The fund’s portfolio includes well-known names such as Workwize, named Startup of the Year, and Loop, the company producing biodegradable coffins. It has also invested in Bash, a startup on the “25 under 25” list, and Skoon Energy, which appeared in the Challenger50 last year. The speed of Graduate Entrepreneur's success is partly due to the size of its investments, consisting of a €9 million pre-seed fund and a €50 million seed fund. So far, nine of its investments have been seed-stage, while most come from the pre-seed fund, which provides €75,000 to startups in the very early stages.
The pre-seed fund is driven by a student team, with 10 students taking a year off to work on sourcing deals and writing investment proposals. Professional investment committees make the final decisions, but students play a vital role. Many student investors have gone on to work at investment firms after completing their studies. Recent pre-seed investments include DuckDuckGoose, which detects deepfakes, and Eddy Grid, which offers business home battery solutions.
Graduate Entrepreneur aims to support over 100 startups within three years. The pre-seed fund is on track to become a revolving fund, meaning it can sustain itself through returns generated by successful startups. The fund operates differently from other venture capital funds in the Netherlands since it is funded through donations from entrepreneurs such as Picnic CEO Michiel Muller, former Philips CEO Frans van Houten, and founders of companies like Rituals, Adyen, and Booking.com. These donations are seen as a way of “giving back,” a concept inspired by similar models in the U.S.
Graduate Entrepreneur’s approach combines the pre-seed and seed funds, providing both early-stage support and the potential for growth. The fund connects entrepreneurs with its network of 170 business leaders who provide advice and guidance, offering a significant resource for startups to access industry connections. This mentoring and support go beyond transactional relationships; the alumni community regularly attends events, forming a network that spans experienced and young entrepreneurs.
The seed fund includes investments in companies like Rocsys, which raised $36 million to scale its automated charging systems for electric trucks and buses, and Workwize, which raised €1.5 million in a round led by Peak, with Graduate Entrepreneur participating. The fund also acts as a matchmaker for startups, helping them with challenges like sales strategies or entering new markets.
Graduate Entrepreneur’s unique approach, driven by a strong network of alumni and a model based on “giving back,” has proven highly successful. The fund plans to expand beyond Rotterdam and Delft to other entrepreneurial hubs like Amsterdam, Eindhoven, and Wageningen, with the goal of supporting as many founders as possible.
Read the article here: https://mtsprout.nl/groei/graduate-entrepreneur-pre-seedfonds
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