AI investments dominated French Tech funding in the first half of 2024, capturing half of the total amount raised across the ecosystem, according to the latest Maddyness barometer. The semester ended on a strong note, with June alone exceeding €1 billion in fundraising—a psychological threshold not crossed since the exuberance of previous years. Overall, French startups pulled in around €4.2 billion over the six months, meaning AI companies accounted for approximately €2.1 billion across some 60 deals. The concentration reflects both the maturity of the sector and the size of the rounds: Mistral AI’s €600 million raise and H’s €200 million injection feature among the standout mega-deals, while a cluster of seed and Series A rounds further padded the total.
This AI-driven surge masks a more mixed picture elsewhere. Deal volume outside of artificial intelligence softened, with cleantech, healthtech, and fintech continuing to attract capital but at a slower pace and with smaller average ticket sizes. Investors are rotating aggressively toward generative AI and its enabling infrastructure, creating a bifurcated market where non-AI founders face longer fundraising timelines. June’s bounce above €1 billion, however, hints at a broader recovery: several late-stage rounds closed in the month, and venture capital firms that had been sitting on dry powder began to deploy it more actively, buoyed by improving macroeconomic signals.
The data suggest that while AI’s outsize share may compress valuations in other verticals in the short term, the overall health of French Tech remains robust. The second half of the year could see a rebalancing if exit markets reopen and limited partners push for diversification, but for now, the message is clear: in 2024, French Tech is AI Tech.