The contraction in high amounts in France, reflecting a general wait-and-see attitude among investors, is comparable to the European (-68%) and global (-61%) levels, according to France FinTech.
The period recorded a sharp reduction in the involvement of large international investors, to the benefit of the French. Eight out of ten operations and 45% of the funds concern seedlings (initial raisings), but when it comes to putting back into the pot, the majority of the raisings were subscribed by historical investors, according to the association.
Players in the sector have known and will know how to adapt to these new conditions, estimates the Observatory in a press release.
Stronger cost control has enabled start-ups to reduce the need for additional capital. Fintechs have been able to abandon unprofitable activities and emphasize monetization rather than the race for market share or the diversification of models.
France FinTech also estimates that start-ups, which took on more debt, had a cushion of safety thanks to the 2022 raisings, which had reached the record level of 2.9 billion euros (the Fintech Observatory has its ct had 2.5 billion raised in the sector last year).
The ecosystem has generally held up well with few failures – the notable and recent exception of the online insurer Luko – and the fundamentals are good, according to the two observers.