Mapping France and Benelux’s VC ecosystem

On Jun 1, 2022

Home to Europe’s second-largest venture ecosystem in terms of capital invested, dealmaking activity in France and the Benelux region got off to a strong start in Q1 despite macroeconomic headwinds and a presidential election.

In the first three months of the year, €6.3 billion (about $6.8 billion) was invested in startups hailing from France, Belgium, Luxembourg and the Netherlands. This follows a record-breaking year in 2021, which saw investors pour €18.8 million into the region. Most of the capital was invested in late-stage startups, accounting for nearly three-quarters of total deal value, according to PitchBook’s 2022 France & Benelux Private Capital Breakdown.

Although dealmaking remained robust, exit activity in Q1 was muted. However, the region still contributed a significant chunk of the exit value generated in Europe as a whole. While turmoil for tech companies in the public markets persists, exit activity is likely to remain quiet.

On the other hand, fundraising in France and Benelux got off to an impressive start with €2.2 billion raised across nine VC funds. At this pace, a record amount of capital could be secured by vehicles in the region by the end of the year, but rising interest rates could stall growth.

Here’s a snapshot of the France and Benelux venture ecosystem, exploring highlights across dealmaking, fundraising and exit activity.