As the Portfolio Manager of Fast Track Capital (FTC), I work with both entrepreneurs and the investors and all the administration in between. But I do get a lot of questions regarding my work, what FTC is and why FTC is important for the startup ecosystem. So here I will share a few lines regarding what FTC is and why it is important.
What is Fast Track Capital?
Fast Track Capital (FTC) is the co-investment structure managed by Minc. The first structure, FTC1, started investing in the beginning of 2017 and the investors in FTC1 are 10 private angel investors and 2 family offices. At the end of 2018 FTC2 was set up and started investing in the beginning of 2019. FTC2 consists of almost 50 angels and family offices as well as Saminvest, the Swedish government venture capital fund.
What companies does Fast Track Capital invest in?
FTC2 invests in all the companies in the accelerator Fast Track Malmö and selected companies from the Incubator at Minc. FTC has an important role in the startup ecosystem. First of all the investment company provides the possibility of early financing for promising companies. The investment from FTC gives the company access to some of the most well-established business angels in Southern Sweden, many of who have done the journey as entrepreneurs themselves, and wants to support the up-coming companies. Some of these angels also have a “doubled investment capacity” through a personal co-investment agreement with Saminvest. In short, this personal co-investment agreement means that when the angel invests in FTC2 portfolio company, their investment is doubled by Saminvest (some requirements do apply to make this happen).
What values goes into an investment?
In several cases, FTC is the first investor that invests in the company also meaning that it is the first or one of the first investors that the company meets and interacts with, which of course is a very important part of the company’s learning process. By interacting with investors the company will learn what the investors are looking for when investing and the investors will also share their views on the business from the perspective of having done the entrepreneurial journey themselves. That being said, of course, the investors will learn for the entrepreneurs as well.
It may also be through the process with FTC that the companies get their first understanding into the back office process of fundraisings such as the due-diligence and the admin work behind it, and trust me, not that many entrepreneurs love admin. Understanding this process and making sure all papers are in order will also make future funding processes easier.
FTC wants to be part of bridging a gap during which it is very difficult for many companies to get funding, they might have already used their own savings as well as available loans and grants but still may not have traction enough to get raise a round with angels. This means that the investment from FTC might be crucial for companies to actually make it to the next. In the long run, this means that more companies will survive and grow and thereby create more jobs which are very important on several levels in society.
On a last note, I also think it is important to mention that FTC is also learning a lot and we are continuously improving what we do and now that we are setting up FTC3 this spring we are taking all these learnings with us to be part of creating an even better ecosystem for all parties.
Do you have any questions regarding Fast Track Capital or becoming an investor in our network, get in touch by mailing firstname.lastname@example.org.
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