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Finance for Innovation Chair
Research & Publications
The research and publications of the "Finance for Innovation" chair focus on two objectives and axes: better understanding the financing of responsible innovation and better understanding the financing of start-ups.
For each of these axes, several specific research projects have been developed, both in collaboration with our partners and independently by team members and our co-authors.
Understanding Responsible Finance
"Social Impact Bonds Research Project: This project aims to study the development of Social Impact Bonds (SIBs) in France and around the world. Three main studies, accompanied by other more peripheral work, have been and are being carried out:
- A Systematic Literature Review of the scientific literature on the subject of SIBs;
- Analysis of the first 18 SIBs completed worldwide, their post-experimental fate, and the barriers encountered in scaling up the tested programs;
- Analysis of the management of the Contrats à Impact policy by the French public authorities since its launch in 2016.
This project was made possible thanks to the financial support of Fonds b.
Several publications for the general public have been produced on the Fonds b website:
- Buffa, V., Le Pendeven, B., (2021), Pilot project and scale-up in the case of Development Impact Bonds in India and the role of a philanthropic end-payer, Fonds B. Papers #5
- Buffa, V., Le Pendeven, B., (2020), Development Impact Bonds - The application of payment by results in development and humanitarian aid., Fond B. Papers #4
- Buffa, V., Le Pendeven, B., (2020), Social Impact Contracts: success or flash in the pan?, Fond B. papers #3
- Buffa, V., Le Pendeven, B., (2019), The role of private capital in pay-for-results mechanisms, Fond B. papers #2
- Buffa, V., Le Pendeven, B., (2019), Between hope and caution: a literature review of social impact contracts, Fond B. papers #1
"Environmental Impact Bonds Research Project: This project aims to understand the specificities of Environmental Impact Bonds (EIBs) compared to SIBs and their uptake by public authorities. Specifically, four main studies are underway:
Analysis of SIBs vs. EIBs to document the specificities of the environmental dimension of Impact Contracts.
Study of the impact of the EIB's contractualization phase on project owners;
Analysis of the use of EIB funds by public authorities and of the innovations introduced by the programs financed in the case of project portfolios (ADEME case) or individual projects (other ministries);
Comparison of the added value of Impact Contracts for public authorities compared to other public financing products (e.g. grants or repayable advances).
Discover the First Shared Reflections
This project was made possible thanks to the financial support of the ADEME.
"Impact Investing Research Project: This research program aims to analyze the evolution and impact of impact investing as a growing source of financing for responsible innovation. To this end, three main studies are underway:
- Analysis of the role of the European Investment Fund (EIF) in building impact investing as a practice and market in Europe over the past decade;
- Examine the "virtuous contagion" effects of impact investing: to what extent do management companies with both impact funds and "traditional" venture capital funds evolve their practice, and if so, by what vectors?
- Analysis of impact investing strategies and their consequences: Do investors favor the most virtuous companies, or do they select companies with an underdeveloped responsible orientation in order to maximize the impact to be achieved?
This project is carried out in close collaboration with the Université Paris-Est Créteil (UPEC).
A better understanding of startup funding
Research project "Financing deeptech start-ups": This project aims to study the specificities of financing deeptech start-ups compared to start-ups in less radically innovative sectors (services, digital, etc.). Specifically, three studies will be carried out:
- The impact of non-dilutive financing (loans, grants, tax credits, etc.) on subsequent venture capital fundraising;
- The special role of the venture capitalist with the entrepreneur-scientist in deeptech startups;
- The impact of deeptech characteristics on venture capital exits.
This project is made possible thanks to the financial support of the Pays-de-la-Loire Region.
Research Project "Start-up Valuation": This project aims to better understand and identify the components of start-up valuation and their dynamics over time and space, using both quantitative and qualitative approaches. A series of five papers is dedicated to this topic:
- A systematic review of the scientific literature on the topic of start-up valuation;
- Analysis of the impact of macroeconomic factors (growth rate, business cycle, amount of money in the market in the national or European venture capital market, etc.) on the valuation;
- Analysis of the impact of individual characteristics of the entrepreneurs (age, gender, origin, qualifications, etc.) on the valuation (first thoughts);
- Analysis of the impact of the negotiation process between entrepreneurs, their historical investors and their new investors on the valuation;
- Study of the balance that may exist between the valuation level of a venture capital operation and the clauses present in the shareholders' agreement.
This project is made possible thanks to the financial support of Early Metrics and Sowefund.
A series of videos have been produced to promote our work, especially the systematic analysis of the literature:
- Impact of the entrepreneurs characteristics on the startups valuation
- Impact of the Characteristics of Investors on the startups valuation
- Impact of the firms characteristics on the startups valuation
- Impact of the Market conditions on the startups valuation
- Impact of the conditions of the equity deals on the startups valuation
"Crowdfunding Research Project: This project aims to better understand the development of this new way of financing entrepreneurship and innovation. A number of studies have been and are being carried out:
- Analysis of calendar effects (days of the week, number of weekends, holidays, public holidays, months of the year) in rewards crowdfunding;
- Study of the democratizing effect of reward-based crowdfunding on entrepreneurship;
- Analysis of bankruptcies of equity crowdfunded projects;
- Analysis of the probability of success and bankruptcy in an equity crowdfunding campaign, depending on whether the company is run by a single entrepreneur or a team;
- Analysis of the impact of the perceived innovation of French start-up projects on the success of projects financed by an appeal to the crowd through an equity crowdfunding platform.