Wed, Aug
67 New Articles

Deal 5: AI Startup Incubator Business Development Director Angelo Burgarello on OpenRefactory Investment

Deal 5: AI Startup Incubator Business Development Director Angelo Burgarello on OpenRefactory Investment

Czech Republic
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

On October 7, 2021, CEE Legal Matters reported that Kocian Solc Balastik had advised Czech technology accelerator AI Startup Incubator on its investment in US-Bangladeshi OpenRefactory. CEE In-House Matters spoke with Angelo Burgarello, Business Development Director at AI Startup Incubator, to learn more about the investment.

CEELM: Tell us a bit about the AI Startup Incubator.

Burgarello: AI Startup Incubator is an AI-focused Incubator based in Prague, Czech Republic) founded in 2017 as a joint stock company. While we define ourselves as an "Incubator" we act more like a hands-on investor in early-stage AI startups. Our approach to the incubation/acceleration of startups and mentoring is direct and tailored to the startups' real needs. If a company needs help with business development we select and onboard a hands-on mentor who will take care of this. We provide consultancy and direction on the AI features implementation thanks to our team of AI experts. A team is built to help out the startup with a clear set of goals "milestones plan" which the team together with the founders need to achieve. We have a highly dedicated team of individuals ranging from AI Ph.D. experts, mentors, and successful entrepreneurs, passionate innovators, coaches, educators, and academics. 

We mainly work at a European level but we also look beyond the EU, supporting Start-up ecosystems with the means to tackle their needs from an early stage of maturity from early to growth stage. Our goal is to support and fund small organizations/individuals (start-ups) in accessing finance and/or increasing their traction, growth in revenues, and size, among others. We do collaborate only with startups we invest a ticket in. We are industry and geographically agnostic but laser-focused on AI technology. We are able to invest tickets directly that span from EUR 50,000 to EUR 250,000 and syndicate with our investors' partners to reach ticket size up to EUR 1 million. 

CEELM: What was the rationale behind the investment into OpenRefactory and what made the target particularly attractive to you?

Burgarello: Currently, most software developers have to spend hours searching and evaluating bugs in code. This process leads to ineffectively used time and large extra costs. We see a future in services such as OpenRefactory, due to the fact their team brings a solution that supports software developers, letting them focus on the fun parts of coding instead of looking for bugs that can be instantaneously fixed.

CEELM: What are the next steps?

Burgarello: We are currently working with the team on a new communication strategy to better and clearly address the values for the clients. On top of this efforts are exerted in order to penetrate the EU market.

CEELM: What were the most complex aspects of the deal?

Burgarello: This was a direct equity investment and AISI acted as a lead investor. Being a lead investor is always a more difficult position because the terms and conditions must be set up not only to match the current investment entities but make sure that there are no obstacles for future investors to join the venture. Finding the right balance is a very important matter.

CEELM: And why did you opt for KSB as your legal counsel on the deal?

Burgarello: KSB is definitely one of the best law firms on the Prague scene. With our primary point of contact, Ota Mach, we are able to quickly identify the must and nice to have features of the investment agreements and move on negotiations and agreement of the terms in a quick and efficient manner. It is never a matter of having the perfect agreement but the perfect agreement for the specific case. This is why we tailor the contract taking into account the level of risk and maturity in every investment we make.

Originally reported by CEE In-House Matters.

Czech Republic Knowledge Partner

PRK Partners, one of the leading Central European law firms, has been helping clients achieve their business objectives almost 30 years. Our team of lawyers, based in our Prague, Ostrava, and Bratislava offices, has a unique knowledge of Czech and Slovak law and of the business environment. Our lawyers studied at top law schools in the United States, United Kingdom, Switzerland and elsewhere. They also have experience working for leading international and domestic law firms in a number of jurisdictions. We speak your language, too. Our legal team is fluent in more than 15 languages, including all the key languages of the region.

PRK Partners has one of the most experienced legal teams on the market. We are consistently rated as one of the leading law firms in the region. We have received many significant honours and awards for our work. We represent the interests of international clients operating in the Czech Republic in an efficient way, combining local knowledge with an understanding of their global requirements in a business-friendly approach. We are one of the largest law firms in the Czech Republic and Slovakia. Our specialised teams of lawyers and tax advisors advise major global corporations as well as local companies. We provide comprehensive legal advice drawing on our profound knowledge of local law and markets.

Our legal advice delivers tangible results – as proven by our strong track record. We are the only Czech member firm of Lex Mundi, the world's leading network of independent law firms. As one of the leading law firms in the region, we have received many national and international awards, in some cases several years in a row. Honours include the Chambers Europe Award for Excellence, The Lawyer and Czech and Slovak Law Firm of the Year. Thanks to our close cooperation with leading international law firms and strong local players, we can serve clients in multiple jurisdictions around the globe. Our strong network means that we can meet your needs, wherever you do business.

PRK Partners has been repeatedly voted among the most socially responsible firms in the category of small and mid-sized firms and was awarded the bronze certificate at the annual TOP Responsible Firm of the Year Awards.

Our work is not only “business”: we have participated on a longstanding basis in a wide variety of pro bono projects and supported our partners from the non-profit sector (Kaplicky Centre Endowment Fund, Tereza Maxová Foundation, Czech Donors Forum, etc.).

Firm's website: www.prkpartners.com

Our Latest Issue