YCombinator popularized startup demo days. Shark Tank and Dragon’s Den revolutionized the investor pitch. The Startup Tank Climate Investor Pitch Show (brought to you by 4WARD.VC), is the best of both, bringing top sustainability, cleantech and impact startup founders to pitch climate VCs looking to fund world-changing companies
If you’re combating climate change by building the next sustainable development (SDG) superstar or circular economy unicorn and looking to fundraise from top tier VCs and angel investors, you’ve come to the right place
In addition to increased deal flow and exposure to promising companies, investing via a syndicate is just more convenience. We find great startups, negotiate good terms, diligence the company and provide you with a deal memo and manage all of the legal aspects of setting up and running the SPV.
What is an SPV?
An SPV is a Special Purpose Vehicle, i.e., an LLC investment vehicle that we use to invest collectively in a startup.
Will I be on the cap table?
No. By joining our syndicate, you’re investing in membership of the SPV, which then invests in the company on your behalf – meaning no additional legal complications/obligations/fees for you.
What is the minimum I can invest?
The minimum is $1000+ per deal, depending on the allocation we secure in the round.
Is it mandatory to invest or take my pro-rata rights?
No. All investments are 100% optional for all members.
Is there a setup fee?
For some deals, we use Assure (a portfolio company btw 🙂 and there is a variable per deal fee starting at $4k-9k depending our allocation.
For other deals, we use Leva which charges 1% of funds raised.
What does it mean to be an accredited investor?
While accreditation laws vary based on jurisdiction, in the USA, an accredited investor is designated by the SEC to mean either you’re net worth (excluding your home) is > $1M or you earned more than $200k/yr for at least the past two years.
Can non-accredited investors invest?
Yes, for certain deals (depending on jurisdiction).
NOTE: That Americans must be accredited investors in order to participate.
What is carry?
Carry stands for carried interest, which is a share of the profits. We charge a standard 20% for our syndicate which is paid out in exchange for negotiating the deal, performing due diligence, crafting the deal memo and setting up/running the SPV.
What is the advantage of an SPV over individual investors?
With an SPV, there is only ONE line on your cap table – which keeps things clean for future investors. It also connects you with up to 249 investors who become vested in the success of your company and can be super helpful for your business in the future.
How does it affect our the cap table?
Because our syndicate creates a separate SPV which then invests in the company on our members’ behalf, that means only one new entry on your cap table and only one investor to report to 🙂
How much does the 4WARD.VC invest?
It depends on allocation and investor interest, but typically at least $100-500k via our syndicate.
How much have companies raised since being on The Startup Tank
Presenting startups have told us they’ve raised $10.5M+ to date since pitching on the show and the top companies from each session say interested investors are reaching out to them as a result of their pitch to learn more and set up follow-up meetings.