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VC for Danish Appharbor in Silicon Valley
Posted: January 31, 2011
A new investor is ready to invest in the Danish entrepreneurs in Appharbor. The three developers working from Silicon Valley have been offered more than 150,000 dollars.
The small Danish entrepreneurial firm Appharbor is on its way to pursue the dream of international success with their competitor to Microsoft Azure and other cloud services.
The financial aid comes from a Russian investor who will provide venture capital for up to 40 new start-up projects that Y Combinator has chosen. Each start-up can choose to take the investment or not. If all 40 of the start-ups accept the loan, then a total of 6 million dollars will be invested.
Furthermore, Milner/SV Angel say that they intend to offer this amount for each Y Combinator start-up in the future, too. This means that Y Combinator entrepreneurs will not only get the 150,000 dollars from Y Combinator during the first few months of their project, but they will be looking forward to another 150,000 dollars a few months later. That is usually enough to complete development and launch of a product in this context.
This also puts Y Combinator further ahead in the competition with other early stage incubators and investors. Now entrepreneurs know that they will be offered 150,000 dollars in venture capital just for being part of Y Combinator. That is an incredible marketing advantage.
Who is Y Combinator?
Y Combinator is a venture fund which focuses on seed investments to startup companies. It offers financing as well as business consulting along with other opportunities to 2-4 person companies looking to take an idea to a product. Y Combinator looks for companies with “good” ideas more than for companies with experience and a business model.
Source: Version 2 & TechCrunch
