Danube Angels for companies
For which companies is our investor network interesting?
Raising capital through Danube Angels is the right form of financing for your company if the following criteria are met:
- Financing volume: EUR 50,000 to EUR 500,000
- Financing phase: late seed/early stage-financing
- First clients and turnover
- Industries: all industries, no pure project companies
- Corporation with registered office in Austria, Germany, Switzerland, Czech Republic, Slovakia, Hungary or Croatia
- Willingness to broaden the shareholder structure
- Approval of extensive rights of investors
The Danube Angels investor network is not only a possibility of financing, but also an excellent marketing instrument. You can have personal contact with investors and receive a lot of attention for your company.
The Danube Angels platform not only provides you with money, but rather “smart money”. On the one hand, you benefit from access to our extensive network of partners and investors in the DACH and CEE regions. On the other hand, you will enjoy the ongoing professional support and expertise of Danube Angels.
You use not just one person or institution to finance your company, but a larger number of investors in the DACH and CEE regions.
The investments of the individual investors are held by a trustee so that rather than 50 new shareholders only the trustee is involved in the company. This keeps the administrative costs for your company at a minimum.
Step by Step
Submit your financing application
Presentation of the company
After positive feedback you will receive an invitation to one of our Pitching Days. At this event, the main focus will be on getting to know the team and your business model as well as questions by our partners.
We jointly draft all necessary contracts with the extensive investor protection rights.
Preparation of the approach of investors
Together we design an interesting investment summary – with an easy-to-understand description of your company and product as well as appealing pictures. All documents must meet the requirements of a public offer as defined by the Austrian Alternative Financing Act (AltFG).
Start of the approach of investors
Advertise in your network for the financing round and win investors. We support you by marketing in our networks and try, together with you, to reach the minimum amount of the investment or more.
Completion and ongoing support
Keep your investors informed through at least quarterly reports and information on important events. You can also benefit from access to our network of experts in the DACH and CEE regions and use it for the further growth of your company.
Frequently asked questions
For a campaign on the Danube Angels platform, your company must meet the following requirements:
- Your company is a corporation based in Austria, Germany, Switzerland, the Czech Republic, Slovakia, Hungary or Croatia.
- Your company already has a product on the market and is already generating sales.
- Your company is looking for late seed or early stage-financing between EUR 50,000 and EUR 500,000.
- The owners of the company are willing to broaden the shareholder structure and to approve to extensive rights of investors.
No, your company does not have to operate in a specific industry. Danube Angels is interested in operating companies from all industries. Danube Angels does not offer financing for pure project companies.
The financing volume of Danube Angels and its investors ranges between EUR 50,000 and EUR 500,000.
The following fees are charged for the provision of capital:
Fixed and success fee
Danube Angels charges a fixed fee of € 1,500 plus any applicable value-added tax upon signing the Letter of Intent to mediate capital and a success-based fee for the provision of capital and the mediation of investors. This success fee amounts to 10% of the capital (plus any applicable value-added tax), which flows into the company in whatever form, whereby the previously paid fixed amount is credited. The success fee is due after the transaction has been completed.
Annual support fee
For the ongoing support, preparation of investor information, administration of trust relationships etc., an annual fee of EUR 4,000 plus any applicable tax is charged.
A crowd-investing campaign with and at Danube Angels offers your business many benefits. The most important benefits are:
- Marketing potential: crowd-investing is not only a form of financing, but also an excellent marketing instrument. You can have personal contact with investors and receive a lot of attention for your company.
- Service potential: the Danube Angels platform not only provides you with money, but rather “smart money”. On the one hand, you benefit from access to our extensive network of partners and investors in the DACH and CEE regions. On the other hand, you will enjoy the ongoing professional support and expertise of Danube Angels.
- Financing potential: you use not just one person or institution to finance your company, but a large number of investors in the DACH and CEE regions.
- Minimum administration: the investments of the individual investors are held by a trustee so that rather than 100 new shareholders only the trustee is involved in the company. This keeps the administrative costs for your company at a minimum.
In contrast to other platforms, Danube Angels does not provide subordinated loans. Our crowd-investing platform offers investors equity participations in companies seeking capital. Each investor’s participation is held by a trustee, so there are not 100 new shareholders in the company, but only the trustee.
The amount of the company’s share depends on the amount of financing required and the company’s valuation. The valuation of the company is made by Danube Angels using the free cash flow method on the basis of the cash flow calculation, which you provide.
To apply for a crowd-investing campaign, simply fill out our application form and upload your current pitch-deck and/or your company’s executive summary. The application form can be found here.
Once you have gone through all the steps of our selection process, you will receive an offer from Danube Angels for the provision or mediation of capital. Then all contracts must be negotiated by you and Danube Angels and the campaign must be designed together. Basically, we plan four weeks from the acceptance of the offer and the start of the campaign.
Before and during your campaign, Danube Angels and its partners support your company in the creation of the campaign and the advertising measures. Our team, which includes a lawyer in Vienna, can also assist you in legal matters.
The Danube Angels platform presents your crowd-investing campaign to potential investors. In order to achieve the highest possible amount, it is essential that you also distribute and promote the campaign in your network. In addition, Danube Angels will prepare investor events where you can present your company and campaign in person and get potential investors interested in investing.
The funding limit is the maximum amount collected for the project. This amount cannot be exceeded. The funding threshold is below the funding limit and is the minimum amount that must be collected in order to execute the transaction. Only when the funding threshold has been reached does the trust agreement become valid and the financing transaction is executed.
If the funding threshold is not reached during the campaign, the capital will not be provided or mediated and the letter of intent or any negotiated agreement between your company and Danube Angels will be invalid. In the event that the funding threshold is not reached, the success fee is not due; only the fixed sum of EUR 1,500 at the signing of the letter of intent is payable. It is also possible to extend a campaign if you and Danube Angels think this is useful and if this option was previously stated in the contracts.
In order to enable Danube Angels to provide investors with timely, accurate and comprehensive corporate information, the capital-seeking company undertakes to submit half-yearly reports on the progress of business and financial position in accordance with a template provided. Danube Angels names a contact person who discusses the course of business with the founders on a monthly basis. Ongoing support over the period of the investment is regulated in a consultancy agreement.
The Danube Angels partners always act as co-investors themselves, expressing their commitment and trust in your company.
Yes, once the funding threshold is reached, the company is obliged to execute the negotiated contracts. If the funding threshold is not reached, the capital will not be provided or mediated and the letter of intent or any negotiated agreement between your company and Danube Angels will be invalid.
Do you have questions about a financing round at Danube Angels?
We will also be glad to answer your questions personally in a call or by e-mail.