External newsletter November 2023 - N° 152

EDITO

Innovation project due diligence

Dear Business Angels friends, dear readers,

What distinguishes Business Angels from other investors? Let me highlight the main differences.

First and foremost, a taste for risk. Investing in a young, innovative company with little track record is a gamble on the future. At BADGE, our members actively participate in their investment decision-making processes, based on the information available on our project platform. The skills they have acquired over the course of their professional careers make our members well qualified to assess the interest and potential of projects for companies seeking financing for their growth. The same applies to our support services.

They know that we don't win every time, far from it, and that there is a risk of losing the entire amount invested in a start-up. By diversifying their portfolio, this appetite for risk is rewarded by certain exits with a multiplier rarely seen with more conventional investments.

Of course, when it comes to participative financing, banks offer their customers seed capital products. Private equity funds also offer higher ticket sizes. Their offers are not lacking in interest, and are necessary for the smooth running of the innovation ecosystem. However, this type of investment remains passive for the investor: the selection and monitoring of investments is entrusted to professionals who are remunerated for this service, and who also eventually take a share of the profits made in the event of success.

The BADGE model is associative: the companies invested in are selected by our members. Among them are instructors who devote their time and multiple skills to working in depth with the startup's founders and managers on the innovative project. Analyzing innovation, whether technical or in terms of usage, is no simple matter. Often, the success or failure of a start-up depends on the human qualities of its founders, their ability to lead a project, manage teams and listen to their strategic committee.

Last year, 43 volunteer members took on 37 applications. Not all the projects were completed. For some companies, doubts about the product, the offer, the market acceptance or the personality of the managers led to the procedure being stopped. 29 projects were presented at the plenary meeting and 24 were financed. This voluntary work enabled 133 members to invest directly in the projects of their choice.

On behalf of our association, I would like to pay tribute to the instructors in our network.

Best regards,

Paul Leondaridis,

Chairman of Business Angels des Grandes Écoles.

INTERVIEW

MichaëlFerrec, President
"INSPEERE

1) Your startup has just completed a round of financing. Could you describe the "INSPEERE"project for us?

INSPEERE is a company dedicated to cybersecurity and data protection. Our flagship project is DATIS, an innovative solution that is revolutionizing the way companies secure their sensitive information. Using technology patented by the CNRS, DATIS offers a decentralized approach to data backup, eliminating the need for data centers and guaranteeing the sovereignty of our customers' data. We are committed to providing an eco-responsible and RGPD-compliant solution, while offering maximum security against threats such as ransomware.

2) What was the genesis of the project? How did you meet your co-founder?

Olivier Dalle and I met through a mutual friend. At the time, I had just sold shares in my previous company, which specialized in the archiving of multimedia documents, a related field to data backup. Olivier, on the other hand, was looking for a partner to launch a start-up focusing on an innovative approach to data backup. His initiative was based on the research he had carried out over the past 15 years as a lecturer at the Université de Côte d'Azur and within the I3S laboratory.

The idea of a mutually supportive technological approach, where all stakeholders (customers, publisher, resellers, and the company as a whole...) could share a common interest, immediately appealed to me. What's more, the fact that France can still be the scene of ambitious projects based on first-rate technological innovation strengthened our resolve.

This vision brought us together, and thus INSPEERE was born, a company determined to advance cybersecurity and guarantee data protection for our customers, with whom we share the idea that a safer digital world that respects privacy and the environment is possible.

3) Why did you turn to Business Angels?

Business Angels and the BADGE network (Business Angels des Grandes Écoles) were essential partners in our fundraising. Their expertise in supporting innovative start-ups and their understanding of the specific challenges we face in the cybersecurity sector were invaluable. We chose this route to benefit from the expertise and reputation of the network and these investors who share our vision. Their financial support and strategic advice are crucial to INSPEERE's growth.

4) Following the successful completion of your fund-raising, what are your ambitions for the coming years?

Our top priority is to accelerate INSPEERE's growth and expand our presence in the French and international cybersecurity markets. To achieve this, we are focusing our efforts on several strategic areas.

First of all, we're putting a strong emphasis on strengthening our partnerships with resellers in the IT channel. These partnerships are essential to extend the reach of our solution and make it accessible to a greater number of businesses. We work closely with our partners to train their teams, provide high-quality technical support, and ensure an optimal customer experience.

In addition, we are exploring other distribution channels that will enable us to reach new markets and meet the specific needs of various business sectors. Our aim is to make DATIS available and adaptable to a wide range of companies, whatever their sector or size.

At the same time, we continue to invest heavily in research and development to constantly evolve and improve our DATIS solution. We keep a close eye on feedback from our customers and on regulatory developments in the field of cybersecurity. Our team of engineers and developers works tirelessly to integrate the latest technological advances, enhance security, and ensure that DATIS remains at the forefront of innovation.

In short, our ambition is to become a leading player in cybersecurity, offering an unrivalled, state-of-the-art data protection solution, while maintaining strong relationships with our partners and remaining resolutely focused on our customers' needs. As data protection is a major issue for businesses worldwide, we are determined to actively contribute to their security and success.

5) You raised funds from Business Angels via an SPV (Special Purpose Vehicle). Why did you choose this investment vehicle? What are the long-term advantages for your company and your investors?

The choice of an SPV for our fundraising was a strategic one. It allows us to optimize the investment structure and simplify fund management. The long-term benefits are manifold. For INSPEERE, it reinforces the credibility of our capital structure vis-à-vis our future investors. For our investors, it simplifies administrative operations while optimizing the possibility of future capital injections into INSPEERE, thus guaranteeing their return on investment. Ultimately, this approach creates a win-win environment, where we can focus on INSPEERE's growth, while offering investors a transparent and efficient experience.

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

Start-up Telegrafik celebrates its 10th anniversary, accelerates development and aims to have 1,000 sites equipped by 2028

Telegrafik, which has been supported by BADGE for several years, is celebrating its 10th anniversary, a milestone symbolizing a decisive moment for the French company, which has posted solid, profitable growth since 2021 and looks set to accelerate further in a buoyant market context. With its platform currently covering 300 sites, Telegrafik has doubled its recurring revenues over the past 18 months. The company's objective is to equip 1,000 sites within 5 years, positioning itself in the senior housing and homecare markets.

Peptinov start-up wins EIC Accelerator award

Start-up Peptinov is one of 47 winners of the cut-offEIC Accelerator (European Innovation Council) in June 2023. Following its selection in this highly competitive process, Peptinov will receive a €2.5 million grant and a €5.5 million equity injection to finance the Phase 2 clinical development of its anti-IL®-6 immunotherapy targeting osteoarthritis. The EIC Accelerator program provides financial support, via a mix of grants and investments, as well as coaching for innovative European SMEs. They particularly target deeptech start-ups.

Our startups are recruiting

Great projects to invest in within our network

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.

Winalist is a digital platform for selecting, highlighting and booking the best wine-related activities in Europe. Thanks to Winalist, travelers from all over the world can easily book a visit to the cellars of Champagne Veuve Clicquot, a tour of Châteaux Giscours in Bordeaux, a wine workshop in Italy, a tasting in Portugal's Douro Valley or a hot-air balloon flight over the vineyards of Château de Pommard in Burgundy.

Founded in Grenoble in 2022, the Steerlight deeptech is developing a unique LiDAR FMCW solution based on over 15 years of R&D at CEA-Leti, featuring performance, miniaturization, cost and robustness. In particular, its integration into silicon photonics and its manufacture using standard microelectronics processes will reduce costs through economies of scale. These competitive advantages are key to meeting the expectations of volume markets. Initially focused on applications in robotics and industry 4.0, the company is aiming to raise its first funds in 2023, in order to have a working demonstrator at its first customers' premises, before extending its ambitions to the mobility market, sectors with prospects of over 4 billion euros by 2027.

Would you like to find out more?

NETWORK AND PARTNERS

Round-table: raising your first funds today: mission impossible?

Today, fund-raising has become a real obstacle course: more complex, longer, with more demanding investors... So how can you avoid finding yourself up against the wall if you're an entrepreneur and need cash to grow? What levers can be used if the fund-raising is unsuccessful or takes longer than expected?

To provide you with some answers, Ponts Alumni is pleased to invite you to the round table "Raising your first funds today: mission impossible?" on Wednesday December 6 at theBpifrance Auditorium (6-8 boulevard Haussman, 75009 Paris) with the support of the Business Angels des Grandes Ecoles (BADGE) network.

BADGE will present the fund-raising process within the network, as well as its study on refinancing in 2023 carried out with around 100 start-ups in its portfolio.
Two start-ups will share their recent fund-raising experiences with you.

This round table will be followed by a cocktail reception to extend the exchange with the guests, notably the BADGE sourcing team.

Whether you are a start-up looking for financing,
Whether you are an alumni interested in joining a Business Angels network,
This event is for you!

The European Innovation Council (EIC) NCP (National Contact Point) is at the service of research and innovation communities to provide information on the opportunities offered by this new scheme, financed by the Horizon Europe Framework Program for Research and Innovation. The missions of the EIC Accelerator NCP are :

• inform and raise awareness among the French research, development and innovation communities about Horizon Europe project funding opportunities;
• provide assistance, advice and training on how the program works;
• point out the existence of other sources of funding (European and national) likely to better meet their needs, and direct them to the support services for these funds.

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

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