Who can apply and
what are the terms?
All early-stage/seed start-ups that have an innovative solution and are scalable are more than welcome to apply for Propagator. But to be considered for a spot, the start-ups should meet the following requirements:
Who can participate?
- Start-ups must have a business proof of concept and a product or service with a market fit, viable commercialization, and scope of scaling.
- Technology should be part of the start-ups core product or service, or business model, or distribution model, or methodology to solve the problem being targeted
- Preference will be given to startups creating innovative solutions in sectors such as software and digital solutions. However, Propagator is not limited to any specific industries.
- Propagator does not invest in DeepTech startups that involve heavy machinery/hardware equipment or need long lab research process to commercialize their products or services.
- The Propagator program begins with a Bootcamp - free of charge. For the start-ups accepted for The Program this is the terms and conditions:
- Each start-up receives 600 tDKK in share capital from the fund behind the Propagator program. The investment is released in two tranches, first tranche when starting and the second after 3 months if reaching KPIs. The fund will in return acquire between 1,5-15% in share capital (fully diluted), which equals a valuation of 4-40 mDKK
- If the start-up does not receive the second tranche, the fund will only receive half of the share capital
- The start-ups will pay a program fee of 100K DKK for the first 3 months, and an additional 100K DKK for the remaining 6 months, covering partly the cost of the program provided by Propagator
- The start-up is offered office space in the heart of Copenhagen (Nørre Voldgade) for DKK 1,995 excl. VAT / month per person.
- The fund offers to match up to 600 tDKK in new equity investment. If, for example, 600 tDKK is obtained from external investors, the fund matches this, which will give a total investment of 1.2 mDKK. The matching investment is made on current terms and must be approved by the investment manager in the fund
- All start-ups have the opportunity to buy back up to 1/3 of the subscribed equity - within the first 24 months from the start of the program. The price is set at 10 times the original subscription price
- All start-up companies must be established as an ApS, A/S or similar non-Danish limited company structure when they receive investment
- Propagator will actively work on securing additional funds for the start-ups when part of the Program.
- Propagator will actively introduce start-ups to a comprehensive Business Angel network to support additional funding
- Propagator provides access to an international network through its partners and collaborators