What type of investments does Jumpstart make?
Jumpstart Foundry makes pre-seed stage investments on a standard post-money SAFE note. We invest in innovative healthcare startups from across the country (must be US based). So, whether you’re seeking a smaller investment or trying to close a larger pre-seed round, the JSF investment can be a great catalyst for you to achieve your fundraising goals!
What items should I have on hand to complete an application?
- Any form of a cap table that outlines the company’s current ownership/equity position. This does not need to be formal, especially since many founders have not issued preferred shares or common shares beyond themselves.
- P&L to reference both historical & projected revenue & expenses
- Pitch Deck or Executive Summary
What investment stages does JSF invest in?
That said, we have adopted the terminology of “Pre-Seed” to define Jumpstart’s standard investment. How do we see “Pre-Seed” translating to stage of company?
Generally speaking, we like to see full-time founders with at least a V1 of the product developed. Revenue is not required, but we want to see that you have made progress towards market validation (pilots – paid/unpaid, early customers, someone besides a family member paying for your solution).
Our standard investment is structured in a post-money SAFE note, so we’re coming in before the company is officially valued in a priced equity round. So call it whatever you want…”Pre-Seed” “Seed” “Early Stage”… We’re here to invest in founders who are making a difference in health and believe that JSF can be a strategic early-partner in their journey!
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?
How does JSF determine who receives the $2M or $4M valuation?
What is included with the $50K membership fee?
Traditional venture capital firms just write a check, but we provide strategic capital – the right help at the right time. The membership fee covers lifetime access to Jumpstart Insight which includes exclusive healthcare and leadership programming, access to strategic HC and VC networks, and special perks with preferred vendors! You can learn more about our complete offering through Jumpstart Insight here.
Do you invest in companies outside of the US?
Do you require your portfolio companies to be located in Nashville?
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? Send us an email at email@example.com.
Do you accept companies who have already been through an accelerator/incubator?
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.
- Be specific! Great applications have focus and clarity. Avoid talking too broadly about the pain point you’re solving. We all know the healthcare industry is broken (you don’t have to explain that to us!) So tell us very specifically what pain point you’re focused on and how your solution addresses it. If you talk too broadly, it feels like you’re trying to swallow the ocean. The more specific you are, the easier it is for us to understand your business! (Oh…and we know that things might change over time and you might pivot entirely — don’t worry about that. Just tell us what you’re solving for NOW!)
- 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.