Startup financing

Very aware of the stake and difficulties to finance startups in France, Banque Wormser Frères has launched in 2014 a venture loan department. This activity consists of tailor made loans for startups which have proved the economic reliability  of their concept, expecting a multi thousand euros turn over, and a short term probability to reach profitability within 1 to 2 years. This activity confirms the Banque Wormser Frères’ DNA : an entrepreneur bank for entrepreneurs.

When delivered simultaneously with a capital fund raising, venture loan allows to match it without extra significant dilution and helps startups to reach profitability. As a counterpart the interest rate is high (between 8 and 10%) and an option on the company’s capital is granted to the bank to compensate the risk.

In order not to penalize the growth of the accompanied startups, the loan offers a capital franchise of one year and then a reimbursement period of approximately 3 years with regular monthly payments.

The amount of the loans is comprised between 250.000 and 2 million euros and is limited by the rule one euro of venture loan for 2 euros of equity. From the legal point of view, venture loan is almost considered as equity.

If your company fits with these criteria don’t hesitate to contact us We will get back to you rapidly.