What a perfect timing to start today!
‘We have been working towards being able to launch the fund today, yes. Couldn't it be more beautiful than to launch an investment fund today, which is devoted to entrepeneurship?
What reason does the Student Union have for launching an investment fund?
"The idea for this came from Kees Eijkel of Kennispark Twente. He started this experiment after having seen similar initiatives in the US. Of course, it fits perfectly with a university which supports entrepeneurship in such a high degree, plus it adds momentum to student entrepeneurship."
How special do you think this is?
"This creates a unique position for us in financing, because the students are in charge now. A commission will be established, consisting of students only, which will prepare the applications. Also, an executive board will be established, comprising three students and three professionals, which will decide the outcome of the applications. This means that the students have full responsibility for their fund, and they are the ones making the decisions."
So only students are able to qualify for this position?
"That is correct. They can apply up to a year after graduation. We are trying to get half a million to a million euros in the fund and we will invest forty thousand to sixty thousand euros in start-ups called pre-seed investments, which have the ambition to grow."
What happens next?
"We call this investment a convertible loan. If the company does well, the loan will be converted into shares. If not, we will arrange a refund scheme."
What other parties are involved in this initiative?
"The University of Twente, Saxion University of Applied Sciences, Kennispark Twente, Cottonwood Technology Fund and Golden Egg Check. The first 100 thousand euros have been granted by UT and Saxion. We expect to have sufficient interesting partners for further investments."
Today, the first financial injection took place…
"Yes, indeed. The first briefcase filled with money has been granted. We invest in LipoCoat, a start-up created by Jasper van Weerd, has obtained his doctoral degree at UT. His company develops a coating made out of organic materials, which will not be rejected by the body. Such a coating is currently applied in medical products, such as contact lenses and implants. Van Weerd starts with the contact lens market by trying to take away the discomfort some people have with wearing contact lenses. He will use the investment for turning the technology into an actual product."
