Crowdfunding and the public sector Insertheading 2Insertheading 2

What public sector can do ? Question : What does crowdfunding has to do with the public sector ? Crowdfunding is mainly a private initiative France : Crowdfunders are outlaw ! –They are doing the business of banks –Banking business is a monopoly (control by French govt of banking sector)

Sept 6th, 2013

What public sector can do ? Change the law ! Organize a crowdfunding summit Promote the idea of crowdfunding Co invest with crowfunding platforms –The example of –A 15M€ co-investment fund, one shareholder (Région PACA), participation of ERDF, managed by a private capital investment company

PACA Investissement Partners Regional private equity funds Regional Business angels National investors Société Financière du Centre (SCR Provençale et Corse) CDPS (BP Création)

+ 1€ + 1€ Under discussion now

Are startups ready ? NO ! –Cultural issue with the « loss of control in my company » (same problem arise with BA or VC) –Investment strategy to put in place Identify the best financing source according to my strategy –Still not enough communication on what Crowdfunding or Business Angels are and what they do Few SME are going for crowdfunding

Who is the best candidate for crowdfunding ? An innovative SME –With a business plan (realistic ?) Good capacity to develop within a short/mid term –Adviser / Coaches Open minded manager –Able to communicate (communication strategy)

Rodolphe UHLMANN