External Newsletter September 2023 - N° 150

EDITO

Happy back-to-school!

Dear Business Angels friends, dear readers,

The start of the new school year is usually an opportunity to make good resolutions and take stock of what's going well, what's not so well, and therefore also what could go better!

Start-up financing continues at a steady pace.

The projects presented to our members have been a resounding success, with no fewer than 13 projects financed or refinanced since the start of the year for a cumulative amount of €2.1 million. If we add the three closed rounds of financing for companies that have appealed directly to their shareholders, the total amount raised exceeds €2.7 million. Innovation financing by our network looks set to be strong again this year.

These good indicators don't tell the whole story. It's necessary to read between the lines to interpret new underlying and cyclical trends.

50% of projects financed are refinancings.

We are still being approached by some of our promising participations when we could be counting on exits in order to devote our resources to new opportunities.

Financing methods are becoming more complex:

Regional and private funds are increasingly investing in seed capital. This is good news. The downside, which we're seeing more and more frequently, is the demand to lighten the company's capitalization table by grouping together individual shareholders within a dedicated company, a project investment vehicle, whose acronym is SPV.
The purpose of my presentation is not to list the advantages and disadvantages of such a scheme, nor to comment on its effectiveness.

I can, however, mention two direct consequences:

- Setting up a company entails setting up and running costs, even if the mandataries are volunteers, as is the practice at BADGE.

- Need to regulate operations with the company being financed.

Will our financing practices evolve?

At BADGE, we're very keen to maintain a close, even intimate relationship between our investors and the companies we finance. That's the spirit of Business Angels. An SPV adds an intermediary between the BA and the start-up. That's why at BADGE we won't invest via an SPV without a commitment from the founder to come and present the company's progress at the SPV's AGM. Proximity is preserved.

Are we going to abandon our SIBAs?

No, on the contrary! As I wrote above, we're not going to deprive ourselves of what's going well. SIBA XMP 2010 is in the process of being wound up, and is continuing to distribute its liquid assets to its shareholders. The final balance sheet will be drawn up after the last exit. At the other end of the scale, our eighth SIBA, BADGE 2023, is proving a great success with members, and a further issue is planned for the end of the year. We will continue to build up our portfolio of investments until the end of 2024. This investment formula is aimed at investors who do not wish or do not have the time to analyze each investment opportunity in depth, as well as those who wish to diversify their personal portfolio by adding a stake in twenty companies at once via SIBA.

In conclusion, the evolution of financing practices contributes to enriching the diversity of formulas offered by BADGE to its members, and reinforces our philosophy: to be at the side of our participations and their managers.

Best regards,

Paul Leondaridis,

Chairman of Business Angels des Grandes Écoles.

>>>Insurersand Business Angels

Complementary approaches to supporting start-ups

INSURERS: Beyond traditional risk management, insurers have changed their approach and developed new roles and models to support the innovation and growth of start-ups.

Professional liability

It's an essential part of risk management for start-ups. Insurers offer "professional liability" insurance to protect these businesses against third-party claims in the event of damage caused.

This protection is essential to reassure investors and business partners, but also to support the customer promise. A start-up's customer promise is trust. Customers often choose start-ups for their agility, innovation and ability to solve complex problems. However, this trust is fragile and can be broken in an instant.

Example: a technology start-up promises its customers a revolutionary platform. A bug occurs, causing disruption and/or business interruption for customers. Without insurance, the start-up faces costly lawsuits and considerable damage to its reputation. With the right insurance, it takes care of the legal costs, compensates injured customers and works quickly to resolve the problem.

Cybersecurity

Cybersecurity threats are everywhere. Cybersecurity insurance policies help start-ups protect themselves against data breaches and cyber-attacks, and even pay any ransoms. This protection is crucial for data security, business continuity and the protection of intangible assets.

Property and Equipment Insurance

Start-ups need specific equipment and premises for their activities. Insurers offer property and equipment insurance to cover losses in the event of material damage. This ensures that start-ups can continue to operate even in the event of a claim.

BUSINESS ANGELS: Business angels are individual investors who bring financing, expertise, networks and advice to start-ups.

WHAT Complementarities?

Risk Management

Through risk analysis and insurance advice, insurers enable investors to make informed decisions and minimize potential losses. By providing Adhoc insurance to the start-up, the Insurer gives the founder the means to prove his ability to anticipate and therefore his capacity to project. "To govern is to foresee".

Investment Protection

Insurers can offer specific insurance policies to protect investments in the event of financial or operational difficulties. The Key Man insurance often required by Business Angels achieves two objectives:

- Replacement for start-up manager "unable to attend",

- Maintaining the value of La start-up by injecting a capital sum in the event of the death or incapacity of the founder(s).

Access to additional services

Insurers can provide start-ups with a range of services, such as risk management training, advice on regulatory compliance, or tailor-made insurance solutions.

Reducing Uncertainty

The presence of adequate insurance can reassure business angels that the start-up is managing its risks. This can encourage them to invest further and become more actively involved in mentoring and developing the business.

Personalized support: advice of all kinds, risk management and benchmarking of best practices?

As experts in risk management, insurers can advise start-ups on how to identify, assess and effectively manage the risks associated with their business. This expertise helps to reinforce the start-up's operational stability. Likewise, like business angels, insurers can use their networks of partners and customers to put start-ups in touch with the right people.

Conclusion

Business angels and insurers have every interest in reinforcing their approach to start-ups. The insurer's dimension of trust and reassurance gives the project owner a label that reassures investors and other business angels.

BADGE's business angels have made no mistake in asking their project sponsors to take out two types of insurance, in line with their shareholders' agreement: key man and directors' liability.

In addition to the protection, prevention and risk management advice provided by insurers, Business Angels provide financing, expertise and mentoring in the interests of the ecosystem.

UPCOMING EVENTS

>>> PROJECT PRESENTATIONS

Monthly meetings with presentations of innovative fund-raising projects led by Philippe Pernot, Vice-Chairman in charge of project appraisal.

Members only.
Non-members, ask for your invitation .

News from our funded startups

Following the success of its first round, Caeli Énergie raises €10 million in a second round to deploy its "green" air conditioning systems.

The start-up invested by BADGE in 2022 announces the success of its second round of financing, raising 10 million euros to automate its production line and bring its product to market in 2024. Caeli Energie is a Deeptech start-up whose mission is to replace polluting air conditioning with a low-carbon technology made in France. This round was carried out with four investment funds: Asterion Ventures, Starquest, the French Tech Seed fund (managed on behalf of the French government by Bpifrance as part of France 2030), and Rise PropTech. The future looks bright for this successful energy transition company.

Caeli Energie and Immoblade speak on France Culture.

Start-ups Caeli Energie and Immoblade took part in France Culture's 6pm news program "Demain l'éco". The "Demain l'éco" program talks about economic transition, and gives listeners the chance to discover companies, collective initiatives and innovative projects that respond to today's social and environmental challenges. Rémi Pérony (Caeli Energie) explains how Caeli Energie air conditioners can reduce the impact of a conventional air conditioning system by up to 80% over its lifetime. Patrick Callec (Immoblade) presents Immoblade's solutions for improving the thermal comfort and energy efficiency of buildings. A fine spotlight for these two fine companies supported by the BADGE network.

Our startups are recruiting

Great projects to invest in within our network

DeepColor designs and markets high-definition photoacoustic imaging equipment. This new medical imaging modality, which combines the advantages of optics with those of ultrasound, enables 3D visualization of vascular function without contrast agents, in depth and with unrivalled resolution.

Cyclair develops technological products that enable a spectacular reduction in the volume of chemical inputs, while continuing to protect crops and ensure current yields, or even improve them. The company uses precision robotics, information technology and artificial intelligence to ensure the economic and ecological transition of agriculture in France and worldwide.

Somno Engineering designs and markets a sleep monitoring device dedicated to patients in intensive care units. The technology is the result of research carried out by Professor Xavier Drouot and his team over the last 6 years at the Poitiers University Hospital, the Inserm Clinical Investigation Centre in Poitiers and the Experimental and Clinical Neuroscience Laboratory (University of Poitiers and Inserm), with the aim of saving more lives, increasing hospital profits and retaining nursing staff.

Drone Geofencing has developed a solution for supervising a fleet of drones carrying out independent missions or in swarms from a control center. The solution comprises mission preparation software and a communication module (ground station and on-board system) for short-loop UAV control.

Cellaven frees scientists from the drudgery of in vitro culture by making cell production automation accessible: "Less cell work, more cell Science". In vitro cell culture is an indispensable tool in Life Science, which has led to major advances such as vaccines, anticancer drugs and biotherapies. Cellaven has developed the NESTOR automat: an easy-to-use, affordable and compact device for automating cell culture production, employing patented culture fluid flow distribution technology.

Inergeen designs, builds and markets eco-responsible living spaces. Inergeen has developed Woodea™, an innovative 2D construction concept: 100% bio-sourced materials, self-generation of photovoltaic energy and pre-integrated IoT for à la carte user services. Growing rapidly, Inergeen is developing exciting projects with local authorities, developers and landlords including eco-districts and multi-generational villages with services, Inergeen is labeled a Startup with Environmental, Economic and Social Impact by Bpifrance and France Digitale.

Seekyo is developing a therapeutic solution that combines the best of current therapies and overcomes their limitations. Seekyo's drug candidate, SKY01, uses the tumor itself to hyperselectively deliver and activate the treatment exclusively within the tumor microenvironment, thanks in particular to a proprietary linker sensitive to tumor marker enzymes. This strategy increases treatment efficacy while considerably reducing side effects, by sparing healthy tissue. The company's aim is to provide highly precise and effective treatments for patients suffering from pancreatic, triple-negative breast and colorectal cancers in particular.

En Carta Diagnostics is a company that develops, produces and markets high-precision paper-based diagnostics. Based on the latest innovations in synthetic biology, 10 years of R&D and 6 patents (Arizona State and Harvard), the start-up's diagnostics technology platform fills the gap between rapid but inaccurate antigenic tests and high-performance but cumbersome molecular diagnostics. The company's first commercial product meets a strong need in a niche market in developed countries: early detection of Lyme disease.

HYMAG'IN isdisrupting the production of magnetic materials with its patented hydrothermal nano-ferrite synthesis technology. HYMAG'IN stands out for its ferrites, which are 100 times smaller, its sustainable industrial approach and its geographical proximity to high-value-added European markets. HYMAG'IN is targeting players in embedded electronics for electric vehicles, telecoms and defense, the first sectors to be impacted by miniaturization. HYMAG'IN aims to become the European leader in nano-ferrites, with sales of €30 million by 2030.

Would you like to find out more?

NETWORK AND PARTNERS

GOWeeZ - START-UP GOLF CHALLENGE & MY PITCH IS GOOD

Take part in the 7th START-UP GOLF CHALLENGE. The golf competition dedicated to the entrepreneurial ecosystem, innovation and private equity. A meeting on the golf course between INVESTORS and ENTREPRENEURS.

AGENDA

- Reception from 7:30 (welcome breakfast)

- 8:15 a.m.: Presentation, rules and game instructions

- 8:45 a.m.: Shot Gun departure

- 10h45: Introduction to golf (for beginners not registered for the competition)

- 2:00 pm: Lunch at the club house (table change - Networking) + Speakers

- 4:00 pm: My Pitch is good! (pitches from selected start-ups)

- 4:30 pm: Prize-giving ceremony

- 5pm: Thank-you cocktail

This agenda is subject to change

Useful golf information :

- Hotel on site M Gallery : https://ledomainedesvanneaux.fr/chambres-suites/

- Le Golf de l'Isle Adam is 15 minutes from Roissy airport, and 30 minutes from Paris on the A1 freeway.

Call for entries: GO Invest Start-up

To promote the financing of start-ups, we've been organizing speed meetings between start-ups and Business Angels for the past 10 years, alongside the CCI Paris Ile-de-France, which we've renamed the Rencontres Go Invest start-up.

Your start-up is registered in Ile-de-France?

You are an innovative company and have already had your first successes?
You are in the seed phase and looking to raise funds ?

Take part in the next Go Invest start-up meetings!

• From September 6 to October 10 inclusive: call for applications (applications with pitch deck must be submitted on the dedicated platform). Eligible start-ups will receive a personal link to complete the Wisize powered by Wirate questionnaire, which will assess their maturity potential for investors.
• A committee of experts from the CCI Paris Ile-de-France will select 20 start-ups from the applications pre-selected on Wisize powered by Wirate.
• November 9 : the finalist start-ups will be invited to the CCI Paris and will have 10 minutes to pitch, one after the other, to the committee of Business Angels mobilized by France Angels and France Invest. Contact: startup75@cci-paris-idf.fr

>>> EDITORIAL COMMITTEE
Paul Leondaridis, President / Yannis Sahraoui, Managing Director
Dimitri Lionel A.Omgba, Communications Manager [Send your subject to the editor]

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