How can I invest in an innovative, disruptive startup (JEIR)?

A Young Innovative Company (JEI) is a gateway to tax benefits and financial support for dynamic businesses in France. But what exactly does that entail?

The JEI status is designed to recognize promising startups in France and offer them various forms of assistance and benefits, such as access to the Research Tax Credit (CIR) and exemptions from payroll taxes when hiring. To be eligible, a company must meet certain criteria:

   Be an SME with fewer than 250 employees.
   Be less than 8 years old.
Invest at least 15% of its total expenditures in research and development (R&D).
Its annual revenue must not exceed 50 million euros.
Be at least 50% owned by individuals or by companies with JEI status.

However, a recent reform of the JEI status introduced two new statuses—JEIC and JEIR—which offer additional tax incentives for investments in unlisted companies.

The JEIC (Young Innovative Growth Company) status is intended for rapidly growing companies. Unlike the JEI status, it broadens the eligibility criteria by allowing companies that invest between 5% and 15% of their expenses in R&D to qualify, provided they demonstrate strong growth potential. Investors may receive an income tax reduction of up to 30% of the amount invested, with a cap of €75,000 for a single person and €150,000 for a couple.

As for the JEIR (Young Disruptive Innovation Company) status, it is intended for companies that invest more than 30% of their expenses in R&D and focus on disruptive innovations aimed at replacing the dominant technologies on the market. Investors are eligible for an income tax reduction of up to 50% of the amount invested, capped at €100,000.

In short, these new bylaws offer attractive tax opportunities for investors and support the growth of innovative companies in France.