About the Fund

WHERE DOES THE MONEY COME FROM?

Shhh! As we have yet to close our first investment round, the specific parties are still a secret. Our shareholders are, however, a combination of three types of investors:

  • knowledge institutes;
  • business angels (wealthy individuals);
  • corporates.

Knowledge institutes love ASIF because we stimulate entrepreneurship among their student population. Business angels love ASIF because we allow them to get to know promising startups in an early stage – and also simply because they think we’re fun. Corporates love us either for corporate venturing, recruitment or PR purposes, or a combination of those.

The amount of raised capital is also not definite yet, but it will be multiple tons. We have the ambition to grow the fund size towards €1,000,000 in the near future, which is one of the projects the first board will work on.

WHAT TYPES OF INVESTMENTS DOES ASIF DO?

ASIF offers convertible loans between €25.000 and €50.000. A convertible loan (also called covertible note) is an investment that is, at first, a simple loan – meaning ASIF does not take a share of the startup, and the startup simple has to pay the money back within a few years. However, if the startup is doing really good and gets another investment round, ASIF may exchange the outstanding amount of money in the convertible loan to shares. The price at which ASIF can buy shares from the outstanding loan is determined by the valuation of the investment round. This is why convertible notes are convenient in early-stage investment: if a startup is very young, it is hard to properly determine its value. With a convertible, ASIF ‘postpones’ this problem towards a moment in time at which the startup is more mature.

WHAT DOES THE ORGANIZATION LOOK LIKE?

The Amsterdam Student Investment Fund is a BV, besloten vennootschap in Dutch. This basically means it is an independent company. The organizational structure looks like this:


The shareholders are the investors: the organizations and individuals that have provided the money to invest with. They own the fund: any profit or loss will be theirs. However, they will not be involved with the fund on a daily basis.

That’s where the board comes in: they work for the shareholders, and make sure the fund succeeds. The four student board members do the actual daily management. The three professional board members guide and supervise the students. They do this part-time.

As the fund gets involved in more and more activities, the board can hire several student committees. Those will typically be younger students that take on a specific part-time role within the organization, such as the organization of events or doing due diligence.