If your equity is insufficient to start your business project (or later to relaunch or develop it) you can in some cases strengthen it by calling on private or public external investors who will take a stake in your company’s capital. . This is called carrying out a “fundraising”.
When setting up a business, this makes it possible to supply equity, to inflate capital and thus to claim larger loans.
looking business partner without investment, isn’t it just for startups?
Fundraising from investors mainly concerns startups , which offer a new product or service compared to the existing one, with significant and rapid growth potential and promising prospects for return on investment.
However, there is a category of investors who place profitability in the background and favour the impact on the territory as well as the values of the company created .
- You can contact local organisations (investor clubs or solidarity venture capital) which support the creation of local businesses.
Les Cigales (Investor clubs for alternative and local management of solidarity savings) invest in local VSE projects and support their managers in launching their activity.
– Minority shareholdings possibly accompanied by a contribution to a partner’s current account.
– Amount: generally between 1,500 and 5,000 euros. But several Cicadas can invest in the same project.
– Duration: 5 years
- Solidarity venture capital , like Garrigue for example for business creation or development projects in the Social and Solidarity Economy (ESS) or even Autonomie & Solidarité in Hauts-de-France, also finances very small businesses. Garrigue is a citizen cooperative of seed and development risk capital in companies with a social and / or environmental purpose. – Acquisition of minority stakes (between 5 and 30%), possibly supplemented by a contribution to a partner’s current account or by a participating loan. – Duration: between 5 and 7 years. – Amount: between 20,000 and 30,000 euros (up to 75,000 € for Autonomie & Solidarité ).
- And / or to call on the savings of private investors to finance a business creation project via crowdfunding . The investment can be made:
– in capital: the financier is remunerated in the form of dividends or capital gains realized on the sale of the securities,
– in bonds: its remuneration takes the form of interest,
– or against royalties: its remuneration takes the form of commissions on turnover.
Project leader, find a method of financing for looking business partner without investment.
Increase your visibility by submitting your project on our crowdfunding platform Tous Nos Projets .
You will find projects funded and in the process of funding.
- Finally, if you create an association for looking business partner without investment
- , the France Active Seed Fund (but also the Cigales ) offers small associations in creation or in the initial development phase, a first step towards financial structuring in order to perpetuate a socially useful activity. creating or sustaining jobs.
This is an associative contribution fund with right of repossession, intended to finance small associations which do not yet have sufficient visibility to obtain medium-term funding.
The contribution is intended to finance investments and working capital linked to the creation or development of the association, with the exception of any cover for past or future operating losses.
– Amount of the seed fund with right of recovery: between € 5,000 and € 10,000.
– Duration of the contribution: 12 months, renewable once. This period can be extended to 18 months.
How does a startup fundraiser work?
It takes place in several stages for looking business partner without investment :
- The first step: that of the ” Pre-seed ”
It consists of turning to those close to them: family, friends, professional relations, etc. to quickly set up the business. This is called Love Money .
- The second stage: that of “Seed” or “seed”
It consists in financing the development of the product or concept. A first version is already available and the company has found its first customers. It must then complete the product, validate the market on a larger scale and proceed with recruitments. Pivots are often necessary.
The investors concerned during this phase are mainly business angels . They often have entrepreneurial experience that leads them to take high risks. They can commit to criteria other than financial: the idea itself as well as the value and credibility of the management team, its ability to make decisions, to pivot in the event of a wrong path.
venture capital (VC) is now involved in seed. Examples: looking business partner without investment
– Kima Ventures : Fund launched by Xavier Niel.
– Isai : Investment fund for Internet entrepreneurs. It brings together more than 250 entrepreneurs.
– X Ange : Fund specialising in early-stage (pre-seed, seed, and series A) which invests in 3 main areas: digital, deep tech and impact.
– MakeSense Seed I : Specialised pre-seed fund, which supports young startups putting social or environmental impact as well as job creation at the heart of their project.
- The third stage: the second round of table or “Series A”
It consists in financing the development of the activity where the financing needs are greater.
At this stage, the business is functioning, the product or concept is ready and generating income.
It is able to present more solid figures on its activity and on the potential of the market to be conquered.
Investors at this level are venture capital funds (VCs) and business angels
Its amount, between 100,000 and 500,000 euros, is equal to half of the fundraising carried out.
- Then come the series B, C …
These are the following rounds to finance the growth of the company (internationalisation, external growth, etc.) with very large amounts which are generally beyond the previous rounds table and a larger panel of investors for looking business partner without investment.