Digital Magics is the leading Italian incubator. We have backed +100 start-ups, providing them with hands-on support and pre-seed/seed investments. Our start-ups have raised over 90 M€ since inception and the aggregated 2018 turnover of our operating start-ups accounts for 59,38 M€ (+42,2% growth over 2015-2018). Digital Magics stands along entrepreneurs in all respect, sharing business risk. We have acquired a profound experience handling the company building and providing valuable contribution to get your company ready to scale.
You can see what happens at Magic Wand here. By entering the program, you will have access to a number of lectures/masterclasses held by top advisors/leading CEOs in the industry which cover every aspect (from product economics and competitive scenario to regulatory compliance, etc.) and share their experience. Moreover, the accelerator team will help you find the right answers to questions such as “What does make a great team?” and “Does your customer really need your product? Why?” and address any gap which may exist between you and fundraising. The goal is to make you ready to close a seed round after the the end of the program, with a great understanding of how to spend money and the results you can expect.
The accelerator format is described here and detailed in the program’s regulation. Once the program’s call has been closed, Digital Magics and the program’s corporate partners will identify a shortlist (around 20 start-ups) that will be invited to pitch before a jury composed of Digital Magics and the program’s partners (the so-called Pitch Day). The jury will select up to 10 start-ups to join the program. The program is made of two subsequent phases: the “Discovery” phase lasting around two months, where an in-depth assessment of the project is carried out (with reference to some relevant criteria: competences, completeness, maturity of the team, size and appeal of the reference market, product/market fit), and the “Validation” phase, lasting around three months, where the project is tested (with reference to market KPIs). At the end of the “Discovery” phase, DM and the Partners will select 6 start-ups among the participating start-ups to proceed with the “Validation” phase. The selected start-ups will participate at the Investor Day, the final event where they can meet investors, corporates, mentors and press attendees.
The program is addressed to start-ups in the MVP/prototype stage, first customer stage and scale-ups that operate in one of the key industries and segments listed here. You can also apply if you have not already set up your company yet, provided that you do it within the deadline indicated in the regulation.
Program activities are organised to engage the founders just for two days a week, thereby guaranteeing the continuation of all operational and development activities. The teams will also have two co-working desks available at the Digital Magics headquarters in Milan for the duration of the program.
Yes, DM will invest in the 6 start-ups that enter the final phase of the programme. A first investment will be made immediately after the selection that opens the Validation phase, including the provision of acceleration services during the program and a cash investment of 15 K€. As consideration for the investment, DM will acquire up to 10% of the share capital of the start-ups (as detailed in the regulation). Furthermore, Magic Wand is the first program where investment accelerate as you accelerate: DM will make an additional cash investment of 20 K€ in the best performing start-ups of the program (4 out of 6) around 30 days before the Investor Day, on the basis of another selection step performed by DM and the program’s partner (that will take into account the KPIs/tractions achieved by each start-up during the program).
Yes. In fact, our involvement can be even more important at this stage, accelerating the development of your start-up's business. During the program, you will have the opportunity to discuss and create commercial or industrial collaborations with the program's corporate partners. Digital Magics has a a consolidated relationship and open dialogue with major Italian companies and matured an in-depth experience in perceiving their innovation needs.
The Regulation is the document that governs the fundamental elements of your participation in Magic Wand. By signing the Regulation, you undertake to participate in the selection days described in the program's timeline and, if you are selected, to sign a contract with Digital Magics. The contract contains the details of the terms and conditions of your participation.
No, we generally do not sign a confidentiality agreement at this stage. The program regulation provide, in order to protect the team's intellectual and industrial property, Digital Magics' commitment to use the information received for the sole purpose of the program's activities.
Yes, the start-ups invited to present at Pitch Day will receive the contract governing the terms and conditions of their participation in the Program, whose signing is a prerequisite for accessing the acceleration program and be qualified as a participating start-up. The signing of the contract or the basic elements of the same before Pitch Day will be considered positively for the purpose of the assessment described in question 11.
The following elements will be evaluated: the innovativeness and originality of the proposed idea or approach, teams with heterogeneous and complementary skills, a significantly sized potential market, an adequate skills to present the product/service and the business model.
The Program includes meetings (both one-to-one and one-to-many) between the selected start-ups and the Program Partners aimed at creating an opportunity to discuss respectively innovation needs and solutions proposed by start-ups.
The objective of Investor Day is to create an opportunity for start-ups to get in touch with investors, both private and venture capitalists, and companies interested in investing in projects. The 6 start-ups will open, at the end of the program, an investment round. During this phase, Digital Magics will work alongside the start-ups to deal with investors, in particular in the deal structuring and negotiation phase.
Yes. DM will invest at least 40 K€ and up to 150 K€ in the fundraising round of the 6 selected start-ups (including the 20 K€ investment given to the best performing start-ups). Additionally, DM will set up an investment vehicle in partnership with the crowdfunding platform 200Crowd.com with the aim of raising additional funds through a crowdfunding campaign, to be invested in the fundraising round. If the campaign was successful, this vehicle could invest up to 150 K€ in each start-up.
Digital Magics requires the signing of a shareholders'agreement with all the shareholders of the start-ups which protects its investment as a minority shareholder. We do not generally ask for liquidation preference, nor other clauses that might complicate the conclusion of subsequent financing operations.
No. Anyway, we believe it is important to actively participate in the start-up's development for about six months after Investor Day. Therefore, we request the presence of one observer in the Board of Directors for this period. We are obviously willing to consider continuing to bring added value even after the first six months and possibly join the board of directors if requested by the founders or other investors.