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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
- Veröffentlichungsjahr: 2019
In France, the number of young start-ups has soared since the beginning of the 2010s, leading the government to encourage their development and make France the "start-up nation". This book contributes to a better understanding of the emergence of these companies by studying the influence of the ecosystem on their development and the modes of financing that they use. The financing of start-ups remains a major challenge insofar as they are often faced with refusal from the banks. Successful financing depends largely on the geopolitical and economic environment. Through a comparative study of models from both France and English-speaking countries, the authors explore possible financing solutions for France. The book concludes with a discussion of equity crowdfunding, which proves to be a successful financing alternative. Including theoretical and empirical studies, this book provides concrete solutions aimed at developing innovative entrepreneurship in France.
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Table of Contents
Cover
Introduction
1 The Influence of the Ecosystem on the Development and Financing of Start-ups
1.1. Contextual framework: the needs and challenges of start-ups
1.2. Analysis of the two spaces according to the criteria for successful fundraising: revealing a correlation between the environment and start-up financing
1.3. Research methodology
1.4. Conclusion
2 Financing Young Innovative Companies in France
2.1. Introduction
2.2. Contextual framework: young innovative companies in France
2.3. Empirical study: analysis of entrepreneurial dynamics in France
2.4. Reinforcing aid for the financing of young French companies
2.5. Strengthening participatory financing structures
2.6. Economic recommendations
2.7. Conclusion
3 Equity Crowdfunding of Start-ups in France
3.1. Introduction
3.2. Contextual framework: state of play on the financing of start-ups in France
3.3. Equity crowdfunding: a fast-growing financing alternative
3.4. The entrepreneur at the head of strategic decisions
3.5. Conclusion
Conclusion
References
Index
End User License Agreement
List of Tables
Chapter 1
Table 1.1. The typologies of coaches and their role in the development of the st...
Table 1.2. Tax systems in France, the United Kingdom and the United States
Table 1.3. List of professionals interviewed
Chapter 2
Table 2.1. The different types of crowdfunding
Chapter 3
Table 3.1. The different methods of project evaluation
List of Illustrations
Chapter 1
Figure 1.1. Table of the evolution of a start-up and the financing that is linke...
Figure 1.2. The different actors of the start-up ecosystem
Chapter 3
Figure 3.1. Typology of financing during the life cycle of the company
Guide
Cover
Table of Contents
Begin Reading
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Modern Finance, Management Innovation and Economic Growth Set
coordinated by
Faten Ben Bouheni
Volume 1
The Emergence of Start-ups
David Heller
Sylvain de Chadirac
Lana Halaoui
Camille Jouvet
First published 2019 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc.
Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licenses issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned address:
ISTE Ltd
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UK
www.iste.co.uk
John Wiley & Sons, Inc.
111 River Street
Hoboken, NJ 07030
USA
www.wiley.com
© ISTE Ltd 2019
The rights of David Heller, Sylvain de Chadirac, Lana Halaoui and Camille Jouvet to be identified as the authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.
Library of Congress Control Number: 2019932336
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library
ISBN 978-1-78630-450-6
Introduction
This book is dedicated to European start-ups, specifically French start-ups. Herein we analyze three main parts: the influence of the ecosystem on start-ups, the different methods of financing innovative companies, and financing by equity crowdfunding in France. To conduct our analysis, we use concrete examples and interviews with targets.
The word start-up is an ellipsis of start-up company, an expression designating an innovative company that is starting (start) and is subject to strong growth potential in the new technologies sector (up). However, this rapid development implies fragile growth that is dependent on an ecosystem-like environment. The balance is based on informed support, an appropriate legal framework, an attractive market and, more particularly, abundant financing solutions.
It is in this sense that Chapter 1, entitled “The Influence of the Ecosystem on the Development and Financing of Start-ups”, has a dual microeconomic and macroeconomic dimension. Indeed, the main start-ups have emerged in the United States and Europe, and we have adopted an international comparative approach in order to understand the financial development patterns of start-ups in several Western and developing countries. Focusing on the available human, political and economic levers, the main issue of this first part is as follows: how does the geopolitical and economic environment favor the financing of start-ups? The empirical study is based on the results of interviews conducted with French investors, financing professionals in the African market, coaches and a founder of start-ups. The conclusion shows a very significant impact of new technologies on the financing of companies in general and start-ups in particular. In addition, French political strategies are being put in place to promote and support the development of innovative companies (such as French Tech) to ensure the stability of the French market.
The second part includes Chapter 2, entitled “Financing Young Innovative Companies in France”, which puts the financing possibilities of start-ups into perspective in the context of the dynamics of the French market. Given the reluctance of traditional commercial banks to finance young innovative business projects and, at the same time, the ambition of the Head of State to make France “the nation of start-ups” (Lacroix.com 2017), we deal with the following issue: how to facilitate the financing of start-ups in France? Indeed, the development of these companies is an important issue for growth and employment in France, but, depending on the developmental phases, financing is more or less difficult to implement. The results of this empirical study, carried out among leaders of young innovative companies and representatives of organizations providing support for their financing (Bpifrance and Business France), particularly highlight the fact that incentives for start-ups to finance themselves through government policies are more developed in the United States, the United Kingdom, Germany, Scandinavia and Israel than in France. However, the entrepreneurs interviewed acknowledge the usefulness of public support during the project start-up phase, but state that they have difficulty finding appropriate financing when it comes to growth. Thus, the recommendations focus on the development of venture capital and business angel networks in France. Finally, they aim to encourage the development of participatory financing or “crowdfunding”, an effective alternative to traditional financing methods.
Chapter 3, entitled “Equity Crowdfunding of Start-ups in France”, aims to analyze the relevance of equity financing. Through previous research, we have found that it is difficult for French entrepreneurs to finance themselves through traditional means. Many financing alternatives exist for entrepreneurial projects such as love money, business angels, investment funds, banks, public subsidies or the public investment bank. Of all existing financing alternatives, the opening of capital to external investors is the one that allows companies to raise the most funds while providing a significant network to the company in the start-up phase. Equity financing is a new form of capital opening that simply encourages significant fundraising. However, the “crowd” is not expert and the number of investors is large, which poses problems in terms of valuation and governance for the company. Here, the problem is therefore the following: how can equity crowdfunding position itself as a successful financing alternative for start-ups given the entrepreneur’s human capital? This empirical study was conducted with several entrepreneurs. Even though none of our targets have already been financed by equity crowdfunding (all of them even admit to being somewhat reluctant to open their capital for governance reasons), young entrepreneurs accept the idea of being able to use this long-term financing. However, they highlight the need to preserve human capital, which is essential for the sustainability of the project.
