Startup Showdown Investment Terms
Startup Showdown Deal Explained
We invest in the winners of Startup Showdown through a standard deal where we invest $120,000 in exchange for 7% of your company. The investment has two parts: a common stock portion and a post-money Simple Agreement for Future Equity (SAFE). Below we provide more details about these two parts.
Here is how it breaks down –
Startup Showdown Common Stock Investment: We invest $20k in return for 6% common stock in your company. We believe this is the right approach to align incentives between the founders and us (“the investors”). We want to have skin in the game alongside you and while most other investors take preferred shares in exchange for their investment, we would like to be your equals as common stockholders. This means that we won’t get paid until you, the founders do, and we like that about this structure.
Startup Showdown SAFE Investment: In addition, we invest $100k in return for 1% of your company using a post-money SAFE which will convert into preferred shares when you raise your next equity round (usually a seed or a Series A). We believe this approach sets you up nicely for your next round of fundraising. The valuation cap of $10M gives you an anchor point for future fundraising conversations.
The BIP Ventures Advantage: In addition to the investment, the winners of Startup Showdown get access to a wide variety of resources and opportunities as a full fledged member of BIP Ventures’ portfolio.
BIP Performance Engineering Platform:
We have a dedicated acceleration team in-house to help our founders navigate the myriad challenges and hurdles that young startups need to overcome to succeed. This includes (but is not limited to) hiring, strategy and GTM, founder coaching, introductions to customers and partners, and fundraising and storytelling. We are long term partners and we still support our portfolio companies both strategically and tactically throughout the life of the company.
Community Beyond Startup Showdown Day:
Startup Showdown culminates in a live, global broadcast that is attended by hundreds of executives, investors, and potential employees and participating helps you get broad exposure across these potential partners. After Startup Showdown, BIP Ventures will regularly facilitate high-value connections with other investors, potential customers, talented employees, and valuable channel partners.
Each Startup Showdown winner receives access to discounts for over one hundred products. Many of these have meaningfully saved our portfolio companies hundreds of thousands of dollars.
Potential Follow On Funding at Seed and Series A
We strongly consider leading or participating in subsequent fundraising rounds to continue supporting our companies. In this process, we will also work closely with you to build your deck and your narrative, introduce you to other investors, and even help negotiate and evaluate offers.
We are known for going above and beyond for our portfolio companies. We look forward to meeting you.
This website does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other product or service by BIP Capital, LLC or any other third party, regardless of whether such security, product or service is referenced in this website. The investment terms listed below are for illustrative purposes only and should not be construed as proposed terms for the offering of securities. Furthermore, nothing in this website is intended to provide tax, legal, or investment advice and nothing in this website should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. BIP Capital, LLC does not represent that the securities, products, or services discussed in this website are suitable for any particular investor. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your business advisor, attorney, or tax and accounting advisor regarding your specific business, legal or tax situation.