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Your Growth Opportunity

Start your growth journey and accelerate your results. Get in touch if you want to know how.

When Our Goals Align

This terms sheet is designed to be attractive to startups by highlighting the benefits of each term and demonstrating our commitment to supporting their growth and success. If you have any further questions or need additional assistance, feel free to ask!​

Focus

We focus on investing in early-stage startups, providing the capital and support needed to grow from the ground up.

Early-stage investment allows founders to secure the necessary funding to develop their ideas, build a team, and bring their products to market. Our focus on early-stage startups means we are committed to supporting your vision from the beginning.

Investment

Our typical investment size is less than 500,000 DKK per startup, ensuring that we can support multiple innovative ventures.

This investment size is designed to provide sufficient capital to achieve key milestones without overly diluting founders' equity. It allows startups to validate their ideas and attract further investment.

Duration

We prefer short to medium-term (1-5 years) investments, aligning our goals with the startup's growth trajectory.

This timeframe allows founders to focus on rapid growth and value creation, with the support of an investor who understands the dynamics of early-stage ventures.

Stake

We typically seek a minority stake (Less Than 20%) in the startups we invest in, ensuring that founders retain control and decision-making authority.

By taking a minority stake, we allow founders to maintain control over their company's strategic direction while still benefiting from our investment and expertise.

Representation

We require a seat on the board of directors to actively participate in strategic decisions and provide guidance.

Our presence on the board brings valuable insights and experience to the table, helping founders navigate challenges and make informed decisions.

Reporting

We require regular financial reporting (monthly) to keep us informed about the company's financial health.

Regular financial reporting helps founders maintain transparency and accountability, building trust with investors and providing valuable insights for strategic decision-making.

IP

We require that all intellectual property (IP) created by founders and employees be assigned to the company.

Assigning IP to the company ensures that the startup owns all the rights to its innovations, making it more attractive to future investors and partners.

Structure

We are open to various investment structures, including equity, debt, convertible notes, or SAFEs (Simple Agreement for Future Equity).

This flexibility allows startups to choose the investment structure that best fits their needs and growth plans. It also provides options for future financing rounds.

Exit

Our preferred exit strategy is through acquisition, providing a clear path to liquidity for all shareholders.

An acquisition exit strategy can provide a significant return on investment for founders and early investors, rewarding their hard work and risk-taking.

Vesting

We are flexible regarding the vesting schedule for founders' shares, ensuring that it aligns with the startup's goals and milestones.

A flexible vesting schedule allows founders to focus on long-term growth and retention of key talent, while also providing the security of gradual equity ownership.

Anti-Dilution

We include full ratchet anti-dilution protection to safeguard our investment in case of future down rounds.

While this protects our investment, it also ensures that founders are incentivized to maintain and grow the value of the company, aligning our interests with theirs.

Liquidation

We prefer a 1x participating liquidation preference, ensuring that we receive our initial investment back plus a share of the remaining proceeds.

This structure provides a balance between protecting our investment and allowing founders and other shareholders to participate in the upside of a successful exit.

New Shares

We include pre-emptive rights, giving existing shareholders the first opportunity to purchase new shares issued by the company.

Pre-emptive rights help prevent dilution of existing shareholders' ownership, ensuring that founders and early investors can maintain their stake in the company.

©2021 by Lohbus Holding.

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