After 6 years at Startupbootcamp, where we launched 72 accelerator programs in 18 cities over the globe, organized over 1.000 events, and talked with over 25.000 Entrepreneurs, I decided to move on to the next adventure: solving startup funding. Over the last years, I’ve noticed and experienced hands-on, that there are many flaws in startup funding, especially in Europe and Africa.
I believe that the current European & African Venture Capital needs to be disrupted. They have proven not to work.
Throughout my career, I started 12 companies, failed 4 times, I helped to accelerate 680, and managed a portfolio of 162 startups. I’ve seen plenty of startups succeed, and even more fail. I have gathered a lot of do’s & dont’s about investing in early-stage companies in Europe. But the more I’ve learned, the less I understand why companies are failing at fundraising. There is a systematic flaw in how Seed and Early-stage startups are selected by investors. The only way to invest in Seed-stage companies is to focus on the execution and not on the idea. Let the team show that they can find a repeatable and scalable business, and fund them while doing it in many small steps.
On average founders waste 60% of their time fundraising
Startup founders spend an astounding 60% of their time on average raising funds in their first three years from the establishment. And there is a reason for that, embedded in the mechanics of institutional capital. Managing Venture Capital is very expensive due to complex structures and legal frameworks. The required diligence pushes investment managers to behave like investment bankers, which has a very poor fit with entrepreneurs that have just started a company. Moreover, these structures result in significant capital costs for investors, where up to 30% of the funds raised, are spent on, let’s put it gently, not on startups..
These complex structures and legal frameworks date back to the fifties. Frankly, Venture Capital has hardly innovated since. It’s quite possible to create digitalized platforms with similar function, e.g., Angellist, Funderbeam, and many others come to mind.
We’re building a digital platform, or ecosystem if you will, with digitized securities, smart contracts and business intelligence to manage the investment process
We think we have found a solution. Setting up a fully compliant digital and more liquid fund, with metered startup funding, and a network of Independent professionals vested to the success of the portfolio. We’re building a digital platform, or ecosystem if you will, with digitized securities, smart contracts, and business intelligence to manage the investment process.
Kicking off by supporting the 10 best startup building programs like Startupbootcamp, Techstars, H-Farm, LaunchHub, investing € 25.000 in 100 companies a year. We’ll track our founders from day 1, and provide adequate follow-on investments. Investing fixed tickets of €150.000, €500.000 and € 1.5 Million to bring them from Seed to Series A by focusing on execution and creating value instead of fundraising.
We’re breaking with the traditional ‘2 and 20’ business model, and move towards, what we hope passionately will become the new industry standard, a ‘1 and 30’. We decrease investor cost of the capital and therefore risk through leveraging our digital platform. The profit is shared with a large network of independent professionals, who receive ‘Profit tokens’ (for the lack of a better name… Suggestions appreciated!) for their work on the portfolio companies as part of their payment. Creating a win-win-win for startups, investors, and professionals alike.
Let's revamp Venture Capital
The time is here to revamp Venture Capital, both bottom up, and top down. Ever since the fifties, Venture Capital has been exclusive to the rich and connected. We’re set up as a cooperative and aim to be inclusive as a movement to solve startup funding, by becoming founder-first and supporting promising propositions!
We are looking for partners who will support us to grow this platform, independent professionals who will help our portfolio companies, and like-minded investors. Join us, and we will make sure you get more value for your money!
Email me at firstname.lastname@example.org if you’d like to chat.