Venture capital S1 2025: a market under pressure, refocused on scale-ups and sectors of excellence

Baromètre des levées de fonds In Extenso Innovation Croissance (a publication signed by its collaborative space In Lab), ESSEC Business School and France Angels - Assessment of the^1st semester 2025.

In the first half of 2025, venture capital in France contracted sharply: -34% in amounts raised and -60% in number of deals, a sharper fall than in Europe (-12% in amounts raised and -44% of deals). But behind this cyclical downturn, a strategic transformation is at work: investors are refocusing on scale-ups, sovereign technologies and sectors perceived as resilient or structuring.

This recomposition can be seen in :

• increased focus onlate-stage, with 65% of amounts concentrated on series B and above;
• a collapse inearly-stage rounds, particularly in Q2 2025, when seed capital raised fell by 42%;
• a stronger presence of foreign funds in strategic mega-deals (quantum, AI, climate);
• a worrying decline in corporate Venture Capitalists (VCs) and Cleantech financing, with the exception of a few industrial champions.

Artificial intelligence is driving the global market: it accounted for nearly a quarter of capital raised in France (50% worldwide, 30% in Europe), with deals such as Veesion (€38 M), Maki (26 M€) or Bioptimus (30 M€), which are still far from the mega-raises seen over 2024 (500 M€ for Mistral AI, 500 M€ for Poolside AI...). Conversely, fintech, healthcare (excluding AI) and capital-intensive models are struggling to mobilize new financing. Early-stagecompanies can only survive thanks to the mobilization of public capital (Bpifrance, SATT, French Tech Seed) and the continued activity of business angels.

The situation in France is in line with a global trend:increased selectivity, concentration of capital, and rising average ticket sizes. While Europe posted a moderate decline (-12%), the United States saw a slight rebound in volume, thanks to prospects for liquidity in the wake of IPOs (Initial Public Offering : Initial Public Offerings) (Reddit, Rubrik - in H2 2024) and giant fund-raisings in AI (xAI - $6bn, Anthropic - $4bn) and the defense sector (Anduril - €2.3bn). Asia plays a growing role in strategic co-investments, continuing the trend seen in 2024.

Finally, business mortality is rising at a worrying rate (+11% according to the Banque de France between H1 2024 and H1 2025), with the first signs of particular difficulties encountered by young innovative companies, linked to the contraction in seed financing. The creation of new funds also remains below requirements, despite signs of a slight recovery in Q2 2025 in Europe.

S1 2025 therefore marks a strategic turning point: funds are arbitrating more severely, looking for resilience, and favoring champions who have already been identified. The challenge for the French ecosystem is clear: guarantee a continuum of financing, from pre-seed to industrialization, so as not to sacrifice the future on the altar of caution.

Download the Press Release , thecomplete Press Kit and thePowerPoint report with :

• the main highlights of the first half of 2025: key trends and analyses in France and Europe,
• the viewpoints of :

- Nicolas Forey, Chairman-Associate, In Extenso Innovation Croissance,
- Nicolas Landrin, Executive Director, Center for Entrepreneurship & Innovation, ESSEC Business School,
- Alain Pujol, Co-Chairman, France Angels,
- Philippe Rase, President, Grenoble Angels and Co-President, France Angels,
- Florence Richardson, President, Paris Région Angels,
- Pierre Carli, President, Capitole Angels,
- Christophe Baralotto, President, Provence Angels.

Download the Press Release and Press Kit

To obtain the Powerpoint report with the focus on health and energy, please contact: clotilde.hullin@inextenso-innovation.fr