2 juin 2023 - by Arthur RAVASIO - Student in Master in Management - Programme Grande Ecole
Les gagnants de l'ESSEC Founders Day 2021 sont à l'honneur !
#ESSECFD #entrepreneuriat #innovation #startups
23 mai 2023 - by Equipe ESSEC Ventures
Réflexions sur l'échec entrepreneurial lors de l'événement "Pourquoi ma boîte s'est plantée ?"
#event #entrepreneuriat #regardscroisés #startups
L'événement "Pourquoi ma boîte s'est plantée ?" organisé par l'incubateur ESSEC Ventures en partenariat avec la Banque Populaire Rives de Paris a réuni un public avide de connaissances sur l'échec entrepreneurial.
Cette table ronde, qui s'est tenue dans le 13ème arrondissement de Paris à la Banque Populaire Rives de Paris, a permis aux participants de bénéficier des expériences et des expertises de trois intervenants exceptionnels. Elise Prigent, Brand Manager chez OLALA et conférencière à l'ESSEC, a animé les échanges. Romain Libeau, CPO de Swile, Lauren Dannay, co-fondatrice et CMO de Bloks, ainsi que Kevin Soler, CEO de Virteem, ont partagé leurs parcours, leurs réussites et leurs échecs, offrant des réflexions précieuses sur l'échec entrepreneurial.
8 mai 2023 - by Enzo SOYER - Student Entrepreneur and CEO of TENK
Exploring Financing Options for Startups: Dilutive and Non-Dilutive Funding
#event #finance #entrepreneurship #funding
Startups are vibrant engines of innovation and entrepreneurship, often requiring financial resources to fuel their growth. When it comes to securing funding, entrepreneurs have various options available to them.
In this article, we will explore two primary categories of financing for startups: dilutive funding and non-dilutive funding. We will also shed light on the role of Demo Day pitches within the context of dilutive funding and discuss alternative avenues.
Dilutive funding refers to the process of raising capital by selling a portion of the company's equity to external investors. In exchange for their investment, these investors become partial owners and shareholders of the startup. Dilutive funding can take several forms, including :
Venture Capital (VC) Funding: Venture capital firms invest in early-stage startups with high-growth potential. They typically provide larger investments in return for a significant ownership stake and involvement in the company's strategic decisions.
Angel Investment: Angel investors are individuals who invest their personal funds into startups. They often bring industry expertise, mentorship, and valuable networks to the table. Angel investments are usually made during the early stages of a startup's development.
Initial Public Offering (IPO): An IPO involves a private company going public by offering its shares to the general public through a stock exchange. This enables the company to raise substantial capital from a wide range of investors, but it is typically pursued by more mature startups.
The DEMODAY is an event organized by startup incubators or accelerators, such as ESSEC Ventures, to showcase the progress and potential of their incubated startups to a selected audience of investors, mentors, and industry professionals. During Demo Day, startups present their business models, product prototypes, and growth strategies in a compelling pitch. The primary objective is to attract investors who are interested in providing dilutive funding.
DEMODAY pitches serve as a platform for startups to highlight their unique value proposition, market traction, and revenue potential. It provides an opportunity for entrepreneurs to demonstrate their ability to execute their vision effectively. Successful pitches may result in securing follow-up meetings, due diligence processes, and potential investment offers from interested investors.
Non-dilutive funding options allow startups to secure capital without giving up equity in their company. These alternatives enable entrepreneurs to retain full ownership and control over their business. Some common sources of non-dilutive funding include:
Grants: Government agencies, research institutions, and foundations offer grants to support innovative projects. Startups can apply for grants that align with their objectives and demonstrate the potential to create significant social or economic impact. Companies such as In Extenso Innovation and Growth are specialised in the recovery of grants for companies.
Bootstrapping (love money): Bootstrapping refers to self-funding a startup using personal savings, revenue generated from sales, or contributions from friends and family. While bootstrapping may limit the speed of growth, it provides entrepreneurs with complete control over their business.
Debt Financing: Startups can obtain capital by borrowing funds from banks, financial institutions, or alternative lenders. Debt financing involves repayment of the borrowed amount along with interest over a predetermined period. It allows startups to access capital without diluting ownership, but they must have a reliable repayment plan. In France, you can imagine getting loans from banks such as ODDO, Banque Populaire, CIC or even from the BPI.
Crowdfunding: Crowdfunding platforms allow startups to raise capital from a large number of individuals who contribute smaller amounts. This method often involves offering rewards or pre-selling products/services to backers.
Eventually, startups have a range of financing options at their disposal, each with its own advantages and considerations. Dilutive funding, exemplified by the Demo Day pitch, offers the potential for significant investment and access to experienced investors. On the other hand, non-dilutive funding alternatives such as debt financing and grants allow raising capital without relinquishing ownership.