The Accelerators Fund aims to offer quick assistance to deserving Italian startups that have faced difficulties owing to the COVID-19 pandemic.
The scheme is available to high-growth potential companies which offer innovative technologies and products. These startups operate in markets with significant growth potential, but have suffered setbacks due to COVID-19, continuing to attract both accelerators and third-party investors who believe in them and want to contribute financially.
The initiative is called AccelerORA! and uses a merit system to select startups that will receive support from CDP Venture Capital: AccelerORA! chooses startups that are already funded by qualified investors ready to help them again, and that lack the capitals to move ahead.
AccelerORA! aims to work in partnership with the leading Italian and international accelerators operating in Italy, investing in the early stage companies, providing them with the resources needed to grow.
The goal of the program is to support the work of the main accelerators, investing in companies in their portfolios that are in the early developmental stages, helping them grow and accompanying them on the way to future financing by institutional investors.
AccelerORA! primarily finances startups in the seed/pre-seed stages with investments of up to 300,000 Euros per company. The total amount financed through the initiative is €8.75 million, with all payments released by September 30, 2020.
The startups will be chosen by the Accelerators Fund’s investment team, and will be selected among the companies currently in the portfolio and pipelines of qualified accelerators and incubators, provided:
They match well with the investment strategy of the Accelerators Fund, which aims to develop vertical acceleration programs in sectors and technologies that are strategic for Italy, in partnership with the country’s leading investors
They currently have active fundraising campaigns or are starting them in the short term.
How will the money be released?
The transactions will be carried out by accelerators, third-party investors, and/or existing shareholders, which are matched in accordance with the capital invested. More specifically, the transactions will be carried out through a “convertable” loan or, alternatively, with capital increases that have already been approved or are in the process of being arranged. Third-party investors will contribute at least 50% of the capital to match the 50% provided by the Fund (which can invest as much as 70%).
Accelerators Fund aims to provide startups with resources that can help them continue to grow for at least six to eight months. The goal is to help them overcome the current situation and look for further investments, if necessary.