Indico Pre-Seed Program
We are joining forces with Google for Startups to launch a premier Lisbon based pre-seed program to boost the Portuguese ecosystem. You can read more about it here. We are currently accepting applications for the program, please fill out the following form to be considered for the program and refer to our FAQ for questions and details.
Frequently Asked Questions
Companies developing great IT/web-based products and businesses, with a huge potential in new or existing markets, particularly given the current market environment. The companies must be in the pre-seed stage, which includes startups that are assessing its feasibility concept, developing initial business concepts, testing product-market fit or a potential product/business pivoting. The companies applying should be legally based in Portugal.
The pre-seed program will have a duration of 6 months and the incubation up to 12 months. Yet, due to the current COVID-19 pandemic situation, and the need to move part or the whole program online, the duration may be extended (maximum up to 9 months). In any case we expect participants to be resident at our offices as soon as possible and when safe. If not possible, and while not possible, the incubation will be virtual. We want to be close to the companies and have plenty of time to dedicate to a small number of companies that participate.
Yes! We invest €100.000 in companies that take part in the Accelerator. The investment is realized through a SAFE (simple agreement for future equity), where we will invest €100.000 in the start of the program (as an advance) that shall be converted into share capital in a subsequent equity financing round. The conversion price of the SAFE into share capital will be calculated considering (i) a 20% discount over the pre-money valuation of the subsequent equity round and (ii) a minimum equity stake (fully diluted), previous to the entry of the new investor, of 6% for Indico Capital (implicit pre-money cap of €1,66M). As an example:
Scenario 1: Subsequent round with a pre-money of €2,0M and cash-in of €300k from new investors (post-money fully diluted €2,3M):
- Pre-money with discount: €2,0M x (1-20%) = €1,6M
- Indico Equity Stake (pre-money): €100k / €1,6M = 6,25%
- Indico Equity Stake after new round: 6,25% * (1 - €300k / €2,3M) = 5,43%
Scenario 2: Subsequent round with a pre-money of €2,5M and cash-in of €300k from new investors (post-money fully diluted €2,8M):
- Pre-money with discount: €2,5M x (1-20%) = €2,0M - adjusted to €1,66M (pre-money cap for SAFE conversion).
- Indico Equity Stake (pre-money): €100k / €1,66M = 6,0%
- Indico Equity stake after new round: 6,00% * (1 - €300k / €2,8M) = 5,36%
In the case that in 12 months no new equity financing round is held, the SAFE will be converted into a 7,5% equity stake (hard stop).
As pre-seed investors we won’t have any special controlling rights. You will be largely responsible for your own company, as it should be. Yet, the participation in the program will imply the acceptance of a standard term-sheet with the conditions and terms of the investment to be realized by Indico Capital. The terms are common to all major top tier global accelerators.
The startups participating in the Acceleration Program will have access to the best of Indico and Google - its people, capital, network, and advanced technologies - to help them to build great products and businesses. The program, amongst other features, will include:
- Mentorship: access to a wide network of senior global mentors, from the Google and Indico networks, with different areas of expertise;
- Incubation: up to 12 months of incubation at Indico’s offices in Lisbon (in conditions still to be confirmed, due to the current COVID-19 pandemic situation);
- Resources and partnerships: access to Google’s AI/ML, Cloud, Android, and Web training and experts, among others;
- Investment: €100,000 from Indico Capital.
Teams will work on their companies and will have access to mentorship and workshops with worldwide experts in topics such as customer validation, technical foundation, hiring, marketing, funding, among others. We will host a demo day event at the end of the program and other events.
Applications for the first batch are open until May 22nd. However, you can submit a late application which will be flagged as such and will be processed ad-hoc based on the team’s availability and the particulars of the application. Companies that apply late may or might not be considered for this program. We encourage applications before May 22nd.
The program starts early to mid-June. Due to the COVID pandemic, the dates might be slightly adjusted but we are monitoring the situation and will keep companies informed.
When should I expect to hear from you after applying? How does the interview and selection process look like?
After we review your application, and should you pass our initial screening committee, we will invite you to do a quick screening call as a first step. This will happen no later than 3 weeks after the submission of the application.
There will be a charge of €20,000 (plus VAT) participation fee at the beginning of the program (invoiced after our investment so you don't have to pay out of pocket). Program fees help to cover the basic costs of running the program including office space, support staff and are standard in all major global accelerators.
Indico’s focus is to support the best, high tech companies going from local to global in areas like artificial intelligence, big data, enterprise SaaS, fintech, marketplaces, among others. We look for potentially unique global winners with amazing products, solving a big problem and a clear business model. We have a geographic focus on Portugal and Spain, so we invest almost entirely in companies based in these two countries. You can find our current portfolio of pre-seed to series C companies here. All these companies have been co-invested by other major global VCs, sovereign wealth funds, major corporates, hedge funds, business angels and high net worth individuals from all over the world. If you become a portfolio company by participating in our program, you will be in fine company and will meet many of our top founders, many of which will be mentors.