Startups increasingly rely on bank debt amid declining venture capital

Startups are increasingly turning to bank debt as venture capital funding becomes more selective. According to a study by the Banque de France, 86.6% of surveyed startups utilized bank debt in 2025.

Despite a 15% decrease in the volume of fundraising, the startup sector shows signs of improved financial health. Approximately 40% of startups are now profitable, and revenue has grown by 11.6% year-on-year, a rate significantly higher than that of SMEs or mid-cap companies.

This shift suggests a potential paradigm change in how innovative companies are financed, moving from a heavy reliance on venture capital to a more diversified approach involving traditional credit.