Investment

Angel investing is the most significant source of investment in start up and early stage businesses seeking equity to grow their business.

We supporting the financing of young innovative start-ups via venture capital.

The program is currently only available in Germany but it is planned to roll-out the program to other European countries, such a:

  • Poland,
  • Ukraine,
  • Belarus,
  • Lithuania

Tasks of the lead investor

  • The lead investor must invest at least the same amount as the Start-up.
  • He advises the company in all economic and financial issues, also in the field of management and marketing
  • In general, the lead investor should be willing and able to provide additional capital.
  • During the holding period, the lead investor supports the management of the company.  He has to inform the Partner Investor regularly.
  • Details are regulated in the agreement between the lead investor and the Start-up.

Form and conditions of the Investor Partner participation

  • The participation of the Investor Partner depends on the participation of the lead investor. Investor Partner participated on the same economically conditions.
  • The total funding must be secured.
  • CEO, founder, and other key persons must hold at least 25 % of the company shares

Amount of the Investor Partner participation

  • The maximum amount is 5 million Euros.
  • The first and any further investment by the Investor Partner is up to 2.5 million Euros each 12 -month period

Application process

To facilitate the analysis and assessment of the business concept, the Softreck has defined a transparent four-step process. The process consists of:

  • Business Plan
  • Term Sheet
  • Due Diligence
  • Equity holding

If in the preparation of the business plan is needed the Softreck provides the support of an experienced coach or network partner (often a Business Angel).

At the end the decision concerning an investment is made by one of the three investment committees (each investment committee is focused on another technology).

Financing terms

Companies can receive up to 500,000 Euro Venture Capital in a first financing round. Softreck acquires 15% of the shares (nominal value) and gives a subordinated shareholder loan over a period of 7 years. The interest rates (currently 10 %) of the subordinated loan will exposed for 4 years in order to preserve the liquidity of the start-up.

The own capital contribution of the founding team should be 20 % (10% in the new federal states, including Berlin) of the investment sum of the Softreck. Half of these 20% (10%) can be financed by investors (Business Angels, regional seed funds , private or public investors).

Business Angels, seed funds and other investors are invited to be active as side- investors.