One train can hide another. If artificial intelligence is currently one of the big stars of European funding rounds, greentech, encompassing green technologies, is also seeing strong interest from investors. The phenomenon is particularly evident in France, where the sector captured 2.7 billion euros in 2023, according to the venture capital barometer from the firm EY, published this Thursday. Greentech occupies “by far” first place ahead of software and IT services, and is progressing “both in terms of volume and value, respectively +44% and +30%” compared to 2022, continues the study .
In total, however, the tap has dried up somewhat after a prosperous year: 715 companies have raised a total amount of 8.3 billion euros in France, in 2023, which represents “a drop of 38% in value” compared to 2022, observes the EY firm. This expected fall is largely explained by the rise in interest rates during the year. In this context, notably marked by a slowdown in “large” fundraising of more than 100 million euros, the performance of greentech is all the more beautiful. Three of the five largest operations are attributed to it, led by the 850 million euros collected by the electric battery manufacturer Verkor, or the 160 million euros gleaned by the specialist in the food of the future Ynsect.
“Greentech brings together new industries, factories and infrastructures with many jobs, which require a lot of capital. It is therefore logical to find larger funding rounds there,” recalls Franck Sebag, partner at EY and author of the study. But the hundred other smaller-scale projects carried out during the year confirm a trend: greentech has indeed reached a milestone. Between awareness of the ecological emergency, regulatory pressure around CSR (Corporate Social Responsibility), as well as strong government incentives, such as the France 2030 plan, this rise in power was inevitable. It also marks, perhaps, a change of era for the “start-up nation”, sometimes mocked for its futility, its lack of impact, even its Parisian elitism. A new, refreshing era.