French tech struggles to raise funds as it seeks profitability
But in the "start-up nation", a term championed my French President Emmanuel Macron, the mood is far from celebratory. Fundraising rounds, which climbed steadily until 2022 – reaching a record €13.5 billion that year – have been declining ever since: €8.3 billion in 2023, then €7.8 billion in 2024, according to the consulting firm EY. Hopes for a rebound faded further in the first months of 2025, with investments projected to fall sharply over the first five months of the year (down 30% compared to the same period in 2024).
Since January 1, only three funding rounds have raised €100 million or more: Loft Orbital in the space sector (€170 million), Powesco in energy (€150 million) and Alice & Bob in quantum computing (€100 million). Optimists still believe that major fundraising could happen in the coming months. According to the Financial Times, Mistral, the French leader in artificial intelligence (AI), is reportedly in the midst of raising another $1 billion (over €856 million).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Local France
6 hours ago
- Local France
'Rules have changed' - Préfecture confirms they can refuse French citizenship to retirees
Retirees in France have recently begun running into problems with the citizenship applications, with numerous reports of citizenship being refused due to not having sufficient French income. The change appears to be linked to a recent circulaire from the Interior Minister - but now one préfecture has confirmed to The Local that they are indeed treating applications differently, and are routinely rejecting people whose income is mainly derived from a pension from another country. The préfecture of Deux-Sèvres told The Local that the "rules had changed after May 2nd", which is when French Interior Minister Bruno Retailleau sent out a circulaire (memo) clarifying how préfectures should process citizenship applications. READ MORE: Why do French ministers love to send 'circulaires'? The spokesperson said: "Each application is subject to an individualised, in-depth, and reasoned review, in accordance with the applicable regulations. "Prior to the circulaire of May 2nd, 2025, naturalisation applications were processed based on a comprehensive and global assessment of the applicant's situation. Advertisement "Thus, retirees receiving only a foreign pension as income could have their naturalisation application accepted, as long as the necessary conditions were generally met. "After May 2nd, the rules changed. In order to assess the applicant's financial independence, income derived mainly from abroad is no longer taken into account (except in very limited circumstances), on the basis that the applicant's centre of interest has not been completely transferred to France. READ MORE: What counts as 'French income' when it comes to citizenship? "Based on this criterion alone, the application for naturalisation may be refused. For practical purposes, people who are refused naturalisation do have legal avenues and time limits for appeal. These are referenced in their notification of rejection." What does this change mean practically? This insistence on French-sourced income would seem - if applied strictly - to make it impossible for people who have retired to France (as opposed to those who worked in France and then retired) to ever gain citizenship. Two foreign retirees who both met the other criteria for French nationality, such as language acquisition and integration in their local community, were denied citizenship by the Deux-Sèvres préfecture on the basis that they did not have sufficient French income. READ MORE: 'Doesn't seem fair' - British pensioners speak out over apparent change to French citizenship rules A circulaire is not supposed to change the law, just clarify how administrative staff interpret it. So far, it is clear that the préfecture of Deux-Sèvres has taken a strict interpretation of the circulaire and has interpreted it as a 'rules change'. This does not mean that other préfectures have taken the same approach, and it is common for variations to exist between préfectures. However, The Local has received reports of other retirees being rejected in recent weeks for the same reasons in the préfectures of Gironde and Haute-Garonne. The Local reached out to the Interior Ministry and other préfectures to confirm whether there has been a change in procedure. Advertisement Meanwhile, several of the retirees who told The Local they were rejected have appealed, which means they may still have a chance of gaining nationality, depending on the interpretation of the administrative court of Nantes. It is also possible that the interior ministry will offer more clarification in the future to préfectures on how to approach retirees with a majority non-French income. Crucially, these changes are being applied to people who made their applications months or sometimes years ago. This is contrary to full legal changes - such as the revised standards for French language levels - which can only be applied to new applications . What did the circulaire say exactly? To clarify, a circulaire cannot change the law, but it can offer 'clarification' for how préfecture staff ought to process citizenship applications. In the third section of the circulaire - titled 'the autonomy of the applicant' - Retailleau instructed staff on what to consider regarding l'insertion professionnelle (professional integration) and le niveau et l'origine des revenues (the amount and origin of income). Retailleau wrote: "You will also, with some exceptions, reject applicants whose income comes mainly from abroad, as this shows they have not completely transferred the centre of their interests to France." Retailleau did not reference any exceptions for retirees, though he did remind préfecture employees not to reject applications with 'insufficient income' if the applicant is ill or disabled. The interior minister also explained that this requirement is to demonstrate 'integration' to France and a long-term commitment to the country. He also wrote: "The applicant's autonomy must be based on proven and sustainable professional integration that provides them with stable and sufficient resources. "This not only demonstrates the stability of their settlement in France, but is also an essential element of their integration into the national community. "The applicant's autonomy must be based on proven and sustainable professional integration that provides them with stable and sufficient resources."
Local France
21 hours ago
- Local France
8 big problems that France faces this autumn
September in France marks la rentrée - when the kids go back to school, adults go back to work and the parliament starts a new term. It's traditionally a time for new ideas, fresh initiatives and planned legislation - but a highly combustible political situation, not to mention international tensions, make this year especially difficult. Battle over the budget France still has a significant budget deficit to address. The country finally managed to pass its 2025 budget in February, after the first version brought down Michel Barnier's government at the end of December. This year, the same challenge remains. In July, French Prime Minister François Bayrou gave an overview of what a possible 2026 budget could entail, intending to cut spending by €40 billion. Advertisement Bayrou floated plans such as cutting two public holidays and freezing spending increases (including on pensions and health), except for debt servicing and the defence sector. However, Bayrou's proposed cuts have not been popular amongst opposition parties, and the budget could end up bringing down another government. Debates in parliament begin in late September/early October. READ MORE: OPINION: Bayrou's budget has infuriated everyone and may force France into fresh elections Strikes and protests French unions have opposed Bayrou's proposals for budget cuts, and there is a possibility of large-scale mobilisation in September. The country's third-largest union, Force Ouvrière, has issued a strike notice for three months in autumn in response to cost-cutting measures announced by the prime minister. A meeting of France's inter-syndical - the group representing all the country's major unions - is scheduled for September 1st, and it's possible that other unions could join FO's action. Meanwhile, a previously unknown online group has issued a call for a complete blockade of the country from September 10th, which appears to be rapidly gaining traction. It remains to be seen how disruptive the action could be. Agriculture law (Loi Duplomb) While the piece of agricultural legislation known as the Loi Duplomb has been signed into law , it is possible there will be pushback as its key provisions begin to be enacted. The law caused a great deal of controversy in France, with more than 1 million people signing a petition to scrap it, in large part due to plans to reintroduce the bee-killing pesticide acetamiprid. Ultimately, France's Constitutional Council, the country's highest court, struck down the contested pesticide provision. However, the final version of the law also includes plans to change the rules on water storage , a topic that has also become more controversial as more parts of France suffer from increasing temperatures and drought each summer. Water supplies have already started to become a flashpoint - there were violent clashes in the south-west town of Sainte-Soline where giant underground water storage basins were being built in 2023. Advertisement Start of EES The EU is due to bring in its new Entry & Exit System (EES) on October 12th, 2025, with a six-month phased introduction. EES will require passengers to give biometric details, including fingerprints and a facial scan, and an automated passport scanning to keep track of time spent in the EU for those covered by the 90-day rule. Although the system covers all of the EU's external borders, there are particular worries about the busy UK-France border. READ MORE: Travel to France: Your questions answered about EES And ETIAS Trump tariffs The EU seems to have struck a deal with Washington for a 15 percent tariff on EU goods entering the US market - but this is more of an outline agreement and negotiations continue on certain sectors. As such, it is unclear when the tariffs would actually come into force. Overall, France is not one of the worst-affected EU countries - Germany, Ireland, the Netherlands and Belgium are expected to be the worst hit - but there are some areas and industries that would be hit especially hard. In 2024, French exports to the US were driven by aeronautics, beverages (wine and Cognac) , and pharmaceuticals. READ MORE: Why Normandy is the French region hardest hit by US tariffs Brexit cards As the first post-Brexit residency permits - known as the Article 50 TUE cartes de séjour or WARP cards - begin to reach their expiration dates at the end of 2025 and early 2026, the French government must soon announce instructions for card renewals. Advertisement Brits who were living in France prior to Brexit and have the five-year card should benefit from a simplified renewal process as outlined in the Withdrawal Agreement - but at present it not clear exactly how the card renewals will be done (eg online or in person, using a special website or the standard ANEF site). The Local has been in touch with the Interior Ministry to ask about procedures for renewals. READ MORE: Latest: What's the deal with renewing the post-Brexit carte de séjour Immigration law As for other residency-related questions - as part of the 2024 immigration law, the French parliament voted to bring in stricter language requirements for certain residency cards and French nationality, from January 2026. READ MORE: Your questions answered: New French language requirements for foreigners Those making their first application for a carte de séjour pluriannuelle (multi-year card, max duration of four years) will from January need to demonstrate a French level of at least A2 according to the DELF/ CERL international language scale. Those making their first application for a 10-year carte de résident (in most cases, available after five years of consecutive residency) will need to demonstrate at least B1 level in French - an increase from the previous requirement of A2. Those applying for French citizenship will need to demonstrate at least B2 level in French, instead of the previous requirement of B1. Citizenship applications from January 1st will also involve a written civics exam, with the details to be announced in the coming weeks. As such, préfectures have a lot of preparation to do this autumn, and many are dealing with significant backlogs. It is possible that the culmination of several new requirements could lead to more delays. READ MORE: New law: What's changing and what's staying the same for French citizenship? International situation This isn't a France specific problem of course, but the international situation remains tense. France has taken a lead when it comes to military aid to Ukraine, with France and the UK - as Europe's two major military powers - agreeing to a 'reassurance force' to be deployed in the country. The situation in Gaza shows no sign of improving and president Emmanuel Macron has pledged that France will formally recognise the state of Palestine at the UN General Assembly in September. France, which has both Europe's largest Jewish population and its largest Muslim population, remains on high alert for the potential for the conflict to spark unrest or terrorists threats within Europe.
AFP
a day ago
- AFP
Posts falsely claim Toyota has unveiled a water-powered engine
'In a move that will shake up the global auto industry, Toyota has just unveiled a water-powered engine powered by hydrogen created through electrolysis, emitting only water vapor! No lithium. No charging stations…With this bold move, Toyota isn't just competing with EVs — they're declaring the end of the battery era,' reads a Facebook post shared more than 250 times since it was published on June 28, 2025. The post contains a collage of two photos, one showing a man in a suit appearing to present the water engine and the other of a Toyota-branded engine, with a photo of Chinese president Xi Jinping superimposed. Image Screenshot of the false Facebook post, taken on August 11, 2025 AFP Fact Check debunked similar claims in French and Bulgarian. In the race for zero-emission vehicles — particularly between electric and hydrogen cars — the hope that water could one day replace fuel is a popular idea that has resurfaced in recent years. But this hypothesis has never been supported by solid scientific evidence, as AFP Fact Check previously explained in this debunk. The claim that Toyota is developing a water-powered engine is false. Hydrogen vehicles Toyota has not made any public announcements "unveiling" a water engine, as the post claimed. "We are not developing anything that could be described as a 'water engine'," Jean-Yves Jault, a representative of the Toyota Motor Corporation, said in an email to AFP on July 23. Jault called the claims circulating online "false information" and referred to a Forbes article that refutes the rumor (archived here). Toyota produces vehicles that use hydrogen as fuel. These cars, like the Mirai model, are fueled at specialised stations and equipped with lithium-ion batteries to store and manage energy (archived here). Robert Rapier, a chemical engineer and the author of the Forbes article, explained that "water as the power source for a vehicle is nonsense'. 'Although water can be an energy source, it is not a fuel. Water is actually the combustion product of hydrogen, which is a fuel. Water is produced when hydrogen is burned. Water can function as an energy source in some situations,' he added. Electrolysis process Electrolysis is a process where an electric current is passed through a substance to trigger a chemical reaction, splitting water molecules (H₂O) into hydrogen (H₂) and oxygen (O₂). The process requires a significant amount of electricity and is only effective when there is a stable energy source (archived here). Electrolysis does not produce energy; it consumes it to produce hydrogen, which is then used to power fuel-cell vehicles. Therefore, there must be a source of electricity, such as a battery, for electrolysis to work inside a car engine. 'But such a scenario would be inefficient, because each energy conversion stage involves efficiency losses. That's basic thermodynamics. Rather than use a battery to produce hydrogen via electrolysis, which then has to be converted into energy to power a car, it would be far more efficient (and practical) just to use the initial electricity directly without the conversion steps,' Rapier wrote in his article. Image Graphic explaining the steps necessary to produce green hydrogen, a source of energy seen as an option to decarbonize some heavy-polluting industries (AFP / Tatiana MAGARINOS, Gustavo IZUS) Several experts also confirmed this process to AFP Fact Check. Professor Plamen Punov of Sofia Technical University, who supervises student projects on hydrogen fuel cells, noted that the hydrogen used as fuel is not produced directly inside the vehicle (archived here). 'All these cars produce electricity in fuel cells that use pure hydrogen, pre-charged in bottles. I am not aware of such a vehicle existing, and theoretically it would be extremely inefficient and impractical," he wrote in an email to AFP Fact Check on July 7, 2025. Professor Boriana Tsaneva, a PhD in chemistry at the same university, also confirmed to AFP Fact Check via email that 'it is technically possible to use electrolysis to harness the residual energy of a moving vehicle', but this option is 'economically unreasonable'. Aside from the high costs and additional weight from installing an electrolysis cell and other components on board, Tsaneva added that the explosive gas mixture produced would be incredibly dangerous. This mixture cannot be stored safely and needs to be added immediately after production, she noted. Furthermore, the usable energy produced from burning the gas mixture is negligible. Water as coolant, not fuel The confusion likely stems from a patent filed by Toyota in 2023 for a hydrogen engine with a water-cooled system. In this design, water is used as a coolant instead of the traditionally used air, not as a fuel (archived here). This system better controls the high temperatures created by hydrogen combustion. By lowering temperatures, manufacturers can use lighter materials in the combustion chambers and cylinders, thus improving engine efficiency and reducing weight. The Toyota Mirai follows the manufacturer's current technology: a hydrogen fuel cell that generates electricity to power an electric motor (archived here). Hydrogen is stored in reservoirs under high pressure, and the vehicle is recharged at specialised stations. The only byproduct of converting hydrogen into electricity is water vapour. The car does not have an electrolysis system to produce hydrogen from water. It is equipped with a lithium-ion battery. Toyota also uses electrolysis to produce hydrogen at some of its facilities, but this process takes place outside the vehicles, not inside them (archived here). As part of a long-term strategy toward carbon-neutral vehicles, Toyota is taking a multi-pronged approach. This includes the development of hydrogen fuel cells, hydrogen-powered combustion engines, and solid-state batteries, which could offer better performance for safety, range and power (archived here). Battery-powered electric vehicles dominate the zero-emission transport market, due to their affordability, higher fuel efficiency, and growing charging infrastructure (archived here). However, some automakers, including Toyota, are considering hydrogen-powered cars as a complementary solution for heavy-duty transportation and long-distance travel. Their large-scale development remains limited by high production costs and a still-underdeveloped refuelling network. Most analysts agree that the future of zero-emission mobility will rely on a mix of technologies: Batteries will remain the preferred option for passenger cars, while hydrogen could play a strategic role in specific sectors, such as long-haul trucks, heavy-duty vehicles and certain industrial uses (archived here). AFP has debunked other claims about the existence of water-powered cars here and here.
