The LGiLab model inspires other VC funds

I think that when the Internet Lab was created back 8 months ago, we were anticipating some kind of change in the way new internet projects should/could be funded mainly because cost of technology is lower and that with less money you can test market validation.

I remember at the beginning it rose a lot of questions/interests and also doubts from all sorts of players (it still does). But with the time we believe we have a great model. Apparently we are not the only one to think that way.

We read this morning in TechCrunch, that Charles River, a very respected Venture Capital Firm in the US has launched “Quick Start” on a very similar model.

Quick Start, they are looking to invest relatively small amounts of capital ($100k - $500k) in very early stage companies that have little more than an executive summary, a few powerpoint slides and maybe a demo. This early capital is supposed to get these startups to the point where they can raise a more traditional Series A round of financing, or even get acquired.

… target investment of $250k in debt which converts in an equity financing or acquisition. The debt will convert at a discount to what the new investors are paying

There are few differences though: we invest only in Israeli related projects, up to 1 million dollars and we are a joint venture of 2 funds and not a one VC show.

I am sure we can anticipate more moves like those soon. In the US, and other places where innovation is growing. More also on venturebeat

Comments

[Randal Leeb-du Toit]

Guys,

I'd like to find out more about your model. We are an Australian research/funding group that has pioneered a similar model and we are looking for further touchpoints.

Rgds
Randal