<aside> 💡 As a German based early-stage VC, we are investing in (Pre-)Seed and Series A ventures with initial ticket sizes from EUR 500k to EUR 5m.

Find more details about our portfolio, team, etc. on our website.

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The Capnamic Investment Focus 💰

Before we get into how best to structure your fundraising efforts, in this section we focus on what VCs (especially us at Capnamic) are generally looking for 👀.

Further explanations:

• Besides the aspects listed on the picture, we are looking for teams that have a certain “Stallgeruch” - meaning teams that have been confronted with a specific problem first-hand. We truly believe that these founders are also the ones, able to attract world-class talent as they embody true authenticity.
• Bad timing can mean two things: you can either be late to market with lots of established players operating in your field, or you can be too early and will have a hard time persuading customers to buy your solution. Take the Apple iPad as an example - besides a hype in the developer community, Apple's previous tablet attempts, like the MessagePad in 1993, and Microsoft's Tablet PC in 2002 both failed. However, the tablet industry didn't take off until Apple released the iPad in 2010.
• Technology can be your step ahead of competition and more importantly, proprietary tech can enable you to stay ahead of competition for quite some time. From a growth perspective, your tech should not only differentiate you from others, but has to be built for scalability. Can you serve not only your first 10, but the next 100 customers with the product you develop?

The Capnamic Investment Process 🩰

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Once you decided to go all in and have found the right investor, the process outlined in the picture below is what you can expect from a time and a content perspective (at least if you decide to go with Capnamic).

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1. Analysis: 4 - 6 weeks After a first initial call, it’s up to us to do our homework. We’ll dive into the market and competition, while also conducting reference calls with industry experts and potential customers from our network. In parallel, we’ll continue the talks with you by diving into a product demo, discussing your Go-to-Market approach, analysing your assumptions for the business plan, closely viewing your customer cohorts, and foreseeing your next key hires. This part will be finalised with an invitation to our Cologne headquarters, where you will pitch in front of the whole Capnamic investment team.
2. Term Sheet Discussions: 1 week Once we decide that we want to go one step further, we’ll progress to active valuation discussions and details of the overall deal terms. Jump to this section to see, what’s included in a typical term sheet.
3. Due Diligence: 4 - 6 weeks After a signed term sheet, we’ll need another four to six weeks. During this time, we are consulting with external advisors to conduct due diligence on four different streams. If no red flag is coming up during this step, we finally can progress to the signing of the round 🎉.