Industrial startups and risk management: when the interim manager is the solution
Feedback from Franck Lecoq, Managing Partner at AXCEL Partners.
With the reindustrialization programs in Europe, the choice of interim management is convincing more and more managers of innovative companies who are seeking to reconcile rapid development of the company with risk management, and thus reassure investors. How can this strong market trend be explained? What are the keys to guaranteeing the proper execution of industrial projects within the given timeframe?
Here are the answers from our partner Franck Lecoq.
1- A more favorable market for startups’ industrial development
After the Covid crisis, reindustrialization projects in Europe have accelerated, mainly in the new technologies sector (GreenTech, MedTech).
There are now more than a thousand industrial projects by small and medium-sized innovative companies in France. How can we explain this dynamism? Financing.
Still difficult a few years ago, due to low IRRs in the eyes of investors, financing is now possible thanks to the structural role of the BPI and the evolution of investment funds that agree to support longer-term projects, with IRRs around 12-14%, thus compatible with industrial projects. This trend is also reflected in the ambition to open 100 factories in France within the next two years, a bold objective announced by the BPI.
2- Keys to success: de-risking industrial projects to ensure timely execution and reassure investors
The successful completion of an industrial project depends first and foremost on risk management, which can be divided into three categories :
- risks related to the technology or the product, which are often not totally secured at the launch of the industrial phase,
- risks related to the industrial project itself, i.e., related to time and budget constraints, industrial performance management, etc;
- risks related to the skills of the teams. Young companies have developed strong expertise in innovation and business development, but often find themselves at a loss when faced with the implementation of complex industrial projects that require specific know-how.
3- The interim manager, a guarantee of credibility and expertise
In the course of their missions, our managers and associates have acquired the experience necessary to manage large-scale industrial projects. At each critical phase of development, they bring the expertise of operational management to accelerate the company’s growth. These managers also become a guarantee of credibility for the companies with respect to the key stakeholders: investors, administrations and partners.
Over the past three years, we have supported a dozen startups and innovative SMEs in various sectors such as healthcare, greentech and agri-food.
- In the health sector: we have been involved in bringing prostheses to market, moving from the prototyping phase to mass production and product sales.
- In the energy sector: we are assisting, among others, a startup in the biogas treatment sector for its international development, and another for the creation of a « gigafactory » in green hydrogen.
Thanks to the expertise of its partners, the diversity and the recognized experience of its interim managers, AXCEL Partners meets the needs of innovative companies looking for operational and credible talents for a rapid development combining both performance and profitability.