FREQUENTLY ASKED QUESTIONS
WHAT DOES CV VC DO?
CV VC is a next-generation investment company with a focus on blockchain. The company invests early-stage blockchain startups. In addition, CV VC operates its own ecosystem business, which includes an advisory unit, co-working space, startup competitions, industry summits. CV VC maintains strong ties to the local and global Blockchain ecosystem, as well as to Swiss politics and institutions.
WHAT IS CV VC’S VISION?
CV VC wants to champion the next generation of startups with a focus on blockchain technology. We do this through the strategic placement of early-stage capital in combination with creating an ecosystem - through our own co-working spaces, advisory activities and events – enabling global blockchain startups to flourish.
WHO STANDS BEHIND CV VC?
Mathias Ruch (CEO, Board Member), Marco Bumbacher (Chairman) and Ralf Glabischnig (Board Member), the three founders of predecessor company Lakeside Partners, initiated CV VC AG. Olaf Hannemann, a corporate finance veteran with 20 years´ experience from JPMorgan has subsequently joined as Co-Founder and Chief Investment Officer.
During the preferred private placement in 2018, a group of highly experienced Swiss investors has joined the project as Co-Founders. These include Lorenz Furrer, Daniel Grossen, Christian Jaag and Alex Wassmer.
WHAT IS THE DIFFERENCE BETWEEN CV VC AND OTHER VENTURE CAPITAL FIRMS?
CV VC does not only invest in blockchain companies, but it also maintains its own ecosystem (events, advisory, coworking space) which, aside from creating operational cash flow and being attractive stand-alone businesses their own right, improve the deal flow, expand the network and create a basis for going global.
The company is based at the heart of the crypto valley in Zug, profiting from a clear regulatory framework and natural deal flow.
CV VC exclusively focuses on investments in the blockchain space and supports its investment activities through an experienced in-house advisory unit as well as the other operational activities. Our own bespoke in-house incubation program through CVLabs has been designed specifically for the requirements of blockchain startups.
IS CV VC OPEN FOR PUBLIC INVESTORS?
CV VC is a private investment company. To date, all of our investments have been funded through CV VC equity.
Investors seeking to learn more about our activities can contact us below.
WILL CV VC ISSUE ITS OWN TOKEN?
There are several use cases for a token within the CV VC ecosystem and many of them are an option in the future, but not a necessary condition for the development of CV VC.
To date, all of our investment has been funded through CV VC equity.
WHAT are THE BENEFITs OF A MULTI-PILLAR STRATEGY, INVESTING IN DIFFERENT CATEGORIES ALONG THE STARTUP LIFE CYCLE?
We invest in a very young industry. We want to accompany the startups during different stages of their development. At present, we focus on Pre-Seed investments as well as Seed/Series A investments. For our Pre-Seed investments, we have developed our own 12-week incubation program specifically tailored to Blockchain startups.
What are the terms of your INCUBATION program?
Startups that qualify for our incubation program in Zug can receive up to $125,000 total investment (up to $100,000 in cash + $25,000 in-kind incubation package) in return for 10% of equity. We look to invest in 10 – 20 startups per incubation batch.
Do I have to relocate in order to join the INCUBATION program?
We seek to invest in the best global blockchain ideas. As part of our incubation process, we expect you to join us in Zug, Switzerland, for an intensive hands-on 12-week program specifically designed for blockchain startups. After the program has ended, startups have the opportunity to use the CVLabs co-working spaces as their new home or return to their home countries. From experience, some may choose to relocate after our investment, thereby reaping the benefits of Switzerland as one of the leading global Blockchain hubs. Regardless of that, you will have a new second home through CVLabs going forward!
What is your INVESTMENT FOCUS?
Startups using blockchain as the underlying technology, decentralized applications (dApps), and layer 2 applications (i.e., Lightning Network, Plasma). We focus on B2B and B2C business models and are sector, industry (excluding gambling), and blockchain technology stack-agnostic.
We focus on early-stage investments: Seed, Pre-A and A and our ticket size at present can range from $50,000 – $500,000.
Our preferred route to investment is equity, either directly or through mandatory convertible structures. We may also explore digital securities for the right opportunity (token investments in combination with equity possible).
What is your investment process?
In order to qualify for investment, the startups undergo a selection process
by our Investment Team, and ultimately the Investment Committee. This committee meets monthly and makes the decisions on the size, timing, and structure of the investment.
The Investment Committee determines the general portfolio strategy and appoints the Review Committee. The Review Committee is responsible for the "shortlist review" of the best incubation candidates but can also be consulted for other investment decisions regarding industry, technology or other specialist expertise.
There will be a strict division of decision making and information flow between the investment process and our advisory function.
What are the key criteria leading to an investment?
Startups must meet our investment focus as described in the INVESTOR section of our webpage. We apply a multi-layered review process for all of our investment recommendations and the level of due diligence naturally increases with the maturity of the respective startups. Generally speaking, the main criteria that may lead to a positive investment decision are:
1. Team (composition, quality, relevant experience)
3. Market (timing, potential, demand, competition)
4. Traction (stage and speed, proof of concept, product, user, turnover)
We also look into team diversity, ecosystem quality, execution power, individual openness, and the amount of each founder´s ‘skin in the game.’
What can I expect in CVLabs?
CV Labs offers startups and entrepreneurs two primary services, the CV Labs Incubator described above, and the CV Labs Coworking Space.
The CV Labs Coworking Space accommodates more than 130 of the leading blockchain projects in the industry. Depending on your needs, we provide desk space, meeting rooms, whole office suites, or even your company’s very own headquarters here in Crypto Valley.
The CV Labs Coworking Spaces in either Zug or Vaduz offer an all-inclusive front-desk service, premium utilities, refreshments, and more.