Upper90

Lending first, equity alongside, for startups with predictable revenue

Upper90 describes itself as a hybrid investment firm that uses data to tailor loans and equity for technology startups whose revenue is predictable or backed by collateral. Its slogan makes the argument in short form: it is not how much you raise, it is how much you own. The firm aims to lead with credit and take part in equity as well, so that it and the founders are aligned, and it calls itself a credit firm that thinks like an equity owner.

The case against equity-only funding

The firm's view is that founders have come to be judged on how much they raise rather than on how much of the company they keep. It cites a pattern of roughly half of a founder's stake being diluted by the time a company has been through a Series B round, and argues that founders who use credit earlier, for the healthier parts of their business, own materially more. Its co-founders compare this to real estate, where debt is an ordinary tool, and say online business models with predictable income or asset collateral can raise equity returns when credit is used thoughtfully. With pressure on valuations, it sees access to alternative financing as a priority for founders.

How the money is structured

The firm says the choice of a first financing partner turns on certainty, flexibility and then cost. It provides corporate loans, asset-based loans, preferred equity and what it calls other creative solutions, and it generally invests across the capital stack. Credit facilities begin small and can grow considerably as the underlying assets perform, for companies from seed to Series B. Sizing is based on asset performance, not only on equity raised. It invests only when it is excited about the business's trajectory and highly confident in the credit quality.

Who it fits

It points to capital-intensive e-commerce and fintech businesses, which can start with Upper90 as a capital partner before raising a traditional Series A and own meaningfully more without giving up growth. The earlier it invests, it says, the more value it can add, and its aim is a long-term partnership.

Operators behind the capital

Its group of strategic limited partners includes more than 300 business builders. They help the firm find and examine companies and can connect founders to experienced operators across industries for customer and talent acquisition.

Upper90 is a hybrid investment firm that combines lending with equity ownership. It backs technology startups that have predictable revenue or collateral, and it uses data to shape each deal around the asset it is funding.

The firm starts with credit and takes an equity stake alongside it. Its argument is that founders who begin with a credit partner before a traditional Series A round can keep a larger share of their company.

Products and services

• Credit facilities: borrowing lines for startups that can grow in size as the underlying assets perform, rather than depending only on equity raised.
• Corporate and asset-based loans: debt sized to the company and the assets it holds.
• Preferred equity: an ownership stake structured to sit alongside the debt.
• Bespoke structures: custom mixes of debt and equity for founders who need both.
• Operator introductions: access to a group of limited partners who are business builders and can help with customers and hiring.

Who it works with

Startups from Seed to Series B, with a stated interest in capital-intensive e-commerce and fintech businesses. It invests only when it likes the trajectory of the business and has confidence in the credit quality.

Key facts

• Stage: Seed to Series B
• Focus: Technology startups with predictable revenue or collateral
• Network: Over 300 business builders among its limited partners