November 28, 2018
FAQ What is The Metalsa Playground?
What is The Metalsa Playground?
The Metalsa Playground is a Venture Client which consists of partnering with startups at an early stage when its product, service or technology is not yet mature.
In comparison to Venture Capitals & Accelerators, we invite startups to test their product, service or technology at Metalsa, we pay for a pilot test that has the potential to scale.
Metalsa Playground is a great opportunity for entrepreneurs and startups that are looking for early customer feedback, exploring new business models, seeking to enter the automotive market, or interested in scaling up.
Metalsa Playground is the initial step of our corporate venture capital, and we are looking for strategic bets. Our model consists of a no-strings-attached partnership to integrate and validate a startup’s product, service or technology in Metalsa. It is also an excellent opportunity to network entrepreneurs with top automotive engineers and managers.
Startups admitted to the program are companies that have a technology not only for the automotive industry but from any industries, most importantly is that we are seeking for partners who believe their solution can also be of significant value to the automotive industry.
What is the Venture Client Model? How is it different from Venture Capital?
In comparison to Venture Capital, we purchase a first unit of a startup’s product, service or technology, not its equity. This means that startups get a supplier status, supplier number, purchase order and revenue. We do not invest, i.e. we do not ask for shares or equity.
Is the Metalsa Playground an accelerator?
No, we ideally take startups that graduated from accelerators. We focus on validating their prototypes, helping them learn about the automotive industry and connecting them with decision-makers for business development. For that, startups work directly with our engineers and managers on real innovation projects.
In comparison, accelerators generally focus on activities that help entrepreneurs getting their business started, such as building first prototypes and business models, establishing a legal structure, identifying target clients and raising seed funding.
Accelerators do not function as a client of a startup. We do. Which is why we build on the invaluable work of accelerators.
What is Metalsa Playground looking for?
1. Build a Metalsa use case: Your solution (product, service or technology) has a compelling use case to improve a product, service, business or process at any Metalsa area. Your solution can originate from or be applied in any other industry.
2. Test Functional products or prototypes: Your startup has a functional prototype or working product. Prototypes must be mature enough to be integrated and validated in Metalsa.
3. Talented entrepreneurs: Main positions (CEO, CTO, CMO, etc.) of your startup are held by full-time employees.
4. Maturity and funding status: Your startup has graduated from an equity accelerator or has funding from a professional venture capitalist.
5. Legal entity: Your startup must be a legal entity (of any country and type, such as Inc., LLC, etc.).
What about the money? Do you buy or do you invest? How much?
We purchase a first unit of your technology, not your equity. Metalsa becomes your first automotive client, not your shareholder. Once accepted into the program you get a supplier number and a purchase order.
The money you receive when accepted to the program is a payment for a prototype of your technology and the costs associated with its integration and validation. This payment accounts as revenue. It is not an equity investment.
Having gained Metalsa as a client, should make it easier for you to raise venture capital and increase your valuation. All costs related to the integration and validation of your technology, including materials, travel, etc. Once you receive our requirements, you will be able to propose a budget.
What happens during the collaboration?
The program length is aimed for around 12 weeks. During the collaboration you will:
1. Validate: You will validate your technology and business model by integrating your technology into our product or processes. Iterate it will be the big opportunity to scale your business.
2. Learn: Here you will learn how to succeed in the automotive world. We will provide insights about the industry dynamics and their processes, accelerating your learning curve.
3. Network: You will get linked to those people that are key to grow your business within Metalsa and the global automotive industry.
What happens after the collaboration?
There are different types of outcomes that can result from the collaboration between Startups and our Playground:
1. Become our global supplier: With our global presence in more than 10 countries and 19 facilities, you could expand your business with us and create a long-term agreement to help you scale up.
2. Co-develop Technology: We can work together to develop innovative IP and explore pathways to take it to market.
3. Establish a Partnership: From simple and hassle-free JDA's (Joint development agreements) to full-on JVs (Joint Ventures) we are open to exploring any potential win-win collaboration skims.
4. Access: We offer access to some of the largest automotive markets and seek to support startups entering business relationships with our customers and suppliers.
5. Strategic Investments: We work closely with Proeza Ventures our Corporate Venture Capital and we constantly feed them with interesting Startups that they can assess for their investment pipeline.
For additional information contact the Metalsa Playground Team.