How would you fall 60 thousand dollars and 16 weeks of training with experts in Silicon Valley? Keep reading to know what you have to do to get it
What do companies like Konfío, Wishbird and Boletia have in common?
They all went through the 500 Startups acceleration program. Since it was created in Silicon Valley, this accelerator has invested in more than 2 thousand companies in 60 countries. Mexico City is one of its main offices, and that’s where all of its companies in Latin America get.
The call is for you
Now, 500 Startups is calling for a new round of investment in Mexico. Specifically, they want 12 projects to invest $ 60,000 each, and make them part of a 16-week mentoring program with Silicon Valley business experts.
For some businesses, maybe 60 thousand dollars do not change everything, but this program also opens doors to the future. In addition to mentoring, investment funds such as Jaguar Ventures pay special attention to companies that leave 500 Startups; in fact, they are the ones that are most valued. This is mainly due to the training that entrepreneurs receive in different areas. For example, weekly results reports, track the metrics that are really important for the growth of the company, and other secrets of the trade.
How to enter
500 Startups in Latin America has achieved very good results since 2011. For example, more than 8 million dollars of investment in 100 projects, and more than a thousand employees. In addition, companies that have gone through 16 weeks of work with them, have managed to increase their sales three or four times (according to their own figures). You can start your registration here.
First, some things you must understand. Yes, they will give you 60 thousand dollars, but it is for 10% of your company. Maybe over time, if you get other investments, this percentage will be diluted. Currently, 500 Startups only own 4 or 5% of the companies that it finances.
In addition, you will be charged $ 12,500 for the acceleration program. That is, from the 60’s, you will have $ 47,500 to invest in your business.
You can apply even if your company is not yet registered. If they choose you, they will send you some legal dispatch options that can help you.
When choosing a company, there are 3 requirements before giving them the investment
Be constituted as a Delaware C-corp or a Mexican SAPI
If you have a different entity, do not worry. Once the offer is in hand, the firms can help you look for options to make a matrix and explore alternatives that work for both.
Basically, a Delaware C-corp is a way to set up your business under US law. It is the most common strategy among startups around the world who want to get funds in Silicon Valley. Although it is possible to get funds as a foreign company, doing so will save you time and effort.
On the other hand, a Promoting Investment Company or SAPI is a legal entity that allows shareholders to have corporate and economic rights.
This is signed by all founding partners. This is to protect partners and investors.
The vesting is a kind of contract where it is established that the partners of a company must stay a minimum time to get the agreed actions; although it can also be arranged according to goals achieved.
Intellectual property and some best practices
Contract of transfer of intellectual property rights to 500 Startups. It must be signed by all those who have developed technology and it is to ensure that it belongs to the company.
This is the type of contract to formalize the investment if you are an SAPI; If you are a Delware C-corp, they will use this other contract.
During the registration, they will ask you for information about your equipment, your company and the route they have taken in the market.
What they offer you
In addition to the investment, 500 Startups becomes a partner of your company. In other words, it suits you to do well. Therefore, they will give you tools to grow as recommendations of international experts in leadership, equipment, products, marketing, technology, finance and fundraising.
By the end of the 16 weeks of the program, your company can still request the support it needs. The only thing that changes is that they are no longer weekly sessions, but they will not forget your project.
The three main elements they are looking for are young companies, with a technological focus and growth opportunity.
Some tips: do not wait until the end of the deadline. The call, which opened on January 7, closes on February 3, but it is better to take advantage of the time and send the request as soon as possible. You must know how to clearly and concisely describe your project. You should also look for other entrepreneurs, tutors, investment funds to make good letters of recommendation.
Also published on Medium.