IdeaGist Global Investor Pitch

(Published November 1, 2017)

 

Introduction and Why

 

Accelerators and Incubators around the world are helping entrepreneurs and are often challenged with limited resources. Developing global connections to serve the local needs is a great idea but can only be afforded by very few large organizations. IdeaGist is changing this equation by helping our partners to become global connectors for their local ecosystems, and get the benefits that are currently available only to large players.

 

With the exception of a few ecosystems (Silicon Valley, New York, London, etc.), the majority of metro and rural startup ecosystems do not have easy access to investment capital.  In our conversations with hundreds of entrepreneurs from around the world, we have learned the need for creating a level playing field for both investors and entrepreneurs.

 

IdeaGist Global Investor Pitch (IGIP) is a program to curate opportunities for a large group of diverse angel investors, presenting them with early-stage startups that are backed by an established accelerator or incubator for all over the world.

 

The first IdeaGist Global Investor Pitch will start on November 20, 2017.

 

Stakeholders and Value Proposition

IGIP brings three different stakeholders together to support each other through the program:

  • Entrepreneurs, the people with startups, will get the opportunity to attract angel investors from all over the world.
  • Angel Investors are interested in startups not just because they are going to profit, but they are also genuinely interested in creating financially sustainable companies in their own areas of interest. In their local ecosystem, Angel Investors already know who is whom, but there is a world of opportunities outside of their awareness or ecosystem. By participating in IGIP, Angel Investors will be able to get larger deal-flow from trusted sources, and in a standard structure.
  • Accelerators and Incubators are the institutions rallying entrepreneurs in a community/metropolitan area to generate economic activity or support innovation. Their services to entrepreneurs include access to financial capital. Using IGIP, Accelerators, and Incubators will be able to offer a larger pool of investors with varied interests and with different risk profiles.

 

IGIP Process

Summary

IGIP is a seed level investment program planned to present deals in quarterly pitch sessions which will happen on the last full week of the middle month in the calendar quarter. First rounds of pitches will be made through online introductions, and second rounds will be web presentations to the interested investors.

 

Step by step

Step 1 – Nominations; participating accelerators and incubators make nominations using our online form. During this step, only basic information is provided.

Step 2 – Formal Entry; selected entrepreneurs and startup provide all the needed information to get their entries ready for our review. No confidential information or details on finances shared through IdeaGist platform.

Step 3 – Acceptance; our team checks all entries for any possible missing information and completed entries are accepted in the global pitch.

Step 4 – Online Pitch; investors are invited to come and look at the available startups for a period of 7 days. Each investor can show interest in as many startups as they like. Showing interest does commit an investor to invest.

Step 5 – Web Presentation; investors and entrepreneurs are invited to join via web conference, giving each entrepreneur 15 min to present and then 15 minutes for Q/A. The participating accelerator or incubator is required to schedule this call.

Step 6 – Deal Closing and Due Diligence; under the guidance of the accelerator or incubator that introduced the startup, entrepreneurs finalize the deals and complete the due diligence process.

Step 7 – Final Reporting; entrepreneur report the outcome and provide future updates as they progress.

 

Categories and stages

All deals will be divided into two broader stages, Pre-MVP and Post-MVP. Deals will further be categorized based on the defined customer base.

 

Submission

IGIP is not a business plan competition nor it is focused on specific technology or industry. All startup ideas submitted will remain the intellectual property of the idea owner. Initial submission will be made by the partner accelerator/incubator. Once the submission is accepted by IGIP, the idea-originating entrepreneur will be invited to complete the entry.

Here are the details submitted by the partner accelerator/incubator:

  • Startup Legal Entity Name
  • A public description of the company
  • Formal registration date
  • Formal registration state and country
  • Entrepreneur Name
  • Entrepreneur Email Address
  • Entrepreneur LinkedIn Profile Name
  • Company website address, if available
  • Confirmation that the entrepreneur has graduated from their training program
  • Confirmation that they have the possession of current cap table, three years of projections and a basic business plan.
  • Stage of the company (Pre-MVP, Post-MVP)
  • Range of Deal in USD

Once accepted by our team, the entrepreneur will be invited to provide more details, which will include, without limitation:

  • Value Proposition
  • Intro Video, for the entrepreneur and the team, not exceeding three minutes in length. All videos must be loaded on YouTube and should not contain confidential information.
  • Team member information
  • Count of current paying customers
  • Number of potential customers identified as lead
  • Money needed to develop the product/service before achieving accounting breakeven
  • Money needed for marketing and sales
  • Money that will be paid to the team

 

Schedule 2017-2018

This is the schedule we are currently pushing. Since this is the first time we are doing it, we expect hiccups and first pitch session may get delayed for a week or two. Second pitch session should get back on the calendar. We will get better with everyone’s support.

November 20-26, 2017 – Online Pitch
December 4-8, 2017 – Video Calls with the investors
Dec 11 – Jan 31, 2018 -Individual Deals and Due Diligence

February 19-25, 2018 – Online Pitch                                                                     
March 5-9, 2018 – Video Calls with the investors                                          
Mar 12 – Apr 30, 2018 – Individual Deals and Due Diligence                                 

May 21-27, 2018 – Online Pitch                                                                       
June 4-8, 2018 – Video Calls with the investors                                            
Jun 11 – Jul 31, 2018 – Individual Deals and Due Diligence                                   

August 20-26, 2018 – Online Pitch                                                                         
September 3-7, 2018 – Video Calls with the investors                                             
Sep 10 – Oct 31, 2018 -Individual Deals and Due Diligence                                     

 

Program Rules

 

Pre-Requisites

All parties must be prepared to go through this process. Our assumption is that all these pre-requisites are in place for you to participate.

Entrepreneurs

  • A registered company
  • A good team (no one man shows)
  • A developed MVP or highly advance MVP development plan
  • If MVP is not developed, primary research on customer needs, active customer engagement in developing MVP, and independent estimates on development cost
  • Bank Account
  • Securities Commission approval or exemption in your country
  • Clearance to receive foreign investment, if required

Accelerators and Incubators

  • Your accelerator or incubation must have a document or guide for foreign investors, providing details on the minimum qualification for an investor, equity restrictions, taxation or profits, taxation on capital gains, repatriation of capital, and other relevant topics.

Investors

  • Understand the legal and market conditions in the country you plan to invest.
  • Ensure that you are an accredited investor as per the local legal requirements.

 

Terms and Conditions

The main objective of the IGIP is to connect investors with entrepreneurs. We don’t plan to be an investment broker, private placement agency, or participate in actual investment decisions of any kind. There are some basic rules and understandings of the program to which we ask everyone to adhere:

Entrepreneurs

  • Be honest and upfront with your current situation.
  • Understand that the investors are there to help you, but they also need to make a profit to continue doing what they are doing.
  • Do your homework on your customer and competition. Whole world is not your customer and it is not true that you don’t have any competition.
  • Understand that value proposition for your customers.
  • You cannot do everything yourself, so you must have a team.
  • Do not share any confidential information on IdeaGist website.
  • You must be investment ready. If you don’t know what is investment ready, you need to do some homework.
  • Make sure that you have your intellectual property protected at an appropriate level, if it applies to you.
  • Make sure that you have legal advice, either directly through your own legal counsel or through your incubator.
  • IdeaGist is providing this service without any share in equity or any money from the investment raised. You understand that IdeaGist role is just to connect entrepreneurs and investors.
  • You understand that IdeaGist does not guarantee investment in your startup and it is up to the investors to decide which companies to work with.
  • It is illegal in many countries to publicly ask for investment or get foreign investment without permission. You are required to abide by all your local laws and should not attempt to publicize your startup investment through IdeaGist platform.
  • You understand that IdeaGist is not an equity brokerage platform and you should avoid any financial negotiations on IdeaGist.
  • You agree not to bypass IdeaGist and approach the investors directly in any way, unless you had prior relationship with the investor.
  • You agree to the IdeaGist online user agreement, privacy policy, and code of conduct.

Accelerators and Incubators

  • Your organization confirms that the proposed startup has either graduated or has gone through your training program.
  • You may be asked to provide due diligence support and you are willing to provide it.
  • Participation in this program is voluntary and it does not create any binding relationship of any kind.
  • Your accelerator or incubator must keep this program open to everyone, without discrimination, and must announce it through any one of the main global social networks.
  • Your accelerator or incubator should have private placement agreement and convertible note templates that are designed for foreign or local investors, and not one sided.
  • Your accelerator or incubation must have a document or guide for foreign investors, providing details on the minimum qualification for an investor, equity restrictions, taxation or profits, taxation on capital gains, repatriation of capital, and other relevant topics.
  • Your website should have a reference to this document at a place that is publicly accessible.
  • You can charge a fixed fee or have equity arrangements with the entrepreneur, but you cannot ask for a percent of money raised as a fee. Your policy must be made public on this.
  • You agree not to bypass IdeaGist and approach the investors directly for any startup, other than the ones accepted through this program, unless you had prior relationship with the investor.
  • You agree to the IdeaGist online user agreement, privacy policy, and code of conduct.

Investors

  • You are responsible for making sure that you qualify as an angel investor in the markets that you plan to participate.
  • You confirm that you are a qualified investor and willing to furnish the needed documentation when requested by the host accelerator or incubator.
  • You understand that IdeaGist is not an equity brokerage platform and you should avoid any financial negotiations on IdeaGist.
  • You agree to the IdeaGist online user agreement, privacy policy, and code of conduct.

 

Disclosure of Financial Interests

IdeaGist

IdeaGist has no interest in obtaining equity in the startups through this program. IdeaGist also has no performance fee or plans to take a percentage of the money raised through this program. Rather, it is provided as a free service to the entrepreneurs. IdeaGist might impose an application fee in the future to help maintain the quality of applications.

 

Accelerators and Incubators

Participating accelerators may have an equity stake in the startups and may also be charging fees for their services in preparing and guiding through the investment process.

 

Next Steps

Entrepreneurs

Talk to your incubator and accelerator to participate in this program. You cannot apply directly.

 

Accelerators/Incubators

Complete the short registration form for your institution by clicking here.

 

Investors

Click here to Register on IdeaGist and select “Investor” as a profile type.

Join Today

 

Background Information

IdeaGist Background

IdeaGist Global Portal

IdeaGist New York Community

IdeaGist San Francisco Community

IdeaGist on Facebook

IdeaGist in Twitter

IdeaGist on LinkedIn

 

Questions: robert [at] ideagist.com