French startups raised €6.7 billion in 2025. That figure marked a 5 percent drop from the year before. Deal volume fell even more sharply, down 21 percent to 411 rounds. Meanwhile the US saw funding jump 38 percent and Europe overall climbed 12 percent. One company explained much of the gap. Mistral alone took 25 percent of all French capital raised that year. The numbers come from a detailed analysis by Alexandre Dewez, partner at venture firm 20VC. His report, published on Substack , runs nearly 100 slides. It lays bare a scene that minted its first decacorn yet struggles to produce breadth. AI powered 43 percent of total funding, up from 27 percent. It claimed 23 percent of rounds, nearly double the prior share. Remove Mistral and the rest of the market looks stalled. But. This concentration tells only part of the story. France produced several large early bets on foundation models. H closed a €212 million seed. Genesis raised €97 million. Gradium took €64 million and Bioptimus €32 million.…