Geopolitical Shock: What the Market Storm Means for M&A, Startups... and Europe's Strategic Priorities

17/04/2025

Geopolitical Shock: What the Market Storm Means for M&A, Startups... and Europe's Strategic Priorities

Donald Trump's announcement of massive tariffs has triggered a storm across global markets.

➡️ The CAC 40 dropped up to 12% in 5 days
➡️ Tech and biotech market caps plummeted (e.g., Apple -17%)
➡️ Investors are fleeing risk, fearing a new global trade war

💸 Frozen Funding: What Are the Consequences for M&A and Startups?

Fundraising is slowing down, largely due to valuation volatility.
The M&A market is stalling: strategic buyers are waiting, deals are being renegotiated downward or postponed.
Global trade is suffering, impacting exporting companies and globally ambitious scale-ups.

🌍 Europe's Response: Investing in Sovereignty

In this tense context, Europe is expected to refocus its industrial strategy. Several sectors are emerging as top public and private investment priorities:

🔒 1. Defense & Security (Physical and Cyber)

➡️ A comeback for dual-use (civil/military) tech, AI applied to defense, strategic cybersecurity, satellites, and drones.
📌 Key startups: Preligens, Unseenlabs, Helsing, Exotrail

🧑‍🌾 2. Short Supply Chains, Food Sovereignty, and Industrial Relocation

➡️ Reshoring value chains, local agritech, traceability, sustainable foodtech, and integrated intra-EU logistics.
📌 Key startups: Agriloops, Agriconomie, Miimosa, Jungle, Swap

💻 3. Sovereign Technologies: AI, Cloud, and European Semiconductors

➡️ Europe is accelerating on critical infrastructure: chips, sovereign compute, frugal and eco-designed AI models.
📌 Key startups: SiPearl, Aleia, Mistral AI

🧭 Key Takeaways

This crisis is also an opportunity: Europe must build champions in the sectors that matter most.
Smart investors will follow public money, strategic needs, and the redefinition of value chains.

🔍 Casteldoza Finance Focus: Accurate Valuation for Better Strategic Decisions

In a context where every strategic move counts, Casteldoza Finance supports executives and founders in the in-depth valuation of their business, combining rigorous financial analysis with a deep dive into intangible assets (technology, network, brand, etc.) and realistic scenario planning.

Objective: Maximize long-term value, attract the right investors, and secure your next steps (fundraising, exit, M&A). With its expertise, Casteldoza Finance ensures a clear methodology, optimized process, and tangible results.

📩 Learn more: www.casteldoza-finance.com

Book a Free Strategy Call:

Lorraine Delannoy, Casteldoza Finance
📧 l.delannoy@casteldoza.com | 📞 +33 6 83 25 30 59

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