Seed capital
These are funds created by the State as part of the Future Investment Program (PIA) and which intervene very early on with startups. Seed capital generally comes just after “Love Money” (= the money provided by the startup’s founders and their loved ones to support its launch). It is thanks to these funds that some startups will be able to rent their first premises, work on a prototype or even move on to the marketing phase of their very first product.
Venture Capital Investors
Venture Capitalists are investors, usually banks, insurance companies or financial institutions, who invest in innovative companies with high growth potential on behalf of their clients.
The amounts invested are often very high (this is the type of investor we are talking about when we read headlines like “Startup X raises 80 million euros”).
There is therefore a lot of speculation surrounding these fundraisings. Venture Capitalists hope to make large capital gains on their initial investment of several million euros. To qualify for this type of fundraising, you must have proven that your concept works and that your 3-5 year development project is solid.
Development capital investment
These funds are used to finance startups or companies experiencing strong growth, which are profitable and which need very high funds to support their growth.
The key steps to follow for effective fundraising
You now understand that fundraising is a marathon and a hell of an operation: it requires endurance, determination and method. To avoid running out of steam too quickly, you will especially need to follow many steps and tips to successfully complete your fundraising!