The London Stock Exchange Group (LSEG) and Global Accelerated Ventures (GAV) recently introduced a post-COVID-19 fundraising program that aims to assist Fintech and Healthtech firms that might need additional capital to support their growth and development after the pandemic has passed.
The 24-month program is part of ELITE, which is the LSEG’s international business support platform. The program aims to help companies by providing access to institutional investors, introductions to potential investors and mentors for professional development.
Fintech and healthcare startups that previously took part in the ELITE program reportedly recorded a 30% growth during their first year of operations.
Christopher Malter, CEO at Global Acceleration Ventures, shared his views and insights about the Fintech sector and how it has been impacted by the pandemic. He also explained what his organization is doing to help companies get back on their feet or expand their operations after COVID-19 has passed.
Crowdfund Insider: What are the main benefits of partnering with the LSEG?
Christopher Malter: The London Stock Exchange is one of the world’s oldest stock exchanges with a global reach and brand that is universally recognized. As a division of the London Stock Exchange Group, ELITE taps into all of the relationships, history, and brand exposure associated with the LSEG.
It’s not easy for companies to tap into the LSEG network of relationships and investors, but that’s exactly what the ELITE and Global Accelerated Ventures (GAV) program is designed to do. Fintech and Healthtech companies that are accepted into the ELITE/GAV program will be introduced to institutional investors, investors and mentors who will help develop their management team and company for accelerated growth.
Companies that are accepted by ELITE will join in monthly workshops over an 18-24 month period, where they will better develop their companies for scale. In addition, the program will provide mentoring, develop relationships, and guide the company’s finance and management teams for larger fundraising rounds.
In addition, accepted applicants will work in close coordination with regional business, academic and financial communities across the markets. More than 1400 companies have already gone through ELITE, with an average growth rate of 30 percent following the program.
Crowdfund Insider: What types of Fintech firms do you plan on working with? What would their typical profile look like? Are there any exceptions?
Christopher Malter: Right now, we are looking primarily for Fintech and Healthtech companies in New York, but we are expanding the program into energy and other sectors in Texas and California. We have both quantitative and qualitative measures that determine who is accepted into the program.
- Turnover greater than $5 million (or less than if revenue growth is more than 15 percent)
- Operating earnings greater than 5 percent of turnover
- Positive Net Profit
- High quality and highly ambitious business plans
- Demonstrate historic growth and future potential
- Convincing growth projections
- Credible Management
- Motivation to deal with the cultural, organizational, managerial change required to access long term financing opportunities
Crowdfund Insider: COVID-19 has actually accelerated the adoption of digital services. Many Fintech businesses report that they’re doing quite well, while others are not. Tell us about how your program can help them after the pandemic has passed.
Christopher Malter: There’s been a liquidity gap for many Fintech and Healthtech companies following COVID-19 and many great companies can’t scale because of it. The purpose of this program is to help those aggressive companies find the funding they need. In addition, these CEOs and founders will get access to a network of global resources and a knowledge base that will help them grow at an even faster pace.
ELITE could potentially be a good opportunity for companies to get the exposure they need to scale on a global level. It has the full reach of the London Stock Exchange Group, and all of the relationships, expertise, and history that come with it. This is a rare opportunity for Healthtech and Fintech companies to see an immediate impact on their company’s future growth.
Crowdfund Insider: What are your short- and long-term goals for this initiative?
Christopher Malter: Short term – GAVentures is dedicated to supporting SMEs seeking series B and C funding and/or access to global markets and strategic partners.
Long term – Position GAVentures as a global partner for SMEs to help navigate and scale to IPO and/or exit.
Crowdfund Insider: Gaining access to reliable funding has been a challenge for many SMEs. Please tell us how your organization can help.
Christopher Malter: Companies interested in applying for ELITE can click here for an application. Once the application is received, companies will be asked to provide:
- A copy of the company’s latest financial statements (consolidated is preferred)
- Key management information including projected financials that can be shared
- Any company presentation that details the business activities and main revenue stream(s)
- An organization chart