Jean-Baptiste Civit, Chef de projet Deeptech at Bpifrance, and Erwan Cozanet, a Research Associate at Dealroom, presented the French Deeptech Report 2026 during a Paris event focused on innovation financing. The report examines how venture capital in France has evolved over the past decade, largely driven by the rise of artificial intelligence and increased fundraising. The authors argue that the French deeptech ecosystem must now adopt an "European by design" approach due to the concentration of capital and the competitive pressure from the United States. Bpifrance's Deeptech Plan, launched in 2019 as part of the France 2030 initiative, aimed to support cutting-edge scientific research with practical industrial applications. Civit noted that the share of venture capital directed toward deeptech has more than doubled, positioning France as one of the most dynamic ecosystems globally, alongside the United States. In 2025, the ecosystem raised 4.7 billion euros, more than four times the pre-2019 amounts. The number of startups created annually has more than doubled, from 170 in 2018 to about 410 in 2025. This growth continued into 2026, with a cumulative total of 7.3 billion euros raised, the highest annual start in the history of the French Tech. The rise of artificial intelligence has transformed the French deeptech landscape. Previously dominated by Life Sciences, such as biotechnology and medical technology, the sector is now primarily driven by AI. Cozanet explained that AI accounted for between 5% and 7% of fundraising until 2022, but by 2025 and 2026, it attracted more funding than all other deeptech sectors combined. This shift has led to the emergence of mega-rounds, investment rounds exceeding 250 million dollars. These were virtually non-existent in France before 2021, but now there are nine, led by companies like Mistral AI, Poolside, and H Company. As a result, Paris became the leading city in Europe for deeptech fundraising in 2025, surpassing London and Munich. On a national scale, France ranks second in Europe behind the United Kingdom but has seen a fundraising growth rate of +142% between 2020 and 2025, significantly outpacing its European neighbors. However, the report highlights concerns about the concentration of capital. While later stages of financing, such as scale-up and late-stage investments, attract large sums, early-stage funding (seed funding) has decreased by 40%. To support new company creation, Bpifrance is strengthening its support mechanisms, such as the Deeptech Ticket, and aims to increase seed funding from 500 million to 1 billion euros. Civit promotes the idea of a "New Palo Alto," a geographic innovation crescent connecting London, Amsterdam, Oxford, Cambridge, and Paris. He argues that French startups should be "European by design" from the outset, using English in their board meetings, recruiting international co-founders, and forming cross-border strategic partnerships. This concept is exemplified by Mistral AI's partnership with ASML. While Paris holds half of the ecosystem's value (70 billion euros out of 140 billion euros total), growth also relies on specialized regional hubs: Grenoble (semiconductors and energy), Lyon (life sciences), and Toulouse (space and defense).