Process & participation for Startup
FStage funding process
FStage administrators will process applications and select most suitable for FStage investors. Our investors and other applicants may suggest startups that might be fit for our criteria. FStage has no point to onboard startups for validation if its unable to offer anything in addition besides money.
FStage ensures that once the process has been started there’s no roll-back. Warrant represents same terms as convertible note in 2 months. There are few clauses that suggest startups not to break up with the deal. This is the time to think over and discuss all questions prior entering the process. Be noted! Warrant is not an investment agreement, it does not grant any investment.
- Meeting to select OKRs
3-4 FStage investors who understand this particular business case and startup founders discuss what would be the best 1-3 metrics defining startup’s growth the best, and which startup could deliver in this somewhat short 2 months. Be noted, all startups go through the same validation process – to find tangible evidence that convince investors about the market pull existence, that the team delivers, is trustworthy and that growth is worth the investment.
- 2 month validation period & reporting
Startups will continue doing what they should be doing – following their fastest path towards success. AND report weekly to 2 assigned lead-mentors how did they do regarding KPIs/OKRs that were agreed previously with FStage investors via web form.
Nobody from FStage team or investors should interfere or ask to do something extra to please them. FStage doesn’t train, doesn’t push or drag, we just give you an opportunity to prove the market pull and teams credibility. Should the startup face a problem or if lead-mentors notice something, in both cases startup should receive FREE mentoring from FStage, up to 60 minutes per mentor/investor. Use these opportunities for your own good.
- Due Diligence process starts during week 5 if there are no signs of obvious reasons to reject this investing opportunity. The goal is to be ready with findings by the Investing evaluation meeting.
- Investing evaluation meeting
After reporting we have a pitching event where startups can pitch and investors may ask additional questions. Those 2 leasd mentors assigned to work with startup will share their learnings and answer questions.
After validation period startups the last chance to sell to all Fstage investors and external investors joining at pitching event to ask unasked questions.
Assigned 2 lead mentors and Fstage will present their findings prior final voting takes place.
Proper DD is conducted by FStage personnel and authorised parties to conclude whether there’s a need to amend terms agreed in warrant.
FStage is a syndicate not a fund, therefore we discuss internally prior we make our decision should we invest. All our investors have to present their vote. Investment and Mentorship agreement signing process starts after investors have issued a mandate to Fstage administration to take action.
- Pay-outs & mentorship agreement signing
FStage does €50k-100k tickets via equity investment or convertible loan instrument.
We start signing documents as soon as FStage has received the mandate from its investors. That is Mentorship agreement and Investing agreement.
In case we have managed to raise additional interest among our partner investors/VCs, they might join FStage or make direct investments.
The process in whole should remain in frames of ~4 months from the day Warrant was signed to the day Investment Agreement is signed.
- 18 month mentoring
FStage cares for the money spent properly and cares for the success of the startup. Mentorship agreement is signed by 3 parties, FStage, startup and mentor to implement the “growth discipline framework“. That is an OKR based management system designed to help to grow faster, easier, in a way all parties understand current bottlenecks and are able to address right questions at the right time. Mentors are serving the startup’s advisory or mentors board for 18 months, at 2 hours monthly the minimum. It’s a paid mentoring 150€/h, paid by startup to mentor directly. Startups can choose between (i) paying in cash after each month (ii) paying in cash once the next round has been risen (iii) paying in shares once next round shares are issued. FStage remains the informed party, collecting and maintaining monthly meetings protocols and financial reports. Startup and mentor may extend the monthly mentoring duration hourly and length themselves, even beyond mandatory period.
This 2 month validation program is FREE for startups.
Make sure you have runway minimum for 4 months.
Signing a warrant does not grant you investment in the end.
Business deals between startups and investors are prohibited during 2 months validation period.
Startup founders have non-discussable right to request the change of any mentor at any time.