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01/28/2020

2020 mapping of French FinTechs

NewAlpha Asset Management and the consulting firm Exton Consulting have combined their expertise and their complementarities in order to offer the third edition of their annual mapping of French entrepreneurial FinTechs established at the end of December 2019.

The investment manager NewAlpha Asset Management and the consulting firm Exton Consulting have combined their expertise and their complementarities in order to offer the third edition of their annual mapping of French entrepreneurial FinTechs established at the end of December 2019.

Structurally positioned in the FinTech sector, in direct contact with entrepreneurs and institutional players in the financial industry, NewAlpha and Exton Consulting have aggregated the results of their identification, classification and analysis work. With several hundred companies analyzed, this mapping gives a representative image of the French FinTech sector at the end of 2019.

The 352 companies that appear in this map are French FinTechs, entrepreneurial, established and substantially active at the end of 2019. These FinTechs transform the Banking, Insurance and Asset Management businesses by offering new financial products or cross-functional services that allow the financial industry to optimize its operational processes and improve its product and service offerings. The NewAlpha and Exton Consulting teams met with most of these startups.

The proposed mapping positions these French FinTechs by business sector and by seniority. This cross-visualization thus makes it possible to analyze the dynamics of creation of FinTech startups in France and to anticipate changes in the industry.

This document and its analysis can be downloaded from mappingfintech.com

"With a tripling of the number of European FinTech unicorns since 2016, Europe is clearly fertile ground for FinTechs. In this context, French FinTechs continued their development in 2019 and became one of the main contributors to French Tech. A considerable number of success stories are boosting the growth of this sector and helping to attract increasingly significant national and international funding. The acceleration of the digital transformation of the leaders of the financial industry is thus accompanied by a dynamism always supported by entrepreneurs and investors, who intend to contribute to it.” says Lior Derhy, Managing Partner at NewAlpha AM.

"France has never had so many FinTechs seeking to revolutionize the financial services landscape. Many new players have appeared this year, not necessarily where they were expected, a sign of the agility of our entrepreneurs in identifying new opportunities. 2019 was also the year of maturity, with the flagship of the 7 French FinTechs who joined the Next40: in addition to the funds raised, these have created more than 1,000 jobs since 2017 and are establishing themselves in the long term. landscape of financial services in France and abroad, in a competitive or collaborative relationship more than ever creating value for the entire market.” adds Nicolas Felgueiras, director at Exton Consulting.

KEY TAKE-AWAYS

The French FinTech sector continues to grow in 2019:

  • 352 French FinTech companies, entrepreneurial, established and substantially active at the end of 2019, are listed in this map of the French market. 134 companies were added or removed compared to the previous edition, reflecting the strong momentum in this sector.
  • 83 companies have entered this new edition.
  • PayTechs are still the largest entrepreneurial pool with more than 20% of French FinTechs, while Tech for Fin and neo-banks targeting specific markets show sustained growth.
  • The growing weight of French FinTechs in activity for more than 5 years illustrates their ability to become a lasting part of the national and international financial landscape thanks in particular to the quality of execution of their plan and their financing by national but also foreign investors. 

2019 is a record year in terms of fundraising for French FinTechs:

  • French Tech broke its record in terms of funds raised in 2019. In this context, FinTech outperforms this trend in 2019 and represents 13% of French Tech raises, growing on average by around 50% per year over Last 3 years.
  • More than 80 fundraisers were carried out in 2019 by the FinTechs identified for an amount greater than € 630m, i.e. almost double the funds raised compared to 2018.
  • Foreign Venture Capital funds significantly increased their presence by conducting two thirds of fundraising greater than or equal to € 10m in 2019, compared with 20% of fundraising in 2018.
  • In 2019, 5% of the total amount raised was used to finance FinTech companies, the founding team of which includes at least one woman.

The major challenges of established players in the financial sector are gradually translating into opportunities for FinTech companies:

 

  • The financial industry as a whole has shown a strong interest in solutions allowing the aggregation and enhancement of transactional banking data.
  • The needs for compliance solutions, and in particular for customer knowledge, are still major and strategic for financial institutions this year.
  • The expectations of players established in solutions around Green Finance and “for good” finance are high in view of recent regulatory and commercial developments.
  • The European DSP2 Directive, which creates an environment favorable to the development of payment initiation by third parties, and the development of instant payment should encourage the emergence of new PayTech capable of offering enhanced payment functionalities in the years to come.

This document and its analysis can be downloaded from mappingfintech.com

ABOUT NEWALPHA ASSET MANAGEMENT

NewAlpha Asset Management is an investment manager specializing in the detection, investment and support of fast-growing entrepreneurial companies. NewAlpha offers French and international institutional investors investment solutions in three sectors: European equities, Absolute Return strategies and Private Equity.

With its experience in detecting and supporting entrepreneurial projects with high potential, NewAlpha has been developing since 2015 a Private Equity investment activity in sectors with a strong technological component. NewAlpha launched the first French Venture Capital fund dedicated to FinTech1 in 2015 and then expanded its expertise in 2017 by recruiting a team specializing in Growth Equity.

NewAlpha manages and advises more than 2 billion euros as of December 31, 2019. A subsidiary of La Française, NewAlpha Asset Management is subject to the regulations of the Autorité des Marchés Financiers (AMF).

For more information: www.newalpha.com

ABOUT EXTON CONSULTING

Strategy and management consultancy firm founded in 2006, Exton Consulting specializes in financial services: insurance, retail banking, payments and consumer finance, CIB & Asset Management. A benchmark player in this field, Exton Consulting supports the General Management of players in the sector with their challenges of growth, transformation and innovation.

The firm is present in France, Italy, Germany and Spain and has 150 consultants in these countries benefiting from a high level of expertise and competence. With more than 10 years of experience, Exton Consulting has become a privileged partner to address the challenges and opportunities of digital in financial services.

In direct contact with the FinTech and entrepreneurial ecosystem to better support its customers in their innovation projects, Exton Consulting is a founding member of Swave, the first French acceleration platform of FinTechs, and partner of Finance Innovation, an active member of its Labeling committee for FinTechs banking and insurance projects.

For more information: www.extonconsulting.com

Disclaimer

Published by New Alpha Asset Management, headquartered at 128, boulevard Raspail, 75006 Paris, France.

New Alpha Asset Management is an investment management company, approved by the AMF under number GP05000001 on 20 January 2005.

1 Source Techfoliance by Invyo, January 2017

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