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Fundraising: Whom to Contact and When?

Your business is growing, but to move to the next step, you need funding. Below you will find some advice on funding organizations likely to assist you at different stages of your business development.

fundraiser call

Whether developing an idea, building a concept, considering external development, growing your company or even expanding internationally, companies need the self-financing ability to fundraise. Have to resort to lack of

The main challenge before them is to rapidly identify private equity players who are able to respond to their problems and their company size. French SME/SMI leaders can be reassured, 80% of companies backed by private equity are SME/SMI.

In 2022, in the same year, French start-ups arose€13.5 billionThrough 735 operations, ie a 17% increase in the amount raised. However, there is a 6 per cent decline in operations. Eight new unicorns have emerged, according to a new EY venture capital study.

A measure of closeness…

Start-ups should support the criteria of proximity, be it geographical, relational or professional. Thus, love money (family, friends) is usually the first capital contribution for new companies.

Local Investment Fund (FIP) is a financial investment since 2003. FIP deals only with dedicated investments for financing small and medium-sized enterprises. This investment solution facilitates the reduction of taxes, especially income tax. As with any instrument that has a tax benefit, certain conditions must be met in order to be eligible for the deduction.
In addition, business angels networks (see especially France Angels) can also make a significant contribution to fundraising for a start-up, provided the profitability/time spent fundraising pair is optimized.

In addition, seed funds and structured associations offering unsecured loans (see in particular the “Initiative France” network, the “Entreprendre” network, etc.) will be able to respond to your initial challenges.

… But that’s not all!

Companies that already have a success story tied to an innovation will be able to turn to private equity funds. Never forget that capital investment transactions are analyzed from the investor’s point of view as financial transactions. Nevertheless, the account manager who will analyze your development project will draw a link between the income potential, future capital gains and the risks involved. Private equity companies are grouped with the French Association of Capital Investors (AFIC).

Already developed companies will turn to growth capital and stock markets. However, pay attention to the liquidity of the market in which you place yourself. In fact, many companies are backing out of listing due to lack of real added value!

mutual demand

Investors’ needs, whatever they may be, will revolve around fast, good quality monthly reports, a reputable business plan and transparency in the strategic choices made.

For investment funds, the imperative of profitability is fundamental, as is the investment horizon, typically between 3 and 5 years. Exit solutions are variable and will be considered expeditiously when entering capital.

To optimize the time/profitability ratio, don’t hesitate to go with a fundraising professional.

Fundraising Articles: Who to Contact and When? First appeared on Dynamic-Mag.com.

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