Labs Start

Investment Terms

100 days. Two pathways. Three stages of progress. Labs Start provides founders with company capital through the Labs EDGE Note, and funders with capital for both the firm they are building and the first fund they will manage.

Founders

All founder investments are made through the Labs EDGE Note—not a SAFE. Every Labs Start program runs for 100 days.

Incubator

Hatch Start

For founders transforming an early idea, insight, or invention into a formed and fundable company.

  • Initial investment$250,000
  • Ownership target3%
  • Follow-on capitalUp to $250,000
  • Total potentialUp to $500,000
  • MechanismLabs EDGE Note
  • Program feeNone
  • Board seatNone

$250,000 through an EDGE Note, with up to $250,000 reserved for what comes next. Over 100 days, Hatch Start helps founders form the company, validate the opportunity, develop the product, and prepare for launch.

Accelerator

Launch Start

For founders with a formed company, prototype, early product, initial community, customers, or demonstrated technical progress.

  • Initial investment$500,000
  • Ownership target5%
  • Follow-on capitalUp to $500,000
  • Total potentialUp to $1M
  • MechanismLabs EDGE Note
  • Program feeNone
  • Board seatNone

$500,000 through an EDGE Note, with up to $500,000 reserved for the company’s next stage. Over 100 days, Launch Start helps founders activate through product completion, market entry, member or customer growth, and capital preparation.

Booster

Lift Start

For operating companies with a launched product, meaningful adoption, revenue, partnerships, existing investors, or market momentum.

  • Initial investmentUp to $1M
  • Ownership targetNo more than 5%
  • Follow-on capitalUp to $1M
  • Total potentialUp to $2M
  • MechanismLabs EDGE Note
  • Program feeNone
  • GovernanceObserver rights may be negotiated

Up to $1 million through an EDGE Note, with up to $1 million reserved to lift the company further. Over 100 days, Lift Start helps founders strengthen distribution, operations, leadership, partnerships, and the infrastructure required to scale.

The Labs EDGE Note. The EDGE Note—formally the Equity Deferred Grant Exchange Agreement—is Labs’ proprietary financing instrument, designed as an alternative to a SAFE or convertible note by combining immediate and future equity within one coordinated agreement. Rather than lending money to a company, or simply waiting for an investment to convert during a future financing, an EDGE investor may receive an equity position at closing together with a binding grant of additional equity that is issued upon a defined graduation event—such as a qualified financing, strategic milestone, liquidity event, or contractual long-stop date.
AVL · Advanced Valuation Lock
Establishes the investor’s valuation, share price, share count, or ownership economics at the time the investment is made.
FOAD · Fixed Ownership Anti-Dilution
Protects an agreed ownership position through specified future events.
DSOP FLEx · Dynamic Stock Opportunity Plan
Provides for additional Class D FLEx equity.

Although commercially called a “Note,” the EDGE Note is intended to be an equity-based agreement rather than debt: it does not ordinarily accrue interest, create a repayment obligation, or make the investor a conventional creditor. In simple terms—a SAFE generally promises equity later; a convertible note creates debt that may later become equity; and the EDGE Note establishes a coordinated present-and-future ownership position whose valuation, issuance, extension, and protection are agreed upon from the beginning. Complete EDGE Note terms are provided to selected founders before acceptance.

Funders

The funder structure is different. Labs Investor Group makes two distinct investments: a direct equity investment into the management company, and an LP commitment into the manager’s first fund.

Incubator

Hatch Start for Funders

For prospective fund managers with a differentiated thesis and relevant experience who have not yet completed firm or fund formation.

  • Management-company investment$250,000
  • Labs ownership10% (non-controlling)
  • Fund I commitmentUp to $1M
  • Total potentialUp to $1.25M
  • Program feeNone

$250,000 to help form the investment firm, plus up to $1 million committed to its first fund. Over 100 days, Hatch Start helps emerging funders establish their management company, refine their thesis, form Fund I, and prepare for a first close.

Accelerator

Launch Start for Funders

For emerging managers with a formed management company, developed thesis, initial fund documents, prospective LPs, or an active first-close strategy.

  • Management-company investment$500,000
  • Labs ownership7.5% (non-controlling)
  • Fund I commitmentUp to $2.5M
  • Total potentialUp to $3M
  • Program feeNone

$500,000 into the management company, plus up to $2.5 million of anchor capital for Fund I. Over 100 days, Launch Start helps funders activate their firms through institutional infrastructure, fund formation, LP preparation, and first-close execution.

Booster

Lift Start for Funders

For emerging managers who have reached a first close, started deploying capital, assembled an early portfolio, or shown meaningful institutional traction.

  • Management-company investmentUp to $1M
  • Labs ownershipUp to 5% (non-controlling)
  • Fund I commitmentUp to $5M
  • Total potentialUp to $6M
  • Program feeNone

Up to $1 million into the management company, plus up to $5 million committed to Fund I. Over 100 days, Lift Start helps firms strengthen operations, accelerate subsequent closes, improve portfolio construction, and deepen LP relationships.

Definitive agreements

Founders

  • EDGE Note
  • EDGE Note purchase or participation agreement
  • Program Participation Agreement
  • Information and reporting rights agreement
  • Pro rata / follow-on rights agreement
  • Confidentiality and intellectual-property provisions
  • Any AVL, deferred-equity, MFN, or side-letter documentation applicable to the investment

Funders

  • Management Company Equity Purchase Agreement
  • Management Company Operating / Shareholders Agreement
  • Program Participation Agreement
  • Fund I Limited Partnership Agreement
  • Fund I Subscription Agreement
  • Anchor LP Side Letter
  • Management-company information-rights agreement
  • Governance / board-observer agreement, when applicable
  • Repurchase, transfer, and right-of-first-refusal provisions
The figures above describe target program economics and are provided for information only. They are not an offer or a commitment to invest. Final terms are set out in the definitive agreements provided to selected participants before acceptance. This page is not an investment solicitation.