French Fintechs innovate in new financial challenges

It is an extremely positive assessment that the France FinTech association draws up on the activity of French start-ups in financial services in 2022, even if concerns are now emerging. French fintechs are innovating in new areas such as ESG criteria (Environmental, Social and Governance), cybersecurity of VSEs-SMEs, real estate, crypto assets and embedded finance.

2,9 billion euros in financing in 2022

In 2022, entrepreneurs in the Fintech sector raised €2,9 billion in equity financing in 146 transactions. This represents an average fundraising of 20 million euros. This amount, which does not take into account the debt, represents almost 30% more than in 2021. With less than 100 Fintechs in 2015, France lists almost ten times more today, rejoices France Fintech.

For France Fintech, 2022 has been a record year. However, the association observes the first consequences of a rise in macro-economic and geopolitical uncertainties at the end of the year. If in the first half of 2022, the sector recorded strong growth in the sector with 2,2 billion euros in fundraising, the total amount raised in the second half is significantly lower with only 715 million euros in 62 operations.

In the field, French fintechs cover all areas of innovative finance, i.e. banking and insurance services, asset management, payments, crypto-assets, regtech (regulatory compliance ) and business services. This corresponds to the creation of 40 jobs.

Only 1 fintech out of 4 is profitable

These young companies have begun their internationalization. One in four fintechs is present internationally. They develop their sales, since a third makes more than 1 million euros in turnover. Profitability is lagging behind with only 27% declaring themselves profitable. But it must be recognized that a high proportion is still in a start-up phase.

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