Equity Round or BSA Air?
Choosing the Right Structure for Your Fundraising Strategy
When you're building a startup, funding is everything. Very early on, you’ll face a key question: Equity round or BSA Air These are two very different ways to bring investors into your company—each with its own pros and cons.
Spoiler: there’s no one-size-fits-all answer. It depends on your stage, urgency, and negotiation leverage.
What Is an Equity Round?
L’capital increase (equity round) means issuing new shares that investors subscribe to. They become shareholders immediately, based on a fixed valuation of your company.
- Pros:
- Immediate access to funds
- Clear, transparent entry into the cap table
- A strong signal for other financial partners (banks, Bpifrance, etc.)
- Cons:
- Requires setting a firm valuation—hard to do at an early stage
- Heavier legal process and higher costs
- Higher dilution risk if poorly anticipated
- Learn more on equity rounds from Bpifrance.
What Is a BSA Air?
Les BSA Air (Bon de Souscription d’Actions – Accord d’Investissement Rapide) is a flexible legal instrument allowing investors to invest without entering the cap table right away. Their shares are issued later, during a future funding round, under predefined terms.
- Why Choose a BSA Air?
- No immediate valuation needed—avoid undervaluing your startup too soon
- Fast to implement (1–2 weeks vs. several months for a traditional round)
- Flexible terms: set a valuation cap and discount to reward early investors
Equity Round vs. BSA Air – Which One Should You Choose?
Should I go for Equity round or BSA AirAsk yourself the right questions:
- What stage is your startup in?
- Pre-seed or Seed → Go with a BSA Air. You’ll save time and avoid premature valuation pressure.
- Series A and beyond → A priced round brings more structure and credibility.
Can you justify a valuation?
No revenue or unclear market? Avoid committing to a hard valuation now.BSA Air lets you delay that conversation until you’ve got traction.
Are you in a rush?
Need cash fast to build an MVP or hire your first team? BSA Air is faster and lighter on legal complexity..
The Limits of BSA Air
- It’s not all upside—keep these in mind:
- No IR-PME tax incentive: investors won’t benefit from certain French tax reductions
- Unexpected dilution: if your next round is large, early investors could convert on terms that dilute you more than expected
How Flag Can Help
Not sure which option fits your startup Equity round or BSA AirAt Flag, we help you define a funding strategy that aligns with your stage, goals, and timeline.
- Our Services Include:
- Equity fundraising (BA, VC, Series A/B)
- Non-dilutive financing (grants, honor loans, Bpifrance innovation loans)
- Tax optimization (CIR, CII, JEI)
- Fractional CFO support (CFO-as-a-Service)
- Discover our solutions at Flag Finance.
Conclusion: What’s the Best Strategy for Your Fundraising?
En résumé, le choix entre Equity round or BSA Air —it’s not just about the money, it’s about timing and structure.
BSA Air is faster, lighter, and perfect for early-stage rounds.
Equity roundsare more robust and better suited for scaling and external validation.
Either way, don’t go it alone. A bad choice now could cost you control or capital down the line.
Got questions? Talk to the team at Flag, on est —we’ll walk you through it.
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