Win a Bootstrap InvestmentAugust 15, 2017
Good news for Growing Food participants: The best start-up wins a bootstrap investment of up to 500,000 DKK!
A bootstrap is a loan of up to 500,000 DKK provided to support a start-up at an early business stage when it is usually too risky for private investors to participate. The bootstrap is provided by investment and development company CAPNOVA – one of the partners in Growing Food CPH.
An ideal stepping stone
A bootstrap is an uncomplicated and fast loan to take your product or idea to the next level and it also forms an ideal stepping-stone for future investments. Investment Manager Finn Mogensen explains:
“At CAPNOVA, we may choose to provide a bootstrap to a startup when we have good faith in their prospects. For instance, this year we supported the start-up company Algae ApS. The team has built an interesting prototype algae reactor addressing the needs in the food/ingredient industry. With the bootstrap, we expect the Algae team to mature and prove their prototype design, create a detailed business plan and validate the market through customer interviews and commitments.”
Mogensen explains that a bootstrap may lead to a full investment from CAPNOVA, if and when a startup reaches a more mature stage and a solid marked validation.
Simulate the real experience
A good idea is free, but a prototype isn’t. As Mogensen points out, a bootstrap investment is often spent on creating and documenting a prototype and market testing it in dialogue with potential customers.
“It gives you the opportunity to test your idea or product, to simulate in a way that gives the end-user the real experience of your final product. This way, a bootstrap investment makes it possible to uncover several core milestones and targets of your business case. In the case of Algae, they are improving the reactor, validating the key performance metrics and discussing the commercial feasibility with potential customers.”
A bootstrap is a loan of up to 500,000 DKK to be paid back once your start-up is on the market and has an income or more investors. Aside from the financial side of the bootstrap, CAPNOVA’s team will also support you on your way to commercialization, from advice on strategy, market potential and patenting to setting realistic goals. The best start-up in the Growing Food CPH programme will get the possibility to win a bootstrap investment. Read more about CAPNOVA’s investments at www.capnova.dk.
Apply now to participate in the Growing Food CPH accelerator programme (deadline is 27 September 2017).