H/L Studio
In 2009, H/L Ventures was one of the early pioneers of the venture studio model, launching what we now call H/L Studio as our first strategy. From inception, our team believed that taking an active role in co-building our portfolio companies – far beyond simple funding – would be crucial at any stage. Many venture firms speak of having a studio or value-added services, but to truly deliver the rarest form of venture capital – consistent support to all portfolio companies – requires the right structure. We partner with founders to create extraordinary enterprises, aligning our interests as closely as possible with the entrepreneur(s).
Studio Summary
| Studio Mandate | We seek to co-build companies at the nexus of growth, impact, and diversity |
| Stage | From co-founding to just pre-Series A, but most commonly at/around Seed stage |
| Typical Check Size | No up-front cash investment at pre-Seed, $100,000 at formal Seed round1 . Studio company Seed rounds must meet minimum “market” terms to be eligible for funding. |
| Ownership Target | 5% (pre-Series A) – 20% (co-founding), with a historical average (through 2020) of 8.2% of starting equity across the portfolio |
| Equity or Common Stock Options | Yes, depending on stage and tax implications |
| Investor Rights for H/L Equity | Standard, typically no board seat |
| Follow On Rounds | H/L Studio has typically purchased its initial equity or common stock options, invested in later rounds (pro rata or more, including leading), and also has had the capacity to provide short-term loans |
| Geography | US-domiciled entities only, all 50 states, no requirement to move to NYC |
A Powerful Ecosystem of Support
H/L Studio does not offer upfront cash investment in pre-Seed companies, but commits to $100,000 investments in the formal Seed Rounds of our studio companies assuming market terms and valuations. In both cases, we bring a unique model of engagement into the fold, staying with our companies at full levels of focus and throughout their natural cycles of growth. As an H/L Studio portfolio company, you have at your disposal the following resources:
Our Investment Thesis
H/L Ventures stands for a different investment thesis; one that prizes our relevance and role as well as the key characteristics of prospective companies and founders. This is how we approach partnership and investing.
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Potential
We seek companies that show potential for high growth. This includes a uniquely qualified team and an innovative product solving a large market need. We seek founders who are brilliant, team-oriented, responsive, resource magnetic (we can explain!), and open to collaboration with our team.
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Relevance
We seek companies for which the H/L Studio Model will be highly impactful. A vital part of our due diligence process involves us working to ascertain if our networks, expertise, and skills are relevant to the success of the company.
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Resource Magnetism
While many investors focus on the “it” factor most readily identified as a founder(s)’ charisma, we go a step further. Charisma alone is not enough (and sometimes too much!); what we seek is founders who have somehow aggregated unusual resources, partnerships, and advantages that cause us to wonder what about them made those breakthroughs possible. This is resource magnetism.
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Impact
We seek companies that have a positive impact on the world either through the mission of the company or diversity of the founding team, and often both.
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Product
H/L Studio works with companies from idea stage (where we co-build and partner with you ahead of launch), to MVP, and all the way to when you have a working product. While the Studio allows for a lot of flexibility stage-wise, we do need to believe in the value proposition of the product you are building.
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Industry
We are industry agnostic, as our large ecosystem and team allow us to be relevant across sectors.
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Stage
We are focused on companies at the earliest stages, although at H/L Ventures we provide holistic, relevant support through every stage of growth. We start early, ranging from co-building companies to as late as pre-Series A. The majority of our portfolio companies join our Studio at the Seed stage.
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Outcomes
Success does not have to mean a classic venture M&A or IPO exit. Companies who work with us can achieve long-term cash flows from a profitable operating company. Our measure of success is not tied solely to the pressure of a venture style exit.
Two Way Diligence
Each year, we screen hundreds of early stage companies to bring on a select few portfolio company partners. We recognize, also, that any founder will be equally selective about partnering with us: we celebrate this process of finding a mutual match. To determine if a company is a good fit for the H/L Venture Studio Model, we engage in a mutual discovery process described below:
