Sofinnova, a seed capital pioneer

Sofinnova, a pioneer in capital risk in France, invests in the creation of companies in biotechnology and information technology, two fields whose financial cycles are independent and in opposition. Since its investment outlook is relatively long term, it is not very sensitive to variations in the Stock Exchange in the short term. Its area of interest is essentially the selection of projects which are sufficiently innovative so that, since exceptional successes compensate for the inevitable failures, the funds have a profit rate of more than 20 % per annum. Another major function is to provide these projects with efficient managers, even if it means employing locum Chief Executive Officers or in-house entrepreneurs, or even provisionally taking on the management of the company. In view of the scarcity of vocations, the efforts of public authorities to communicate and develop the desire to undertake projects, could well be more decisive than any financial aid.