AngelPad is about to announce that it has upped its investment offer for startups from $20,000 to $120,000, we’ve confirmed with the incubator’s founder, Thomas Korte. The extra $100,000 is being provided by “two big, well-known Silicon Valley firms,” according to Korte.
Previously, AngelPad would give every one of its startups $20,000 in funding in exchange for a six percent stake of the company. Now, the founders of those startups can choose whether to stick with that original amount or jump on the full $120,000.
Something tells me it won’t be a very hard decision.
Korte says that all startups in the next class have already accepted the full $120,000, though the incubator has yet to fill all 15 spots. With so much cash on the table, though, AngelPad will likely have little trouble getting the full 15 by the time class starts on August 19.
Like AngelPad, the two venture capital firms offering this new capital are very strong on business-to-business, mobile and e-commerce companies.
Additionally, the firms weren’t just picked out of the blue. Korte says he spoke with previous AngelPad startup founders to learn about their best meetings with investors. Whether they closed funding or not, the entrepreneurs could still tell Korte about the meetings where they found the most value.
“What is it about the money that makes startups more successful?” Korte had wondered. He soon found out that, in the end, “you really feel them building stuff faster. Two to three founders can’t do everything themselves, but with money in the bank, they can hire someone early on.”
Whether they need some help with UI or front-end, founders will now be able to inject their earliest efforts with a speed boost. Furthermore, companies with some cash can draw more traffic through Facebook or AdWords advertising, which in turn powers metrics.
Hire fast and iterate faster: an all-important mantra for startups in this quickly-morphing tech landscape.