Why French Startups Raise in London: A Structural Analysis

THE PRESENT: The Channel Crossing Pattern

40% of French tech startups with €10M+ funding rounds raise their Series A in London, not Paris. The average London deal is €15M. The average Paris deal is €8M. Time to close: London 3 months, Paris 7 months.

This isn't about Brexit. This isn't about "London being better for tech." This is about systems.

French founders aren't traitors. They're rational actors navigating structural inefficiencies. When the Paris system takes 7 months and offers €8M, and the London system takes 3 months and offers €15M, the choice is obvious.

THE PAST: How Paris Lost Its Advantage

Paris should dominate European tech. It has: world-class engineering schools, a deep talent pool, lower costs than London, and government support programs (BPI, CIR tax credits).

Yet London wins. Why?

Structural Differences

Decision-Makers

London: Former operators (understand tech, took risks themselves)

Paris: Former bankers (risk-averse, want traditional metrics)

Due Diligence

London: 4-6 weeks standard, streamlined

Paris: 3-6 months, bureaucratic, reinvented each time

Terms

London: Founder-friendly, industry standard (SAFE, convertible notes)

Paris: France-specific terms, confusing for international follow-on

The result: French founders don't "prefer" London. London's system is simply more efficient.

THE FUTURE: Can Paris Compete?

Three scenarios for 2025-2030:

Scenario 1: Status Quo (50% probability)

Paris continues losing top deals to London. Brain drain of best founders continues.

Scenario 2: Paris Reforms (30% probability)

French VCs adopt London practices: faster DD, standard terms, operator-investors. Paris becomes competitive by 2027-2028.

Scenario 3: Post-Brexit Opportunity (20% probability)

UK regulatory complexity post-Brexit pushes deals back to Paris. France capitalizes with reformed ecosystem.