## Mixing funding sources strategy When a startup announce that it raise a certain amount of money, it's always a package of varied money sources. Not every penny is risk money. In France, the common way to raise money is to make a 40/40/20 split share with : - 40% in risk capital : money from BA and/or [VC](VC%20lists.md) in exchange of company shares - 40% in grant and subsidies : in France, mostly the [BPI](https://www.bpifrance.fr/) - 20% in debt : money from banks with or without interests. The proverb "Money calls money" is so true here, as ==each step is use to leverage the following one==. Let's say you're raising 1m€ : 1. You do your best to raise 400k€ from in risk capital. 2. With now 400k€ in treasury, you can leverage public grants with a minimum of cash required at a 1-1 ratio. Means that : you raised 400k€, the subsidy abounds another 400k€. 3. The publics subsidies comes not only with money but also with states guaranties. Using this guaranty, you can go to the bank and leverage a loan at a 1-2 ratio. The bank is now more akind to accept, because you both have states guaranties from your previous money round and a significant financial contribution.