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What is
NDRC Catalyser?
A science & technology accelerator for early stage companies and
founder teams with deep research based know-how and technology
that can address a global unmet market need.
6 month acceleration programme
Up to €100k investment
What are we
looking for?
Great ideas with commercial potential originating from the academic
research base.
Deep research based know-how and technology, beyond proof of
concept that addresses a significant unmet market need or problem
Globally scalable product and/or services led propositions
Propositions with strong a commercial and technical team
Potential to be investor ready or revenue sustaining within 6-9
months
Why NDRC?
We have guided more companies to investor ready stage than
any other Irish accelerator. We have invested in over 170 with
approximately 60% in continued operation employing well in
excess of 500 people
We have a strong network and track record with follow on
investors. Our investee companies have secured in excess of
€110M in follow on investment
Recognised as one of the top 5 accelerators in Europe, our
programmes and supports have been refined over the years to
provide exactly what a young company needs to bring a great
technology or service to market.
Why NDRC
Catalyser
Up to €100k investment
Simplified the investment decision process. Investment decision within
4 weeks of application deadline
6 month intensive, deeply experiential commercially focused
programme
Mentoring and access to our networks
“Hands on sleeves rolled up approach” from some of the best mentors
in the ecosystem
Access to multiple areas of expertise
Location & culture – collocated with over 50 start-up companies
Peer to Peer learning
Investment
Mechanism
Investment is made through a convertible loan i.e. a loan that converts
to equity at a later stage round
The conversion into equity takes place at a discounted price to reflect
that the investment was made at an earlier stage i.e. higher risk and
typically lower valuation
Why use a convertible loan note - It is difficult to create realistic
valuations for early stage start-ups, particularly where the company is
pre-revenue and/or pre-seed funded. CLNs provide a means of raising
finance without the need to establish a valuation therefore reducing the
time and effort this often entails. The valuation is effectively postponed
until a more realistic valuation can be determined
Key Investment
Terms
Investment of up to €100k via a convertible loan agreement is available
in addition to the accelerator programme, mentorship and office space
provided
The investment is between an initial €30k investment with the second
investment of €70k is conditional on the company reaching agreed
milestones.
The milestones are developed jointly and agreed prior to programme
commencement
The loan converts to equity at the next round at a 20% discount to the
round price, where the next round is a minimum €250k private
investment
For the purposes of conversion, the maximum pre-money valuation is
€1.5M (cap) and the minimum pre-money valuation is €500k (floor)
What is the
application process?
Complete the application form at www.ndrc.ie/catalyser/ by November
12
If you meet the programme criteria you will be invited to pitch your
proposition to a Selection Panel in late November
Successful propositions at pitch stage will be invited to a one day
workshop to develop and agree the key business milestones required to
achieve second phase investment
Once milestones are agreed, you will get a formal offer
Programme kick off is January 2016 with an onboarding session in
December 2015
Early application is advised so feedback can be provided in
advance of pitches
Preparing your Pitch
• The Grab: You should lead with the most compelling statement of why you
have a really big idea.
• The Problem: You need to make it clear that there is a big, important
problem that you are going to solve.
• The Solution: What specifically are you offering and to whom?
• The Opportunity: Provide the basic market segmentation, size, growth,
dynamics – give us a feel for the size of the opportunity.
• Your Competitive Advantage: Why are you different to the
competition?
• The Model: How are you going to generate revenues and from whom?
• The Team: Why is your team uniquely qualified to win?
Example Conversion
Mechanics
Example 1: Company raises €500,000 at a €1,500,000 pre-money valuation
• NDRC converts at a 20% discount to the Qualified Fundraising valuation i.e. €1,200,000
• €1,200,000 is between the cap and the floor so NDRC converts at the discounted market valuation
• NDRC gets 7.69% of the company (i.e. 100/(1,200+100))
• The new investor gets 25% (i.e. 500/(1,500+500))
Example 2: Company raises €500,000 at a €1,800,000 pre-money valuation
• NDRC converts at a 20% discount to the Qualified Fundraising valuation i.e. €1,440,000
• €1,440,000 is between the cap and the floor so NDRC converts at the discounted market valuation
• NDRC gets 6.49% of the company (i.e. 100/(1,440+100))
• The new investor gets 21.74% (i.e. 500/(1,800+500))
Example Conversion
Mechanics
Example 3: Company raises €2,000,000 at a €10,000,000 pre-money valuation
• NDRC converts at a 20% discount to the Qualified Fundraising valuation, i.e. €8,000,000
• €8,000,000 is greater than the cap of €1,500,000 so NDRC converts at the cap valuation
• NDRC gets 6.25% of the company (i.e. 100/(1,500+100))
• The new investor gets 20% (i.e. 2,000/(10,000+2,000))
Example 4: Company raises €250,000 at a €575,000 pre-money valuation
• NDRC converts at a 20% discount to the Qualified Fundraising valuation, ie €460,000
• €460,000 is less than the floor of €500,000 so NDRC converts at the floor valuation
• NDRC gets 16.67% of the company (i.e. 100/(500+100))
• The new investor gets 30.3% (i.e. 250/(575+250))
