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These are the biggest French startups according to the French government

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Every year, the French government and the government-backed initiative La French Tech shares two startup rankings — the Next40 and the French Tech 120. The startups on these lists are supposed to be respectively the top 40 and top 120 top-performing startups based in France.

This is the third time the French government puts together these lists. Out of the 120 startups in the French Tech 120, 84 of them are still in this year’s index. 36 of them are appearing on the list for the first time.

Two of them were in the Next40 last year and don’t appear this year because of a public offering — OVHcloud and Believe.

Here’s this year’s French Tech 120 — the red logos are part of the Next40:

Image Credits: La French Tech

There are two ways to get accepted in the Next40:

  • You have raised more than €100 million over the past three years ($112 million at today’s rate) or you are a unicorn, which means your company’s valuation has reached $1 billion or more.
  • You generate more than €5 million in revenue with a year-over-year growth rate of 30% or more for the past three years.

As for the remaining 80 startups in the French Tech 120:

  • 40 of them have raised more than €20 million in a funding round over the past three years.
  • 40 of them are selected based on the annual turnover and growth rate.

Of course, those indexes are limited to private French companies working in the innovation sector. For the French Tech 120, there are at least two startups per administrative region.

2021 has been a blockbuster year for tech funding around the globe — and that’s true for France as well. “Today, you have to raise at least €50 million to be in the Next40,” France’s digital minister Cédric O said in a press conference. In 2017, French startups collectively raised €2.5 billion. In 2021, they raised close to €12 billion.

In addition to funding rounds, he listed other wins for the French tech ecosystem. For instance, there have been two IPOs over €1 billion in 2021 — that’s as many IPOs over €1 billion as in the past 25 years.

There have been some consolidation as well. In recent weeks, Doctolib acquired Tanker, Luko also acquired its German competitor Coya, but also Frichti was acquired by Berlin-based startup Gorillas.

“I wanted to quickly remind everyone what the Next40 and French Tech 120 are. Many think that it’s a ranking. Of coure it’s a ranking and you can be proud to be part of it,” La French Tech director Clara Chappaz said.

“But in addition to the ranking element, it’s a support program. There are a few members of the French Tech mission today who act as startup managers. They support startups like Back Market and all the companies that you can see here to facilitate interactions with public administrations on all sorts of issues,” she added.

There’s a French Tech representative in 60 different administrations. They try to help startups when it comes to obtaining visas for foreign employees, getting a certification or a patent, selling a product to a public administration, etc.

One thing stands out though. Like in previous years, the French government thinks tech startups should do more when it comes to diversity and inclusion.

While there are now 14 female founders in the French Tech 120 instead of 7, “we have to do more when it comes to promoting women in the ecosystem,” Cédric O said.

And because there’s a presidential election coming up, Cédric O also listed some of the policy changes that have helped startups over the past five years.

“Without the wealth tax [ISF] reform, without the flat tax, without the labour market reform, without the Tibi initiative, without the stock option [BSPCE] reform, without the French Tech visa, […] the French Tech wouldn’t be where it is today,” Cédric O said.

Last year, the French Government also shared the Green20, a program dedicated to greentech startups as it usually takes more time to raise a lot of money or generate a lot of revenue when you’re a greentech startup. The government didn’t mention this specific program in its press conference.

With 26 startups reaching unicorn status, the French tech ecosystem has been doing particularly well lately. But if you take a step back, last year, the number of unicorns around the world jumped from 569 to 959 unicorns.

These two metrics prove that the tech industry is becoming more and more important in the economy as a whole, and that it’s a global competition. Some French startups are on the right path to become European or global leaders in their respective vertical. And it’s going to be interesting to see who is going to turn a local success into a global one.

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Without a clear ask, your pitch deck is useless

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You’ve brushed off your Keynote skills, you’re giddy that you’re finally going to be able to start paying yourself a living wage, and you are excited to start pitching your startup’s next round of funding to your investors. It’s heady times, for sure, but hit the other pedal there for a moment, friend — you may be forgetting something.

After working with hundreds of founders on raising money — including the fantastically popular Pitch Deck Teardown series here on TechCrunch+ — there’s one slide that almost every founder gets woefully wrong. The slide is often referred to as The Ask. Or, as one investor friend calls it, the “what is my $10 million going to buy me”? slide.


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The Ask is a sensitive topic to a lot of inexperienced entrepreneurs, which makes sense. Trying to right-size a funding round can be a little overwhelming, and there are a thousand different ways of building a startup. If you were successful in raising $8 million, you can do things one way. If you raised $12 million, you could perhaps launch more features of your product a little faster, or experiment more, or go after an additional market earlier. You know that. Your senior staff knows that. Your investors know that. But regardless, you need a Plan A.

What do those key metrics need to look like in order to raise not this round of funding, but your next one?

What do you need to do?

A lot of founders will tell you that they are trying to raise enough money to survive for the next 18 months. That’s probably true, but that will be true regardless of how much money you raise. A better approach is to think about what you need to accomplish to raise your next round of funding, and then work backward from there. This is probably a combination of metrics and milestones.

Metrics are the measurable parts of your business that grow and evolve over time. One of the best metrics you have is revenue, but there could be many others: the number of sales, average order value (AOV), monthly or annual recurring revenue (MRR or ARR, respectively), customer acquisition cost (CAC), customer lifetime value (LTV), daily and monthly active users (DAU and MAU), retention rate (usually expressed by its inverse, churn rate) and much more. What do those key metrics need to look like in order to raise not this round of funding, but your next one?

Milestones are also measurable parts of the business, but instead of tracking them over time, they tend to be binary: You’ve either hit a milestone or you haven’t. For startups, this could be key hires; finding the perfect, experienced CFO that can help take your company public is one major milestone a lot of companies at some point need to hit. Product launches (coming out of beta), launches in particular markets (launching only in California) and localization (launching your app in Spanish and French, for example) are also important milestones. Financial milestones are also common; the first time you make a single dollar from any customer is a huge shift in the business. When a customer, on average, starts to make you more money than it costs you to acquire them is another. For earlier-stage companies, completing a customer validation phase by talking to, say, 100 potential customers is a milestone.

When you’re raising money, you will be mapping out a set of milestones that you need to hit in order to validate your company. In addition, you’ll set a number of trigger points for metrics — hitting $1 million ARR, having 5,000 daily active users or finding a combination of customer acquisition channels that means you can acquire customers at a reasonable blended CAC, for example.

So let’s examine how to put together a great “ask” slide by ascertaining what it takes to determine how much you need to raise, how to create a specific set of goals and how to bring it all together in a coherent whole.

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Tech doesn’t get more full circle than this

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Welcome to Startups Weekly, a fresh human-first take on this week’s startup news and trends. To get this in your inbox, subscribe here.

Tech innovation is a cycle, especially in the main character-driven world of early-stage venture capital and copycat nature of startups.

The latest proof? Y Combinator this week announced Launch YC, a platform where people can sort accelerator startups by industry, batch and launch date to discover new products. The famed accelerator, which has seeded the likes of Instacart, Coinbase, OpenSea and Dropbox, invites users to vote for newly launched startups “to help them climb up the leaderboard, try out product demos and learn about the founding team,” it said in a blog post.


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If it sounds familiar, it’s because — in my perspective — Y Combinator is taking a not-so-subtle swipe at Product Hunt, a nearly decade-old platform that is synonymous with new startup launches and feature announcements.

Y Combinator doesn’t necessarily agree with this characterization: The accelerator’s head of communications, Lindsay Amos, told me over email that “we encourage YC founders to launch on many platforms — from the YC Directory to Product Hunt to Hacker News to Launch YC — in order to reach customers, investors and candidates.”

The overlap isn’t isolated. As Y Combinator makes a Product Hunt, Product Hunt is making an Andreessen Horowitz. Meanwhile, a16z is making its own Y Combinator. Not to mention Product Hunt has investment capital from a16z and formerly went through the Y Combinator accelerator.

The strategy is more than a tongue twister, it’s a signal on what institutions think is important to offer these days (and why they’re starting to borrow more than sugar, or deal flow, from their neighbors).

For my full take, read my TechCrunch+ column, “YC makes a Product Hunt, Product Hunt makes an a16z, a16z makes a YC.”

In the rest of this newsletter, we’ll talk about Coalition, Backstage Capital and Africa’s temperature-fluctuating summer. As always, you can support me by forwarding this newsletter to a friend or following me on Twitter or subscribing to my blog.

Deal of the week

Coalition! Built by a quartet of women operators in venture, Coalition is a fund meets network that is trying to get more diverse decision-makers onto cap tables. The two-pronged approach of fund and network helps Coalition cover multiple fronts: Founders can turn to the firm for capital or the network for advice at no further dilution. Aspiring investors and advisers can turn to the firm to begin building out their portfolio, and LPs can put money into an operation that is committed to broadening diversity on cap tables, known to have economic benefits.

Here’s why it’s important: Coalition co-founder Ashley Mayer, the former VP of communications for Glossier, explained a little about the building philosophy behind the new company.

Mayer explained that she and her three co-founders saw the value of taking a “portfolio approach” to careers, basically going deep on their respective operator roles while also angel investing and eventually scout investing. Three of them previously worked in venture but left it because they missed the experience of operating. Now, they’re trying to scale a way for people to keep their day jobs and build beyond it. Coalition co-founder and Cityblock Health founder Toyin Ajayi said that “as one of few women of color leading a venture-backed company, I feel a deep obligation to hold the door open for others.”

Coalition investors (left to right): Cityblock Health co-founder Toyin Ajayi, Tribe AI co-founder Jackie Nelson, Umbrella co-founder Lindsay Ullman, Glossier VP of Communications Ashley Mayer

Image Credits: Coalition

When do layoffs matter? Trick question — always

This week on Equity, we spoke about Backstage Capital laying off a majority of its staff, weeks after pausing any investments in new startups. The workforce reduction, which impacted nine of Backstage Capital’s 12-person staff, was due to a lack of capital from limited partners, per fund founder Arlan Hamilton.

Here’s why it’s important: Backstage Capital has invested in over 200 startups built by historically overlooked entrepreneurs, while Hamllton herself has invested in more than two dozen venture capital funds. Despite having impact, no single firm can be immune from the difficulties of venture (or growing in an environment full of macroeconomic and cultural hurdles). Below is an excerpt of my story.

Without more support, it becomes difficult to close shop on new investments, bring more assets under management and bring more follow-on investments, Hamilton said.

“Somebody asked me, ‘why don’t you have more under management?’” she said during the podcast. “You gotta ask these LPs, you gotta ask these family offices, you gotta ask these people who ask me, ‘how can I be helpful,’ and I say ‘invest in our fund,’ and I never hear from them again.”

one chess pawn on a green elevated platform, with one on lower pink platform. startups and Market downturns

Image Credits: Jordan Lye (opens in a new window) / Getty Images

Africa charts its own course

TC’s Dominic-Madori Davis and Tage Kene-Okafor wrote a story about how the downturn is playing out in Africa, essentially answering why we should all be tuning into the continent’s activity this summer.

Here’s why it matters: Africa’s venture capital totals weren’t too shabby in the first quarter, but investors think that it may just be a reporting delay. If most of the deals were finalized before high interest rates, the war and inflation, experts say, we may see an economic downturn soon start affecting developing markets. The story doesn’t stop there; I’d read more to see what Tiger Global tells us and how August is shaping up to be a key month of movement. 

Arrows on the African landscape pointing up and down

The summer could decide this year’s fate of the African funding landscape.

Across the week

Seen on TechCrunch

OK, whose rocket just hit the moon?

This co-worker does not exist: FBI warns of deepfakes interviewing for tech jobs

Formerly rich NFT buyers party through the pain

Robinhood almost imploded during the GameStop meme stock chaos

FTX says no active talks to buy Robinhood

Seen on TechCrunch+

Your startup pitch deck needs an operating plan

3 questions for the startup market as we enter Q3

Disclose your Scope 3 emissions, you cowards

What’s a fintech even worth these days?

Until next time,

N

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Google will start erasing location data for abortion clinic visits

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In the aftermath of the Supreme Court’s decision to strip federal abortion rights in the U.S., many people are questioning how the apps they use every day might suddenly be turned against them.

As concerns mount over the endless well of data that tech companies built an entire industry around, Google is taking at least one step to mitigate some potential harm related to location tracking.

The company announced Friday in a blog post that it would remove location history data about some “particularly personal” places from a Google account shortly after someone visits. Locations that will have their data deleted include “medical facilities like counseling centers, domestic violence shelters, abortion clinics, fertility centers, addiction treatment facilities, weight loss clinics, cosmetic surgery clinics, and others,” according to the blog.

Google also noted that Fitbit users who use the device’s companion software as a period tracker currently must delete those entries one by one, but an easier way to “delete multiple logs at once” is on the way.

The change to location history will go into effect in the next few weeks, emptying one potential bucket of data that law enforcement could demand from the company. Google notes that its location history feature is off by default for people who use its services, but if you’re not sure about that, it’s always worth double-checking what personal information you’re actively sharing with tech’s data brokers — particularly now.

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