Beneficial to All

The key benefits of Orange5X for

Investment Plan

During routine acceleration programs, investors can make investments usually on the demo day or literally after the demo day. However, Orange5X program differentiates itself from most of these programs through providing a step-by-step micro-financing of the enrolled startups.

Each startup team will be awarded the required capital they need at a Series A financing stage on the first day of program enrollment. However, this dedicated capital amount will not be deployed or handed over to the teams immediately and they will be invested over the program duration step-by-step and based on their milestone-based progress. This progress will be managed by Orange5X program managers and by meeting each milestone criteria, a specified amount will be invested on the team and their product (or prototypes).

These milestones will be the critical steps on the path of success in commercialization such as prototype development, first MVP, PMF approvals, clinical trials and etc. Meeting each milestone through the collaborative actions and mutual efforts of each startup team and Orange is equal to a significant achievement.

After completion of each milestone and at the gate of kicking off the next phase, a part of awarded capital will be handed over to the team and invested in their venture. Therefore, money deployment will be done only in parallel to building the venture and making investors confident on the future potential commercial value.

It should be noted that investors will get a fairly higher share in the startups in comparison with the post-demo-day investment options. The logic is clear and easy to understand: After the demo-day, the commercial value of the startups is much higher than their value on the acceleration program enrollment day, while their risks of success are also mitigated.

Therefore, investors will get a bigger portion of the shares through participation in Orange5X program in comparison to the routine programs. Although investors may get the feeling of accepting more risk through Orange5X program but they need to keep in mind that commercialization progress will be managed and arranged directly through positive and synergic intervention of Orange Accelerator professional program managers.

Meanwhile in case of early signs of a team’s inability to achieve commercial success during the program, which will be a very rare situation considering Orange5X precise selection process before the enrollment, Orange Accelerator will make the decision to exit and drop off the team before dedicating any more capital and efforts. For sure there are times that commercialization success and industry disruption cannot take place due to technological feasibility challenges or business model viability failures and every investor need to accept the risk of taking a part in the disruptive playground of healthcare innovations.

As the last point, investors will participate in the whole acceleration cohort and not only one startup. Therefore, by investing in a large number of startups, the low risk of a specific startup failure will become even lower for the investors. Through Orange Accelerator’s direct management and investors’ indirect governance and monitoring, they will not put all their eggs in one basket!