Launch House is a venture-backed startup that provides co-working space and funding for entrepreneurs. Launch House’s alternative to traditional incubators is already becoming popular among investors, as the company announced its first venture capital fund in late 2018. The 37-million investment was listed on the New York stock exchange and will support startups tackling technology, media, and lifestyle industries. With house values steadily increasing, it’s no wonder it has become a venture capital arm.
The company raised its first several million dollars in funding through a combination of angel investors and crowdfunding in September 2017. It was announced on October 23 that the House Capital Fund raised the necessary $37 million to be listed on the New York Stock Exchange under the symbol LHOU. The press release cites high demand from investors for raising this venture capital fund instead of taking on any more crowdfunding.
The House Capital Fund is a cash management vehicle geared toward investing in private companies. It is used to leverage the company’s investment portfolio to make strategic offerings to startups. The fund will be an alternative funding source for companies with $5M or less yearly sales and no debt. The funds will be used to buy equity shares of up to 35% of the firm in exchange for cash.
Startup accelerators and incubators have been around for decades. However, lately, they have become a popular funding source for startups. According to Co-FoundersLab, a research firm that tracks the development of this industry, in 2017, there were more than 1,300 tech incubators worldwide. The number of incubator startups has increased 20 times in the last decade –
Launch House is a popular destination for startups seeking funding and space to work. It is a new concept that has taken off quickly, and it’s not hard to see why. It fills a need that tech incubators need the capability or capacity to handle. The House Capital Fund will further solidify; Its position as one of the top startup incubators in the country.
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More about Launch House on https://www.crunchbase.com/organization/launch-house