Hey, it’s Chloé here! Super happy to jump in with Jaime on the French dealflow newsletter and share my perspective on what’s been moving in the ecosystem - thanks to my position at Red River West, where I get a front-row seat to all things startup and scale.

This week, a few standout stories really caught my eye: Dalma’s €20M Series B as it cements its place in Europe’s booming pet tech market, a fascinating deep dive into Yuka’s profitability and US expansion, Defacto’s massive step up with €1.8B in credit capacity to support strategic industries, and of course, the Maddy Invest Awards spotlighting the investors shaping tomorrow’s tech champions.

Let’s unpack all of it 👇

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Startup funding news 💸

Rounds of $15M+:

• Franco-Spanish start-up Pangea Aerospace has raised €23 million to accelerate development of its reusable rocket engines powered by sustainable fuels, aiming to cut space launch costs through innovative aerospike technology and 3D printing. With eight contracts - including one worth €50 million- and ambitions to fly by 2027, the company is positioning itself as a key player in Europe's push for independent and eco-friendly space propulsion.

• Dalma has raised €20 million in a Series B round led by Breega to expand its AI-powered pet insurance and wellness platform, now covering over 60,000 pets in France and Germany. With features like instant claim reimbursement, 24/7 vet access, and educational tools, Dalma aims to redefine pet care in Europe while launching new services like direct payments and a curated e-shop.

Rounds €5M to €10M:

• Galam Robotics has raised €10 million from Supernova Invest, Bpifrance, and existing investors to industrialize and scale its TAK-ONE robotic storage system, designed to optimize logistics buffers with high-density, high-speed performance. The modular, space-efficient solution - already deployed in cross-docking hubs - targets major retail and logistics players, with plans to expand across France and Europe while quadrupling revenue in 2025.

• SPRiNG, the French eco-friendly detergent brand, has raised €10 million from Circular Innovation Fund and existing investors to scale its sustainable cleaning products and expand its customer base sixfold by 2030. With over one million orders and 200,000 active subscribers, the company aims to boost R&D, eliminate single-use plastics, and lead innovation in safe, health-conscious home care.

• Siteflow has raised €7 million from LBO France, EDF Pulse Ventures, and others to enhance its digital platform that streamlines complex field operations in the nuclear sector, where administrative tasks can consume up to 70% of project time. Already used by major players like Framatome and Orano, the Paris-based deeptech aims to integrate AI, expand into aerospace and defense, and reach profitability by 2026 with a vision of long-term annual growth of 30%.

• Aletiq has raised €6 million to scale its next-generation Product Lifecycle Management (PLM) platform, aiming to modernize and democratize industrial data management for companies of all sizes. Backed by Point Nine and notable angels, the startup plans to expand in France and the U.S., offering a fast-deploying, intuitive solution already trusted by over 5,000 users across 10 countries.

Rounds €1M to €5M:

• Valused, specialised in reconditioned and used auto parts, has raised €4 million from investors including Arkéa Capital and NCITY to scale its operations and quadruple revenue in 2025. Founded in 2022, the company is riding the wave of circular economy growth with a concierge service for hard-to-find parts, aiming to become a leading European brand in sustainable car repair by 2030.

• Fizimed, a Strasbourg-based femtech company, has raised €4 million from Bpifrance's Patient Autonome fund, UNIQA, and UI Investissement to accelerate its international expansion. Known for its pelvic floor trainer and hands-free breast pump, Fizimed aims to tackle women's health taboos with innovative, clinically validated products, expanding into German-speaking countries and the U.S. while reinforcing its partnerships and product development.

• Grenoble-based start-up DrugOptimal has raised €2.9 million to accelerate deployment of its software that detects drug incompatibilities in hospital prescriptions, aiming to reach 60 hospitals in France within two years. Backed by proprietary AI and a patented high-throughput lab machine, the platform analyzes over 45,000 drug pairings, addressing a critical but often overlooked safety issue in hospital care.

• Evera, a start-up offering electric vehicle subscriptions for companies, has raised €2 million to expand nationwide and enhance its flexible, tech-driven fleet management services. With reconditioned EVs, adaptable contracts, and a dedicated digital platform, Evera aims to simplify and accelerate the transition to electric mobility for professional fleets.

• Openstone, a proptech start-up focused on simplifying real estate transactions for professionals, has raised €1.5 million in a seed round led by a British fund and French business angels. The funding will accelerate product development and support its ambition to become the leading B2B platform for off-market real estate deals.

M&A transactions 🎊

Yespark has acquired its rival Zenpark, creating a new parking tech group with €48 million in revenue and a network of 100,000 spaces across 700 cities in France, Belgium, and Italy. The merger strengthens Yespark’s leadership in digital parking solutions and sets the stage for further international expansion through future acquisitions.

Global Technologies (Mycronic) has acquired Asteelflash Design Solutions (ADS), a French company specialized in high-reliability electronics for aerospace and defense applications. This strategic move strengthens Mycronic's presence in France and expands its capabilities in complex electronic systems for demanding industries.

Rennes-based HR group Interaction has acquired Parisian start-up MyCVFactory, which specializes in AI-powered résumé creation and personalized coaching. The move aims to enhance support for Interaction’s 30,000 temporary workers by helping them better present their skills and experience to improve job placement success.

Integrity360 has expanded into France with the acquisition of Holiseum, a cybersecurity firm specializing in critical and industrial infrastructure. This strategic move strengthens Integrity360’s presence in continental Europe and enhances its capabilities in protecting high-stakes operational environments.

ZestMeUp and Supermood, two French startups specializing in employee engagement, have merged to form a European leader in SaaS solutions for workplace performance and well-being. With over 400 clients and nearly 3 million employees surveyed, the new entity aims to expand internationally and leverage AI to support organizational transformation and modernize management practices.

British fintech myPos has acquired French point-of-sale software start-up Toporder to strengthen its position against rivals SumUp and Square in the SME and artisan markets. Backed by U.S. fund Advent, myPos is expanding aggressively in France and Italy, integrating new payment options like Satispay and meal vouchers, while aiming to quintuple its size within five years.

ChapsVision has acquired Iremos, a French firm specializing in crisis management and security software, to strengthen its position in managing operational risks across sectors like defense, finance, and logistics. This move expands ChapsVision’s offering with tools like “Crisis” and “Thom'AS,” and follows a series of acquisitions aimed at making the company a European leader in big data and critical incident management.

French recruitment start-up Extracadabra has partnered with interim giant Actual Group, with Actual Ventures taking a slightly majority stake in a €15 million deal that includes debt and secondary transactions. The alliance aims to boost Extracadabra’s focus on temporary work, expand into sectors like logistics and retail, and combine digital expertise with Actual’s operational know-how, while keeping the start-up independently run.

Industrial robotics company Siléane has been acquired by Motion Equity Partners, marking a new growth phase backed by a potential investment of €50–60 million, with reserves for further acquisitions. With €37 million in 2024 revenue and a strong international footprint, Siléane aims to continue its external growth strategy—now with plans to expand into the U.S. market.

Investor & accelerator news 🚀

At the 2025 Maddy Invest Awards, Maddyness honored seven key players in the French startup ecosystem, recognizing their support across various investment categories. Winners included Inovexus (Collective Invest), Evolem (Family Office), Sopra Steria Ventures (CVC), Wind (VC), Sagard NewGen (Private Equity), 2CGroup (Ecosystem Partner), and Rafaèle Tordjman of Jeito Capital (Female Investor of the Year).

The Italian Tech Club has officially launched its Paris chapter, expanding its international network dedicated to Italian entrepreneurs and tech professionals. Following successful openings in cities like Barcelona, Madrid, and Berlin, the club aims to foster connections, share knowledge, and support Italian innovation across Europe.

Startup news 💡

French fintech Defacto will increase its credit capacity to €1.8 billion by summer 2025 to support small and strategic companies in the defense sector. This move, aligned with national efforts to boost industrial resilience amid geopolitical tensions, aims to strengthen working capital financing for the 4,500 SMEs in France’s defense industrial base.

Maddyness is coming back on Yuka’s success story: the French health app has become profitable with €1.5 million in net income in 2023 and is rapidly growing in the U.S., where New York has become its top-performing market. With 65 million users globally and a strong focus on impact, the startup attributes its American success to viral TikTok exposure and has extended its U.S. presence to further scale visibility and adapt to local market dynamics.

One year after achieving France’s first manned hydrogen-electric flight, Beyond Aero has unveiled the refined concept of its hydrogen-powered light jet. Featuring a battery-free hydrogen fuel cell system, 700-bar tanks above the wing box, and optimized thermal management, the aircraft is a major step toward certification and industrialization in zero-emission aviation.

Big company & policy news 💡

Uber and SNCF Connect have announced a unique partnership allowing users to book Uber rides directly within the SNCF Connect app after purchasing train tickets. This integrated mobility solution covers 95% of France’s urban population, promotes low-emission transport with 95% hybrid or electric vehicles, and enhances first- and last-mile connectivity - all without needing the Uber app.

Interesting reads 💡

Despite a sharp 33% drop in VC exits across Europe and the U.S. in 2024, France has shown resilience, with a notable decline in startup bankruptcies from 153 in 2023 to 106 in 2024. While “VC-to-VC” transactions collapsed, SaaS, AI, and fintech sectors held up well, and strategic acquisitions by corporates helped sustain activity in an otherwise liquidity-constrained venture market.

Auren Hoffman highlights a striking insight about venture capital returns, noting that just four companies - Airbnb, Coinbase, Reddit, and Instacart - account for over 85% of Y Combinator’s realized returns. This underscores the extreme power-law dynamic in VC, where a tiny fraction of startups drive the vast majority of financial outcomes.

Clem Delangue, CEO of Hugging Face, shared a Harvard study revealing that $4.15B invested in open source has generated $8.8 trillion in value, meaning each $1 yields around $2,000 in impact. The research also found that without open-source software, companies would need to spend 3.5 times more on software, highlighting open source as a foundational and massively efficient force in the tech ecosystem -especially impactful in AI.

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