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Design firm Zypsy will do $100,000 worth of work for 1% equity for early-stage startups | TechCrunch

Apr 16, 2024 - techcrunch.com
Design firm Zypsy has launched a venture investment program offering 10 startups up to $100,000 of brand and product design services in exchange for 1% equity of their companies. The program spans 8 to 10 weeks, after which startups may need to pay for additional services. The company, which has an annual revenue run rate of $3.2 million, plans to work with startups in industries such as computing infrastructure, machine learning, AI, data analytics, cyber security, and the creator economy.

Zypsy has already added five startups to the first cohort of the design capital program, including Copilot Travel, CrystalDB, Formless, Noxx, and Zylon. The company has previously worked with over 25 startups, but does not own stakes in these companies. Despite its new venture investment program, Zypsy has no plans to become an accelerator or investment firm. In 2023, the company raised $3 million to establish Design Capital from investors including 1kx, Lattice, and founders from Mercari and Cega.

Key takeaways:

  • Zypsy, a design firm, has launched a venture investment program offering 10 startups up to $100,000 of brand and product design services in exchange for 1% equity of their companies via a SAFE (Simple Agreement for Future Equity).
  • The firm has a track record of helping early-stage startups and focuses on industries such as computing infrastructure, machine learning, AI, data analytics, cyber security, and the creator economy.
  • Zypsy has already added five startups to the first cohort of the design capital program, including Copilot Travel, CrystalDB, Formless, Noxx, and Zylon.
  • In 2023, Zypsy raised $3 million to establish Design Capital with investors including 1kx, Lattice, founders from Japanese e-commerce company Mercari and Web3 company Cega, and angel investors like CDO at Rakuten, and the head of investment at SoftBank Vision Fund.
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