What You Need to Know Before Investing in a Startup

Crowdfunding—this new form of investment based on the principle of participatory financing—seems to be gaining more and more popularity among the French.

In fact, according to a report by the Banque de France, nearly 500 billion euros are sitting idle in French people’s checking accounts.  With inflation and rising interest rates making it increasingly difficult to invest, crowdfunding—this new investment method based on the principle of participatory financing—seems to be gaining more and more traction among the French. This emerging approach to investing is becoming increasingly popular, much like the stock market craze a few years ago.

An investor’s profile is linked to their risk appetite and risk tolerance. Building a portfolio depends 90% on the profile of the person making the investment—specifically, their goals, the amount they have saved, and the amount they wish to invest.
Tudigo has found that among its contributors, employees account for 45%, executives for nearly 17%, and retirees for nearly 3%. It also includes 2% self-employed artisans. A very diverse group, and therefore just as much diversity in their investments.

Innovation ranks first among investment sectors, followed closely by renewable energy, technology, and e-commerce. These are highly sought-after sectors in the market, offering real opportunities for profitability.

Since the health crisis, younger generations have been shaking up the norms of investing. People aged 25–35 (28%) and 35–45 (30%) together account for more than half of all investors. The younger demographic of investors is also leading to changes in other areas. The platform has observed an increase in the volume of small transactions, as younger investors tend to invest smaller amounts.

In recent years, the issue of diversity and gender balance among investors has begun to gain attention. Today, the proportion of women who invest continues to rise—reaching 29% in 2023. However, men still account for the majority of investors, at nearly 71%. The finance sector remains one of the most male-dominated markets in France.

On average, a venture capital project offers a potential return ranging from 2x to 10x. In contrast, a bond investment can yield a return of 8x to 12x over 12 to 36 months.
Investing also means supporting entrepreneurial ventures by investing in impact-driven companies (Geev, Procop Medical, Mayers, etc.) while significantly reducing your taxes—a reduction of nearly 25%—thanks to the Madelin law.