Raising money is not an end in itself: it means trading part of your equity for speed. Understanding the mechanics of rounds, dilution and exits is vital.
4.1Funding stages
- Pre-seed (€30k to €300k): love money, business angels, first cheques to build the MVP.
- Seed (~€3M on average in France): validating the model and starting traction.
- Series A (~€10M): scaling up once Product-Market Fit is proven.
- Series B, C…: accelerating, conquering new markets, hiring massively.
4.2Cap table, dilution, vesting
Each round dilutes the founders: a percentage of equity is exchanged for cash. The cap table (capitalisation table) records who owns what. Vesting (standard: 4 years with a 1-year cliff) protects the company: a co-founder who leaves early does not keep all their equity.
4.3BSPCE: aligning talent
BSPCE (French founder share warrants, similar to employee stock options) let you offer employees a share of future value, with favourable taxation. It is the French tool for attracting talent when you cannot (yet) pay market salaries.
4.4The French ecosystem
At the centre, Bpifrance, the public investment bank. On the private side: Kima Ventures (Xavier Niel, one of the most active business angels in the world), Partech, Alven, Eurazeo, Serena, Elaia, Sofinnova, Daphni. The French Tech Next40/120 selection singles out scale-ups every year: €10bn in combined revenue and 42,000 jobs in 2025.
4.5The Achilles heel: exits
A start-up raises money in the hope of an exit: an acquisition (M&A) or a stock market listing (IPO). This is the French weakness: only 7 IPOs on Euronext Paris in 2024, and acquisitions are often American. Without exits, the ecosystem struggles to recycle its capital.
Key takeaway
Raising money means selling a share of the future to move faster. The right question is not "how much should I raise?" but "to reach which milestone, and at what dilution?". Not every company is meant to raise money.
Sources
EY-France Digitale barometer (2024-2025 fundraising); Bpifrance; La French Tech, Next40/120; N. Wasserman, The Founder's Dilemmas (cap table, vesting).
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