The 2013/11/10 at 09:02
Crowdfunding is based on a simple principle: financing demands from project owners and financing offers from the public meet on a web site. This highly successful US concept has now crossed the Atlantic to hit France. The CCI of Caen in Normandy is set to ride the new crowdfunding wave. “This participative financing mode started to emerge in France in 2007 with My Major Company that helps records get released,” explains Nicolas Brige, Economic Development Manager at the CCI of Caen. “I came up with the idea of setting it up at the CCI.”
In this way, the CCI of Caen is in the process of setting up a company, with capital of 250,000 euros, to present, on a digital platform, projects that have already been given the thumbs up by a selection committee made up of company heads and professionals. Via campaigns based on videos, memorandums and business models, citizens can decide whether to invest 1000 euros or more in a given company. The citizen will then become a shareholder of the company and benefit from tax deductions.
The Economic Development Manager at the CCI of Caen explains that this is “a new mode of financing for companies needing capital upwards of 100,000 euros”.
In the works for a year and a half, this crowdfunding company being set up by the CCI of Caen will see the light in the first quarter of 2014. A number of companies of all sizes may be called to use the system very quickly, namely companies with a sure potential, holding a trademark with money-earning potential, or already selling goods and requiring financing. “At last we are now sure of obtaining permission from the Autorité des Marchés Financiers (editorial note: French Financial Markets Authority). Ultimately, this mechanism, full of assets, will facilitate the constitution of networks for businesses.” And other CCIs may well be inspired to duplicate the programme.