As the fintech landscape morphs and mutates, France is stepping out of the UK’s shadow, flexing its entrepreneurial muscles, and priming itself for a tussle for the top spot.
A new dawn in France
Jordane Giuly, a pioneer in France’s fintech space, has witnessed this seismic shift firsthand. A decade ago, banking was the trendy career path for his cohorts.
However, Giuly swam against the current, co-founding Spendesk, a billion-dollar expense management platform, and later, Defacto, a credit infrastructure firm.
The ethos at Defacto encapsulates the growing ambition amongst French startups: to be European from inception. This international outlook is now commonplace amongst France’s innovative firms, buoyed by a surge in U.S. backing.
The Brexit-triggered upheaval seems to have favored Paris, as it aims to rival traditionally dominant fintech hubs like London and Berlin.
Nicolas Benady, CEO of Swan, a banking firm, argues that the sprawling European market, home to 450 million consumers, is a far more tempting prospect than the UK’s 67 million.
Parisian Silicon Valley: A fintech hub
Station F, Paris’s answer to Silicon Valley, embodies France’s burgeoning tech scene. This former railway depot has transformed into a bustling entrepreneurial hub, offering a launchpad for startups like aHRtemis.
Tech giants like Apple, Google, and Meta Platforms, French unicorn Qonto, and several international venture funds and legal offices all provide support to startups in this thriving ecosystem.
Paris has successfully magnetized startups with its generous tech visa program, public grants, and appealing fiscal incentives for investors.
Consequently, first-time fintech deals in Paris swelled to $96.4 million in 2022, as per Pitchbook data. Paris’s appeal has been bolstered by the Macron-led “France 2030” investment plan and France’s tech-friendly policies.
The city’s fintech deal value surged by 30% to $2.1 billion last year, outpacing both London and Berlin. The French capital, with its 27 unicorn companies, has exceeded Macron’s goal of creating 25 unicorns by 2025.
Riding the Brexit wave
Brexit’s ripple effects have given France an edge. Companies like Swan and the UK’s Revolut have found a welcoming home in Paris, capitalizing on the ease of the EU passporting system for growth across the region.
Revolut, with 2 million French customers, has established its operations at WeWork La Fayette in Paris, part of its EU operation incorporated in Lithuania.
The Brexit fallout has led to a significant exodus of fintech talent from London. Rana Yared, a general partner at Balderton, confirms this trend, highlighting the relocation of substantial fintech financial services talent out of London.
The Channel’s other side now seems an attractive destination for those leaving major financial institutions and venturing into fintech.
In the clash for the fintech crown, France is proving to be a formidable contender. As the UK navigates the post-Brexit landscape, the French fintech scene, with its international outlook, ambitious startups, and supportive policies, is ready to claim the throne.
It’s a case of watch-this-space as the tussle for the top spot unfolds.
