Overview

QStart Labs provides start ups an experienced technology development and start up advisory team made up of entrepreneurs, designers, nerds, and investors that are changing the way that entrepreneurs and investors launch new businesses on the web.

At QStart Labs, we know what it takes to launch a successful start up. We take a pragmatic approach to the business, technology, and coaching needs that get your start up or portfolio company off the napkin and to the bank as quickly as possible.

Alignment = Successful Outcome

The ugly truth is that the road to success is paved with good intentions, broken promises, and those that just want to take advantage of the passion you have for your start up. Have you ever noticed that most “tech teams” build what they are told, look for ways to build more, and keep cashing checks? We know “Status Quo” is not good for start ups and their investors so we set out on a mission to break the mold! We focused on what a relationship would look like if there was a technology development and start up advisory team that was aligned with their client's interest and then we built our model around that. What does that mean? We only succeed as you or your portfolio company succeeds!

For Entrepreneurs

You Give Up No Equity in Your Company

We want you to own your company. Our goal is to ensure your cap tables are clean and that you have 100% of your equity to negotiate the best terms should you decide to take on funding through Friends, Family, Angels, or VCs.

Aligned Interests = Successful Outcome

How many times have you paid a vendor to do work that has no vested interest in your success? Our program creates a shared risk and shared reward relationship that means we are one team driving to a successful outcome….TOGETHER!

Revenue sharing is easy and low risk!

Revenue sharing is an easy way to reward the investment QStart Labs is making in you. During under-performing years you are not obligated to a fixed payout amount however, as we succeed we are all doing the happy dance!

More money to build your business!

You may be wondering why QStart Labs would create a model where you have to succeed in order for them to make money. The answer is simple, we are investing in you so you can allocate more of your capital to growing your business, gaining traction, and exiting successfully. We are passionate about building technology based businesses and not just building technology because we can!

For Investors

Aligned Interests

We built our model to ensure we are as invested in your portfolio company's success as you are. We take no equity, have covered the technology/IP challenges that typically cloud exits, and contractually bind ourselves to be there helping your portfolio company until the end. We only succeed when your portfolio company succeeds!

Minimal Cash Outlay to Get to Market

We work with your portfolio company to define the right functionality to get new ideas to market. We have fixed this amount so you can allocate less on technology and more for business development and growth! Aren't aligned interests great?

Reduced Time to Market

Great ideas need to get to market quickly! Once we have agreed upon the required functionality to get to market our team will deliver the functionality to our test servers within 3 months, regardless of the complexity or scope, and no, we are not talking disposable rapid prototypes here!

Experienced Start Up Team

When was the last time you worked with a tech team that did not need to be told what to do, understood your portfolio company’s business model, revenue model, exit strategy, etc? We do not just build technology, we build businesses on the web! This requires a pragmatic approach to bridging the gap of business, technology, sales, and more in order to get to revenue, break-even, and a successful exit!

Pseudo Farm Team for Potential Portfolio Companies

How many times have you seen an entrepreneur with a great idea that would fit your investment strategy if only they had gotten to market and gained traction? Rather than tell them “No” and send them away, partner with QStart Labs and send them to us. We will get them to market, prove their business model, and keep you posted on their progress. When the time is right, you can re-engage them in talks for future investment.

Business Model

Options

Hold on to your hats folks! You've heard that we are part entrepreneur, part investor, and all partner but our model is how we prove it! Since we are focused on building successful businesses vs. "just technology" we offer two " quasi-investment" options for early stage companies:

• QLaunch

  For start ups that need to go from idea to revenue generating we offer our QLaunch program. This program requires that you submit an application to be considered. Once approved we will help you identify the right functionality to meet your business objectives, build your technology, and launch it for a single fixed cost of $50k regardless of what needs to be done or what it costs us! (Typically 4-10 companies per year are accepted into the QLaunch program)

• Cost+

  For those that are not accepted into the QLaunch program or are already in the market and want to accelerate growth we offer our Cost+ program to free up financial resources for business development and not technology development. We do this by offering our services at our cost on a fixed price basis.

The following are the highlights of our business model. It is designed to prove we are in for the long haul, not looking to "just build technology", and are passionate about shared risk and reward. Not everyone will be selected by QStart Labs but those that are will have a unique partnership based on aligned interests from our first conversation to our contractual obligations that we cannot walk away. The fixed price includes everything below.

Campfire Process

QStart Labs Campfire process bridges the gap between business and technology needs to get to revenue quickly, prove the business model, and provide a solid platform for rapid growth. This process starts with an all day in-person meeting to discuss the business, objectives, revenue model, audience(s), etc. Note: This process is an “all cards on the table” style meeting.

Since QStart Labs' success is dependent on the success of our partner company, we will highlight great ideas, challenge bad ideas, and work through areas that are not well defined to ensure the best possible chance of success. The end result is a detailed functional specification outlining what should be “in” and what should be “out” for this phase of the business.

Technology Development

QStart Labs will build whatever is necessary to get to revenue quickly. While we work quick, our model is to build technology that scales with your business and not "disposable" prototypes. The development phase typically includes: design, corporate website, product functionality, content management system, etc. (regardless of cost to QStart Labs)

Our commitment to you: All site functionality delivered to test server in 3 months!

Advisory Services

We want, no we NEED you to succeed! We know how to take start-ups to a successful exit so why not share our experience? QStart Labs provides advisory assistance in the following areas at no charge: strategic planning, sales/marketing strategy, IT, etc.

Ongoing Technology Development

QStart Labs provides all future development efforts on a fixed price (based on QStart Labs' cost) in order to further reduce cash outlay for technology and allow you to spend more on revenue generating activities.

Our commitment to you: All site functionality delivered to test server in 3 months!

Revenue Share

Applicable revenue is Net Revenue (aka Gross Profit) as defined by Generally Accepted Accounting Principles. In simple terms, revenue minus cost of goods sold.

For those that are post revenue before working with QStart Labs, don't worry, we only want to be rewarded for the success we achieve together so we make prior revenue off limits! The revenue share is as follows:

• $0-$2 million - 5%
• $2.x million - $5 million - 3%
• $5.x million - $10 million - 1%
• $10 million+ - 0.5%

"Outsourcing large development projects can be difficult for a small company even in the best of times — in a challenging economy, even worse. QStart's innovative business model opened the door for Mediplay to pursue an extremely aggressive development strategy that would have otherwise been difficult, if not impossible, to implement."
Scott Donley, Vice President, Mediplay