FCI study · 2024
Barriers and solutions for financing French industrial cleantech
Field research examining the journey from prototype to industrial scale and the forms of finance that genuinely fit industrial innovation.
Download the study PDFOriginal PDF available in French
- pages
- 60
- interviews
- 18
- companies analysed
- 41
- funds interviewed
- 6
The issue
Why this study?
Complex access to finance
Funding mechanisms are lengthy and demanding, making it difficult to secure the resources industrial projects require.
Long returns on investment
Industrial projects require substantial capital and generate returns later, discouraging some investors.
Difficulty industrialising innovation
Moving from prototype to large-scale production requires costly infrastructure and creates a major scale-up challenge.
France Cleantech Industries
A sector under pressure
Conducted between March and July 2024, this in-depth study highlights the challenges faced by cleantech companies in France.
Methodology and sample
- 18 interviews with key sector stakeholders
- 41 companies analysed
- 6 investment funds interviewed
The objective is to understand the financial, technological and structural difficulties holding back industrial cleantech SMEs.
Analysis grounded in the field
The work involved thirteen industrial cleantech SMEs from the France Cleantech Industries network, sharing their experience and expectations for the future.
It provides a clear view of today’s barriers and the levers that can support the long-term growth of companies in the sector.
Three perspectives from the field
Industrial cleantech in France
Major barriers
The challenges of finance and industrial development
New technologies and innovative industrial solutions face a combination of financial and structural barriers.
Long and complex funding processes
Industrial fundraising takes time, involves heavy administration and often comes with demanding financial conditions.
High infrastructure and R&D investment
Capital requirements for research, development and suitable infrastructure materially constrain industrial growth.
Venture capital poorly suited to industrialisation
Long development cycles and delayed returns make industrial companies less compatible with conventional venture-capital models.
Difficulty partnering with large groups
Market access and cooperation with major companies often depend on strong connections and lengthy integration processes.
The finding
Finance that does not fit
Financing cleantech companies is a major challenge. Current investment models do not always match the specific needs of industrial innovators.
A short-term venture-capital model
Venture funds favour short cycles and rapid returns, while cleantech needs patient, structured capital.
Essential but expensive development stages
Before reaching the market, cleantech companies must finance prototypes, regulatory certification and industrial scale-up.
A gap between capital and growth
The shortage of suitable finance creates a critical gap between capital needs, company growth and industrialisation, limiting impact and competitiveness.
Read the study to explore strategies and solutions that can remove these barriers and accelerate industrial cleantech.
Download the study PDF
In partnership with Watts Else
Explore the illustrated study
What is holding back industrial cleantech?
An accessible visual explanation of the principal barriers to financing and scaling industrial cleantech.
A 60-page state-of-the-art report delivering practical value for the sector
