While three startups in the region have just won the Start Innovation Awards from CIC Sud-Ouest with €10,000 each, Samira Boukhalfa, Innovation Business Manager at the bank, discusses the challenges faced by innovative companies in finding funding.
More than 100 innovative companies competed for the Start Innovation Awards with only three winners. What made the difference?
In 2026, it is the 7th edition of our competition. It has reached maturity and gained good recognition in the regional innovation ecosystems. This explains the hundred applications received from all over the southwestern region: from Bordeaux to Toulouse to Montpellier. After an initial preselection, we selected sixteen startups and innovative companies, then eight pitched before the jury and the general public. In the end, three companies were distinguished: two from Montpellier and one from Toulouse. The selection criteria are primarily innovation, the presence of a market, the ability to execute the business plan, and the quality of the team.
Startups are facing increasing challenges in financing their development and growth. How do you explain this?
Innovative companies, especially startups, are not spared from the crisis. It is a real observation to see that among the increasing business failures are also innovative companies. For fundraising, while the first round may go smoothly, subsequent rounds may face difficulties. Investors have become more demanding in terms of reaching profitability. It is a combination of factors that explains these challenges.
What are the specific financing needs of innovative companies?
The priority of an innovative company is not to finance its working capital needs, but R&D projects or expanding its sales force. To succeed, all aspects must come together. The first stage often involves loans, love money, or French Tech grants to develop a proof of concept. Then, dilutive financing is needed, which involves opening up the company’s ownership to investors such as investment funds or business angels. Non-dilutive funding involves bank loans. Entrepreneurs often use a combination of both.
How to effectively support innovative companies?
It is not just about financing; understanding their environment is crucial. Startups almost immediately start looking internationally. CIC offers experts across 35 offices worldwide to assist with exports, secure financial flows, and establish policies towards talent with employee savings or incentive schemes. Each year, CIC Sud-Ouest supports 200 startups.
