It’s coming soon! The current timetable is set for a fund constitution scheduled for the end of March 2020. Individual investments may take place from April for a period of 2 months.
Friends and family (friends – family or F-F) and business angels invest during the first year of the creation of startups. It is an investment in the start-up phase at the fund level, i.e. on 5 startups. This allows you to benefit from a maximum return on investment, up to 5 to 10 times the bet (often more since the priming phase offers exceptional returns, we will remain cautious). Investment risk is mitigated by the diversification of startups. In addition, they are controlled by an AMF-approved management company. Finally, the entrepreneurs each invested their own money, 10 thousand euros per entrepreneur, making a start-up capital of 250 thousand euros.
The start-up investment comes before the first round of fundraising. This means that startups are not yet valued. To make up for this difficulty, the F-F and business angels investments are made in the form of convertible loans (convertible loans/debts).
The convertible loan is comparable to a loan before the series A lift. Upon raising, it is converted into shares of the fund, with a predetermined share price. To attract seed investors, the price set in the convertible loan agreement is lower than that paid by Serie A investors. This allows you to benefit from a gain as soon as the first lift is completed.