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From Accelerators to Venture Capital: What is best for your startup?

With startup growth up 61% since 2014 and more investment programs emerging, it can be overwhelming for founders to know just where to jump in. As the most startup-friendly accelerator on the planet, MassChallenge has helped 835 startup companies around the world, who have raised over $1.1 billion in funding and created over 6,500 jobs. We have seen startups at

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With startup growth up 61% since 2014 and more investment programs emerging, it can be overwhelming for founders to know just where to jump in. As the most startup-friendly accelerator on the planet, MassChallenge has helped 835 startup companies around the world, who have raised over $1.1 billion in funding and created over 6,500 jobs. We have seen startups at all stages of growth and know whether the current need is an investment, support, or both, there is an option out there for you.

seed funding Mass Challenge infographic

Coworking

Coworking has really taken off recently, with the growth of WeWork being one of the prime examples. Coworking spaces are not funding options for your startup, in fact, most charge a few hundred dollars a month. They are office spaces “on-demand,” or “space-as-a-service,” where you can rent space to house your startup.

The concept of community is one of the coworking space’s key attributes. Founders work alongside like-minded entrepreneurs and are often given direct access to legal, accounting, and HR services. Many coworking spaces also provide benefits like event space, weekly informal networking parties, and demo or pitch nights.

Famous coworking spaces like WeWork and AlleyNYC are often heralded as the stars of the sharing economy. With companies now recognizing the benefits of coworking, entrepreneurs at all stages can adopt this model from hot-desking as a sole-trader, to engaging with the community as a larger company.

Incubators

Think of an incubator just as the name suggests: a place to incubate your idea, develop your business plan, and prep your startup for growth. Incubators typically work with young startups for an indefinite period of time, and startups work alongside each other in a shared, collaborative environment.

While many programs are government-funded, some incubators do take equity for incubation services. Incubators usually offer mentorship, access to legal, accounting and/or HR services, and connect their portfolio companies to large investor-networks.

Accelerators

Accelerators offer a very focused, time-windowed curriculum where startups receive mentorship, education, and networking resources. Acceleration programs are typically more competitive than incubators and like to work with early-stage startups that have already shown significant traction or product-market fit.

Accelerators will boost your startup to new heights. In the case of MassChallenge, we take no equity and offer the chance to win a share of several million dollars in equity-free cash awards. Although MassChallenge is one of the few that do not take equity, many accelerators do in exchange for their investment.

Accelerators usually culminate in an exciting Demo Day where program graduates have a chance to pitch to investors.

Competitions

Startup competitions work for almost any stage company and are a great way to gain exposure and support. For very early-stage companies, hackathons are a way to validate your product or idea in front of seasoned judges. As an innovative means to generate new creative ideas, global companies such as MasterCard and Barclays have been organizing hackathons and business plan competitions to incubate new startups that align with their strategic interests. The winners usually win cash prizes, mentorship opportunities, and even direct access to their other startup programs.

For startups in later stages of development, you might wish to check out other types of competitions. Two of the most popular ones are TechCrunch Disrupt and DEMO. These well-known competitions provide startups with prize money, international recognition, and most importantly, access and exposure to key industry investors.

Crowdfunding

As the name suggests, crowdfunding taps into the collective power of the crowd. There are two types of crowdfunding: reward-based (like Kickstarter) and equity-based (like Crowdcube). With reward-based crowdfunding, monetary contributions are exchanged for products or services. In equity crowdfunding, non-accredited investors can invest in an early-stage company in exchange for equity. Equity crowdfunding has often been used to great effect, already seeing its first couple of public exits. While this one can be used at pretty much any stage, we wouldn’t recommend using it too early—the crowd needs proof of traction too.

Angel Funding

Startups seeking angel investments are usually in their earlier stages of development, compared to those seeking venture capital. According to the Angel Capital Association, the median angel funding round size in Q3 2015 was $725k for the pre-seed or seed funding rounds. The “pre-seed” or “seed” stages are usually for building a proof of concept business and getting your company off the ground. This may also involve ramping up users and showing traction for your product by generating revenue. This is a critical stage where you could benefit from an experienced mentor and advisor making introductions and delivering synergies. There are some great sites that can connect you with angel investors. Gust.com is a platform for founders to find and connect with the largest global network of early-stage investors worldwide. And never underestimate the power of networking when trying to meet potential angel investors.

Many angel investors are entrepreneurs or ex-entrepreneurs themselves, so angel investing is a way for them to contribute to society, apart from the financial returns. As they are investing out of their own pocket, they normally look for entrepreneurs who are receptive to mentorship and are willing to be coached. A relationship with an angel investor is not merely a business relationship for financial gains, but a relationship where both sides should benefit. Many angel investors usually form angel groups to invest in deals together in order to benefit from group due diligence and combine their expertise.

VC Funding

Venture capital funding is generally only available to companies in later stages of development. This is what many founders aim for, but shouldn’t be the end goal. While angel investors invest out of their own pockets, venture capitalists manage the funds for limited partners who expect exceptionally high returns on their investment. Therefore, VC funding is highly competitive and selective, and the median VC funding round size is usually at least $1 million.

In exchange for funding, venture capitalists generally receive a seat on the Board of Directors and have a significant say in the strategic direction of the company. They provide their portfolio companies with exposure, connections to customers, and even help to establish partnerships. Work first on building a good business, and then the venture capitalists will be coming to you.

Source: http://blog.gust.com/from-accelerators-to-venture-capital-what-is-best-for-your-startup/

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” The Leapfunder Note is a sensible and attractive way to place capital in start-ups in the Netherlands “

” Diversification is important in angel investing. Leapfunder is a platform that allows angels to spread their investments. “

” Leapfunder investing allows you to become actively involved in a start-up, just as in classical angel investing, while taking all the hassle out of transaction execution “

” Leapfunder is ideal for investing smaller amounts in a start-up in the very early stages. Such investments can be a powerful addition to a portfolio “

” With Leapfunder you get a great opportunity to build up a diversified portfolio of start-up investments, often investors can play an active role in developing the company “

” When I saw the Leapfunder proposition I thought straight-away: this is what start-ups need. I am an entrepreneur and wish this system had been available when I started my company. “

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Pieter ter Kuile

Investor

Profile small wouter

Wouter Kneepkens

Investor

Profile small 80 foto rb may 2014

Ronald Bazuin

Investor

Profile eric

Eric van der Maten

Investor

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Eric van Gilst

Investor

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Donald Res

Investor

Source: https://www.leapfunder.com/companies/237

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iCapital Network celebrates reaching milestones in its European and Asian expansion efforts

From: FinTech Global Alternative investment FinTech iCapital Network is celebrating reaching a series of milestones in its expansion into the European and Asian markets. The WealthTech platform is created to drive access and efficiency in alternative investing for the asset and wealth management industries. The growth across the European and Asian markets comes hot on […]

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From: FinTech Global
Alternative investment FinTech iCapital Network is celebrating reaching a series of milestones in i

Source: https://www.altassets.net/private-equity-news/by-news-type/people-news/icapital-network-celebrates-reaching-milestones-in-its-european-and-asian-expansion-efforts.html

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Medtech venture investment continues climb globally

Investors pumped $5.05bn into start-ups in growing fields such as surgical robotics, telehealth and cancer blood testing in the third quarter

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Global venture capital funding of medical technology continued its climb last quarter, with investors pumping $5.05bn into start-ups in growing fields such as surgical robotics, telehealth and cancer blood testing, industry data show.

Third-quarter venture investment rose about 4.7% from the $4.83bn that medtech start-ups raised in the second quarter, and by more than 63% from the $3.09bn they secured in the third quarter of 2019, according to data from market tracker CB Insights.

Venture funding jumped despite the novel coronavirus pandemic, which forced hospitals to postpone elective surgeries and hamstrung some companies that had been seeking to launch their products.

Yet many companies raising venture capital this year are still developing their technology and haven’t been affected by the slowdown, said CB analyst Marissa Schlueter.

Investors also haven’t let the pandemic dissuade them from betting on the potential of robotics to improve surgery and on new blood tests that could enable earlier cancer detection. In August, for example, San Francisco-based Freenome Holdings collected $270m to pursue regulatory approval for a blood test to detect colorectal cancer and Massachusetts-based Vicarious Surgical, which applies virtual reality and robotics to minimally invasive surgery, took in $13.2m.

Some medtech start-ups have fielded rising interest in their technology during the pandemic, including telehealth companies and those with tests or devices that can combat the new virus.

This month, for example, telehealth concern 98point6, a provider of virtual primary care services based in Seattle, disclosed a $118m financing.
CB Insights considered a variety of medical technology companies in its analysis, including those seeking to diagnose, treat, monitor or prevent diseases.

A strengthening market for medtech initial public offerings and acquisitions also is encouraging venture investment. In the third quarter, 40 medtech companies were acquired and 14 went public, according to CB Insights. That is up from 37 acquisitions and 13 IPOs in the second quarter. In the third quarter of 2019, 28 companies were acquired and 15 went public.
Companies’ ability to raise venture capital enables them to remain private longer and put themselves in a stronger position for an IPO, said Tom Shehab, a managing partner with Arboretum Ventures.

California-based Eargo, which sells hearing aids that fit inside the ear, incorporated in 2010 and began operations in late 2012. On Friday, 16 October, the company, which has raised more than $206.6m in venture capital according to Crunchbase, went public at $18 a share. The stock leapt 87.1% to close at $33.68.

Eargo posted $28.6m in net revenue for the six months ended 30 June, nearly doubling the $14.4m in net revenue it reported for the same period of 2019, according to a regulatory filing.
In the company’s early days, relatively few venture firms focused on medtech, chief executive Christian Gormsen said. But in raising the company’s most recent venture round earlier this year, he spoke with about 100 investors, he said.

Eargo, which sells hearing aids directly to patients, fits a growing trend toward consumers playing a larger role in their healthcare, which also increased its appeal to investors, he said. “Medical technology as a category is getting more and more attention from venture capital,” Gormsen said.

From The Wall Street Journal

Source: https://www.penews.com/articles/medtech-venture-investment-continues-climb-globally-20201027

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