How we invest in startups
Accelerating Asia’s flagship 100-day award-winning startup accelerator is backed by our early-stage Venture Capital Fund regulated by the Monetary Authority of Singapore. Through our Fund, we invest in the high-growth, pre-Series A startups we accelerate from across the region.
Here’s an explainer about our investment terms and how it works.
And remember, applications to join Accelerating Asia’s portfolio, receive investment and access to an award-winning accelerator on July 7.
How much does Accelerating Asia invest?
Accelerating Asia invests up to US$250,000 into eligible startups who join the flagship 100-day accelerator program. We write an initial check of US$100,000 to eligible startups in the Accelerating Asia program once startups pass conditions precedent and due diligence. Don’t worry we wrap up this relatively quickly, as long as Founders are onto company incorporations and providing the documentation.
Then we make an additional investment of up to US$150,000 into top-performing startups. An investment of US$250,000, will convert to an equity stake of around 6-9% depending on the startup’s valuation.
How can I receive investment from Accelerating Asia?
To be eligible for investment from Accelerating Asia, you need to apply for the flagship accelerator program during our recruitment period. We’re currently recruiting for startups and the deadline is July 7, apply now.
How is investment structured?
We invest through a post-money SAFE note. The SAFE note has certain special rights for Accelerating Asia including the right to make a follow-on investment as well as follow-on rights into future rounds.
What is a SAFE note?
SAFE is short for Simple Agreement for Future Equity. A SAFE is similar to a warrant, it’s an option to buy equity at the terms defined in the agreement. SAFEs were pioneered by YCombinator in 2013 as an alternative to convertible debt. Craig did a great explainer on SAFE notes, how they work and the history, read it here.
Why does Accelerating Asia use a SAFE note?
SAFEs are typically a faster and lower-cost way to facilitate investment and are thus attractive to startups, Angels and some Venture Capital firms. In 2019, Angelist released data showing that 80 percent of funding rounds on their platform with investment amounts of US$20 million or below were made using SAFEs. In Singapore and Southeast Asia, the number is lower, but continues to grow.
How does the startup valuation work?
Accelerating Asia invests via a post-money SAFE note. That means we value startups at the estimated valuation after the investment is added to the balance sheet. For Accelerating Asia’s Pre-Series A startups, the valuation is usually between $2M and S$4M.
When will we receive our investment?
As with other investors and Venture Capital funds, you will need to go through a few steps to receive your investment including due diligence, meet conditions precedent and incorporate your startup in Singapore. We will walk you through the process during the startup onboarding process.
Is the program fee the same as the investment?
No, the Accelerating Asia program fee is separate to the investment. Head to our FAQs to learn more about the program fee.
Accelerating Asia startups receive investment from our early-stage VC fund and access to an award-winning program. During our last recruitment round Accelerating Asia received 450 applications from over 25 countries and we have touchpoints with 2000+ startups per year. Apply to become an Accelerating Asia startup.
If you’re interested in connecting with our portfolio, investing alongside us, meeting our portfolio companies, or just generally interested in talking to us about startup investing, please reach out and tell us a little bit about yourself.
Disclaimer
In making an investment decision, investors must rely on their own examination of startups and the terms of the investment including the merits and risks involved. Prospective investors should not construe this content as legal, tax, investment, financial or accounting advice.