La French Tech in La Grande Pomme: New York is Fertile Ground for French Startups and a Key Part of the Global Ecosystem
It’s no secret that Paris has become one of the tech hotspots of the world with a growing community of entrepreneurs, investors, engineers and innovators. It is, in the words of recently elected president Emmanuel Macron, a “startup nation.” However, French entrepreneurship is expanding far beyond the country’s borders, and communities of French entrepreneurs abroad are blossoming.
New York City, because of its vibrant startup ecosystem, its capital investment dynamism and the relatively short distance to France, is often the first U.S. destination for French entrepreneurs expanding their business. And the New York French Tech Hub plays a vital role, deepening the relationship between French entrepreneurs and the local tech community, while supporting French entrepreneurs through a wide range of services offered by its partners, including mentorship, events, and networking opportunities.
PeopleDoc is an example of a French company that benefited from a soft landing that an active French community offers.
“Over the past four years, I have seen the French Tech community expanding tremendously, with startups of all stages and industries opening offices in New York. Before moving to the U.S., I spent a lot of time with New York-based French entrepreneurs to get their feedback, their advice and pick their brains. When I opened the PeopleDoc office in New York, they welcomed me, helped me find offices, introduced me to prospects, and actually, two of my first three customers were French companies. I consider that it’s my turn to give back to new entrepreneurs, which I am doing through mentorship, speaking opportunities and my involvement as a French Tech ambassador,” said Jonathan Benhamou, the CEO of PeopleDoc.
The growing French community in the city consists of nearly 150 tech startups, which are either French companies with a locally based operational office, or New York startups with one or more French founders. Let’s take a closer look at the French Tech ecosystem in America’s largest city.
The Prevalence of Data Driven Startups
The New York tech scene has evolved into a number of specialized clusters, many of which exemplify the world technology expertise France has become known for, including areas such as big data, artificial intelligence and creative-based tech. Out of the 146 French startups, 35 percent are data driven startups (artificial intelligence, big data, adtech). Leading New York French Tech startups in those industries include Datadog ($147 million raised), Synthesio ($30.7 million raised), AB Tasty ($24 million raised), among others.
The number of New York-based French Tech startups using artificial intelligence at the core of their business is growing quickly and is getting noticed by VCs, such as Dataiku which just raised $28 million. Other startups to watch include Tinyclues (AI-based marketing solution for businesses), Owkin (AI to make accurate medical predications), Plume Labs (app for personalized alerts and a personal air quality tracker), and Prose (collaborative Beauty brand, powered by AI). The strong presence of AI companies in New York City mirrors a similar cluster in Paris, and both cities have dynamic French Tech AI ecosystems, attracting top talent.
According to Paul Strachman, Venture Partner at ISAI, “Paris and New York are leading AI hubs driven by a strong ecosystem of startups, investors and engineers using AI as a tool to build innovative products. Bridges are being built between the two cities, such as the partnership between the French initiative France is AI and the NYU Future Lab.”
Many more French Tech companies with a presence in New York are disrupting their industries, such as PeopleDoc (HR, $47 million raised), Devialet (Sound hardware, $144 million raised), Bandsintown (music app, $60 million raised), Connecthings (IoT, $10 million raised), Vestiaire Collective (Retail, $130 million raised), Adore Me (retail, $11.5 million raised), or Rebagg (retail, $31 million raised).
New York City offers French startups a unique opportunity to enter the American market. As Laetitia Gazel Anthoine, CEO of Connecthings, puts it: “We found New York the perfect place to expand the company to the North American market. It is a vibrant tech center and it allows us to stay well connected to the team in France. We benefit from the existing French Tech community. At the same time we can create strong relationships with our U.S. customers and prospects thanks to the very inclusive New York tech hubs and programs.”
Local VCs Respond by Showing French Tech the Money
Over the past few years, New York-based VCs have made several major investments in startups based in France, reinforcing the relationship between New York and the French Tech scene. Examples of such investments include Shift Technology (General Catalyst invested in their $28 million series B this month), Snips (Eniac Ventures invested in their $13 million series A), La Ruche qui dit Oui (Union Square Venture invested in their $9 million series B).
Exits
In the recent past we have seen an uptick in the number of exits French companies have been able to achieve. And New York-based French Tech firms are a part of that trend. Several French Tech startups have been acquired in the past 18 months, including Sunrise (acquired by Microsoft), Placemeter (acquired by NetGear), Teads (acquired by Altice), stickyads.tv (acquired by Comcast) and Insensi (acquired by Nucleus).
Challenges
As pointed out by the French Minister of Digital Affairs, Mounir Mahjoubi during his visit to NY last September, there is a lack of diversity in tech, and in particular, women are underrepresented. Among founders of the 146 French Tech startups in NY, 88 percent are men. There is a long way before we can get to a gender-balanced tech industry, but several trends are showing France is on the right path. The French government is leading the way, with several initiatives, among which the “French Tech Diversité” to attract and support entrepreneurs coming from diverse backgrounds.
Too few companies are founded by women, too few women are holding partner positions within VC firms, and too few global corporations are led by women, as highlighted by Catherine Barba, a French entrepreneur based in New York: “The World Economic Forum has reported that the global gender gap will not be closed for another 169 years! That is why I have actively promoted and supported women entrepreneurs over the years, leveraging my experience as an entrepreneur in the tech world to encourage other women to reach higher. For the third year in a row, I am putting together the Women in Innovation Forum in New York, a one day action-packed conference aiming to support the next generation of women leaders and entrepreneurs, shake the stereotype of the leader and give women of all backgrounds energy and confidence to become the most innovative leaders they can be.”
How to Get in Touch with French Tech New York
The French Tech community in New York is a vibrant one, with players from a wide range of backgrounds and experiences involved — entrepreneurs, academics, researchers, executives from large enterprises. The ecosystem offers support and networking across all aspects of the tech landscape and is the foundation for the energy fueling the French Tech movement here. If you want to learn more about our community and events, or partner with us to promote entrepreneurship, innovation and diversity, you can follow us on Twitter and Facebook, sign up for our newsletter, or send us an email. Save the date, our next gathering will be on December 14.
