By using a newly developed legal structure investors can easily invest in an entire class of 10 startups
The facility is provided by Leapfunder the leading online Angel investment platform in the Netherlands
Startups in the Startupbootcamp Smart City & Living 2016 class will receive an investment through a Convertible Note
Amsterdam, 4 May 2016 – Startupbootcamp Smart City & Living, – an accelerator which is part of a global family of 13 industry-focused Startupbootcamp accelerators – has announced today the launch of a unique investment fund on Leapfunder.
After a successful pilot with a horizontal Convertible Note investment for the 2015 Startupbootcamp E-commerce program, Startupbootcamp & Leapfunder have partnered to develop a unique legal structure that allows investors to invest directly into 10 startups in one action. The structure uses a temporary investment fund that dissolves as soon as the money has been raised and invested. This puts investors back in charge of managing their investment as regular Leapfunder Angel investors. The fund that is currently open for investment will invest in all the participants in the Smart City & Living program of 2016. The Convertible Note Syndicate has the option to invest up to €70.000 per startup.
Convertible notes are a short-term debt that converts into an equity stake at a later date. This alternative funding route has become an increasingly popular option for both new startups looking for capital to scale their businesses, and for angel investors who want to invest in the youngest companies before they reach the stage where a solid valuation can be determined.
The decision of Startupbootcamp Smart City & Living to continue with the initiative is based on the positive responses from the startups that participated in the 2015 trial run, which was held during the Startupbootcamp E-commerce accelerator. Rutger Teunissen, founder of24sessions, a SaaS solution for online advice, said: “The Convertible Note gave us the opportunity to expand our tech team, and made it possible for us to take our first serious steps as a company. The fact that the legal construction is managed through the Leapfunder platform is also a great advantage. This way we don’t have to worry about the legal hassle and have more time to focus on growing our business.”
Marc Wesselink, Selection and Alumni Partner at Startupbootcamp Amsterdam explains: “Together with lawyers at E&Y HvG we have developed a temporary CV (Commanditaire Vennootschap) which automatically dissolves when the investments have been concluded. This means that the structure does not bring long-term management costs. Immediately after the investor’s money has been distributed to the participating startups the fund structure is dissolved and the investors are put in charge of managing the investments themselves, as part of their personal portfolio.”
Startupbootcamp Smart City & Living program focuses on accelerating tech startups within the Smart City space such as Internet of Things, Open Data, Smart Health, Smart Energy and Smart Home. The program started on the 11th of April and will be finished on the 8th of July.
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