French tech start-up bankruptcies are increasing, survey finds

Sudip Kar-Gupta

Tue, Mar 11, 2025, 6:16 AM 1 min read

By Sudip Kar-Gupta

PARIS (Reuters) - Bankruptcies successful France's tech start-up assemblage are increasing, according to a survey published connected Tuesday whose findings could undermine President Emmanuel Macron's representation of Paris arsenic a starring European tech hub and cardinal operator of the French economy.

During his archetypal word successful office, Macron touted Station F successful Paris arsenic an illustration of France's burgeoning tech start-up industry, and France's planetary AI acme successful February attracted 110 cardinal euros of concern pledges.

However, manufacture probe radical ScaleX Invest said its survey pointed to French tech start-ups going bust, astatine a clip erstwhile concerns astir a planetary economical slowdown are hitting fiscal markets. [MKTS/GLOB]

ScaleX Invest said 10.4% of 1,487 start-up tech companies it had analysed faced a precocious hazard of bankruptcy, and that the fig of bankruptcies and insolvency proceedings was greater than the full of caller Series A archetypal fund-raising rounds.

One illustration it cited was Ynsect, which filed for a safeguard program past twelvemonth and uses robotics to nutrient insect-based ingredients.

"Insolvency is progressively affecting mature companies. On average, firms successful insolvency had raised 32.5 cardinal euros ($35.4 million), doubly arsenic overmuch arsenic those successful erstwhile years, yet inactive failed," ScaleX Invest main operating serviceman Edouard Thibaut said.

"This underscores however tighter backing conditions and declining valuations are making it much hard to entree capital, adjacent for well-funded scale-ups," helium added.

($1 = 0.9174 euros)

(Reporting by Sudip Kar-Gupta, editing by Ed Osmond)