France’s support for its tech industry involves selecting a cohort of high-potential startups each year, known as the French Tech 120. This year’s selection, called the Next40, was revealed during VivaTech week in Paris. The program has evolved over the years, with changes in criteria based on lessons learned and recommendations from tech insiders. Half of the selection now focuses on revenue metrics rather than fundraising. In 2024, only 28 of the selected companies had valuations of $1 billion or more, but the cohort collectively had a net revenue of €10 billion, with 31 companies reporting a net revenue above €100 million.
The French Tech Next40/120 program highlights some interesting trends in France’s tech industry, such as the rise of deep tech and AI. The new laureates of the Next40 are expected to go public and inject liquidity into the venture capital pipeline when the IPO window reopens. The class of 2024 includes companies like Mistral AI, which joined the list despite being only one year old, and Weezevent, a two-decade-old ticketing platform. While it’s too early to tell which companies will become IPO candidates, the French market has seen a decline in new listings in recent years.
The FrenchTech 120 comprises not only the Next40 but also 80 other companies. While none of these startups are unicorns yet, investment into French startups declined significantly in 2023. However, green tech was the largest cohort in terms of funding and is well represented in the French Tech 120. The selection reflects clear trends, with AI and deep tech startups standing out. France’s government is actively supporting AI startups, as evidenced by the inclusion of Mistral AI, AQEMIA, and Pasqal. Deep tech accounts for 23% of the selected companies, reflecting the rise of deep tech in Europe.
The French Tech Next40/120 program offers perks to selected startups, including less friction and fewer institutional obstacles. The main benefit is the promise of more international visibility and opportunities. The program aims to support the growth of global champions. In 2024, 88% of the companies in the new class had a presence or significant commercial activity abroad. Additionally, the “Je Choisis la French Tech” initiative encourages public administrations and large corporations to procure solutions from French startups, providing tangible support and opportunities for growth. Overall, the French Tech Next40/120 program showcases the potential of France’s tech industry and its commitment to nurturing innovative startups.