It seems to be a fact: the more funds a start-up has to create it, the higher the chances of survival… The Insee study dated March 2017 found that 72% of companies created with 80,000 euros or more in capital are still in business after five years, compared to 54% of those who generated less than 4,000 euros. “In fact, the more money a startup creator makes, the better. But, be careful, you have to respect a certain chronology and funding rhythms, but also arrange different mechanisms», warns Gregory Palayerpresident of Kitchen on the Web, an association promoting digital entrepreneurship in Lyon. A good financial package is a must mix different toolswhich, if put together in a smart way, can accumulate an amount of more than 150,000 euros!
Euro of love
Beyond his personal contribution, it is first round of financing. The so-called “love money” consists of asking family and friends in the months before or after the creation of a business. Practice makes collection possible 20,000 to 50,000 euros on average. Parents and grandparents benefit from an exemption from transfer duties in case of donations and all investors from tax reduction (IR or ISF)… A heavy argument that should not be hesitate to put.
Pôle emploi “premium”
Entrepreneur job seekers can benefit from assistance in the form of capital (Arce). Its value is equal to 45% of their total benefits are left. Half of this assistance is paid when the business is created and then six months later. But it is conditional on the provision of Accre, an exemption from social charges for twelve months, and cannot be combined with the maintenance of its unemployment benefits. Attention, since January 1, 2017, Accre is degressive and is given to people whose income from the activity is lower than the annual social security ceiling (PASS), ie 39,228 euros in 2017.
Honor the loans
support networks such as Réseau Entreprendre and Initiative France provide zero-interest loans to entrepreneurs (from six months before creation to eighteen months after). It is given by the person and not by the company, which means that both partners can get an honor loan.
The amount varies from 2,000 to 50,000 euros, depending on the territories and the nature of the project. They finance initial investments (equipment, adaptation of premises, etc.) and working capital requirements (WCR), and facilitate obtaining a bank loan, for example. On average, one euro of honor loan allows to provide more than 7 euros of additional financing, according to Initiative France. Note, however, the length of the delays: count about six months between the first exchanges and payment of funds.
crowdfunding
the crowdfunding websites allow creators to demand ordinary Internet users. Participation takes the form of donations with rewards or pre-sales (Ulule, KissKissBankBank, Kickstarter…), capital participations (Anaxago, Wiseed, Sowefund…) or ready to your friends (Hello thank you) or to individual (Lendopolis, Unilend…) but reserved for more mature companies. “A well-managed campaign raised approximately 50,000 euros in donations and 250,000 euros in capital“, details Grégory Palayer. However, be careful not to present your project too early! The product or service must be advanced in its design, otherwise the flop and the “bad buzz” are guaranteed.
business angels
More and more individuals – alone or in groups (Angels in France, Business Angels in Paris, etc.) – invest in projects at the start-up stage. Ticket prices vary from 50,000 euros to more than 1 million euros. “These business angels are easily involved in a project, but they need to be sure that the product has traction and gets a response from the market.“, continues Grégory Palayer. Clearly, it is better to have the first customers. So the ideal is to consider it a few months after the creation.
€42.7 MILLION
The approximately 10,000 business angels in France invested more than 40 million euros directly last year in more than 400 young companies, according to the association of France Angels.
From fund to fund
Private equity players usually intervene after business angels and the higher value. Unless you have a hypergrowth project, it is better to do a first round of funding with regional funds (Evolem or Vivienne Investissement in Lyon for example) or funds from entrepreneurs (Kima, Isai, at the national level, or Axeleo and Hi Inov , in Rhône-Alpes). it the intimacy of the heart will tip the scale, because it is difficult to select the folder. At this level of play, the defining criterion is less the amount raised than the quality of the team defending its project. The ability of the investor toopen doorsspeed is also a criterion for selecting the part contractor.