Continuous
Ideation
Creating and collecting new ideas
Systematically collecting new ideas from our beloved ecommerce merchant customers or from a good book, conference, etc. This is a never ending process.
2-4
weeks
Research
Pre-validation
Our internal Startup Validation Team, i.e. the new Startup CEOs, continuously validating the ideas from a couple thousand dollars and with a timeframe of 2-4 weeks.
3-6
months
Validation
Pre-seed phase
One dedicated Startup CEO selects the project and she needs to create a Minimal Awesome Product and show traction with the support of the Core Team (marketers, designers, developers). The timeframe is between 3-6 months and the fund dedicated to this project is US$20k.
18
months
Formation
Setting up the company and team
This is where the real magic happens. Innonic Group creates the legal entity and invests US$200k to the project. From this money, the CEO can build her team and help the product grow. The project needs to be cash flow positive and/or be ready to a new Venture Capital investment within 18 months.
Growth
Becoming independent and raising money
Since its foundation, the company has an independent team and is financially stable, there is no need to raise venture capital. We would be glad if this company could become a vital, new ‘legacy business’, generating profit to new startup projects. However, if the traction requires bigger investment than the amount Innonic can invest, we raise money from VCs.
Cap Tables and Financing
Average Cap Table in Seed phase*
This is how our average cap table looks like if you do not have external investment at the table.
- Innonic (60%)
- Startup CEO (20%)
- Startup CTO (10%)
- ESOP (10%)
Average Cap Table after Series A*
And this is how it looks after an external investment (of course it depends on lot of variant)
- Innonic (30%)
- Startup CEO (20%)
- Startup CTO (10%)
- ESOP (10%)
- VC (30%)
* Those numbers are for informal purposes only, the exact numbers are depends on several factors.
Difference between Innonic and an Accelerator
- Source of Idea
- Focus
- Where to start
- Equity
- Participation
- Team status
- Investment (in Hungary)
- Support
- Culture
- Generated inside
- B2B, SaaS, Ecommerce
- Problem / Solution
- Mayority (co-founder)
- Long term (2+ year) active participation
- From zero
- US$ 200.000
- Core Team, Back Office, Senior Mentors
- Collective business culture and huge team
Accelerator
- Source of Idea
- Focus
- Where to start
- Equity
- Participation
- Team status
- Investment (in Hungary)
- Support
- Culture
Accelerator
- Outside ideas
- Any segment
- MVP / Early traction
- Minority (investor)
- Short term (approx. 3 months) mentoring
- Existing teams
- US$ 20.000 - 50.000
- Mentoring
- Parallel projects