• for investors

    Creating a new way of venture investment

    Why we break the rules

    The classic venture capital model is outdated and ready for an overhaul. Usually, VC funds operate over a specific timeframe (around 10 years), take upfront investments from their limited partners (reducing the liquidity of the asset class) and a 2% management fee along with a 20% carry.

     

    We think a new way of venture investment creates more flexibility, liquidity and better aligned incentives and returns for all participants in the ecosystem. For more details on our reasoning, see our manifesto.

    What we offer

    - No annual management fees

    - Access to the best deals through our sourcing network

    - Possibility to invest on a deal-by-deal-basis

    - We syndicate our investment rounds and offer our investors to participate in the rounds

    - A great network of lead- and co-investors

    - Full deal management (due diligence, investment process, investment management) for investors

    - Strong network in the central european startup and venture scene

    - No upfront payments by investors necessary, but option for full fund management available

    How our approach works...

    - Once we identified a company we like to invest, we negotiate a deal with the founders

    - We offer our syndicate investors to participate in the round on a deal-by-deal basis

    - Our syndicate investors are free to choose how much money they invest in the syndicate round

    - We charge a one-time 5% Management Fee for the equity ticket of the syndicate investor to cover transaction costs

    - Once proceeds from the investment are distributed, we take a 20% commission on the syndicate investors returns

    ...in the real world, but simplified

    - ExamCo wants to raise a 500k investment round

    - cybernetic.ventures commits to invest 250k in that round

    - Our investors receive our deal memo and the option to invest

    - An investor decides to invest 100k of the committed 250k

    - We charge that investor 5% = 5k one time management fee for the investment

     

    - ExamCo performs as anticipated and is sold to CorpCo, creating proceeds of 2m (4x the investment round)

    - The investor gets back his 100k investment plus 400k of upside, 500k in total

    - From the upside of the investor, we charge a 20% carry

    - The investor earns a net profit of 415k (500k - 80k -5k) and a net money multiple of 4,15x

  • for corporates

    We help corporates changing the game in their industry through solving their innovation needs. By working with our startups, corporates can gain valuable insights in how fast, flexible and dynamic startups solve problems relevant to the consumers.

    Analysis

    "Coming together" - Defining your search field

    Based on your innovation needs and the market your company is in, we keep our eyes and ears open in the startup ecosystem and act as pathfinders and guides to the startup world by providing early access to innovative ideas and strong teams with interesting business models. In line with your overall business strategy we screen and identify potential partners from the startup world.

    Access

    "Keeping together" - Initiate a cooperation

    Once identified, we initiate a cooperation between the startup and your corporation. Drawing on our expertise from both worlds, we understand to create a level playing field for all parties. Either trough business development deals, product partnerships or other joint projects, we help to get the most out of it.

    Insight

    "Working together" - Deeper integration

    Based on our day-to-day work, we provide corporates with deep analysis of startups, their markets and their business model enabling corporates to make educated decisions about the strategic fit of potential investments. We screen, analyze and facilitate talks with potential investment targets from the startup world.

  • how our model works

    We invest in early stage companies where financial success creates meaningful social and environmental value. We believe there is an opportunity to create large, impactful technology businesses within these critically important segments of our society. And while profitability is required for long-term sustainability, we believe measurable social and environmental impact is what creates long-term resilience and permanent value.

     

    Our approach in a nutshell:

    • You are a founder looking for a pre-seed or early seed round funding
    • Your goal is to  build a long-term, sustainable business on your terms
    • You don't want to focus on short-term results, "growth-is-all" strategies or unrealistic expectations
    • You have a cash is king mentality and focus on getting cash-flow-positive
    • You have a working prototype and are in position to generate first revenues
       
    • We look for founders creating sustainable companies within our "cybernetic 8" search fields
    • We invest up to 250k EUR each in 4 startups per year on lean terms
    • We help you with other financing options (public grants & loans, equity) along your life cycle if needed
    • We have an evergreen approach with no exit pressure
    • We want to sit in the same boat with you, so we don't take extensive control and voting rights
    • We act as a board member and support you through our network to corporates 
    • Only if the company is cash-flow positive and makes distributions, we share those with the founders
    • In this case we cap our returns at a 3x money multiple
    • If you decide to raise a next round of financing, we receive a fixed percentage of equity

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