Start-ups and Buy & Build

Entrepreneurship

New business start-ups should include solutions to problems. With the right catalyst and incubator for your own idea at your side, the energies of the team can be focused on the goal. A good or very good idea makes up only 20-30% of a successful start-up, the execution and sufficient financing are more important success factors.

Looking for co-founders?

In the past we have realized projects in the fields of e-commerce, entertainment, media, CPG and biotechnology in Angel, Seed, Early Stage and growth phases. We offer all services from brainstorming, team building and financing. You have a good idea for a start-up but are still looking for enthusiastic team members and co-founders? Contact us and send us your idea and curriculum vitae.

For further questions...

If you have any questions about the process that cannot be answered on this website, we recommend that you contact us by email.

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The Venture Capital investment cycle

  • You, Bootstrapped

    There is a vision, a solo-founder or co-founders, some competitor or market data, a very rough business plan draft. So far, the financing has been carried out through own funding and own capital (bootstrapped). Round 0 size: $10-100k; invested by founders each: $5-100k.

  • Family & Friends

    There is an idea, a team of founders, a rough business plan, set of key advisors, maybe a prototype and first data sets. Round size: $10-100k; investment size: $5-10k.

  • Seed

    The first stage of venture capital financing. Seed-stage financings are often comparatively modest amounts of capital provided by Business Angels (BAs) or VCs to inventors or entrepreneurs to finance the early development of a new product or service. These early financings may be directed toward product development, market research, building a management team and developing a business plan. Round size: $100k-1M; investment size: $25-75k.

  • Early Stage

    For companies that are able to begin operations but are not yet at the stage of commercial manufacturing and sales, early stage financing supports a step-up in capabilities. At this point, new business can consume vast amounts of cash, while VC firms with a large number of early-stage companies in their portfolios can see costs quickly escalate. Round size: $500k-1.5M; investment size: $250-750k.

  • Early Stage: Start-up

    Supports product development and initial marketing. Start-up financing provides funds to companies for product development and initial marketing. This type of financing is usually provided to companies just organized or to those that have been in business just a short time but have not yet sold their product in the marketplace. Generally, such firms have already assembled key management, prepared a business plan and made market studies. At this stage, the business is seeing its first revenues but has yet to show a profit.

  • Early Stage: 1st Stage

    Capital is provided to initiate commercial manufacturing and sales. Most first-stage companies have been in business less than three years and have a product or service in testing or pilot production. In some cases, the product may be commercially available.

  • Later Stage (Series A-Z)

    Capital provided after successful commercial manufacturing and sales but before any initial public offering (IPO). The product or service is in production and is commercially available. The company demonstrates significant revenue growth, but may or may not be showing a profit. It has usually been in business for more than three years. Series A round size: $5-15M; investment size: $3-5M.

  • Later Stage: 3rd Stage

    Capital provided for major expansion such as physical plant expansion, product improvement and marketing.

  • Later Stage: Expansion Stage

    Financing refers to the second and third stages (Series B and C).

  • Later Stage: Mezzanine

    Finances the step of going public and represents the bridge between expanding the company and the IPO. Mezzanine, bridging capital is only arranged in exceptional cases by our network.

The investment process

1st Month

Introduction of the idea, team, current status quo. The company provides the investor a confidential business plan to secure initial interest.

2nd Month

Negotiation of terms with non-binding term sheets and signed term sheet. Definitive transaction documents are drafted while the provided business data and documents are revied in Due Dilligence (DD) process.

2nd - 6th Month

Legal papers that document the final transaction and execution of all transactions documents. Closing occurs when the investors provide the funding and the company provides stock certificates to the investors. Additional legal paper work is filed during post-closing.

Kai Baumgartner

Investor, Business Angel, Entrepreneur, Consultant.