co-investing in startups with top-tier local investors based in emerging markets
About Startup Labs
Startup Labs is a global seed stage investment fund aiming to disrupt the startup scene by reinventing the traditional investment process and helping companies launch in various countries. Startup Labs focuses mainly on emerging markets and co-invests with the top local investors in respective markets while operating post-investment bootcamps with top mentors. We help companies succeed in ways other venture firms do not by building a global platform for all of our teams and investors.Startup Labs will host 20 events in 20 countries in 2013 - 2014 with the goal of 100+ cities happening soon. Startup Labs is open to all investors and all teams may apply.
APPLY / LOCATIONS
How It Works
Startup Labs partners with local investors in emerging markets and co-invests in early stage tech companies. Investors can be local angels, venture capital firms, accelerators or corporate investment arms. We take a community approach to investing.
90 days from beginning a new city:
- We identify prominent local investors in a given geography. - We take a community approach to investing the more partners the better. - Typically we partner with 1-5 investors consisting of VCs, angels, accelerators etc. - Set a date 90 days into the future to start the event - Open applications for teams and begin to spread the word in the community that teams should apply. - There is no minimum or maximum deal size we will do. This is based on the teams that apply and investment partners we have. - Historically we've done deals from $10,000 - $250,000 and are open to this changing.
30 days from start date:
- Partner investors individually review the applications and make a short list of startups they are most interested in. - Generally there is a natural consensus on which teams we want to invite to pitch. - As a group we narrow the field of applicants and invite teams to come in and pitch us face to face. - We identify the how many cities we as a group will listen to pitches in. (In Mexico we traveled to 3 cities over 4 days for 3 pitch sessions) - Teams are invited, venues are booked for a day and dates are set for one or more cities for pitching.
- Teams come in and pitch - We want to learn about the problem the team is solving, view their demo, meet the team, get info on users, revenue, past investors, and meaningful metrics the startup is tracking. - We ask the startups to share the deal they are offering to us (Amount they are raising / valuation) - At the end of the day we identify teams we are interested in as a group. - All investors are invited to participate equally in each deal, however investors are able to commit varying amounts of capital or not participate at all in any given deal. - Typically we invest in companies in which we or one of our partner investors have a value add core competency. - (We repeat this process in multiple cities as needed based on density of applications)
One week after the program:
- Offers are communicated to teams, as a group we will often make counter offers to teams. - Typically we aim to do 5 deals, however there is no minimum or maximum. - Start the legal process - Start the process of funding deals
- We contact portfolio teams monthly after investing and constantly work on solving problems teams are facing as a group as well as evaluate later stage deals as a group with portfolio companies based on traction. - Investing as a group early makes it easier to finance a series A as a group later on especially as we get to know the company and see them grow. - Investment partners benefit by pooling capital, combining networks, aligning interests and leveraging collective networks for the benefit of the startups. - Startup Labs is a mini fund of a larger fund. We can finance a series A acting alone or in partnership with our local investors. - Most importantly we value relationships with partner investors over any given deal.