Villyz, participative financing for local communities
03/30/2022
This month, we met Sylvain PEYRON, a 2012 graduate of IÉSEG’s Master in Finance and co-founder of Villyz, a platform for investing in projects of general interest for citizens and communities. He tells us about his start-up and his experience at IÉSEG.
©Villyz
Can you introduce us to Villyz and its concept?
Villyz is a platform for participative lending that was created in 2020. It allows citizens to invest part of their savings in projects of general interest, with a time span ranging from 1 to 7 years, led by French local authorities (municipalities, inter-municipalities, departments, regions). It is a way for them to invest in local projects that they choose and can follow over time. The first project we are proposing at the beginning of this year combines the creation of a health center to fight against medical desertification and the rehabilitation of a social housing in the commune of Glanges (Haute-Vienne, in central France). All the projects that Villyz proposes and will propose are projects with an impact, serving the community and the general interest, since they are supported by local communities (urban renovation, construction of bicycle paths, creation of infrastructures, etc.). Above all, the purpose of these low-risk investments is more important than their performance. Villyz is therefore the platform that makes financial investment easy and useful. A user can lend between 1€ and 2 000€ (not more) within 10 to 15 minutes, if his file is complete. Thus, everyone can become an actor of the territory’s public policies, support projects that correspond to their values and participate in the development of communities.
Do you have other projects to come on the platform?
There is a wide variety of potential projects: culture, urban renovation, health or sports infrastructures, energy capacities… and many local communities have already expressed their strong interest in our concept. Moreover, our very first project was launched on the platform just a few weeks ago (it has already raised more than €40,000 from 64 lenders (an average loan of about €625). Communities are interested in feedback from their peers and each project completed puts citizen financing in their toolbox. Our goal by the end of the year is to offer 3 new projects to investors.
Are the campaigns open to everyone?
These fundraising campaigns are indeed not reserved only for the inhabitants of the commune or the department concerned. In fact, we advise communities to open these campaigns to everyone because it offers a much greater outreach to the project and to the city. Of course, it is the inhabitants of the territory who will benefit immediately from these new infrastructures, developed thanks to our financing. But all over France, individuals are looking for responsible savings products, investments with a sustainable objective, which have a real impact on the lives of French people, on our environment and on our society. Beyond the geographical approach and the yield, it is the meaning of the project, its contribution to everyday life, that is fundamental.
How was Villyz born?
Our idea is to propose a new ecosystem, without trying to compete with banks, to complete the offer available on the savings market for individuals. Thus, investors can choose to invest, for example, 80% of their available funds in savings accounts and other investments offered by banks and 20% in our citizen projects. It is, in any case, essential to determine one’s financing capacities according to one’s income and expenses and to spread one’s savings over different types of supports.
Moreover, among the co-founders of Villyz, three have previously worked at the ACPR, the French Prudential Control and Resolution Authority. The ACPR is the body in charge of supervising the banking and insurance sectors in France. It ensures the preservation of the stability of the financial system and the protection of customers. We were therefore aware of the possibilities given by the regulations in force.
©Villyz
Villyz is incubated at IÉSEG, how does the Incubator help you?
First of all, it allows us to be part of a community of entrepreneurs, to talk with people who understand us, to share friendly moments. Above all, you are no longer alone but surrounded by many teams, unlike what we are used to when we launch a start-up. The more formal events, organized by the Incubator, allow us to develop brainstorming sessions around specific issues. The experience sharing, workshops and presentations are also very useful for our development. The Incubator is an extremely valuable resource center. Moreover, we can benefit from premises in the heart of La Défense, which helps us a lot financially.
As a graduate of IÉSEG, did your studies help you to become an entrepreneur?
Studying at a business school, leaving your family, adapting to a new environment and managing on your own is already a first phase of learning about life, the path to independence. It may seem trivial, but the acting classes were invaluable to me in developing my oral skills to present my project! Thanks to the marketing and accounting courses, I also acquired essential knowledge for the development of my business. As IÉSEG is quite generalist, it allows students to develop their open-mindedness around the business world, which is necessary when you work in a start-up where you are involved in everything. It allows you to do things yourself, but also to understand and manage the experts you recruit.
What are your plans for the future of Villyz?
In the short term, I would like to see the successful launch of our first project in order to consolidate our development model. Participative financing is booming. Indeed, public authorities are becoming aware of this new financing method that responds to citizens’ demands, particularly in terms of transparency. In addition, last year, the deputies voted a law improving the possibility of local authorities to use participative financing. At the European level, a new regulation has also been put in place, allowing platforms like ours to be approved to distribute their services within a harmonized framework at the European Union level. These developments are opportunities that strengthen the regulatory requirements and provide new opportunities for our company to grow.
Any advice for a future entrepreneur?
When you have a relatively well-developed idea, you have to talk about it to others. Contrary to what many people think, our idea will not be “stolen” but, on the contrary, you will be able to make it bear fruit thanks to opinions and advice.
