If you receive our newsletters or have signed up to our website, you know Leapfunder always has promising startups raising funding. From technology to fashion to e-commerce, many creative and inspiring startups have completed rounds with us, finding their investors in the largest angel network in the Netherlands. As a middle man, we not only bridge the gap by introducing potential investors to founders, but also by facilitating the legal framework and paperwork to carry out the investment process.
In Part I of What to Expect When Investing in a Startup, we explained what the conversion process is like for an investor, as well as what it means to be a convertible holder. You might wonder: Where are the startups that converted via Leapfunder today? Of course, we keep in touch with our alumni and follow their progress in the news and social media, but we have yet to write about what it is like for a startup to convert through Leapfunder when Leapfunder notes convert to equity.
So, we asked them to share their experience with us directly. Here they are, four great and very different startups who converted via Leapfunder… including Leapfunder itself!
Startup experiences who converted via Leapfunder
Home to Europe’s most exciting designers! ‘Something that is made with sense and sensibility has the ability to change our lives for the better.’ Crowdyhouse has been loyal to the vision it was founded on in 2013. Mark and Susan are on a mission to find hidden designer talent and connect them to the crowd; selling online to a much greater reach rather than selling in individual shops. Their core business: gathering the right people at the right time, to create the right combination of talents. On converting with Leapfunder, this is what the founders had to say:
“Converting from a loan to certificates was very easy thanks to the initial documentation Leapfunder arranged for us at the start of our fundraising. The team at Leapfunder are great people, and they felt like partners during this whole process.”
ProctorExam offers a platform for safe online exams with online proctoring by creating a highly secure exam environment anywhere, anytime. Their vocation: to contribute to the globalisation of education and make accredited education accessible to everyone. ProctorExam is a hands-on tool that uses visual, audio and biometric software so that no hardware is needed. Why make students travel to crowded places to do their exams when technology permits us to do it online? Through the use of the newest technology, ProctorExam also significantly reduces the possibility of fraud. On converting with Leapfunder, CEO Daniel Haven says:
“The conversion was triggered fairly quickly after the Leapfunder round, thanks to a follow-up investment of well over a €100K. Converting the notes to equity was relatively simple. A good accountant really brings you a long way.”
3. Live on Demand
Nowadays what can’t you do online? It seems like you can be in charge of everything…, except live speaker events! Live on Demand was created for this reason. They put the power in your hands to attract and book the speakers you want to see and hear on stage. In just five steps, you can create an inspiring event and crowdfund to a community of like-minded people. Anyone can join to bring their favourite speaker, DJ or artist! Thijs Sprangers, CEO and co-founder on his converting experience:
“Through Leapfunder, we’ve found some great investors. I was especially happy with the thorough pre-check done by the independent Leapfunder investors. Also, the extended template for the investment memo was impressive.”
Last but not least: Investing in startups, made accessible to everyone! If you’re looking to fund your startup or to invest in startups yourself, Leapfunder is the network you need to join. We help startups find early-stage financing, as well as offer guidance, support and financial tools. We believe there is enough capital out there to finance every good idea. By creating and promoting a network investment structure, small investors can assemble a significant starting capital. Leapfunder’s financial products enhance the direct relationship between startup and angel investors.
“In our case, the process was a bit of a ‘home game’. Of course, we know our contracts inside out, so it isn’t that confusing. We are still using an external accountant to calculate the conversion equivalents: even if you have done this kind of calculation before, it is smart to have external help. We had to modify our Leapfunder Notes once through a formal noteholder meeting. That went quite smoothly. The ultimate qualifying event came just months before our Final Conversion Date, so it was close … but we did it! And I like that I can still say: we eat our own food. “
Many more startups will convert with Leapfunder. Join the largest angel network in the Netherlands and discover promising startups.