How our business helps yours
Our core competence is to provide the necessary financing to start up your business. During our meetings we will determine, together with the founders, which financing option fits best with the company. We do this by determining the Technology Readiness Level (TRL) of the startup. The TRL gives us a better understanding of what the status of the startup is. Based on the TRL and the status of the startup we will discuss with you which investment option would best suit your company.
A convertible loan is a standard loan with the potential of being converted into equity at a later stage. The main benefit this offers for you and your startup is that you retain full ownership of the company in its initial stages, which means there is less accountability towards the investor.
The right to convert lies with the investor, and whether conversion will take place depends on the status of the startup. If the loan is converted into equity, the investor will become a shareholder and will stay engaged in the process.
Investment on equity
With an investment on equity, the investor acquires shares in the company in exchange for the investment. As a shareholder, RUG Ventures will be engaged in the subsequent development of the company.
In order to establish the shares ratio, we look at the status of the startup. However, it is almost impossible to reliably determine the value of a company that is still in its infancy and might not yet be profitable. The process of valuation therefore takes place in constant consultation with the startup, in which both parties can make a proposal and we will together come to a reasonable ratio.
Would you like to know what our investment process looks like?