Investing in companies: the complete guide

Investing in companies means allocating a portion of your capital to a business, whether listed or unlisted, to participate in its growth and aim for a return. Long reserved for institutional investors and the wealthiest individuals, this type of investment is now becoming accessible to private individuals thanks to new vehicles and specialized platforms. Stock market, crowdfunding, mutual funds, private equity, or direct involvement as a business angel: the investment methods are numerous, each with its own advantages, risks, and tax implications. This guide covers the topic to help you understand how to invest in companies and build a portfolio consistent with your objectives.

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What is Investing in Companies?

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Investing in a company means providing funds to a business in exchange for an equity stake or a debt claim. In the first case, you become a shareholder and hold shares or stocks that entitle you to a fraction of the company's value and, potentially, its future profits. In the second, you lend money via bonds and receive interest.

We distinguish between two main categories. Publicly traded companies, whose shares are freely exchanged on a regulated stock market, and unlisted companies, which include everything from seed-stage startups to established SMEs or large companies held by funds. Investing in unlisted companies falls under private equity: the investor acquires stakes in companies that are not accessible via the stock market, often with a long-term horizon.

This distinction is fundamental. The stock market offers high liquidity and great transparency, but its performance is correlated with market cycles. The unlisted sector, while less liquid, provides access to high-growth companies and valuation potential that eludes investors who remain solely in listed markets.

Why Invest in Companies?

The primary driver remains the pursuit of returns. In the unlisted sector, private equity shows a net IRR of 12.4% per year over ten years, according to the France Invest/EY study published in 2025 (data as of December 31, 2024). By comparison, the CAC 40 with reinvested dividends delivers an annualized return of approximately 8.9% over the long term, and the MSCI World index about 11.68% per year over ten years in euros (MSCI factsheet, March 2026). Private equity thus positions itself as one of the best-performing asset classes, provided one accepts a long horizon and a degree of risk.

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Investing in high-growth companies, particularly startups or innovative SMEs, allows for targeting capital gain multiples that traditional investments like the Livret A (1.5% since February 2026) or euro-denominated funds (2.6% in 2024) cannot offer.

Beyond returns, investing in companies means financing the real economy. Your capital directly supports the development of businesses: hiring, innovation, conquering new markets, and transitioning to promising sectors like renewable energy or healthcare. You support entrepreneurs and participate in value creation. It's also a powerful diversification tool: adding unlisted companies to a portfolio of stocks, bonds, and real estate reduces reliance on stock markets, as private equity has a lower correlation with the stock market. To delve deeper into this logic, our analysis dedicated to investment funds details the mechanisms of pooling and diversification.

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How to Invest in Companies: The Different Methods

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There are several ways to invest in companies, from the most accessible to the most specialized. The choice depends on your budget, risk appetite, and investment horizon.

The Stock Market and Listed Companies

The most well-known method remains buying shares of listed companies via a securities account or a PEA (French share savings plan). This is a simple, liquid, and transparent approach: you can buy and sell your shares at any time. However, you are exposed to stock market volatility, and your performance largely tracks major indices. The stock market is suitable for investors who want immediate exposure to companies while retaining the option to exit quickly.

Crowdfunding and Participatory Financing

Crowdfunding allows for investing small amounts in projects or companies via online platforms. We distinguish between crowdequity, where one acquires an equity stake, and crowdlending, where one lends money for interest. This method provides access to tangible opportunities and various sectors, but it carries high risks. For example, in real estate crowdfunding, the default rate reached 60.2% of amounts for the 2019 vintage, according to the AMF, and nearly one in two projects encounters difficulties (Forvis Mazars/France FinTech 2025 barometer). Therefore, project selection is crucial.

Investment Funds (FCPIs, FIPs, Mutual Funds)

Instead of selecting companies yourself, you can entrust your capital to professionally managed funds. Mutual funds pool the savings of many investors to invest in a diversified portfolio of companies. FCPIs (Innovation Mutual Funds) target innovative SMEs, with a legal investment threshold of 70% in these companies. FIPs (Proximity Investment Funds) finance regional SMEs. These vehicles provide access to a diversified portfolio without having to select each company individually.

Private Equity and Investment Capital

Private equity involves investing in unlisted companies at various stages of their lifecycle. This includes venture capital for young startups, growth equity for accelerating companies, LBOs (Leveraged Buyouts) for acquiring mature companies, and the secondary market for purchasing existing stakes. It is the best-performing, yet least liquid, asset class in the private market. Historically reserved for institutional investors, investing in private equity is gradually becoming accessible to individuals. To specifically fund young ventures, investing in startups through specialized funds remains the most structured entry point, as does venture capital for investors targeting high-potential technology companies.

The role of business angels

A business angel is a private investor who provides equity funding to a startup in its seed phase, often in exchange for an equity stake and a mentoring role. This direct investment approach requires a good understanding of the sector, the ability to assess a team and projected revenue, and a high tolerance for the risk of total loss. It is aimed at experienced investors who wish to get involved alongside entrepreneurs.

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Which companies and sectors should you invest in?

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Choosing which company to invest in requires rigorous analysis. Several criteria are important: the robustness of the business model, the quality and experience of the management team, revenue and its trajectory, the growth potential of the target market, and the company's competitive advantages.

The choice of sector also influences the risk/return profile. Certain areas currently offer the most sought-after opportunities for investors.

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Investing in an SME within a promising sector can offer significant appreciation potential, provided one accepts the inherent uncertainty of young or transforming companies. The golden rule remains diversification: spreading investments across multiple companies, sectors, and maturity stages to avoid depending on the success of a single company. The role of SME investment is precisely to combine support for the local economy with the pursuit of performance.

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No business investment can be presented as guaranteed: returns are always commensurate with the accepted risk.

Taxation of Business Investments

Taxation is an important lever, but the framework has been profoundly modified by the finance laws for 2025 and 2026. The 25% IR-PME income tax reduction now only applies to FCPIs invested in young innovative companies, and to Corsican and Overseas FIPs, at a rate of 30%. Classic FCPIs and FIPs no longer qualify for this reduction.

The PEA-PME also allows investment in eligible SMEs and mid-caps with capital gains tax exemption after five years of holding, subject to certain conditions. However, not all private equity vehicles are eligible for the PEA-PME; only certain FCPR and FCPI funds qualify. Before any investment, it is recommended to verify the eligibility of the investment vehicle and consult an advisor to integrate these schemes into a global wealth management strategy.

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Investing in Unlisted Companies with Fundora

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Fundora makes investing in unlisted companies accessible to individuals. The platform identifies and offers private equity strategies selected for their institutional quality, with effective management provided by Kyoseil Asset Management, a portfolio management company approved by the AMF, under the mandate.

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An architecture that reduces the barrier to entry

The system relies on FPCI (Professional Private Equity Funds) associated with SPV (Special Purpose Vehicles) structures that pool subscriptions from multiple individual investors. This architecture makes it possible to meet the entry requirements of target funds while reducing the access barrier for each subscriber, with a pooled institutional ticket.

Regulated management and diversified strategies

Management is provided by Kyoseil Asset Management, a portfolio management company approved by the AMF (approval GP-99040). Investors gain access to a diverse range of strategies selected for their institutional quality: venture capital in technology companies, growth equity, LBOs, secondary private equity or private debt funds, across sectors ranging from artificial intelligence to cybersecurity, with target multiples between 2.5x and 4x.

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