"It's an excellent vintage"says Mikaël Ptachek, head of the Fintech practice at KPMG. According to the latest semi-annual study Pulse of Fintech France, published this Wednesday, June 19 at the event Fin & Tech Community organized by the competitiveness cluster Finance Innovation, startups tri-color finance raised 354 million euros in first half of the year (the countdown stopped on June 10th). "The French Fintech have almost lifted in one semester what they raised in one year in 2018 ", summarizes this expert. Last year, the young shoots of the Fintech ecosystem had raised 370 million euros. An amount up 15% compared to 2017, where they had raised 318 million euros.
KPMG is not the only one to watch this investor infatuation with the startups of finance. The firm Klein Blue also publishes Fintech Horizon, a panorama of the sector counting 816 actors and 1.7 billion euros cumulated since the birth of this ecosystem in 2010. "We could end the year 2019 to 600 million euros raised ", plans Salim Echoucry, co-founder of the firm.
Five "big" fundraisers
This new record is due to five major fundraisings, exceeding 30 million euros. This is the specialist in the digitalization of Wynd outlets (72 million euros), the online credit platform Younited Credit (65 million euros), the specialist in the detection of fraud at insurance Shift Technology (53 million euros), the neo-insurer Alan (40 million euros) and Lunchr which dematerializes restaurant tickets (30 million euros). "This top 5 represents 73% of funds raised in the first half of the year ", emphasizes Mikaël Ptachek. "We are witnessing a strengthening of the financing of companies that are going international, some of which were already established abroad, such as Younited Credit or Shift Technology", he adds
"This is the proof of the maturity of the ecosystem." Fintech, who initially carried out priming fundraisers, then in Series A, now realize Series B of significant size. (who raised 61 million euros in January 2018, ed)we had not seen such big fundraisers in French Fintech before ", commented Salim Echoucry.
The startup Wynd, which stands on the top step of the podium and welcomes its capital Natixis (Groupe BPCE), has an atypical profile. It has developed a platform for taking orders and cashing for points of sale. "Originally, it is a startup that targets retail players, but there is a very strong payment dimension at the heart of its latest fundraising", justifies Salim Echoucry.
Younited Credit signs a € 65 million exercise
For its part, Younited Credit did not publicly disclose its last round, conducted in December 2018 with four historic shareholders: Bpifrance, through its Large Venture Fund, Eurazeo Growth, AG2R La Mondiale and Le Bon Coin. The former Union loan has raised a total of 167 million euros since its creation in 2010. An amazing stealth since this is the second largest fundraising of the French Fintech, behind Wynd and in front of Ledger. The funds raised were used to finance the development of its B2B "credit-as-a-service" offering to banking and non-banking players, to expand its consumer offering across a range of products, to accelerate its development. in Europe with the opening of the German market from its Parisian hub and reinforce its technological investments.
As a result of these significant fundraisings, the average ticket invested in the French Fintech increased significantly to 9.1 million euros, against 5 million euros in the previous half, according to the KPMG study. At the same time, seed and Series A investments are multiplying with 26 transactions of less than 3 million, counted in the first six months of the year.
A breeding ground for future unicorns
These large French operations, which exceed 30 million euros, remain modest despite the funds raised by our British neighbors. London-based start-up OakNorth, which specializes in SME lending, raised $ 440 million (about € 388 million) last February during a roundtable led by SoftBank. Fintech Checkout, a payment specialist and competitor to Stripe, has finalized a $ 230 million Series A, a record for the European Fintech scene at this stage of development.
"This difference in the size of rounds of table is explained by a shift in the market of French Fintech 2 or 3 years compared to the UK market.On the Channel, the nuggets of finance were created earlier, around 2012 , while a startup like Alan was born in 2016 ", analyzes Michael Ptachek.
However, the specialist believes in the ability of the French ecosystem to emerge a future unicorn (startup not listed on the stock market whose valuation exceeds the billion dollars) of the Fintech. "The answer is undoubtedly in one of the five companies that raised more than 30 million euros, all the ingredients are there, we have companies that think internationally, have strong growth, beautiful technologies and investors who are ready to accompany them ", notes Michael Ptachek. An opinion shared by Salim Echoucry: "Shift is going very fast and already has around 50 clients – almost all insurers have adopted it – this is the first case of obvious return on investment for insurers." There is every reason to believe that Shift will become unicorn"he believes.
Assurtech shifts into top gear
Among the many subcategories of the FinTech sector, Assurtech, the startups of the insurance industry, has the fastest growth in terms of financing. The 120 Assurtech companies listed in the Fintech Horizon survey raised 107 million euros in the first five months of the year, compared with 70 million euros for the whole of 2018. This growth is boosted by the development of two companies with very different models: Alan, which offers companies an offer of complementary health and welfare 100% online and who holds an insurer license, and Shift technology, which offers insurance companies a solution to fight against fraud doped with artificial intelligence. Other Assurtechs are beginning to emerge and show signs of traction by seducing their first customers, says Fintech Horizon. This is the case of Luko, which claims 10,000 insured, Wilov and his 5000 insured or Leocare, which has recorded 20,000 downloads of its mobile application.