Metalab, a leading interface design firm based in Canada, is making waves in the tech industry with the launch of their new venture arm, Metalab Ventures. With over 20 years of experience in helping startups build successful products, Metalab is now taking a step further by investing in these product-led startups.
Serial entrepreneur and investor Andrew Wilkinson founded Metalab in 2006 and the company has since played a crucial role in the development of successful products for companies such as Slack, Coinbase, Uber, and Tumblr.
Metalab’s approach involves working closely with startups as “co-founders” to help them launch their product, and then stepping back to allow them to grow on their own. According to CEO Luke Des Cotes, Metalab had a record year in 2023 and was involved in the launch of 40 products in the market.
This trend of corporate venture capital has been gaining momentum in recent years, providing stable funding for startups or when Big Tech takes an interest in a particular product.
However, Metalab Ventures is taking a different approach as a long-term value investor. Des Cotes explains, “We want to go on a journey with these startups for the next 10 to 12 years. We’ve been asked by founders when we will invest, and while we have done so in the past, it was mostly on an ad hoc basis. Now, we are making it a formal process.”
For their first fund, Metalab Ventures has raised $15 million in capital commitments, specifically for product-led startups where design, technology, and strategy are key differentiators.
Des Cotes clarifies that “product-led” refers to the product being the key differentiator for the business. In most cases, the success of a company greatly relies on how well their product is designed and connects with users. At Metalab Ventures, we seek out founders who believe in the power of design to create a unique user experience.”
The general partners at Metalab Ventures are Des Cotes and David Tapp, head of partnerships at Metalab. Together, they plan to invest in 25 to 35 startups at the pre-seed, seed, and Series A stages. While there have been a few unannounced investments so far, Des Cotes assures that the portfolio will continue to grow.
The limited partnership makeup of the fund includes institutional investors, funds-to-fund, angel investors, and founders of companies that Metalab has previously worked with. Metalab is also a limited partner in the fund.
The same rigorous process of evaluating thousands of founders each year for potential partnerships has been applied to Metalab Ventures for investment opportunities. This includes getting to know the founders and their vision, as well as determining if Metalab can add value to their growth. With a team of over 160 professionals, Metalab is equipped to provide resources in design, technology, product, and research.
“We’ve always operated like a venture fund,” says Des Cotes. “Now, we are solidifying that process to analyze the product, the opportunity, and how we can create value. We believe that our human capital is a scarce resource that we can deploy towards these businesses.”
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