Upstart, a crowdfunding website located in the Silicon Valley offers a unique way of raising funds to the common. The company has raised $5.9 million in series A, reports Antony Ha of TechCrunch.
Founded by Dave Girouard; after serving for eight years as the President of Google Enterprise, he established Upstart that provides a platform for college going kids who wish to be entrepreneurs in the future. The funding of Upstart is based on a percentage on the future income of the company. Earlier the company raised a seed round of funding comprising of $1.75 million. The company has soared high after the latest funding from a bunch of investors Founders Fund, Khosla Ventures, Collaborative Fund, Google executive chairman Eric Schmidt, Salesforce founder and CEO Marc Benioff, and IronPort co-founder Scott Banister says Antony Ha of TechCrunch.
Girouard earlier stated that huge companies spend a lot of amount on hiring young talent, but they never realize that these youngsters have their own dreams for the future. The method of repayment is on a percentage model. This helps the youngsters to pay back when their company is established.
Till date $1.03 million worth money has been made from the total number of funding gathering up to 555 unique ones ranging from tech startups, apparel brands, healthcare etc. With Upstart, these youngsters are mentoring and learning as well. Beyond this, the company wants to bridge the gate for people to interact with those who have funded them and make aware of the website.
“One by one, we’re dispelling the questions people have about the model. Not only are people getting funded on the site, but they’ve even started paying that money back — he noted that there’s been 100 percent compliance on repayment thus far” says Girouard.