Jumpstart FAQs

FAQs

FAQs

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?

The JSF Application has 4 parts:

Part 1: Team & Founder Experience – We’ll ask questions about each founder and any relevant accelerator or industry experience.

Part 2: Company & Product – This is where you should elaborate on product/market fit, your ideal customer profile, and describe any customer traction to date.

Part 3: Financial Information – Be prepared to answer questions about prior fundraising, historical revenue & expenses, and future projections. You will be asked to provide a basic Capitalization Table – this does not need to be formal, especially since many founders have not issued preferred shares or common shares beyond themselves.

Part 4: Additional Information – This is where you can submit an optional product demo video. You will also be asked to provide one Professional Reference.

Helpful items to have on hand include:

  • List of previous investors and their terms
  • Any form of a cap table that outlines the company’s current ownership/equity position
  • P&L to reference both historical & projected revenue & expenses
  • Team Bio’s & LinkedIn URLs 
What investment stages does JSF invest in?

At Jumpstart Foundry, we believe that the terms for investment stages (Pre-Seed, Seed, Series A, etc.) have a tendency to be confusing and , honestly, quite fluid. The definition of ‘Series A’ might change drastically based on where you are  geographically located or what industry/sector you operate 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?

Jumpstart Foundry is an incredibly active fund that operates at scale – making 30+ investments every year. The scale at which we invest requires us to have some standardization. Negotiating multiple 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 that you are at the early stages of building an incredible business, appoint a reasonable valuation for the state of the business today (with hopes of steadily increasing value over time!) and get right to work building value TOGETHER.

How does JSF determine who receives the $2M or $4M 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. We need to see realized revenue for you to be considered for the higher valuation.  Projected revenue or partnerships, while helpful, should not reflect realized traction.

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?

No, companies must be based in the US.

Do you require your portfolio companies to be located in Nashville?

Nope! While we are headquartered in Nashville, TN, our portfolio includes companies from all over the country.

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 contact@jsf.co.

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.

What are your application tips?
  1. Have a passionate founder that is full-time (2+ preferred) and round out the team’s skill set with 1-3 members.
  2. Present product validation and early traction through data.
  3. 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!)
  4. 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!
  5. 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.

FAQs

Still have questions?

Shoot us an email at contact@jsf.co and we’d be happy to get back to you!

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