I spend a lot of time explaining the Upstart Labs model to people I meet. Our portfolio is small – just seven companies to date – and you won’t see us packing an auditorium for a demo day twice a year. As an early-stage investment fund, we’re more likely to be found behind the scenes than introducing our latest crop of companies.
Upstart Labs is different because we invest in the form of professional services rather than cash. We provide access to a team of 13 – developers, designers, project management, marketing, business development and sales – in addition to mentoring from our executive team and business services such as legal and accounting. Rather than giving startups a pile of cash and waiting for them to hire employees, our portfolio companies hit the ground running on Day One.
When pitching investors, startup founders try to cut right to the chase with their “ask” – how much money they need, and what, specifically, they’re going to use that money for. One of my favorite things about the model that we’ve established at Upstart Labs is that it gives founders the ability to modify the specifics of that “ask” during their time with us, as conditions dictate.
Hiring employees is expensive; hiring creative and development agencies is even more so. We’ve heard angels complain that a quarter of their investment (or more) is “wasted” by startups on contractors and other pricey purchases. Companies in our program avoid those expenditures during their tenure, and get more time to refine their model – and generate revenue! – before pulling the trigger on long-term expenses.
Our team augments a startup’s existing team. With our team’s help, companies in our portfolio who have products in the market can expand their features, add platforms and services, and enter new markets. We’re investing in this way – services first – because we believe it works. Need more evidence? Just read what our Upstarts say about us.Tweet