Heartcore Capital and Its New Plan
There is new thinking from Heartcore Capital, which is “new opportunities”. This thinking is behind its pre-seed funding program. This European consumer concentrated VC generally invests in those startups at the seed and Series A, but identifying that a lot of potential founders are currently in the lockdown, and with the passage of time, their hands are moving on the top of the funnel with the starting of a pre-seed fellowship program.
Particularly, the entrepreneurs who are interested in beginning a consumer technology company in this lockdown can apply for a pre-seed investment of 100,000 euro per founder to finance or banking development of a prototype. The whole investment procedure will be carried out online and begins through a simple web form. Zoom conversations with its investment group will follow this.
The VCC of the company explained that Heartcore Capital was offering 100,000 euro per founder only for a seven percent equity stake for each company, and the aim was to reflect that a greater founding group would also mean a greater initial cost base. VC added that the investment equipment was a convertible note, and the company neither needed to be founded, nor any idea would be required to apply. More widely, the objective of this fellowship program is to create a prototype in order to raise a seed round when the lockdown ends, and normal life starts again.
How Did the Idea of Fellowship Appear?
Max Niederhofer said that Heartcore had been investing from the beginning to Series A since they had begun their journey from 2007. Half of the investments had been in a group and a plan in the past twelve months. However, a lot of those had been sizeable funding rounds indeed where there had been already an entirely fleshed out idea, already a company, or already a bigger team.