The French exception did not last. Whereas a year earlier the healthtech sector – which today brings together 2,660 companies, including 820 biotechs, 1,393 medtechs (manufacturers of medical devices) and 450 digital health start-ups – displayed dynamism against the tide of the global trend, the sector finally gave in to the general gloom.
In 2023, financing for start-ups and French health SMEs recorded a drop of 32% compared to 2022, at 1.8 billion euros, detailed, Tuesday February 27, the France Biotech association in its annual overview of the sector. After two years marked by an unprecedented influx of capital, partly due to the euphoria of investors during the crisis linked to the Covid-19 pandemic, the sector has returned to more or less its 2019 level.
No big surprise. For several months, companies in the sector have all noticed behind the scenes that the hunt for capital was becoming much more difficult. The panel of 450 companies surveyed by France Biotech confirms this. Financing remained, for 67% of them, the main concern in 2023.
Chilliness at all levels
On the side of venture capital financing, the amounts have, in fact, fallen below the bar of 1 billion euros (969 million euros), losing 800 million euros compared to the figures for 2022.
The year had started well, however, with the announcement, in January, of a fundraising of 130 million euros by the biotech Amolyt Pharma, a specialist in endocrine diseases. The Lyonnais was ultimately the only one to achieve a funding round exceeding 100 million euros, the second largest fundraising of the year having been signed by the Ile-de-France Corteria (65 million euros).
The reluctance of investors is palpable at all levels. On the IPO front, only Abivax risked taking the gamble last year. Successfully, the French biotech managed to raise more than 223 million euros on the Nasdaq. Refinancing of companies already listed on the markets increased in volume (31 operations compared to 22 a year ago), but “the total amount is decreasing”, however, notes the study. It amounts to 565 million euros, a decrease of 13%.
Gain in maturity
The French slowdown clashes with European dynamics. All types of financing combined, companies from the Old Continent raised 11.7 billion euros in 2023 (+ 9% over one year), mainly thanks to IPOs and refinancing on the financial markets, with venture capital accusing , meanwhile, a fall of 19%.
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