Profitability: a virtuous financing model for these Breton gems

Article written by Pascale Paoli Lebailly for La Tribune.

The fantasy interpretation of company valuations is over!

ANALYSIS

The fantasy interpretation of company valuations is over! The world of start-ups and young companies is back in the real economy, with a financing crisis since mid-2022. In the Rennes area, where gems such as Alcyconie are promoting a different model, start-ups remain modest but are not scaling back their commercial ambitions or their desire to make an impact.

Developed with its own funds over four years, the Saint-Malo-based start-up Alcyconie claims to have more than 90 clients in France, Europe and the United States and aims to establish itself as the European leader in cyber resilience.

Less money from banks and higher interest rates, fewer crowdfunding campaigns because the criteria have changed: for tech start-ups, these are all fewer sources of investment. And more difficulties in raising funds.

The days of easy money and balance sheet economics are over: young companies must now convince investors with their growth and actual figures rather than potential or concepts. “This is a good thing, as it forces start-ups to be more accountable for their results”’ said Hugues Meili, CEO of Niji, a digital services specialist, during a discussion at the ETI Bretagne club on collaboration with start-ups last January. “We were led to believe that innovation could only happen above ground. The bottom-line economy is proving to be healthier,” he added. Beyond technological development and proof of concept, the complicated transition to profitability can also inspire alternative models.

Article written by Pascale Paoli Lebailly for La Tribune.