This edition is a little longer than usual as it covers the past two weeks - sorry I couldn’t make it last week! Even with summer approaching, the sun shining, and the usual May bank holidays, the French tech ecosystem has been anything but quiet.

The big news? Fidji Simo is joining OpenAI’s Board of Directors, marking a major step for French leadership in global tech. At the same time, VSORA secured a $46M funding round to accelerate the production of its high-performance AI chips, setting its sights on challenging giants like NVIDIA.

As for some of the standout reads: Doctolib announced it hit €348M in annual revenue and is edging closer to profitability. Owkin continues its ambitious path with its AI-powered oncology copilot, while Qonto remains laser-focused on European expansion. All signs that French startups are scaling with purpose.

Plenty to unpack - let's dive in.

Welcome to Dealflow France!

Subscribed

Startup funding news 💸

Rounds of €15M+:

• AI chip designer VSORA has raised $46 million in a funding round led by Otium and a French family office, with participation from Omnes Capital, Adélie Capital, and the EIC Fund. The investment will fund the production of its Jotunn8 (J8) chip, engineered to deliver triple the performance and half the power consumption of current AI solutions, positioning VSORA as a major European player in the global AI chip market.

• Medtech SafeHeal has raised an oversubscribed €35 million Series C round led by Solar Eclipse, with participation from Gideon Strategic Partners, M&L Healthcare, Sofinnova Partners, and a major multinational life sciences corporation. The funding will support the completion of SafeHeal's IDE Pivotal study and the commercial launch of its lead product, Colovac®, a less-invasive alternative to temporary ostomy for colorectal surgery patients.

• Via Sana, the proptech specializing in turnkey medical coworking spaces, has raised €16 million in a second funding round led by 360 Capital and the Fonds stratégique des transitions managed by ISALT. With 450 medical offices already established in cities like Paris, Lyon, and Bordeaux, Via Sana plans to expand its network across France, enhance its offerings with digital management tools, and open new spaces, including a flagship medical office at Station F, set to launch next year.

Rounds €5M to €15M:

• Chipiron has raised €15 million in a Series A round led by Blast, alongside the EIC Fund and iXcore, to develop its miniaturized, ultra-low-field MRI scanner aimed at making MRI as accessible as X-rays. The funding will support the completion of its R&D, the creation of its first clinical prototypes, and the start of hospital trials in 2026, with the ambition to democratize MRI access globally by offering a portable, low-cost alternative to traditional machines.

• Dark raised $11 million with Eurazeo, Frst, and Long Journey Ventures, a firm led by Arielle Zuckerberg. The Paris-based startup, founded by former engineers from MBDA and Thales, is developing "Interceptor," an air-launched spacecraft designed to intercept, capture, and deorbit space debris or potential threats, with its first test mission planned for 2027 in partnership with the French Space Agency and the Defence Innovation Agency.

• Martech startup Reelevant has secured €6M in Series A funding led by Seventure Partners, with participation from Go Capital and prominent business angels like Nathalie Balla, who also joins the board. The investment will fuel Reelevant's international expansion, product enhancement, and team growth, as it continues to innovate in real-time, AI-driven hyper-personalisation for marketing, already proven with clients like Decathlon across 36 countries.

Rounds €1M to €5M:

• Energy tech startup Inicio has raised €4 million in a seed funding round led by ISAI, with participation from EDF Pulse and CapHorn, to accelerate solar energy development. Founded in 2022, Inicio uses a proprietary algorithm to rapidly identify high-potential solar sites, streamlining the connection between landowners and developers, with plans to expand its operations across France, Italy, and Europe.

• Chenevia, a startup specializing in medical cannabis, has raised €3 million to build its first industrial production site near Ploërmel. The 2,000 m² facility, set to open in early 2026, aims to produce high-quality medical cannabis, with plans to expand operations and potentially enter the European market as legalization progresses across the continent.

M&A transactions 🎊

Sifted discovered that H Company had quietly acquired Mithril Security, a Paris-based startup focused on open-source tools for AI agents, in the second half of 2024. Following the acquisition, H has ramped up its efforts in web automation, launching Runner H and preparing Tester H, both designed to streamline web testing with natural language commands, positioning the company as a strong competitor in the emerging field of web agent automation.

Faircraft, the French pioneer in lab-grown leather, has acquired the assets of its American competitor VitroLabs, backed by Kering and Leonardo DiCaprio, securing a portfolio of 35 strategic patents, following their €15 million fundraise a few months ago. This acquisition strengthens its industrial development and opens access to the American market, while meeting the growing luxury demand for sustainable and ethical materials.

Malakoff Humanis has become the majority shareholder of Mon Petit Placement by acquiring the shares of historical investors, business angels, and independent shareholders. The partnership aims to accelerate growth while maintaining Mon Petit Placement's independence and expanding its digital savings offerings, including life insurance and financial education initiatives like the "Flouze" app.

Investor & accelerator news 🚀

Andréa Bensaid, founder of Eskimoz, has launched 199 Ventures, a €30 million self-financed fund aimed at putting strategic marketing at the core of startup growth. Unlike traditional VCs, 199 Ventures focuses on hands-on support for tech startups in seed and Series A stages, emphasizing transparent investments, detailed online tracking, and co-investments to inject marketing expertise as a lever for sustainable profitability.

Startup news 💡

Mistral has launched Le Chat Enterprise, an AI assistant designed to rival Microsoft's Copilot and OpenAI's business solutions. Built to integrate with platforms like Google Drive, SharePoint, and Gmail, the assistant streamlines information retrieval and task automation for enterprises, with clients including BNP Paribas and AXA, contributing to Mistral's €30 million ARR in 2024.

Swile, the French unicorn known for reinventing meal vouchers, became profitable in 2024 with €2 million in net profit and a 257% increase in EBITDA. Following its acquisition of Bimpli in 2022, Swile now serves 85,000 companies, including Airbnb and Carrefour, and is expanding into business travel with Swile Travel, aiming to handle €100 million in business volume by 2025 and further grow in Europe and South America.

Just ahead of the Choose France summit in Versailles, Clara Chappaz and Éric Lombard led a delegation to the United Arab Emirates, accompanied by several French AI startups including Mistral AI, Owkin, Harmattan AI, Safran.AI, and Quandela. This visit aimed to deepen the partnership established in February during the AI Action Summit, where the UAE pledged €30-50 billion for an AI-focused data center in Europe, marking a major step towards solidifying France's influence in AI innovation and attracting foreign investment.

Three French entrepreneurs have launched Hushday, a premium private sales platform inspired by Veepee, in Dubai, with plans to expand quickly to Saudi Arabia and Qatar. Founded by former executives from Carrefour, Pazzi, and Doctolib, Hushday aims to transform Middle Eastern retail through a fully robotic logistics system, AI-driven personalization, and exclusive flash sales, capitalizing on the region's booming e-commerce market and Dubai's ambition to become a global tech hub.

Doctrine, the French legaltech startup, was found guilty of "unfair competition" by the Paris Court of Appeal, marking the end of a nine-year legal battle initiated by major legal publishers like Dalloz and LexisNexis. Despite being ordered to pay compensation, CEO Guillaume Carrère expressed relief as the ruling allows Doctrine to retain its database of court decisions, which remains public, enabling the company to continue its expansion across Europe without further legal disputes.

Doctolib reported €348 million in ARR for 2024, marking 22.5% growth from the previous year. The healthtech unicorn, which operates in France, Germany, Italy, and the Netherlands with 80 million patient accounts and 400,000 healthcare professional subscribers, is targeting profitability in the coming months while investing heavily in AI-powered services like note-taking assistants for doctors.

Big company & policy news 💡

Fidji Simo, the French tech powerhouse known for her significant impact on the U.S. tech ecosystem, is set to join OpenAI as the General Manager of Applications, overseeing projects like ChatGPT. Formerly the CEO of Instacart and Head of the Facebook app at Meta, she will work directly with Sam Altman, using her expertise to shape consumer-focused AI products while enabling Altman to deepen his focus on AI research and development.

SNCF has partnered with BeeToGreen to significantly increase bike commuting ("vélotaf") among its employees, aiming to triple its current 4.7% bike usage to 15% within three years. Through BeeToGreen's marketplace and the Sustainable Mobility Package, 18,000 SNCF employees in Saint-Denis will have access to over 150 sustainable mobility brands, supporting SNCF's broader commitment to greener transportation.

LightOn has partnered with BearingPoint to support public sector organizations in adopting sovereign generative AI solutions that ensure data security and infrastructure control. Through their collaboration, the two companies will provide comprehensive services, from strategic planning to implementation, leveraging LightOn's Paradigm platform and BearingPoint's expertise in public digital transformation to optimize processes, improve citizen services, and automate low-value tasks in a secure and sovereign manner.

Jean-François Fallacher, CEO of Orange France, is leaving the company after over 30 years to take the helm at satellite operator Eutelsat. Known for turning around Orange’s operations in Spain, Poland, and Romania, his unexpected departure paves the way for Jérôme Hénique, current head of Orange's Middle East and Africa division, to take over leadership of Orange France.

Interesting reads 💡

Les Echos published a portrait of Thomas Clozel, the co-founder and CEO of French healthtech unicorn Owkin, highlighting his journey from hematologist to tech entrepreneur. Founded in 2016 with Gilles Wainrib, Owkin has raised over $304 million and recently launched the first AI-powered oncology copilot, aiming to transform cancer treatment by empowering researchers and challenging big pharma with advanced AI-driven discoveries.

As TikTok Shop launched in France and Europe on March 31, Maddyness analyzes its potential impact on the French e-commerce landscape. By integrating discovery, engagement, and transactions directly within the app, TikTok Shop introduces a disruptive "discovery commerce" model that could transform how French consumers discover and purchase products online.

Since March, fifteen French startups have joined the second edition of Microsoft GenAI Studio at Station F, focusing on integrating genAI solutions. Many of these startups are exploring the potential of agentic AI across various fields, including education, software testing, healthcare, sales prospecting, and product management. Microsoft supports these innovators with mentorship, $150,000 in Azure credits, and access to its ecosystem, with the program culminating in a Demo Day on June 30, 2025, to showcase their achievements.

Sifted analyzes the amazing team at Qonto, the French fintech unicorn founded in 2016 by Alexandre Prot and Steve Anavi, which has raised over $600 million and serves more than 500,000 SMBs across Europe.

Thanks for reading Dealflow France! Subscribe for free to receive new posts and support my work.

Subscribed