What are the new financing methods for companies and start-ups?
What are the different types of alternative financing?
How to strengthen its own funds without going through the traditional financers?
It is the obsession of the entrepreneur: to identify means of financing to launch and develop his company.
Before going to see the banks, have the reflex “alternative financing”: these new modes of financing allow access to fresh money without necessarily getting into debt.
Here’s all you need to know about new ways to finance businesses.
Love money or the 3 C’s: buddies, cousins, “nuts”.
The love money, as its name suggests, is “the money of love”, that is to say those close people who support you and believe in your project:
- family
- friends
- professional network
- Love money often acts as a first lever of financing. You can from the start of your company by a subtle game of valuation of the shares of your company and the partner current account, raise enough money to start your company without being diluted excessively.
Business Angels.
A business angel is a natural person, often a business executive or a former entrepreneur, who decides to invest part of his financial wealth in innovative and high potential companies.
Business angels in France is about € 43 million in investments in start-ups, mainly in the digital, medical and industrial sectors.
If you want to convince a business angel to invest in your project, here are the prerequisites and essential steps:
Have an innovative concept or that stands out from the competition,
Reassure the investor about the potential of the team carrying the project,
Have a clear and realistic vision of the evolution of your company,
Develop a quality executive summary,
Really believe in the potential of his project to convince.
See our article: Venture capital and business-angels: what differences?
The Crowdequity
Also called “equity crowdfunding”, this branch of crowdfunding has existed since 2014 and is the perfect springboard for the financing of start-ups. The crowdequity allows small businesses to raise funds through crowdfunding platforms so without going through the traditional banking circuit.
Crowdequity platforms offer to invest in the equity of companies that do not interest the traditional actors of private equity (private equity, business angels or venture capitalists). Thanks to crowdequity platforms, it is now possible to use any user to invest in shares in his company.
Venture capital and investment funds
Venture capital (venture capital or VC) is an equity investment by one or more investors, usually minority shareholders, in unlisted companies.
The objective of the investor is to participate financially in the development of innovative companies with high growth potential and to realize a substantial capital gain on the sale of the shares.
Venture capital is implemented by management companies approved by the Autorité des marchés financiers (AMF), known as “funds”. These funds can take several forms: venture capital companies (SCRs), venture capital funds (FCPR), innovation mutual funds (FCPI), proximity investment funds (FIP) and are subject to investment quotas set by law.
P2P lending platforms.
Loans between individuals, also known as peer-to-peer lending, P2P lending or sometimes also social lending, is a financial activity that consists of loans of money between individuals, in the form of remittances with repayment commitment.
This system, similar to that of a microcredit, aims to allow anyone wishing to lend or borrow to do so directly between individuals, most often without a bank intermediary.
The simplicity of this system allows anyone to subscribe a credit without going through credit institutions (banks) or credit agencies.
In France, various sites offer intermediation of loans between individuals. These sites are generally registered in ORIAS.
Crowdlending (from individuals to companies).
Crowdlending makes it possible to borrow without the help of banks.
In this crowdfunding model, contributors lend money to companies and receive interest in return.
Crowdlending therefore allows contributors to lend money to companies or individual companies. The amount of the incentive depends on the risks associated with the loan. The advantage for companies is that they can do without traditional financial intermediaries. This system makes it possible to obtain loans at attractive interest rates; on the other hand, the steps can be simpler than with banking institutions. A particularly advantageous formula for start-ups.
Loans at rate 0
If you do not have a sufficient personal contribution to obtain a bank loan to complete the financing of your project of creation or takeover of business, you can strengthen this contribution by requesting a loan without interest or guarantee, that you will commit to repay “on the honor”.
National networks are intended to grant loans of honor after examination by a committee of approval gathering heads of companies, bankers and other experts in financing, it is the case of the loan of honor Initiative France and the loan from Réseau Entreprendre.
What are the new financing methods for companies and start-ups? What are the different types of alternative financing? How to strengthen its own funds without going through the traditional financers?
It is the obsession of the entrepreneur: to identify means of financing to launch and develop his company.
Before going to see the banks, have the reflex “alternative financing”: these new modes of financing allow access to fresh money without necessarily getting into debt.
Here’s all you need to know about new ways to finance businesses.
Love money or the 3 C’s: buddies, cousins, “nuts”.
The love money, as its name suggests, is “the money of love”, that is to say those close people who support you and believe in your project:
- family
- friends
- professional network
Love money often acts as a first lever of financing. You can from the start of your company, by a subtle game of valuation of the shares of your company and the partner current account, raise enough money to start your company without being diluted excessively.
See our article on love money.
Business Angels.
A business angel is a natural person, often a business executive or a former entrepreneur, who decides to invest part of his financial wealth in innovative and high potential companies.
Business angels in France is about € 43 million in investments in start-ups, mainly in the digital, medical and industrial sectors.
If you want to convince a business angel to invest in your project, here are the prerequisites and essential steps:
Have an innovative concept or that stands out from the competition,
Reassure the investor about the potential of the team carrying the project,
Have a clear and realistic vision of the evolution of your company,
Develop a quality executive summary,
Really believe in the potential of his project to convince.
See our article: Venture capital and business-angels: what differences?
The Crowdequity.
Also called “equity crowdfunding”, this branch of crowdfunding has existed since 2014 and is the perfect springboard for the financing of start-ups. The crowdequity allows small businesses to raise funds through crowdfunding platforms so without going through the traditional banking circuit.
Crowdequity platforms offer to invest in the equity of companies that do not interest the traditional actors of private equity (private equity, business angels or venture capitalists). Thanks to crowdequity platforms, it is now possible to use any user to invest in shares in his company.
Venture capital and investment funds.
Venture capital (venture capital or VC) is an equity investment by one or more investors, usually minority shareholders, in unlisted companies.
The objective of the investor is to participate financially in the development of innovative companies with high growth potential and to realize a substantial capital gain on the sale of the shares.
Venture capital is implemented by management companies approved by the Autorité des marchés financiers (AMF), known as “funds”. These funds can take several forms: venture capital companies (SCRs), venture capital funds (FCPR), innovation mutual funds (FCPI), proximity investment funds (FIP) and are subject to investment quotas set by law.
P2P lending platforms.
Loans between individuals, also known as peer-to-peer lending, P2P lending or sometimes also social lending, is a financial activity that consists of loans of money between individuals, in the form of remittances with repayment commitment.
This system, similar to that of a microcredit, aims to allow anyone wishing to lend or borrow to do so directly between individuals, most often without a bank intermediary.
The simplicity of this system allows anyone to subscribe a credit without going through credit institutions (banks) or credit agencies.
In France, various sites offer intermediation of loans between individuals. These sites are generally registered in ORIAS.
Crowdlending (from individuals to companies).
Crowdlending makes it possible to borrow without the help of banks.
In this crowdfunding model, contributors lend money to companies and receive interest in return.
Crowdlending therefore allows contributors to lend money to companies or individual companies. The amount of the incentive depends on the risks associated with the loan. The advantage for companies is that they can do without traditional financial intermediaries. This system makes it possible to obtain loans at attractive interest rates; on the other hand, the steps can be simpler than with banking institutions. A particularly advantageous formula for start-ups.
Loans at rate 0
If you do not have a sufficient personal contribution to obtain a bank loan to complete the financing of your project of creation or takeover of business, you can strengthen this contribution by requesting a loan without interest or guarantee, that you will commit to repay “on the honor”.
National networks are intended to grant loans of honor after examination by a committee of approval gathering heads of companies, bankers and other experts in financing, it is the case of the loan of honor Initiative France and the loan from Réseau Entreprendre.
