Seed capital: the missing link in the financing of companies ?

Since 1998, CDC PME has had two objectives: firstly, to develop the market in order to finance projects for promising small and medium-sized companies in the technological field using equity capital funds and to attract private investors to this market. The problem with this market is that in France business angels are uncommon. Secondly, CDC PME wants to develop links between public research and the financial world, conforming to the laws on innovation. Five years after its creation, it is possible to assess its activities. Despite a difficult economic climate, the fifteen equity capital funds that were created have contributed to the financing of one hundred and thirteen small and medium-sized technological companies, and have managed to involve several public research bodies. However, some participants doubt whether this activity can really be profitable: is it not merely a case of a public service being put in place in order to compensate for the lack of capital investment in France ?