Table 4.

Funding needs and funding strategies

Funding purposeSeed and growtd and scale stageSNL-Prologues
Growth and scale stageFoncière Chênelet
Growth and scale stageWorld Tree
Pre-seed, seed and growth and scale stageAUARA
Pre-seed stageImpak Finance
Other funding optionsSeed stage: crowdfunding
Growth and Scale stage: loan guarantees, Quasi-equity debt, public offering through network and over-the-counter with the financial institution
SNL-Prologues
Growth and scale stage: tripartite funding model, that is, 1/3 from equity (private shareholders), 1/3 by subsidies (government and private) and 1/3 by consignment mortgageFoncière Chênelet
Growth and scale stage: accredited investors; capital raised through parent company, world tree technology and institutional investorsWorld Tree
Pre-seed stage: funding from family and friends
Seed stage: crowdfunding
Growth and scale stage: venture capital and angels funding
AUARA
Pre-seed stage: angel investors, venture capital, strategic investors (financial institutions) and ICOs (Impak Coin)Impak Finance
Capital structure77.77% via equity, 6.94% via long-term debts and 15.27% via short-term debtsSNL-Prologues
46% via equity (solidarity investors), 31% via subsidies and 23% from debts, such as consignment mortgages (In French: Caisse des dépôts et consignment mortgages)Foncière Chênelet
100% via equityWorld Tree
90% via equity and 10% via debtAUARA
100% via equityImpak Finance
Barriers or challenges in raising funds
  1. The legal framework, now we are stabilized since 2019

  2. The need to find advisors on legal issues

  3. Fame/Notoriety of our company (Lack of information among the public, as many more people want to invest in the social business but only a few know how to)

SNL-Prologues
  1. Unstructured model, therefore, faces problem to attract investors

Foncière Chênelet
  1. Investors are more hesitant to invest in the eco-program

World Tree
  1. Educating individuals (investors) the meaning of a social enterprise

  2. Finding impact investors

AUARA
  1. Creating awareness or educating investors regarding the equity crowdfunding approach

Impak Finance
Source(s): Interview data and authors’ own creation

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