Investment Deal 

The Investment Process

Our investment process is streamlined to allow you to focus on growing your business while we handle the formalities. Here’s how it works:

1. Acceptance into the Program
   • Upon acceptance, you receive an official invitation to join the SWG acceleration program.
2. Due Diligence and Compliance
   • Our legal team conducts legal due diligence checks to ensure regulatory compliance.
   • We review your company’s legal and financial documents to confirm all information is accurate and up-to-date.
3. Agreement Drafting and Signing
   • We draft the Investment Agreement and Program Service Agreement tailored to your startup’s needs.
   • These agreements are reviewed and signed digitally using eIDAS-compliant electronic signature platforms, ensuring a smooth and secure process.
4. Investment Transfer
   • After the agreements are signed, we transfer the investment funds to your company’s bank account (usually in two equal tranches, depending on the negotiations).
   • The service fee (€35,000) will be invoiced after the investment transfer ensuring that you can fully participate without any upfront costs.
5. Program Kickoff
   • With the investment secured, you embark on our acceleration program, receiving mentorship, attending workshops, and leveraging our network to accelerate your startup’s growth.

Details of the Investment

Investment Instruments

We use a variety of investment instruments to best meet the needs of your startup:

1. Equity Agreements
   • Direct exchange of capital for a specific percentage of your company’s shares.
   • This structure clearly defines ownership from the start.
2. Convertible Notes
   • A loan that converts into equity during a future financing event (often at a discount or with a valuation cap) or after a set period of time, usually between 18-24 months from signing.
   • Ideal for startups expecting to raise more funds soon.
3. SAFE Notes (Simple Agreement for Future Equity)
   • An agreement granting the right to receive equity in the future, usually during the next financing round.
   • This simplifies the investment process and reduces legal complexities.

Incorporation Requirements

We invest in companies incorporated in the EU, USA, UK, and other jurisdictions approved under our fund rules. If your company is not incorporated in one of these regions, we will assist you with setting up the appropriate legal structure, connecting you with legal experts to ensure a smooth process.

Program Service Fee

The €35,000 service fee covers all aspects of our acceleration program, including:

• Personalized Mentorship: Access to a wide network of experienced mentors.
• Educational Workshops and Seminars: Deep dives into essential business topics like fundraising, product development, and go-to-market strategies.
• Networking Opportunities: Connections with potential investors, partners, and customers.
• Office Space and Resources: Access to co-working spaces during on-site program components.
• Legal and Financial Advisory: Guidance to ensure your company is legally sound and financially robust.

This fee is standardized and non-negotiable, ensuring that every startup receives equal access to the high-quality resources and opportunities SWG provides.

Frequently Asked Questions

Where do we need to be incorporated?

We invest in companies incorporated in the EU, USA, UK, and other jurisdictions approved under our fund rules. If you are not incorporated in one of these regions, we will guide you through the process of establishing the appropriate legal entity, connecting you with trusted legal partners to ensure compliance and efficiency.

When will the program service fee be invoiced?

The program service fee is €35,000 and it covers the extensive resources and services provided throughout the program. The service fee will be invoiced after the investment transfer, ensuring that you can fully participate without any upfront costs.

How will the agreements be signed?

All agreements are signed electronically through eIDAS-compliant digital signature platforms, ensuring a secure and efficient process that meets all legal requirements.

What percentage of equity will Startup Wise Guys receive?

We don’t have a fixed upfront equity % in exchange for our investment and participation in the acceleration program. The exact percentage depends on factors like your company’s stage, market potential, and revenue metrics. We work closely with you to determine a fair equity exchange that benefits both parties.

Are the shares taken as common or preferred stock?

Our equity is generally taken as preferred shares, which include certain rights and protections that are standard in venture capital investments. This structure positions your company favorably for future funding rounds by establishing a clear and professional equity framework.

What does the service fee cover?

The €35,000 service fee covers all the resources, support, and services provided during the acceleration program, including:

• Expert Mentorship: Tailored guidance from industry leaders.
• Educational Content and Workshops: In-depth sessions on key business topics.
• Networking Events: Opportunities to meet and connect with investors, partners, and customers.
• Support Services: Legal, financial, marketing, and operational support.
• Community Access: Lifetime access to the SWG alumni network for ongoing support and collaboration.
• Office Space: Co-working spaces during the on-site parts of the program.

What obligations do we have towards Startup Wise Guys after the investment?

We maintain an ongoing relationship with our portfolio companies. After the investment:

• • Monthly Reporting for up to Two Years:
    • Regular updates on performance metrics, financials, and milestones.
  • Quarterly Reporting Thereafter:
    • Continued updates to ensure alignment and ongoing support.

• Notification Obligations on Investor Rights

• • Specific notification obligations will also apply in accordance with the Investor Rights that will become applicable under the investment agreement. These obligations follow the standard market principles and are in place to keep us informed on certain matters.
• Participation in Alumni Activities:
  • Ability to engage with the SWG community through events and mentoring opportunities, including the annual SWG Getaway.

These obligations help us provide tailored support and ensure that you benefit fully from our network and resources.

Are there any other hidden costs we should be aware of?

No, there are no hidden costs. The only additional expenses you may incur are related to travel and accommodation during the on-site portions of the program, which are your responsibility. All other services are covered by the service fee and investment structure.

What happens if we raise another round of funding?

We actively support our portfolio companies in securing additional funding:

• Pro-Rata Rights:
  • SWG typically retains the right to participate in future funding rounds to maintain our ownership stake.
• Fundraising Support:
  • We help you connect with potential investors and prepare for successful fundraising.
• Continued Mentorship:
  • Ongoing support as you scale your business and navigate new challenges.

Is the service fee negotiable?

No, the €35,000 service fee is standardized for all participants, ensuring that each startup receives the same high-quality resources, mentorship, and opportunities. This consistency helps us maintain fairness and equality across our program.

What happens if we do not complete the program?

We expect all participating startups to fully engage and complete the acceleration program to maximize the benefits and resources provided. However, we understand that unforeseen circumstances may arise. If you are unable to complete the program:

• Investment Terms Remain in Effect:
  • The equity exchanged and investment received remain as per the signed agreements.
• Ongoing Support Evaluation:
  • We will assess the situation collaboratively to determine the best path forward, which may include adjusted support structures or resources.
• Impact on Future Opportunities:
  • Non-completion may affect access to certain resources, networks, and follow-on investment opportunities provided through SWG.

We encourage open communication to address any challenges promptly, ensuring that we can work together to find solutions that support your startup’s success.

We are excited about the possibility of working with you and supporting your journey toward building a successful and impactful company. Should you have any further questions or require additional information, please do not hesitate to reach out to our team.

Apply now and join the Startup Wise Guys community to accelerate your startup’s growth and success!