Starta (CRS) Accelerator Portfolio Investment on Waves blockchain
About The Starta Project
Starta Accelerator is an acceleration program launched by Starta Capital VC Fund in 2015. Mission of Starta Accelerator is to empower Eastern European frontier technology companies through exposing them to USA market. The program was customized for Eastern European founders aiming to adapt to cultural and business environment in the US, complete and define product/market fit, get traction and become part of local startup and investing ecosystem in the U.S.
In 2016 Starta Capital & Accelerator Platform was introduced. The platform combines pre-seed accelerator investments in a big pool of companies (through Starta Accelerator vehicle) and vertical structure venture capital fund investing in follow on rounds up to Round A from Starta Capital Fund, network of Limited Partners, Angel investors and partner VC funds. Initial acceleration stage allows Starta to invest in founders that they work with on a daily basis during acceleration and know them and their business personally.
Starta Capital supports companies in follow-on rounds after acceleration by investing through Starta Capital Fund, network of Limited Partners, Angel investors and partner VC funds
Starta Accelerator is focused on early stage companies with Eastern European R&D roots. Eastern European focus allows us to enter at up to $2M valuation at accelerator stage for a company with MVP and traction in home country which is lower compared to similar stage technology companies in the U.S. Companies based in Eastern Europe are undervalued on the global market due to the lack of tech business competencies, this way Starta benefits from arbitrage upside companies valuation through adding value in tech business competencies during acceleration in the U.S.
In order to develop tech business competencies “in real time” we hire top U.S. professionals who act as part-time team members for startups during acceleration program. These are coaches on Product, Sales & Business Development, Cultural Adaptation & Communication, Pitch, Fundraising, PR. This approach helps the founders to fully integrate in U.S. business environment over the period of 3.5 months and fulfill the lack of business competences.
• Acceleration vehicle and the Eastern Europe focus allows us to enter companies at lower valuations compared to U.S. market
• Valuation at entry - up to $2 M
• Targeted exit @ $10 - $50 M (projected average 10 X return per company)
• This way it is potentially possible to achieve 5X - 20X exit multiples in the range where most VCs just enter the deals
Returns Strategy: Maximum Liquidity We strive to build “working ponies” - pipeline for M&A deals
Starta Accelerator 16/17
Starta Accelerator 16/17 LLC is a $3M SPV (special purpose vehicle) created with a purpose of investing in early stage technology companies from Eastern Europe through acceleration in the USA. Starta Accelerator 16/17 LLC (fully invested) consists of a portfolio of 21 technology startups - batch 2 (Fall 2016) and batch 3 (Winter 2017). SPV owns average of 7% equity in each company at $2M valuation. All 21 companies are post-product stage and have traction in their home countries and U.S. market. Some of them have already raised further rounds of investment at higher valuations than Starta Accelerator 16/17 LLC nominal portfolio valuations. Starta Accelerator 16/17 LLC incorporated in New York in 2016 residing 244 Fifth Ave, suite #H243, New York, NY 10001.
Value-add through developing Tech Business competencies in the U.S business environment during 3.5 months in New York
We hire top U.S. professionals who act as part-time team members for startups during the program
Cross Coin is an SPV to be incorporated in Singapore as an ICO friendly jurisdiction with the only purpose to invest in Starta Accelerator. CrossCoin has an option to buy 33% of "Starta Accelerator 16/17" SPV at portfolio valuation price.
The Mission of Cross Coin is to democratize venture investments and become a bridge between crypto and fiat economies. We help venture funds, accelerators and startups to raise capital using crypto assets.
Cross Coin is raising up to $ 5 000 000 to invest in Starta Accelerator portfolio. $1 500 000 will be utilized to buy 33% of "Starta Accelerator 16/17" SPV at portfolio valuation price. Funds above this amount will be invested in future Starta Accelerator portfolio with similar investment focus. If the amount raised is below $1 500 000, the acquired share of Starta Accelerator portfolio will be reduced proportionally. We developed a simple model of future profit distribution to token holders using token buyback mechanism. Tokens will be issued as a type of debt. As a limited partner, Cross Coin will receive a profit share from "Starta Accelerator 16/17 LLC" and undertakes to utilize it to buy back the tokens at a market price.
Please, check the model of buyback mechanism here. Just input your exits and token market price assumptions.
Please note that the model is provided for illustrative purposes only and represents good faith estimates of the management. Actual results may vary.
We expect many groups of investors to be interested in the ICO:
● traders (because of high volatility);
● venture investors (even with small funds);
● crypto asset holders (to diversify the assets with fiat investments);
● regular investors (because of liquidity);
● fiat investors.
Equal to collected amount in USD
The Company undertakes to utilize allthe net profit and the
assets remainedto buyback the tokens at a market price
5% of tokens will be reserved forthe ICO administration costs
2.5% of net profit
1. Cross Coin issues «Starta» tokens, which will be distributed only during the ICO;
2. Cross Coin commits to invest assets received during the ICO into Starta Accelerator portfolio;
3. Tokens will be traded in a crypto assets stock market;
4. Cross Coin undertakes to utilize all the net profit to buy back the tokens at a market price;
5. Cross Coin undertakes to utilize all the assets remained after all the portfolio liquidity events (exits) to buyback tokens at a market price;
6. The tokens buyback should take place during a fixed period after the net profit gained, and should not be more than one month; 7. Tokens with a minimum market price will be distributed first.
Starta Accelerator Co-founders, Starta Capital Partners
E-Mail : [email protected]
E-Mail Media:[email protected]
Participants of Starta’s ICO To Receive Tokens From Future ICOs Run By Portfolio’s Companies
Kayrat Kaliyev — Head of Cross Coin, which will invest Starta’s ICO funds in Starta Accelerator’s portfolio — discusses this unique venture project. In particular, he specifies that the number of startups in the investment portfolio could grow as high as 60 or 70.
Additionally, it confirmed in Starta Accelerator, that if portfolio startups conduct their own ICOs, some of the new tokens will be distributed among holders of Starta’s tokens.
- Many startups are actively considering their own ICOs. Is this an ‘exit’? What will holders of Starta tokens receive?
- This is not an exit; rather, it would be a new stage of financing that will positively impact the startup business and, accordingly, the market value of Starta tokens. But this is not the only bonus. According to our partner Starta Accelerator, if startups from the portfolio issue their own tokens and distribute them among the team, shareholders and so on, then a part of the issued tokens will also be distributed to the holders of Starta tokens. The new tokens will be distributed proportionally to all participants.
- If you collect more than the $1.5 million necessary to buy a share in the portfolio of 21 startups, how will the rest of the funds be allocated?
- We see considerable interest in the project, and the funds raised could well exceed the original target of $1.5 million. The project team is ready to issue up to 5 million tokens with a price of $1 each. If the ICO reaches $5 million then we, together with the accelerator’s partners, will be able to invest in a total of 60–70 technology startups from Russia and Eastern European countries. All these startups will be selected by Starta Accelerator and the accelerator program in New York. The accelerator’s team will help them to adapt the business to the lucrative US market and to prepare for exits.
- Starta Accelerator selects promising startups with the intention of increasing investor interest in them through their programme. What is the estimated valuation of the 21 startups already available in the portfolio?
- Each of the 21 startups was valued at a minimum of $1.9 million when Cross Coin began preparing for ICO. Currently, many of the estimates are higher — the deals for the next rounds of investments for several of the portfolio startups have recently closed or are near to closing. The specially created company Starta Accelerator 16/17 owns 7% in 20 startups and 2% in the 21st one. Accordingly, the overall estimate for the portfolio in which Cross Coin will invest exceeds $4 million, on the basis of the last valuations. It should be remembered that Cross Coin will pay $1.5 million in exchange for 33% of this portfolio of $4 million.
Starta (CRS) ICO in $5 million sell out
Starta’s crowdsale has hit its funding goal in less than 24 hours — passing its first milestone in less than a quarter of an hour.
Starta ICO launched on 4 July, offering investors the opportunity to back a collection of early-stage start-ups that have participated in the Starta Accelerator.
Starta Accelerator takes promising tech companies from Russia and Eastern Europe and prepares them for entry into the US market, where they will attract customers, expand and gain the interest of new investors. When the companies are bought — an ‘exit’ in venture capital terminology — it is typically for a multiple of 10–20x their original valuation when they were first funded.
These opportunities, whilst lucrative, are hard to access in the traditional financial system by anyone without large amounts of money and special connections. Starta’s ICO, which was run by the Singapore-based Cross Coin, aimed to make VC accessible to any investors, regardless of how much money they have. Five million Starta tokens were sold for $1 each.
A remarkable $1.5 million — the ‘minimum viable’ amount — was raised during the first 15 minutes of the crowdfunding campaign, and the full amount of $5 million was raised in less than a day. The breakdown of funds raised was as follows:
- 909 BTC
- 4,168 LTC
- 203,422 WAVES
- 5,200 ETH
- 5,793 ETC
The first $1.5 million was earmarked to fund the 21 companies that are currently going through the Starta Accelerator. The additional $3.5 million will be used to fund a further series of companies, bringing the total to between 60 and 70.
For more information, visit www.StartaICO.com.