Frequently Asked Questions

What is KAPSLY?

KAPSLY is a Venture studio enabler. We are a company that enables longtime collaboration between service agencies and young companies such as startups and scaleups.
We provide you with everything you need to work as a venture studio, receiving delayed repayments, revenue shares or even phantom stocks from your clients.
We help you understand startups, how to work with them, how to use our tools such as our contract generator to easily create complex contracts using flexible payment terms, how track the delivered services and keep overview of milestones transparently.
You can either onboard your clients on the platform to collaborate with them or generate the contracts and use our tools to keep track.

What is a venture studio?

A venture studio is a business model aimed for companies that want to support startups directly. A venture studio helps entrepreneurs building their company by providing them with initial operational support and sometimes also capital.

A venture studio’s main goal is to be involved during the founding phase of startups, often receiving virtual shares as payment instead of cash - because the startups do not yet have cashflow. Because they operationally help and are invested in the startup, the chances the startups are successful are higher than simple fundraising and spending money, and the longterm payout, therefore, is often a lot more lucrative for the service provider.

While founders focus on building a product, the studio supports them in other ways. Day-to-day operations are taken care of by the studio’s experienced operators: marketers, designers, finance experts, recruiters, and more.

Startups co-founded by venture studios scale faster and provide better returns to investors. On average, these startups have a 53% internal rate of return (IRR). Compare that to the average for non-studio startups, which sits at 21%.

A venture studio is also called a startup studio business model or company builder.

comparison of different business models
What is service-for-equity?

Service for Equity is a concept where external parties contribute services of any kind in return for company shares of the client. This concept enables resource investing, as opposed to capital investing. It is also closely related to Sweat Equity, which usually refers to team members who provide uncompensated labour and receive company shares for that. See even more terms in the glossary. At KAPSLY, we work with virtual stocks instead of regular stocks. This lessens the burden of the founders regarding the cap table and reduces legal hassle when setting up contracts.

How high is the risk/reward for me as Service Provider?

Working with startups is, of course, always riskier than working with established corporations that are flush with cash. On average, Startups co-founded by venture studios scale faster and provide better returns to investors, with an average 53% internal rate of return (IRR), compared to non-studio startups, at 21%. Source
Thus, your work as a longtime partner directly impacts their success

What is the benefit of collaborating with delayed payments and converting debt to virtual shares?

It adds security for both parties.
First, our Agile Service Agreements allow you time to get to know the business partner through transparent collaboration without immediately committing to more binding virtual shares. Furthermore, both parties are invested in the project and have aligned goals.

What does it mean, having the option to convert outstanding debt to virtual shares?

Let's say you need marketing services that will amount to a total volume of around 25k$. You make an upfront downpayment of 5k and use a repayment plan to pay back the rest (20k) over the next 24 months.
At the end of the 24 months, you still have 5'000$ to pay back due to a delayed funding round. With the option to convert, you allow the service agency to receive virtual shares in the amount of these outstanding 5000$. You now have time to raise your next round, and when you close it, you pay the agency the cash equivalent of these shares.
Building your company and raising funds, your valuation will be a bit higher afterwards. Thus, the virtual shares you gave the provider when converting, e.g. 1$ a piece, might be worth 1.25$ when raising funds.
With this, the service agency receives a fair payback for the risk they took, and you were not forced to come up with the money immediately.

Is funding my only option? I’m concerned about running into problems later if I give up equity from my startup for fundraising.

No. Also, as a startup, you should always be careful to give away equity. You want to keep a clean cap table and a small board. At KAPSLY, we have considered all of this and decided to create an alternative for you.
With our Agile Service Agreements, you get the time to get to know your business partner by using delayed payment terms before committing to any company participation. Furthermore, we encourage you to use Virtual Share Agreements, where you do not give away real equity, but virtual company shares (Virtual Share == Phantom Stock)

I’m confused, how can I learn more about this?

We are always available to help you find a solution that works for you!
You can send us a message or book a call with us here.

What does KAPSLY do?

Our mission is to enable all kinds of startups to grow their business with professional support. “New Work” models require adapting the contractual agreements between two parties and driving demand for success-based compensation. KAPSLY provides a trustworthy community to push entrepreneurship and facilitates formal collaborations with fair and flexible payment terms. To get a glimpse, visit our Youtube channel.

What kind of services can I find on KAPSLY?

The KAPSLY marketplace provides all kinds of services for young companies. We always have standard service offerings such as Development, Marketing, Sales and Business Development. Most agencies also focus on two additional specialised niches, such as building custom apps, developing biotech or Medtech infrastructure or training AI and Machine learning.

I’m an entrepreneur, what’s the benefit of service-for-equity?

Service-for-equity allows you to focus on your business operations and create value right away.
You can work with professionals while keeping your cash burn lower. With a service-for-equity you can also incentivise people/companies who directly impact your business success to stay with you long-term. Usually, you would use common equity for founders. However, for employees or external companies, you can use virtual shares instead - the cash equivalent to your shares. With these, you don't have additional board members or the legal work to add them to your list of shareholders.

I’m a service provider, what’s the benefit of service-for-equity?

You can benefit from the actual value creation that your services bring to your clients. Especially in the beginning, they will grow fast in valuation, and thus, you receive higher returns over time. Potentially higher returns also carry a higher risk, of course.
Our virtual company participation agreements are easy to set up and provide more flexibility. We give you the option to decide how much down-payment you want and how long your client s time to pay you back, and you can also add the option to convert outstanding debt into virtual shares. For instance, when they plan a financing round more than 8 months away.

How do I access KAPSLY?

When you choose your subscription as a service provider, we send you an invite link to the platform. You can use this to register and set up your profile. The log-in button is on the top right of our homepage.

What is the service provider profile?

The SP-Profile is your company profile. When you first set it up, you add all your details, legal number, experience etc., which we also show to startups. There is a section on Risk appetite, which is only for yourself. The risk profile aims to broadly explore how comfortable you feel when investing in a client - if you prefer small or large down payments and if you would feel comfortable if the client pays you in instalments over time.

You find videos explaining how to set up the profile in the app.

What are projects and contracts?

A project is when you work with a client, and the project is agreed upon in the contract. In the project settings, you define what comes into the agreement. After both parties have signed the contract, you can upload it to the platform.
Thus, if you want to work again with the same client, you start a new project - Never have money involved without a contract.

You can find different example videos how to set up contracts in the app.

How do I track my services I delivered?

Once you have a project ongoing, you can track the services on the platform. This helps in particular if you want to use repayment plans, so that you know how much you have to invoice at which turn. The platform will notify you each 3months when the next invoicing should be initiated. Note: The invoice itself should be created in your financial software, your bookkeeper will thank you for this. When you upload the invoice to KAPSLY, it is automatically sends it to client. This way you keep track of everything.

You can find walkthrough videos in the app.

How does the marketplace function?

On the marketplace, you can interact with startups requesting services immediately. Startups must fill out the service request form before we invite them to the marketplace.
Currently, we are rebuilding the marketplace, coming soon.

How do contracts negotiation happen?

Once a service provider (sp) and a company match, we recommend 2 -3 calls to discuss requirements, technology, expectations, the potential partnership, and how the contract should look.
The service provider creates a contract accordingly and sends it to the client. After both have signed, the sp uploads it to KAPSLY, and both sides track delivered values, so the process is transparent to both.
We encourage long-term relationships, where a part of the contracts are paid in cash until you get to know each other well. Once a long-term partnership makes sense for both, the option to convert to virtual shares comes into play.

What is the Deal Finder?

The Deal Finder is meant to help you find clients and to make the first steps as a venture studio.
We promote yor service to our startups (500+) as soon as you set up your account and have defined what you offer. Not all companies want to work with all agencies, as a lot of our startups search or specialised agencies that have experience in their repsective vertical (such as medtech, cleantech)

We offer this quarterly at 450.- CHF (around the same in dollar), as it takes a while to find the right startups, negotiate with them and set up contracts.

What is the Portfolio Builder?

This is meant for you, if you already know your way around as a venture studio, or intend to become one.
We will promote you offers permanently on our platform as well as to our new startups each month.
You can track the service investments and contracts directly on our platform for
For a year of using all the services, we ask for 1500.- CHF (about the same in Dollars).
We get 10% on commissioned deals, up to a volume of 100k, then 2%.
Most of our service providers use the contract generator also for their off-platform clients. 2% of the investment part (repayment plans, virtual shares) flow back into the KAPSLY system as commission on private deals, so that we can support medtech an cleantech/climatetech startups.

What does KAPSLY cost for startups?

We decided to offer our service for free for startups - and only take a standard contract commission rate. However, startups and young companies to join us are first looked into before their service requests are promoted to our agencies.

Are there other options than Stripe?

At the moment we only offer stripe for payments, which can be done directly on stripe as well, so you have more control and transparency. Alternative options are planned for the future.

How do I cancel my subscription?

If you want to leave us, we will be super sad. But you have complete control there and can do it yourself via your stripe account. After the payment period runs out, you will lose access to the platform, so make sure to download all open and outstanding contracts.

If you need help, feel free to contact us directly at Support@kapsly.com