
Leapfunder helps startups to raise equity online from a pool of informal investors.
Leapfunder was co-founded by >90 active Angel investors. They are called the Founders Club. They shape Leapfunder strategy. This offer of investment is for the current Founders Club, as well as for potential new members.
Leapfunder handles account management, business development and compliance from Amsterdam and Berlin. All software development has been outsourced to India. All social media is run from Barcelona.
The Leapfunder products has two parts: i) the Leapfunder Note is a robust financial security that makes it easy to for startups to implement high-resolution funding in the Pre-Seed and Seed stage. It can be used by all relevant legal entities in Germany and the Netherlands. Also Leapfunder has developed ii) the Leapfunder Hub, an online social network for investors, to facilitate building syndicates and deal discovery. The IT architecture of this online social network allows its use in almost any EU jurisdiction.
Leapfunder facilitates investment by:
Providing a social networking community on leapfunder.com
Providing software that allows the start-up to execute the investments online
A standardized legal structure, which small investors can rely on
Leapfunder aims to benefit from an investment transaction only if the start-up is successful. The fee for Leapfunder therefore has two parts:
A % cash commission on each successful transaction
A % of share options in each startup that uses Leapfunder
Leapfunder can exercise its share options at any time. The cash commission is intended only to cover costs, whereas the options aim to lift Leapfunder into profitability.
Leapfunder aims to be as close as possible to operationally cash neutral. The strategy is that long-term value creation will come from the warrants held in the portfolio of startups.
Leapfunder is not a crowdfunding website. Its start-ups typically aim to work with 10-20 informal investors, who are investing between E5-50k each. Investors can look at the full information on each deal by invitation only. We emphasize in all our communications that Leapfunder offers an online form of classical Angel Funding.