From funding rounds to policy shifts, job cuts to startup breakthroughs, here’s what shaped France’s economic and innovation landscape last week.
France’s business and tech scene remains dynamic despite economic headwinds, with startups, small businesses, and major corporations adapting to fast-changing conditions. From funding breakthroughs and regulatory shifts to local success stories and international partnerships, these 20 headlines capture the pulse of France’s economic and innovation landscape for the week.
1. French Economy Stagnates Amid Trade Tensions
France’s economy barely grew in Q1 2025, with GDP rising just 0.1%. Weak household consumption and flat investment, compounded by global trade tensions and political uncertainty, are stalling growth. This sluggish performance is a warning sign for policymakers and businesses alike as France tries to maintain its position as the eurozone’s second-largest economy.
2. SNCF Rail Strikes Disrupt Travel, Boost Rivals
National rail company SNCF faced strikes throughout the week, causing widespread disruption. Competitors-rival train firms, airlines, and bus operators-reported a surge in bookings as travelers sought alternatives. The labor action highlights ongoing tensions in France’s transport sector and the resilience of alternative mobility providers.
3. LVMH to Cut 1,200 Jobs at Moët Hennessy
Luxury giant LVMH announced plans to reduce its Moët Hennessy workforce by over 12%, affecting 1,200 jobs. The move responds to ongoing struggles in the wines and spirits division, hit hard by trade conflicts with China and the US. LVMH aims to avoid forced redundancies, but the cuts underscore the vulnerability of even France’s most prestigious brands to global headwinds.
4. French Tech Funding Plummets to 2020 Levels
French startups raised just $1.4 billion in venture capital in Q1 2025, marking the weakest quarter since 2019. Seed-stage funding fell by 53% quarter-on-quarter, and late-stage investment collapsed by 81%. The downturn affects all stages, putting France on track for its lowest annual VC total since 2018 and raising concerns about the health of its tech ecosystem.
5. Klaro Raises €2M to Boost Employee Financial Aid
Paris-based HR tech startup Klaro secured €2 million in equity and €1 million in debt funding. Klaro’s API helps employees access public and private financial aid, aiming to increase purchasing power without requiring salary hikes. The company now targets HR platforms and neobanks, reflecting a growing trend toward employee-centric fintech solutions.
6. Goliaths Lands €3M to Democratize Investing
Fintech startup Goliaths raised €3 million, bringing its valuation to €20 million. The platform combines fintech, social networking, and educational content, with €3 billion in transactions to date. Goliaths aims to reach €20 billion in trading volume by year-end, signaling robust ambition despite the broader funding slowdown.
7. Connektica Secures €3M for Aerospace Automation
Connektica, a Franco-Canadian startup, raised €3 million to expand its digitization and automation solutions for the New Space sector. With technology tested on over 100,000 flight components, the company is pushing into aerospace and defense, highlighting France’s growing role in space tech innovation.
8. 4Moving Biotech Raises €7.6M for Osteoarthritis Drug
Lille-based 4Moving Biotech secured €7.6 million from the France 2030 fund to advance clinical trials for its knee osteoarthritis treatment. The drug aims to delay knee replacement surgery, offering hope for millions suffering from joint pain and underlining France’s strength in health innovation.
9. Faume Attracts €8M for Circular Fashion
Faume, a Paris startup, raised €8 million to help fashion and luxury brands launch second-hand platforms. Backed by Amundi and Bpifrance, Faume manages logistics and resale for clients like Lacoste and Victoria Beckham. The funding will support expansion into Italy and the UK, plus AI-powered pricing tools-showcasing the rise of sustainable fashion tech.
10. pyannoteAI Raises €8.1M for Voice AI
Paris-based pyannoteAI raised €8.1 million to support its speaker-aware voice AI platform, used by over 100,000 developers. The technology, which labels who speaks and when, is optimized for real-time transcription and voice applications, reflecting France’s growing expertise in artificial intelligence.
11. Qevlar AI Secures €9.1M for Cybersecurity Automation
Qevlar AI raised €9.1 million to develop AI agents that automate tasks in security operations centers. Their software investigates and triages cybersecurity alerts, freeing up human analysts to focus on serious threats. This funding round underscores the critical importance of cybersecurity in France’s digital economy.
12. Okeiro Raises €10M for Kidney Transplant Prediction
Healthtech startup Okeiro (formerly Predict4Health) raised €10 million to use AI for predicting kidney graft survival. The technology helps doctors personalize post-op care for transplant patients, demonstrating how French startups are leveraging AI to transform healthcare.
13. Ÿnsect Gets €10M Lifeline Amid Restructuring
Insect protein pioneer Ÿnsect, which entered insolvency proceedings in February, secured €10 million in bridge funding. The company also appointed turnaround specialist Emmanuel Pinto as CEO. The funding provides a few months’ runway as Ÿnsect seeks a buyer or further investment, reflecting the challenges facing agtech innovators in a volatile market.
14. Roof Raises €20M to Expand Student Co-Living
Proptech startup Roof raised €20 million to transform real estate into co-living student residences. The funding will support the creation of over 1,000 new student rooms in major French cities, combining private spaces with shared amenities. This model addresses housing shortages and evolving student needs.
15. Sekoia.io Raises €26M for AI-Powered Cybersecurity
Rennes-based Sekoia.io raised €26 million in Series B funding to expand its AI-powered security operations platform. Used by managed service providers and large enterprises, Sekoia.io helps detect and respond to cyber threats, cementing France’s reputation as a cybersecurity hub.
16. Pennylane Raises €75M, Serving 350,000 SMEs
Fintech startup Pennylane raised €75 million from global investors including Sequoia Capital and DST. Pennylane offers business banking and accounting software, now serving 350,000 SMEs and 4,500 accounting firms. This major round signals continued investor confidence in SaaS solutions for small businesses.
17. SafeHeal Raises €62–93M for Digestive Surgery Innovation
SafeHeal, a medical device maker specializing in digestive surgery, raised between €62 million and €93 million in a Series A round. The funding will accelerate commercialization of its Colovac device, which helps patients recover from colorectal surgery without a stoma, marking a major advance in medtech.
18. Airbnb Faces Stricter Rules in French Cities
Cities like Biarritz are imposing stricter rules on Airbnb and short-term rentals to address the housing crisis. New regulations target secondary residences and short-term rental owners, aiming to free up housing for locals and curb speculative real estate practices.
19. Small Businesses Leverage Local Events for Growth
Throughout the week, small businesses in Paris and across France capitalized on events such as the Taste of Paris festival and local farmers’ markets. These gatherings provided a vital boost to local producers, artisans, and food startups, underlining the importance of community-driven commerce in challenging economic times.
20. France and Madagascar Deepen Economic Ties
President Macron’s visit to Madagascar resulted in new economic agreements in energy, technology, infrastructure, and tourism. The trip aimed to strengthen bilateral ties, address resource and territorial issues, and open new opportunities for French businesses abroad
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