Startup loan is a special loan given to young startups that are not serviced by traditional banks and are too early to attract institutional seed venture capital. The deal is structured as a loan (which can be returned after next round fund raise) along with an equity kicker. While VC/ Institutional Seed/ Angel network fundraise needs a lot of traction and validation to prove product-market fit, scalability and unit economics and hence takes time, we invest with very early proof of the above and mainly on the founder and his thought process.
We know that all it needs is 1 person to change an industry. And we are here to back him.
We fund new economy startups that can raise venture capital and show a potential of high growth and defensibility.
Essentially we fund founders. Who have insights. Who have vision. Who can execute. Who can scale.
We fund companies in technology - internet, mobile and any IP based startup in general
Since we fund small amounts of money, we back startups that have no/low burn models.
We back founders who can go and raise Venture Capital investments in a short period of time.
The way to get started is to quit talking and begin doing
If you know a founder whom you like and would fund him in the near future, and would like the startup to validate a few areas or achieve certain milestones to qualify for your funding, you can refer them in to us. We take refer-ins from early stage investors seriously and give them priority attention.
We showcase startups that we have helped, to early stage investors for their first round of fundraise (Refer-in startups are not showcased to other investors if so specified).
Loans are typically returned upon subsequent fundraise.
We typically lend at 18% interest rate.
Equity kicker is usually upto 5%.
We want to help as many startup founders at very early stages as possible. We know that funding at this stage is very difficult to come by. Return of loan helps in recycling of money to more and more startups. It is sort of a pay-it-forward mechanism at work.
The loans are to be guaranteed by the founder and hence to be paid by the founder from salaries his next startup or job that usually one ends up with. We give flexible timeline upto 3 years to return the loan on a periodic basis. Return of loan ensures that only serious founders apply to us, there is a commitment and funds are judiciously used.
Yes we help startups before their first fundraise, so we are flexible to accommodate such situations as long as our ticket size would help you. We are flexible with lower equity kicker percentages in such situations.