What type of investments does Jumpstart make?
Jumpstart Foundry makes seed-stage equity investments in innovative healthcare startups from across the country.
What are your terms?
We have standard terms for all companies: $150,000 SAFE (simple agreement for future equity) with a $2M or $4M valuation cap, in exchange for a one-time $50k membership fee for our value-added services. This means $100k lands in your bank account and a slew of services at your fingertips!
Why the SAFE?
Because we invest at scale we require simple tools to allow us to add value as fast and efficiently as possible. As a flexible, one-document security without numerous terms to negotiate, SAFEs end up saving both entrepreneurs and investors money in legal fees and reduce the time spent negotiating the terms of the investment.
A SAFE note is a convertible security that, like an option or warrant, allows the investor to buy shares in a future priced round. It addresses many of the drawbacks and challenges posed by more traditional convertible notes and can be an equitable option for investors and founders. SAFE notes, unlike convertible notes, are not debt and therefore do not accrue interest. There also is no maturity or end date on the SAFE.
Why standard terms?
Jumpstart Foundry is an incredibly active fund that operates at scale - making 15-20 investments every year. The scale at which we invest requires us to have some standardization. Negotiating 20 unique deals is not how we spend our time - we would rather get to the nuts and bolts of helping our founders faster. We also believe that the traditional negotiation process rarely favors the entrepreneur, so why bother with the back and forth….Let’s agree to build value TOGETHER.
Who decides the valuation?
After applying, the Jumpstart Foundry team will review your application, paying close attention to revenue and customer metrics, and will decide which valuation is most appropriate.
Is the $50k membership fee required?
Yes. Traditional venture capital firms just write a check, but we provide strategic capital - the right help at the right time which requires legwork and a team you can count on. You can learn more about our complete offering here.
Do you invest in companies outside of the US?
Yes, we will consider non-US investments, but the majority of our portfolio is either based in the US or have significant operations here.
Do you require your portfolio companies to be located in Nashville?
Nope! While we are headquartered in Nashville, TN we only ask our portfolio companies to travel to Nashville 2-3 times within the first 12 months of our engagement for specific events like a curated dinner with industry executives and customer introductions.
What kind of companies do you invest in?
We are interested in healthcare IT, consumer health products/services, tech-enabled services, and diagnostic devices. We do not fund biotechnology, pharmaceuticals, or life science companies\. Aren’t sure if your company fits our criteria? Schedule a call with one of our investment analysts.
Do you accept companies who have already been through an accelerator/incubator?
Yes. In fact, we look for companies who are partially funded, running their first pilot program, already been through an accelerator or have launched their MVP.
Do you fund companies that are competitive with each other?
We take an active role in helping founders get to market, find customers and beat other competing ideas. For this reason, we are especially cognizant of not investing in companies that are direct competitors. While the specific industry segments our companies serve may overlap and they may have similar ICPs (ideal customer profiles) we will never promote direct competition between them.
What are your application tips?
Have a passionate founder that is full-time (2+ preferred) and round out the team’s skill set with 1-3 members .
Present product validation and early traction through data.
Utilize the video section of the application to show your personality and help us understand why you think this product will make a positive impact on the world.
Do your research. Bringing on a new investor is an important step in the growth of your company. We expect to form a 3-6 year partnership with our founders. Given this time commitment, we don’t make investments flippantly and you shouldn’t take an investment without learning as much as possible about the investor. Make sure we’re a good fit first!
Be thoughtful. We can tell when someone has rushed through the application process.
Do I need to send in a business plan?
Nope. The online application has all the necessary components. However, you are welcome to send us any additional information or documents you think would support your funding application.