Investement

DSIF invests up to €50.000 in startups created by bachelor, master, or PhD students from either the UT or Saxion, or students that have graduated maximally 12 months ago. We are looking for ambitious startups that aim for growth.

We do not focus on any specific sector, and very deliberately so. We want to be there for all student entrepreneurs. Since this is investment, the only requirement is that a startup is ambitious and aims for growth. As long as the team of entrepreneurs is strong, the product or service has a lot of potential, and the business model is sound, DSIF is there to facilitate.

If you are looking for an investment feel free to just get in touch with us through the form at the bottom of this page.

For more information about our investment process, you can look here.

Any questions?
Contact our Portfolio Director:

Jelle Kerkdijk
jelle@dsif.nl
+31 6 50 83 19 50

Convertible loan

DSIF invests through a convertible loan, this is a specific type of investment. With a convertible loan, initially, we’re actually not investing at all: we don’t buy shares and we don’t become a partial owner of the company. We are just handing out a loan which has to be paid back in a specific amount of time, with interest. The fact that this is a convertible loan, means that we can convert the outstanding loan into shares. The conditions on when we have the option to convert, just like the interest rate and other terms will be mutually agreed upon with the startup, and are part of the negotiation process.

Upsides of using a convertible loan

To buy shares in any company, you have to make a valuation of that company. For instance, you might say: I think your company is currently worth €1,000,000, so if I invest €50,000, I want 5% of the shares. Now valuating a company, just like valuating any other product, is no hard science. Rather, it is an opinion. The entrepreneurs might have a different opinion about this. The earlier stage the startup is in, the harder it is to make a reasoned valuation, since there will be no data such as market share, annual profits or number of customers to base it on. Writing out a convertible loan gives us (and the entrepreneurs) the chance to postpone doing the valuation. Initially, we will just hand out a €50,000 loan and that’s that. Then only if we choose to convert that debt into shares (for example 3 years later), we will have to agree on whether that €50,000 is worth 5% of the company, or only 2.5%. In other words: whether we value the company on €1,000,000 or €2,000,000. That is called deciding on the valuation to convert against.

So generally, convertible loans help us in investing in startups that are in a very early stage and dealing with all the uncertainty that comes with that. That is why the DSIF invests through convertible loans.

 
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