Private equity and financing of innovative Entrepreneurship

Abstract

The Achilles' heel of many Moroccan start-ups, access to traditional financing, i.e., bank financing, can be very limited and sometimes impossible for some innovative start-ups in their creation or start-up phase, Because of their highly risky activities and the absence of financial guarantees, recourse to financing by bank loan is delicate, even excluded, in the case of start-ups. Faced with this reluctance of these financial institutions (banks, stock exchange), private equity is a new mode of financing innovative start-ups that takes over. At all decisive phases of the entity's life, private equity gives companies the tools and means necessary to achieve their ambitions by providing capital and strategic and organizational support. Generally speaking, the capital investor contributes through his technical and managerial know-how and invests money in order to inflate the capital and make its structure more solid, while the young project carriers put their capacity to innovate, their entrepreneurial knowledge and a business plan in order to convince the capital investors to join the project.  The purpose of this paper is to focus on the relationship between three essential elements, namely entrepreneurship, innovation and private equity, and more specifically on how private equity investors support entrepreneurs with innovative projects with high growth potential.

Key words:  Private equity, Entrepreneurship, Innovation, Start-up

JEL Classification : G 24, O 30

Type de l’article : recherche théorique