Venture capital firm Springfield chose a bit of an unusual approach to raise money for their portfolio companies.
Springfield is allocating two spots in their accelerator for companies looking to raise crowdfunding capital. This is how it will work:
Springfield will make $60.000 seed-investments in two start-up companies when they get a spot at the accelerator later this year.
A year later, the two companies will start individual series A rounds through crowdfunding campaigns on Fundedbyme. The investment round will be led by Springfield, but the rest of the capital will be brought in through the crowdfunding site.
“With Fundedbyme, we are building a powerful model for Swedish startups to accelerate from. We are convinced that crowdfunding is the future and that it is a strong complement to the more traditional investment models”, CEO of Springfield, Anna Settman says.
Fundedbyme focuses on equity based crowdfunding which means that the financiers get shares in the company they invest in. The model distinguishes itself from Kickstarer, for instance, where the financers usually get a reward, like a pre-order of the product, as an acknowledgment for the contribution.
Lena Flykt-Rosén, Partnership Manager at Fundedbyme, says that companies usually raise between $240.000 and $1.2 million at the crowdfunding platform.
“Springfield makes the seed-investments now. Later on, they also lead the series A round here in a year. It feels quite natural to cooperate with Springfield since the work with small growing companies, just like we do”, she says.
Springfield will bring in between seven and ten companies to their accelerator this year. Just two of these will also raise money through Fundedbyme. They have yet to accept companies to the accelerator and are still open for applications.
The collaboration might however develop further in the future.
“We just starting this collaboration now, and then we will see how it proceeds. I am convinced that it will be strong complement. I believe that the companies arriving from them will be well-equipped for crowdfunding”, Lena Flykt-Rosén says.
Stockphoto from Mostphotos.