“Revamp Your Startup with Zypsy’s $100,000 Design Services for a 1% Equity Share”

Zypsy, a design firm known for assisting early-stage startups, has launched an innovative new venture investment program. This program will provide 10 selected startups with up to $100,000 worth of brand and product design services over the course of 8 to 10 weeks. The unique aspect of this program is that Zypsy will not be accepting cash payments, but rather 1% equity of the companies through a SAFE (Simple Agreement for Future Equity) issuance.

Co-founder and CEO Kaz Tamai stated, “After the initial program, we work on a retainer with cash depending on the further project needs.” This means that if a startup requires additional work beyond the initial cap, they will need to pay for it separately.

Zypsy’s founding team brings a wealth of experience from renowned design and tech companies such as IDEO, Fantasy, Meta, and Saatchi & Saatchi. Not only is the company profitable, with an annual revenue run rate of $3.2 million and $250,000 in annual net cash flow, but it also has extensive credibility in the design world.

With expertise in brand strategy, logo design, website and app interface, product design, and marketing content, Zypsy believes that the synergy of design expertise and investment support can help early-stage startups scale and gain recognition in their industry.

The company will be working with 10 startups for their upcoming design capital cohort, specifically focusing on industries such as computing infrastructure, machine learning, AI, data analytics, cyber security, and the creator economy. Co-founder Kaz Tamai explains, “All startups are evaluated on four key factors: market, team, product, and traction. Founders are often stretched thin wearing many hats, and capital is crucial to drive these elements forward.”

Zypsy has already selected five startups for their first cohort, including Cortex, a startup specializing in internal developer portals, Captions, an AI-powered video editing company, Robust Intelligence, a business protection service for AI models, and hospitality startup Anyplace.

Before officially launching their Design Capital Program, Zypsy worked with over 25 startups through pilot projects. These projects initially focused on Web3 founders, but later expanded to include a wider range of tech companies.

Co-founder Kaz Tamai clarifies, “Our previous pilot project clients are cash-based, not equity-based portfolios, unlike the five companies mentioned in the first design capital program.” This means that Zypsy does not own stakes in their previous clients, and this program will mark their first foray into equity-based investments.

Despite their successful track record and growing investments, Zypsy has no plans to evolve into an accelerator or investment firm. Tamai notes, “Our mission is to partner with exceptional founders and collaborate towards the next $1 billion in delta value, or valuation growth, through creative excellence.”

In 2023, Zypsy secured $3 million to establish their Design Capital program, with investments from 1kx, Lattice, founders of Japanese e-commerce company Mercari and Web3 company Cega, angel investors including the CDO at Rakuten and the head of investment at SoftBank Vision Fund.