France's startup funding fell 5% in 2025 as AI concentration grew

French startups raised €6.7 billion across 411 funding rounds in 2025, down 5% in capital and 21% in deal volume versus the prior year. The US increased funding by 38% year on year, while Europe overall grew by 12%. Mistral’s Series C at an €11.7 billion valuation was the standout event, but Mistral accounted for 25% of all capital raised. AI became the main growth engine, representing 23% of funding rounds and 43% of total capital raised. Defence tech funding rose 148%. Exits totaled €5.3 billion, the lowest level in five years. The ecosystem also showed limited breadth of category leaders beyond AI.

"Defence tech surged 148%, and exits hit a five-year low at €5.3 billion. The report argues that France minted its first decacorn but is struggling to build the breadth of winners that would signal a maturing ecosystem."

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