For each startup we select, we invest USD 15-20K (SAR 50,000 - 80,000) in seed funding in exchange for minor equity in the company (15-20%). This seed funding is to help startups cover their early expenses during the program and to help attempt define their product, develop their core application, and commercialize their enterprise. Our seed funding serves as a critical catalyst to specific milestone achievement, whether it is follow-on funding, first customers, or another significant breakthrough in the company’s growth.
Flat6Labs acts as a due diligence for investors, and thus investors are more likely to invest in our entrepreneurs and give them favorable terms once they are selected and go through our program. At the end of the 3-4 months period, Flat6Labs holds a Demo Day event, where our startups are given the opportunity to showcase their products to potential investors and the media. If any of the startups have been successful in their bid to establish a fully furnished enterprise with promising market potential, it will graduate from Flat6Labs and receive additional funding to establish its enterprise.
Seed funding helps accelerate the growth of new companies being established and positions them further investment from angel investors and venture capitalists. We provide our companies with the following seed funding:
SAR 50-80K (USD 15-20K) In exchange for 15-20% stake of equity.