Three business angel networks have recently emerged in Caen. And a regional business convention, NormandInnov, has now established its own slot in the national calendar. A genuine boon for business creators.

10 million Euros for budding businesses

10 million Euros for budding businesses
NCI Gestion, the region’s capital investment company, is due to create, in the last quarter 2008, a second fund dedicated to business creation; Normandie Création 2. “Its predecessor, created in 2005 and endowed with a total budget of 6 million Euros, has reached the end of its investment period with over 20 participations,” explains Stéphane Mary, associate director of NCI Gestion. With the new fund, we now have 10 million Euros to invest. The aim is to generate 25 investments, with an average contribution of 300,000€. “We have raised the turnover threshold for the companies in which we plan to invest to 3 million Euros.” This fund will also be able to support business takeover, in complement to priming and risk capital.

“We have noted for a while that there is a genuine funding issue for budding businesses, particularly innovative enterprise with excellent development potential,” explains Laurent Jossier, Manager of the CEEI⁽¹⁾ accompanying businesses at Synergia.  A few private investors occasionally get involved, but in a very informal manner. Following several endeavours to increase awareness, including a recent breakfast debate (Connexions n°25, May 2007) and a one-day training session presented by Claude Rameau, President of France Angels, three business angel networks have been created: “Les Business Angels de la Manche”, “Norm’Angels” in Calvados and “Normandy Business Angels” in Rouen. Normandy now boasts four of such associations, along with “Norminvest”2, which already has a few years experience. In other words, a total of a hundred or so investors throughout the five departments (counties). Essentially business leaders, freelancers or executives, they are from a wide variety of business environments.
Business angels are all committed to a common code of ethics. “Each investor remains totally independent as far as decision-making is concerned, and that’s the main difference from investment funds,” explains Laurent Jossier. However, the taking of participation of one or several individuals must not exceed 30% of the total capital, in order not to reach the blocking minority. The investor contributes his/her skills and network to serve the emerging business, investing an average of between 10,000 and 100,000 Euros.

NormandInnov: Normandy’s business convention

The tax boon which is currently being implemented for the benefit of those liable for the ISF (French solidarity tax on wealth), may well render such tax exemption even more attractive. Since “These investments are extremely risky. Only half of them actually prove to be profitable,” clarifies Laurent Jossier. And to accompany the movement, the different networks are currently considering the creation of a risk capital fund in keeping with the business angels’ code of ethics. “Indeed, certain investors would be willing to contribute via such a fund, but they are too busy to keep an eye on their investment.” Such a fund could be implemented as a complementary measure. The region’s first business convention was also organised in Caen on the 24th of January, during which ten entrepreneurs and 5 research laboratories presented their respective projects to 17 Parisian venture capitalists who had made the journey to Caen together with a few dozen private investors. “This convention targets major projects, since the sums available for investment can reach several hundred thousand Euros,” explains Laurent Jossier. The 2nd edition of NormandInnoV is scheduled for January 2009 and is already part of the national calendar of business conventions. The event was co-funded by the Lower Normandy Regional Council, the DRIRE, the Caisse des Dépôts (Deposit and Consignment Office), In Extenso, the CRCI, Normandie Incubation, Synergia and Caen la Mer.

1 European Enterprise and Innovation Centre based at Synergia
2 based in Le Havre and chaired by Gérard Reynaud

Laurent Jossier / Synergia
Tél. : 02 31 46 73 77

Stéphane Mary / NCI Gestion
Directeur associé
Tél. : 02 32 18 63 02
Site : www.ncigestion.com

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