Carbon13's Investment Committee
The Investment Committee looks at your team’s progress in Phase 2 of the Venture Builder and decides whether Carbon13 should invest in your venture for Phase 3.
You should view this investment as a pre-seed round and its timing and amount are deliberate: you receive enough funds to execute the next growth stage of your venture, while avoiding the startup killer that is overfunding.
What does the pre-seed investment round look like?
Carbon13 Seed Fund’s investment in your venture totals £100,000 in the form of an Advance Subscription Agreement. £25,000 of this investment is then returned to Carbon13 as a fee for the costs of Phase 3 of the programme, so your new venture retains a net £75,000, which it will use as it sees fit both to prepare for the next stage of development and, typically, to pay its founders.
The ASA means that the Carbon13 Seed Fund has subscribed for shares as part of your next investment round—so the exact number/proportion of shares depends on how valuable your business is at the point of the next investment round. The Carbon13 Seed Fund also takes an option to invest up to a further 20% of your next investment round, at its discretion. At the beginning of Phase 3, you also assign share options equivalent to 3% of your new venture’s equity to Carbon13 Ltd.
Why just £75,000?
£75,000 (net) is sufficient to power you to Phase 3 but critically, it is still a small enough amount to avoid the startup killer that is over-funding. Too much money at this stage is a hindrance not a help.
What happens if the Investment Committee does not invest in my venture?
The Investment Committee will make approximately 8 investments per cohort and if your venture does not meet the thresholds for investment then you cannot progress to Phase 3 and will have to formally leave the programme.
However we want to emphasise that everyone who joins Carbon13 becomes a part of our community. So if your mission remains focussed on carbon emission reduction and climate change then we will continue to support our alumni in any way we can, through our networks, mentorship and resources.