French Fintechs have never been in better shape: in 2021, they raised €2.3 billion! But will this continue over the long term or is it just a passing trend? Let’s decipher two major factors of this success with the help of two recent reports: “The Internationalization of French Fintechs”and “The Fintech 100.”
#1: The undeniable success of French Fintechs
The success of French fintechs is undeniable: in 2021, there were 7 fundraisings of more than €150 million among 93 deals. This represents an increase of 174% in one year (compared to 2020). The market’s confidence in French Fintechs has led to the emergence of 6 new unicorns in various sectors over the past year.
The average fundraising amount is also very high, peaking at €24.4 million, which corresponds to an increase of 86% compared to 2020. Several reasons can explain this heightened interest in French fintechs, including Brexit, which is helping make France more attractive for foreign investors at the expense of its British competitor.
#2: The huge internationalization challenge for our startups
Despite these major fundraisings, French fintechs still face obstacles to becoming truly visible on the international stage. This can depend on several factors, including regulation barriers. Indeed, Fintechs can be slowed down by these obstacles and this can hinder their development. One example is the British regulator, which is known for its difficulty in granting authorizations to European startups. As a result, the company Younited Credit, for example, had to temporarily postpone its take-off in the UK.
French fintechs must plan ahead and think about their European business model from the moment they start defining their French business model. This way they can deploy their offer in several countries and easily capture the European market.
The success of French Fintechs is remarkable, and if they succeed to launch internationally, many of them will be able to claim unicorn status and shine on the international stage.
Treezor’s embedded finance services power several successful French fintechs and even some French fintech unicorns such as Lydia and Swile. Learn more in our success stories and contact our sales team to find out more about our solutions for your fintech.