Investors and Markets of Private Equity in 2024

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1. Who are the private equity investors?

Les investors in Private Equity Are natural persons Or institutions who invest in companies that are not listed on the stock exchange with the aim of generate high returns. They provide the capital needed to help these entities grow, innovate, or restructure their businesses.

There are different types of private equity investors, all bringing funds in the form of debt.

• Love Money : financial contribution from the entrepreneur's family and friends.

• Business Angels : wealthy individuals, often former entrepreneurs, who invest in promising start-ups in exchange for capital and advice.

• Fund of Venture Capital (VC) : investors specialized in the financing of start-ups and companies in the growth phase.

• Private equity funds : investors taking majority or minority stakes in established companies, often using a combination of equity and debt.

• Crowdequity : crowdfunding where individual investors buy shares of capital via online platforms.

• Corporate funds (CVC) : investment funds created by large companies to invest in start-ups in their sector.

• Crowdlending : loans granted by individual investors through crowdfunding platforms.

• Institutions traditional finances : banks and other institutions that provide structured loans in the form of debt.

These types of investors offer a variety of financing solutions so that unlisted companies can find the right financial contribution according to their specific needs. The practical implications of this qualification determine the most appropriate type of financing for each phase of business development.

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2. Why and when should you look for investors?

Looking for investors is an essential step for any business, especially when it comes to Raise funds For creative projects. The practical usefulness of using investors lies in providing the capital needed to finance initiatives that cannot be self-financed. This allows companies to develop, innovate and position themselves advantageously on the market.

Investors, thanks to their expertise And to their networks, provide both funding and valuable strategic advice. They have significant power in the market because their involvement reinforces the company's credibility with other financial players and can thus facilitate access to other sources of financing.

The right time to look for investors depends on the development phase of the company.

• For the creative projects, initial funding may come from love money or from business angels, who are more likely to invest at an early stage. At this stage, the company benefits from a financial support And of a mentor.

• During the growth phase, after having validated the product and acquired the first customers, it becomes relevant to look for venture capital investments or private equity funds. The latter are better able to provide substantial funding necessary for expansion, to internationalization or at the diversification of products.

• Finally, for businesses in Maturity phase which require heavy investments for large-scale projects, institutional investors or corporate funds may be requested.

The involvement of these investors at every stage of the Fundraising ensures continuous support adapted to the needs of the company in order to maximize its chances of success.

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3. Where can I find private equity investors?

To find private equity investors, several possibilities can be explored depending on the needs and stage of development of the company.

• Business angel networks : business angels are often grouped into networks or associations, facilitating their identification and contact. Such networks organize meetings and events where entrepreneurs can present their projects.

• Crowdfunding platforms : platforms specialized in crowdfunding, such as those dedicated to crowdequity, make it possible to raise funds from many small investors. These platforms are accessible and make it possible to reach a large audience.

• Venture capital and private equity funds : entrepreneurs can find venture capital and private equity funds by consulting professional directories, by participating in trade shows and conferences dedicated to investment or by speaking to consultants specialized in fundraising.

• Incubators and accelerators : these structures offer not only funding but also operational and strategic support. They are often directly connected with institutional contributors and private equity funds.

• Public bodies and financial institutions : organizations like Bpifrance or professional associations can guide businesses to the right investors. Traditional financial institutions also have departments specialized in private equity investments.

When selecting investors, several selection criteria need to be evaluated. It is important that investors share the vision and values of the company. Their sector expertise, their ability to provide strategic advice, and their professional network are also key factors.

However, it should be noted that the flexibility of financing conditions and the compatibility with the specific needs of the company are just as essential.

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4. Revenue-Based Financing (RBF): a viable alternative for investors?

The Revenue-Based Financing (RBF) represents a viable alternative for investors, thus constituting a flexible and non-dilutive approach to financing.

Unlike traditional fundraising methods, RBF allows businesses to raise capital In exchange Of a percentage of their future earnings, rather than selling part of their capital.

The RBF offers a return on investment directly linked to the performance of the company. This method is particularly suitable for entrepreneurs with recurring revenues, such as SaaS or e-commerce. In fact, it allows structure repayments based on cash flow and thus reduces the risk of default.

In addition, the RBF avoid the dilution of capital, which is a significant advantage for founders who want to maintain control of their business. It is a innovative and attractive solution to finance companies with high growth potential while minimizing the risks associated with traditional investments.

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5. Tips for a successful private equity fundraiser

You have to follow some key steps to a successful fundraiser in Private Equity, including meticulous preparation and a well-defined strategy. First of all, it is essential to prepare a solid business plan and convincing, clearly presenting the business model, company goals, growth strategy, and financial projections. This document should demonstrate the return potential and the long-term viability of the business. One powerful executive summary is also essential to quickly capture the interest of investors.

Thereafter, it is appropriate to create a compelling pitch deck. This document, which is more succinct than the business plan, should highlight the strengths of the company, its market potential and the reasons why it represents an attractive investment opportunity. One good oral presentation A pitch deck is also required when meeting with investors.

It is crucial to target the right investors from the start. Look for those whose goals and interests align with those of your business. Participating in networking events, conferences, and investment forums can help build valuable contacts.

One Good communication, transparent and regular is also essential. Businesses should be ready to answer questions and provide detailed information about their business.

Finally, we will remind you that it is important to comply with regulations imposed by The Financial Markets Authority (AMF) to ensure compliance and avoid legal complications.

Following these tips is a boon to increase a company's chances of success in the financial markets. This makes it possible to attract people who are ready to support the development of the business over the long term.

In 2024, private equity investors, such as business angels and venture capital funds, are key to financing unlisted companies. They provide capital, strategic advice and in this sense facilitate growth and innovation at every stage of development.

At the same time, the dematerialization solutions proposed by Axiocap for title management And the online holding of meetings and general meetings, come to reinforce the transparency And theefficiency.

En simplifying administrative management And in guaranteeing compliance, Axiocap allows companies to focus on their development and thus meets the expectations of modern investors in private equity markets.