Friday Finance

France is lagging far behind in the development of this type of private financing, particularly when compared with the leading Anglo-Saxon countries. At present, France Angels lists only around 4,500 business angels in France, more than half of whom (2,500) are in France Angels networks. This figure represents a proportion of 5 to 6 per 100,000 inhabitants, compared with around 100 per 100,000 inhabitants in the USA (i.e. 20 times more). This situation has been evolving rapidly and favorably over the past 5 years, but is set to accelerate sharply thanks to the new TEPA law passed last summer (in particular the part relating to the ISF exemption). These measures, which allow up to 75% of an investment in a start-up SME to be deducted from the wealth tax, should attract a good number of "newcomers" to the firmament of "angels", anxious to help start-ups and "gazelles" to grow, by investing in their creation 75% of what they would have given to the taxman, and perhaps even realizing substantial capital gains. All these "Virgin Angels" won't know what to do with this manna from heaven if they aren't informed of the existence of networks capable of meeting their needs. France Angels, a not-for-profit association, is dedicated to developing, gathering, qualifying and making accessible all information concerning business angel networks. France Angels is a driving force behind proposals, driven by a concern for the general interest, and its vocation is to be a partner of any organization providing support to high-potential business creators. It is at the heart of the organization of business angel networks in France, and initiates training programs for both individual business angels and network managers. In the last issue of Variances, you may have read an article on business angels and information on the forthcoming creation of a network within the ENSAE Alumni Association. Whether or not you're interested in joining the network, come and find out more about a new and fast-growing "profession" at this Club Finance breakfast. Claude Rameau, former Dean of INSEAD, and Co-President of France Angels, will share his personal experience as a business angel, as well as France Angels' actions. He will give us his views on the expected impact of recent tax provisions.