VC Kent Goldman wants to give startups a cut of the upside with new fund

by inventuslaw

Kent Goldman wants to give founders backed by his new Upside Partnership a piece of the action in the whole portfolio. The former First Round capital investor plans to give founders a piece of the carry — the extra share of gains VC partners get on their portfolio investments. The amount they get depends on the size of the initial investment Upside makes in them. This isn’t the first time that funds have offered to cut founders in on the action of the rest of the portfolio. But it’s apparently the first time it is being offered without requiring founders to contribute any money or equity. San Francisco-based Upside reportedly has three deals in progress, expected to be between $300,000 and $600,000 per company. It will focus on a wide range of companies in both consumer and enterprise tech. At First Round Capital, Goldman’s investments included hotel booking app developer HotelTonight, real-time analytics platform MemSQL and commercial drone developer Airware. Click here to subscribe to TechFlash Silicon Valley, the free daily email newsletter about founders and funders in the region.