The continuing evolution of private equity (PE) and venture capital (VC) towards using online platforms predominantly in fund raising and deal making has continued with the launch of Kima15, a VC initiative from Kima Ventures, themselves one of the world’s largest angel investor groups.
Kima15 aims to help technology entrepreneurs and tech start-up businesses raise seed investment quicker and easier that is often possible. Anyone involved with tech, whether a business owner or investor looking for opportunities to secure equity and potentially lucrative returns, understands the importance of moving quickly to secure capital.
The speed at which tech start-ups appear, especially in existing hubs like the United States and Israel, as well as emerging ones in Europe, means timing is everything. Failure to get investment fast means another great idea can come along within days, be seen to be more attractive, and the opportunity for the start-up has gone.
Kima15 offers a fixed set of investment terms and a robust service level agreement (SLA) to tech start-ups, removing the problems that can arise during lengthy negotiations. As indicated by the title of the initiative, Kima15 involves Kima Ventures owning 15% of a company’s stocks, and they invest $150,000, promising to have the money in your business account within 15 days.
Tech entrepreneurs and owners of tech start-ups can apply to be a part of Kima15 through the Angel List website. Kima Ventures and Angel List have partnered up for the purposes of this initiative. Kima Ventures currently fund two tech start-ups per week as part of Kima15.
In a press release announcing and outlining Kima15, co-founder of Kima Ventures Jeremie Berrebi said, “As entrepreneurs ourselves, we know that fundraising can be a distraction and understand the importance of letting start-up founders get back to the important task of building their companies as soon as possible, which is why we have created Kima15. Having invested in over 200 start-ups in the past few years, we have seen that speed can be crucial to the success of a company.”
This initiative is a further sign that online platforms are going to become central to PE and VC markets in the coming years, and it is likely that 2014 will see similar “fixed terms” initiatives following this one. In addition to technology, other lucrative industries such as those for medical equipment and pharmaceuticals might also be subject to such initiatives.