Like many other early-stage European companies, many French startups have prioritized cost-cutting over hiring over the past year.
Funding by French startups is set to fall sharply from €14.7 billion in 2022 to €8.5 billion in 2023, according to data from consultancy Avolta, meaning many cash-strapped companies are being forced to reduce team sizes rather than hire more people.
However, this does not include deep tech and climate tech.
Last year’s top three mega rounds in France included battery maker Verkor’s record €850 million equity round, AI darling Mistral’s €385 million Series A and insect farming scaleup Ÿnsect’s €160 million raise.
Many well-funded deep tech and climate tech companies are hiring on a rapid basis, with almost all of France’s fastest growing teams currently working in one or both of these areas.
Sifted used data from Dealroom to compile the 10 companies that have grown their employee base the most over the past 12 months. To avoid results being skewed by the large amount of hiring being done by fast-growing, early-stage startups, included companies must have raised at least $30 million and have at least 50 employees. Total funding amounts and employee numbers were taken from Dealroom.
Mistral AI
Head Office Location: Paris
Established: 2023
Increase in number of employees over the past 12 months: 477% 52 employees
One of the hottest startups in France right now, Mistral was founded just a year ago by former Meta and DeepMind employees with the promise of creating a European AI champion that could compete with US tech giants like Google, Meta and OpenAI. The company is building generative AI models (the same technology that powers ChatGPT) and has attracted the attention of many venture capitalists, raising just under €500 million in less than a year. Mistral is rumored to be raising a further $600 million at a $6 billion valuation, which would make it one of the most well-funded private tech companies in France.
Jimmy Energy
Head Office Location: Paris
Established: 2020
Increase in number of employees over the past 12 months: 204% increase in number of employees to 75
Jimmy Energy manufactures microreactors (SMRs) that generate decarbonized heat based on nuclear fission technology and that the company says can be directly connected to existing industrial facilities. The company has raised a total of €20 million in venture capital and received a €32 million grant from the French government last year to help the startup overcome the supply chain challenges of manufacturing reactors. Jimmy Energy plans to demonstrate the technology in an industrial environment by 2026.
Inocell
Head Office Location: Saint-Egreve
Established: 2022
Increase in number of employees over the past 12 months: 134% increase in number of employees to 80
The idea behind Innocell was born when professional explorer Mike Horn, who wanted to compete in the Dakar Rally with a hydrogen car, proposed it to Grenoble’s alternative energy research center CEA. The fuel cell technology that emerged from this collaboration eventually grew into a company in its own right. Earlier this year, Innocell raised €32 million in debt and grant funding, plus €32 million in equity. The company says its fuel cell system can be used to decarbonize a variety of sectors, from heavy mobility such as heavy trucks to maritime transport.
Animagi
Head Office Location: Paris
Established: 2022
Increase in number of employees over the past 12 months: 129% increase in number of employees to 55
Though it has gone largely unnoticed, Animaj is making waves in the creator economy. The startup identifies high-growth kids content on YouTube, acquires the IP, and builds franchises by expanding distribution, internationalization, licensing, and merchandising. The company also uses AI to drive more content produced by brands.
Animaj recently disclosed that it has raised €100 million in both debt and equity since its 2022 inception.
Photo Room
Head Office Location: Paris
Established: 2019
Increase in number of employees over the past 12 months: 100% for up to 80 employees
Photoroom, a Y Combinator alumnus and backed by Balderton, has developed an AI-powered generative photo editing tool that can remove or replace backgrounds in photos. The technology is primarily used by companies to create visuals for marketing campaigns and has become popular with clients small and large, including users such as Netflix and Warner Bros. The company says it is already profitable, with subscriptions generating €50 million in annual recurring revenue.
Earlier this year, Photoroom raised $43 million in Series B funding at a valuation of $500 million.
Ascendance Flight Technologies
Head Office Location: Toulouse
Established: 2018
Increase in number of employees over the past 12 months: 100% for every 100 employees
Toulouse-based Ascendance Flight Technologies is building a five-seater hybrid-electric vertical take-off and landing aircraft (VTOL) for more sustainable air travel. Last year, the company raised €21 million in Series A funding, which it plans to fund its first test flights in 2024 and a possible appearance at the Paris Olympics this summer.
Joe
Head Office Location: Paris
Established: 2018
Increase in number of employees over the past 12 months: 97% of 116 employees
Jow, one of the few online grocery shopping apps to successfully raise capital this year, closed a $13 million Series A round led by British investor Northzone in February last year, bringing the company’s total funding to $40 million. The startup, which is also backed by Headline and DST Global, offers personalized recipes and an online grocery store through a partnership with a major French supermarket, and plans to use the new funding to tackle the U.S. market.
latitude
Head Office Location: Lance
Established: 2019
Increase in number of employees over the past 12 months: Number of employees increased from 85% to 140
Latitude designed and built the Zephyr, a 19-meter rocket designed to launch small satellites into space. It recently raised $30 million in Series B funding, bringing the company’s total funding to over $40 million, and Latitude plans to make its rocket’s first flight in 2025.
Upway
Head Office Location: Paris
Established: 2019
Increase in number of employees over the past 12 months: Number of employees increased by 82% to 149
Sequoia-backed Upway buys used electric bikes from retailers, manufacturers and users, repairs them in its warehouses and then sells them to consumers. Despite a tough environment for the micromobility industry, the startup raised a $30 million Series B late last year. Upway has warehouses in Paris, Berlin and New York, and plans to double its U.S. operations by opening a second location in Los Angeles.
Beam Energy
Head Office Location: Nantes
Established: 2018
Increase in number of employees over the past 12 months: 27% for 50 employees
Climate tech startup Beam Energy, which sells solar panel kits that users can install at home to produce DIY renewable energy for personal use, raised €20 million in Series A funding last year with French investors Kima Ventures, Cathay Innovation and 360 Capital.
