Frequently Asked Questions
FAQ, are listed questions and answers, all supposed to be commonly asked in some context, and pertaining to a particular topic.
How much funding do Startup Reykjavik companies receive?
You get $23,000 (2.400.000 ISK) for your company from Arion Bank in exchange for 6% of the equity. You also get great perks such as free hosting and services, a nice place to work, and more. There is immeasurable value in the connections and advice that you’ll receive when you start your company with Startup Reykjavik, and also in the opportunity to pitch to angel investors and venture capitalists at the end of the program during our Investor and Demo Day.
What are the extra benefits of being part of Startup Reykjavik?
Besides meeting 60+ mentors, great facilitators, a great workspace and good spirit, you get all the perks from companies that are within the Global Acceleration Network.
Do I need to send a business plan?
No.
Why does Startup Reykjavik need and want stock in my new company?
Like you, we’re entrepreneurs. We think that the value of the learning, networking, and coaching provided by the program is of tremendous value. The Startup Reykjavik program will provide you with the healthiest possible start and greatly improve your chances for success and sustainability. Seed-funding is one of the most challenging stages of a startup's life, and many don't make it past that point. With Startup Reykjavik's involvement you gain a staunch supporter of startups in your corner, which is motivated to introduce you to people who can help, assisting you with strategy, find more investors and generally help you succeed. That's a win-win proposition.
What is a typical day for an admitted company at Startup Reykjavik?
A typical day will entail working at the office, meeting with a mentor and accelerating your product. You will be expected to work from the main office but if you have things to do elsewhere, go ahead. There will be some evenings when you will be expected to attend informal educational sessions with our mentors. We have created this environment to help you so it is in your interest to take advantage of it.
After I apply, I’m thinking of emailing many of the mentors to get them interested in what I’m doing. Good idea?
No. We receive hundreds of applications per year, which is why we have an application process. Systematically emailing some or all of our mentors in order to try to influence them before being accepted into the program will hurt you more than it will help you (because they’ll complain about it to us). The mentors are dedicated to helping the companies that we select, but are not a part of the selection process. Please don’t bombard them with emails.
Do I have to stay in that city when the program ends after 3 months?
No. It’s your company, so you’ll live where you want to.
What else does Startup Reykjavik provide? Office space, internet, legal, hosting, etc?
We provide working and meeting spaces, all with super fast and reliable wireless Internet access. Basically, we’ll help you get everything covered with minimal expense. We just want you to focus on creating a great product while you’re here, and not have to worry about all this other stuff.
What if my company doesn’t ultimately succeed?
Well, at least you tried. Because not just anyone is accepted into the Startup Reykjavik program, you’ll have an impressive resume item for your next gig that will look way better than most other things you spent your time doing. And you will have met a large number of smart and well connected people who can help you tremendously with whatever you do next. Hopefully that will be another startup.
I’m a single founder. Can I get accepted into Startup Reykjavik, or do you only look for teams?
While we don’t screen applications just because they have a single founder, it does make things more difficult. We look for great, balanced teams who have a full range of skills. We strongly advise you to seek co-founders who balance your skill set. For example, if you’re a strong developer, you might consider adding someone with business and/or marketing experience.
When is the deadline to apply and what’s the overall timeline?
Application deadline is March 27th.
Program starts June 10th and lasts everyday until August 16th.
Can we see your term sheet?
Yes. All terms are open and online. We want you to take your company as far as possible and make a profit. Term Sheet is available on the Program page.
Do you fund companies that are competitive with each other?
Not in the same class/program, but sometimes otherwise, yes.
Is my age a factor in your selection process?
No.
Is my company “too far along” to apply to Startup Reykjavik?
Probably not. Within the Global accelerator program there have been companies that have had more then $1M+ in revenue (here’s their blog post) and $1M+ in funding. Likewise, nothing is too early. We are just as likely to accept companies with no more than an idea and a dream.
What sort of companies is Startup Reykjavik looking for?
We fund exciting companies that are not limited in geography in regards to their customers. However, our primary focus is finding passionate, risk taking and hardworking teams that we believe in. Startup Reykjavik is all about the people.
Do I have to be there for the entire 3 month period?
We require that you are primarily based on site during the program. This benefits you because you can take advantage of the numerous learning opportunities, networking and coaching that will be provided. Startup Reykjavik is a major commitment, and we expect you to be around most of the time.
Can I apply if our company or founders are not from the Iceland? Can you help with Visa/immigration issues?
Yes. Anyone from anywhere can apply. You do have to be legally in Iceland during the program, of course. Once accepted, we can help with legal/immigration issues by leveraging our contacts and network to help. However, we cannot help with them in advance of acceptance to Startup Reykjavik.
How can we get funded after Startup Reykjavik ends?
SR Invest, the Startup Reykjavik investment fund owned by Arion Bank provides the seed funding to get you going, but you may well need more funding to really make it. Near the end of the three month program, we’ll organize an Investor Demo Day where angel investors and venture capitalists will check out your technology and listen to your pitch. We’ll coach you so you’re as effective as possible, and do everything we can do help get you follow on funding. SR Invest may also fund your company further in some situations.
What sort of control am I giving up by granting equity to Startup Reykjavik?
Startup Reykjavik wants to be viewed as a co-founder. We expect to have all the same rights as any other founder, relative to our minority ownership position. In a nutshell, we don’t want any special or controlling interests in your company. We won’t ask for a board seat or for any uncommon investor rights. You will still run the show.
Where will we live while we’re there?
That’s up to you – we don’t provide a place to live. If you’re accepted into Startup Reykjavik, we immediately assign someone on our end to help you find housing. It hasn’t been much of a problem for past founders.
Where is the Startup Reykjavik office and what’s it like?
To be announced.
My team outsources software development. Are we still qualified to apply?
Yes. We think it’s best not to outsource what you are, but it obviously works in some cases. We’re happy to consider any application. Just remember that we’re primarily focused on the team.
I’m concerned that if I apply, you won’t protect my intellectual property. Should I be worried about this?
We’re certainly not in the business of stealing ideas, and we won’t show your application to anyone outside of Startup Reykjavik. Each year, we see and hear about hundreds of businesses and many of them include similar ideas. For this and other practical reasons, please don’t ask us to sign an NDA. Our application does not ask for your “secret sauce” and there is no reason you have to disclose this to us if you’re not comfortable doing so. We hope that our reputation speaks for itself on this topic.