March 16, 2009: Since 1997, FCPI funds have profoundly impacted on venture funding in France and Europe.
mars 16, 2009
This finance vehicle gathers individuals willing to invest, in innovative, early stage and private companies (venture capital), at least 60% of the money collected. SMEs listed on Alternext and MarchÃ© Libre are considered to belong to the private company pool within a FCPI portfolio. Also, up to 20% of the funds may be invested in listed companies (except Alternext and MarchÃ© Libre). FCPI funds could be invested everywhere in EU (27 countries) and their duration is usually of 8 years. Today, the maximum investment per FCPI fund is 2.5Mâ‚¬ per year, therefore venture capital firm may use several FCPI funds under their management to make larger ticket. Most FCPI funds have been managed within venture capital firm.
2007: 624 Mâ‚¬ raised through 28 FCPI
1997-2007: More than 2500 investments made
A company is defined as innovative either through specific agreement by OSEO or automatically if the SME dedicates a significant part of its resources to R&D.
Why the taxpayer should invest in FCPI
In France, the taxpayer can reduce 25% off his FCPI investment from his annual tax (note: income tax is payed year +1 in France). A single person can therefore invest up to 12Â 000â‚¬ to obtain this rebate, while a family can invest up to 24Â 000â‚¬.
Since January 2008, a new regulation (called loi TEPA-ISF) applied to the so-called “fortune tax” or ISF allow those paying this tax to invest in FCPI (among other vehicules),Â to obtain further tax reduction of 40% of the amount invested (ceiling 50Â 000â‚¬).
Furthermore, the individual FCPI investor may expect further tax reduction when the fund is liquidated.