Here’s an intriguing development: Founders Future, a prominent venture capital firm deeply ingrained in the French tech ecosystem, has acquired an equity crowdfunding platform known as Sowefund. Although the precise terms of the transaction remain undisclosed, it’s worth noting that Sowefund has been in the black since 2022 and employs approximately 20 individuals.
As a result of this acquisition, Founders Future now operates two distinct yet harmonious enterprises. Through its venture capital funds, which I’ve recently covered, Founders Future secures investments from limited partners—comprising professional investors and family offices—and subsequently directs these funds into promising startup ventures, adhering to the traditional venture capital model.
Simultaneously, through its crowdfunding platform, Founders Future connects retail investors with startups that seek capital from their community of users or from individuals well-versed in personal finance seeking diversification in potentially high-yield, albeit risky investments. Importantly, Founders Future and Sowefund will continue to function as separate entities without any integrated synergy.
But why would a venture capital firm venture into the domain of crowdfunding?
“We’ve observed two major trends. Firstly, there’s a new generation of investors who desire more involvement in both public and private companies. They crave transparency and wish to invest in the real economy,” explained Marc Menasé, Founder and CEO of Founders Future.
“The second observation we’ve made is that our work with the fund is highly professional and rigorously disciplined in its daily approach. We can apply these methods to a crowdfunding financing company, and this hasn’t been extensively explored,” Menasé added.
Founders Future has already witnessed crowdfunding platforms working with some of the firms in its portfolio. For example, Taster and 900.care successfully raised capital on Crowdcube, the British investment platform that expanded into France in 2022.
Elevating the standards for equity crowdfunding, Sowefund’s co-founders, Benjamin Wattinne and Georges Viglietti, will continue to lead the crowdfunding platform. Nonetheless, Founders Future has formulated a multi-million-dollar investment strategy to expand Sowefund’s team over the next year or two.
“Our intention is to apply our expertise to ensure that Sowefund becomes a more professional platform and the primary choice for co-investment alongside professionals. That’s our ultimate goal,” Menasé remarked.
Since 2014, Sowefund has overseen 103 crowdfunding campaigns, collectively raising €81 million from more than 110,000 retail investors. Recent campaigns include Ekwateur, Agriloops, Lunii, Axioma, Extracadabra, and Futura Gaïa. The performance of these investments, however, remains undisclosed.
Notably, Sowefund recently obtained certification as a European crowdfunding service provider, paving the way for potential expansion into other European countries.
Looking ahead, Sowefund, contingent upon regulatory changes, aspires to offer investment opportunities in funds such as venture capital funds and impact funds, although this capability is not yet feasible.
Founders Future’s move is also intriguing due to its timing. Venture capital investments have witnessed a slowdown globally over the past couple of years. As many venture capital firms continue to pass up on opportunities that would have been attractive in years past, startup CEOs are increasingly exploring innovative methods to extend their financial runways.
“The potential pool of individual investors is vast. There are people who wish to invest in companies they are familiar with or use, or those for which they have a positive sentiment. The number of such investors is substantial,” Menasé noted. “Equity crowdfunding presents an alternative or complement in a climate where securing financing for companies is proving to be challenging.”
