FOR STARTUPS

OVERVIEW

Q. What are the qualifying criteria for participation in H2 Innovate?

Qualifying startups will be emerging to growth stage companies with at least initial funding secured and a product in market. Candidate companies will be referred into the platform via our program partners.

Q. What are the core program offering components and engagement model for Startups?

Our program offers listing and platform services consisting of the following:

  • Startup Listing: targeted exposure via Startup Listing and company profile distribution across H2 network
  • Advisor Platform: curated access to the right advisors at the right time based on company needs
  • Funding Platform: ability to surface relevant investment opportunities to prospective investors

Once referred, selected Startups will be contacted and invited to complete registration for a Startup Listing and schedule a program onboarding call, during which time objectives can be discussed and established for engagement in our Advisor Platform and Funding Platform offerings.

STARTUP LISTING

Q. What does a Startup Listing provide to participating Startups? 

Our Startup Listing feature provides valuable targeted exposure across the H2 member and partner network globally through the following:  

  • Online Exposure: exposure via H2 website homepage and within H2 Connect mobile application, providing strong visibility within the network
  • Network Newsletter: visibility via H2's monthly newsletter including distribution across its member and partner community globally
  • Program Communications: program specific updates targeting participating Advisors and H2's Investor Network

The default time for a Startup Listing to stay active is 3 months. For those Startups engaged with our Advisor Platform offering, the H2 Innovate team will utilize this time period towards establishing an initial set of Matched Advisors (based on mutual interest/fit and initial 1:1 sessions), leading to extended participation as a Startup Client. 

ADVISOR PLATFORM

Q. What does the Advisor Platform offer participating Startups? 

Our Advisor Platform offers the following unique features for participating Startups:

  • Qualified Advisor Network: top execs and entrepreneurs from H2’s 300+ strong member network, residing in major tech markets and startups hubs across the US, Europe, Asia, and Latin America
  • Targeted & Flexible Engagements: ability to engage one or multiple Advisors across target advisory areas, on a structured and flexible duration basis
  • Compensation Model: highly-leveraged and performance-based model, with single-point administration through H2; default guidelines to be provided

Q. What are the types of Advisory Sessions supported? 

Advisory Sessions are designed to be flexible and modular, providing valuable opportunities for Startups and Advisors to connect, utilizing a current Startup Needs Profile. A combination of Matched Sessions and On-Demand Sessions are utilized over the Startup Client Engagment period to meet objectives as follows: 

  • Matched Sessions: Single Sessions (individual sessions designed to focus on one or more specific issues) and Short Series (monthly sessions over a limited timeframe, designed to focus on one or more target areas/themes) 
  • On-Demand Sessions: Startup Led (initiated by Startups on an ad hoc basis, leading to point introductions where possible) or Advisor Led (initiated by an Advisor, leading to a suggested introduction)  

Q. What are the target Advisory Areas? How does a Startup Needs Profile work?

A Startup "needs profile" will be utilized to obtain information on priority needs for Advisor Matching purposes, across the following Advisory Areas that represent key growth-related focus areas for Startups:  

  • User Growth & Customer Development
  • Talent & Team Development 
  • Monetization & Revenue Growth
  • Partnerships 
  • Product Strategy
  • Platforms & Channel Marketing 
  • Fundraising
  • International Markets

For startups engaged in international market development activities, they can identify specific target markets of interest across all major technology markets spanning the US, Europe, Asia, and Latin America regions for Advisor Matching purposes.

FUNDING PLATFORM

Q. What does the Funding Platform offer participating Startups? 

Our Funding Platform offers Startup Clients of our Advisor Platform further support via valuable connectivity to prospective investors within the H2 network, including:

  • Business Angels: top execs and entrepreneurs from H2’s member network, residing in major technology hubs across the US, Europe, Asia, and Latin America.
  • Institutional Funds: leading early to growth stage funds, including those participating in H2’s Investor Network

Introductions are directly made between interested Advisors and Startups on an ongoing basis, allowing for Startups to engage 1:1 to discuss relevant opportunities and mutual interest/fit.  

GLOBAL TRACKS

Q. What are Global Tracks?

H2 Innovate utilizes the concept of Global Tracks consisting of priority industry sectors around which to develop its program community and Startup representation globally. Initial supported Global Tracks include:  


Advertising

Commerce

Connected Devices

Education

Financial Services
   

Health & Fitness

Media & Entertainment

Productivity

SaaS

Transportation

STARTUP ENGAGEMENT

Q. What is the program fee structure and how does participation as a Startup Client work?

For companies invited to list on the H2 Innovate platform, our Startup Listing offering is free for a default of up to 90 days. During this time, the H2 Innovate team will work to establish an initial set of Matched Advisors (typically an initial combination of one local and one in Silicon Valley), leading to extended participation as a Startup Client.

For companies that transition to Startup Client engagements, H2 Innovate operates on a subscription fee and equity-based model, offering ongoing access to all components of the platform (Startup Listing, Advisor Platform, Funding Platform) and Startup Client support services. To cover the equity portion of the fee, Startups will deliver to H2 a single compensation agreement (warrant), and Advisor compensation will be managed by H2 at a program level across our entire Advisor Network. In select cases (e.g. later stage companies), the fee structure may be on a cash-only basis.

Typical terms and guidelines for engagement as a Startup Client are as follows:

  • Duration: 12 months (default length)
  • Advisor Platform: 15 matched hours (default target)
  • Funding Platform: ongoing introductions
  • Support Services: monthly briefing call, client management   
  • Subscription Fee (variable): baseline USD $3k; special pricing available during beta period    
  • Equity Commitment (suggested amounts): pre-A series companies valued at < $10M: 30 basis points (0.3%); series A/B companies valued at $10-50M: 15 basis points (0.15%)

PARTICIPATION

Q. What are the program cycles for participation in H2 Innovate?

Enrollment for companies nominated by program partners takes place on an ongoing basis throughout the year. We are currently working to engage and onboard our first set of Startups across H2 Chapters in an extended beta phase.   

Q. I am interested in learning more about Startup participation on the platform. What is the right next step?

Please take a few minutes to complete our Startup Inquiry Form, noting your referring H2 Member or Partner. A member of the H2 Innovate team will review submitted information and be in touch to follow up.

 

FOR ADVISORS

OVERVIEW

Q. What are the core program offering components for Advisors?

Participation in H2 Innovate offers Advisors (opted-in H2 Members) unique opportunities to support top emerging companies on a flexible time-commitment basis, including the following components:

  • Qualified Startup Pool: leading early to growth-stage startups globally referred in through H2’s members and partner network of leading funds
  • Targeted & Flexible Engagement: ability to engage multiple startups across target advisory areas on a matched and flexible time-commitment basis via “Single Sessions” or “Short Series” monthly sessions; low baseline starting time commitment
  • Shared Equity Upside: comp model based on accumulated credits against our H2 Global Advisory Fund via program participation (including advisory work and Startup referrals), providing exposure to exists of all participating Startups
  • Funding Opportunities: ability to evaluate relevant investment opportunities via Funding Platform

ADVISOR ENGAGEMENT

Q. How do I refer qualifying Startups for participation on the platform?

For companies you believe are a fit, you should direct them to our H2 Innovate - h2.co/innovate page where they can complete a Startup Inquiry Form noting your name as the Referring H2 Member. Once we review and confirm fit against our qualifying criteria, we will then follow up to hold a short orientation call with each company towards activating a Startup Listing on our platform (lasting a default of 90 days, while we attempt to match the company).

Q. How do I view participating Startups that are seeking engagement with prospective advisors and/or investors?

Profiles of participating Startups on the H2 Innovate platform may be viewed as follows:

  • Homepage - h2.co: our Featured Startups tab provides Startup Profile Cards of all participating Startups on an individual basis (from the left hand bar) and by geography (click on any pin on our map)
  • Startup Search - h2.co/innovate/startups: our Startup Search page provides the ability to view and filter companies by Sector, Location, Stage, and/or Global Track

Startup Profiles contained additional company level detail may be viewed by clicking on the company name from any Startup Profile from these pages. H2 Advisors will be able to view additional information in support confirming interest/fit to support a Startup through our Advisor Platform and/or Funding Platform offerings. 

Q. As an H2 Advisor, how do I mark a particular Startup I am interesting in either advising and/or investing in through our Advisor Platform or Funding Platform?

To mark your interest, simply click on the "H2 +1" button on any Startup Profile page, submitting information for internal use and viewable only by H2 to confirm interest/fit with that particular Startup.

GLOBAL ADVISORY FUND

Q. How does the H2 Global Advisory Fund work and how are Fund Credits and Fund Payouts implemented?

Advisors (opted-in H2 Members) have the opportunity to participate in H2's Global Advisory Fund that utilizes a pooled equity fund model incorporating the following elements:

  • Pooled Equity Fund: consists of contributed equity from Startup Clients of H2 Innovate
  • Fund Credits: accumulated based on H2 Innovate program engagement (e.g. advisory hours contributed, startup referral activity) and H2 Chapter Forum participation
  • Fund Payouts: distributed annually, based on share of fund credits; shared equity upside and exposure to exits of all Startups

Our Fund Payout & Distribution model provides ongoing support for both our H2 Advisor Network as well as H2’s global operations. The expected breakdown for the 2017 beta cycle of the program is as follows:

  • H2 Advisor Network (80%): Advisory Hours (75%), Startup Referrals (20%), and Chapter Level Exit Bonus (5%)
  • H2 (20%): H2 Global (75%) and H2 Global Chairs (25%)

PARTICIPATION

Q. I am interested in learning more about Advisor participation on the platform as an opted-in H2 Member. What is the right next step?

Please email us at innovate@h2.co to receive information to opt-in as an H2 Advisor and set up an onboarding call