27.03.2017
Erste Vision Capital: Fund of Excellence Invests in Dedicated Founders
Effective immediately, Erste Group provides financial assistance to persons who want to start their own business through a new form of investment. Erste Vision Capital invests in founders of start-ups with promising business models, and makes up to 60,000 euro per person available. In return the fund receives a share in the company's future earnings. Important criteria for the investment decision: Personality and professional expertise. Collateral or one's financial situation do not play a role.
Austria: Start-Up Nation
According to a study by the Austrian Chamber of Commerce (WKO), Austrians are quite keen on founding start-up companies: in 2016 almost 40,000 new businesses were established, and the trend is accelerating. “Start-up hype continues in Austria. We still see a lot of potential and want to support people who have a dream, but lack financial means”, explains Peter Bosek, member of the management board. Erste Vision Capital invests in precisely these types of personalities and enables them to fully focus on their business projects by providing them with basic funding. “We want to offer an alternative to traditional start-up subsidies or loans and have recognized that many people are unable to offer any collateral, except for their dedication”, says Bosek.
Not a Loan, but an Investment
Erste Vision Capital invests in people, not in companies. After an applicant successfully completes the selection process, an individual investment framework is worked out. This comprises financing of living expenses of up to 1,500 euro per month, one-off expenses of up to 5,000 euro and 100% of any tuition fees for further training. The fund in turn receives a share of between 2 – 10% of the visionary's future earnings for a time period agreed upon in advance. Erste Vision Capital makes investments, it doesn't provide loans that have to be repaid. It is not necessary to provide collateral or sureties: in the event of a liquidity squeeze, no payments have to be made to the fund. “Prospective start-up founders shouldn't be kept from pursuing their vision on account of financial risks. Self-employment should primarily be a matter of personal commitment”, Bosek is convinced.
Statistical facts about start-ups:
According to a WKO study the number of new start-up businesses founded in Austria between 2009 and 2016 has increased by almost one quarter (from 32,125 to 39,973). Vienna and Lower Austria are the federal provinces with the largest share of newly established companies. Most start-ups are in the industry and handicraft sectors (57.7%), followed by trade (19.3%). 6 of 10 companies are founded by women (60.7%). The average age of Austrian business founders is 40.1 years.
Erste Vision Capital at a glance:
Investment amount: a maximum of 60,000 euro
Duration: 2-10 years
Stake: 2-10 percent
Erste Vision Capital is a product of the Fund of Excellence, in which Erste Group is a 49% shareholder. Günter Benischek and Natalia Corrales-Diez are its founders and directors. The Fund of Excellence plans to invest in up to 100 Austrian visionary entrepreneurs annually.
Further information under www.erstevisioncapital.com/
