Founders Future, a prominent VC firm within the French tech ecosystem, has made an intriguing move by acquiring the equity crowdfunding marketplace Sowefund. Although the exact terms of the deal remain undisclosed, Sowefund has been consistently profitable since 2022 and boasts a team of approximately 20 employees.
This acquisition now positions Founders Future as the operator of two distinct yet complementary businesses. Through its VC funds, as previously discussed, the firm secures investments from limited partners, encompassing professional investors and family offices, and subsequently directs these funds towards promising startups, adhering to the traditional VC model.
On the other hand, the newly acquired crowdfunding platform connects retail investors with startups seeking financial support from their user communities or from individuals looking to diversify their savings through potentially high-yield but risky investments. Notably, Founders Future and Sowefund will maintain their separate operations without any integrated synergy.
So, why would a VC firm venture into the realm of crowdfunding and acquire such a platform? Marc Menasé, Founder and CEO of Founders Future, offers insight into this strategic decision: “We noticed two major trends. The first trend, which you have certainly noticed, is that you have a new generation of investors who want to get more hands-on — with both public and private companies. They want transparency and they want to invest in the real economy.”
“The second observation we’ve made is that our job with the fund is very professional and very disciplined in its day-to-day approach. And we can bring these methods to a company involved in crowdfunding financing. And it’s true that this hasn’t been done much,” Menasé added.
Founders Future has already witnessed the collaboration between crowdfunding companies and some of its portfolio firms, such as Taster and 900.care, which raised capital on Crowdcube, the British investment platform that expanded to France in 2022.
Elevating Equity Crowdfunding Standards The co-founders of Sowefund, Benjamin Wattinne and Georges Viglietti, will continue to lead the crowdfunding platform. However, Founders Future plans to invest millions of dollars to expand Sowefund’s team over the next year or two, with the aim of infusing their expertise and professionalism into the platform, making it the preferred co-investment platform for professionals.
Since its inception in 2014, Sowefund has facilitated 103 crowdfunding campaigns, enabling companies to raise €81 million from over 110,000 retail investors. Notably, recent campaigns include Ekwateur, Agriloops, Lunii, Axioma, Extracadabra, and Futura Gaïa, although there is no information available regarding the performance of these investments. Sowefund has also obtained certification as a European crowdfunding service provider, positioning it for potential expansion into other European countries in the future.
However, the ultimate goal for Sowefund is to offer investment opportunities in various funds, including VC funds and impact funds, contingent on regulatory changes.
Founders Future’s move is intriguing, especially given the current timing. VC investments have slowed globally in recent years, compelling startup CEOs to seek innovative ways to extend their financial runways. Marc Menasé remarks, “The potential investment pool among individuals is enormous. So I think what’s great about equity crowdfunding is that it’s an alternative or a complement in a context where financing is difficult for companies.” This strategic acquisition is a proactive response to the evolving landscape of startup financing.
