QStart Labs Announces the Evolution of Their Startup & Investor Friendly Business Model

June 29, 2011 - PRLog -- Columbus, OH, June 30 - QStart Labs, LLC, a leading technology and startup advisory firm based in Columbus, OH has enhanced their startup and investor friendly business model.  According to QStart Labs President, Kevin Hiser, “The success of our partner companies, and thus QStart Labs, has provided us the ability to better deliver on our mission of reducing the cost, time-to-market, and risk for launching a web based venture.

QStart Labs was started by investors, entrepreneurs, designers, and technologists with a unique view of what it would be like to have a model that created alignment with their partner companies’ success.  Kevin stated, “Our goal was to create a relationship where all incentives were to increase the revenue for our partner companies vs. just bill “clients” for work that was completed regardless of the outcome.”  he went on to say, “When trying to design an innovative shared risk, shared reward business model, the challenge is creating alignment with successful outcomes for partner companies while remaining a stable, sustainable organization.  Our model of providing work at our cost plus receiving a small share or revenue has solved that problem and allows us spend time helping our partner companies succeed,”  

Although QStart Labs was founded in 2008, it was not until late 2009 that they decided to not just serve VC funded companies but also to put a public face on the company and launch their unique business model for entrepreneurs and investors in web based startups.  At that time their model was to provide all development services at their cost on a fixed bid basis, while providing startup advisory services at no additional cost.  During that first year they launched 7 new businesses including Domedia, Embrace Pet Insurance, and Mediplay.  Kevin explained “It is hard for early stage companies to raise the capital needed to build technology.  Many times entrepreneurs are faced with the reality of spending the majority of their financial resources on building technology rather than gaining customers, proving their model, and generating revenue.  All of which are important to investors looking to reduce their risk during early stage investments.”
With success under their belt, and a desire to help more startups, QStart Labs is announcing the evolution of their model.  Kevin said, “We wanted to help more startups, whether bootstrapped or funded, get launched, prove their business model, and position themselves for growth and possible future Angel or VC investment should that be the direction they choose.”  

QStart Labs' 2011 business model delivers on the promise above by:

-  Providing a fixed cost of $50k to take any business idea from “the napkin” to “able to generate revenue” regardless of cost to QStart Labs.

-  Providing all future development efforts at their cost on a fixed price basis.

-  Delivering all functionality within 3 months to their test servers regardless of the complexity or scope.  

-  Not taking equity in their partner companies!  Instead they share in a small portion of net revenue as their partner companies generate revenue.

-  Contractually obligating themselves to “not be able to walk away”.

Armed with a stable of growing, revenue generating partner companies, demand coming from across the nation and a solid relationship with NCT Ventures and other investor partners, QStart Labs is working carefully to select only the right partners.  Kevin explains, “While we speak with, and assist many startups on a weekly basis, we are focused on selecting 12 new startups to launch this year.  We do not do “project work” but rather build companies and as such are in it for the long haul.”  Based on their success we do not believe this should be a problem for this talented team in the Midwest.  

About QStart Labs:
Columbus-based QStart Labs is a technology development and advisory company that helps startups and their investors reduce the typical cost, time-to-market, and risk associated with launching a new web based venture.  In essence, QStart Labs is about building successful businesses on the web!  

Started by NCT Ventures to increase the success rate of their portfolio companies, their team consists of entrepreneurs, investors, nerds, sales, project managers, and finance professionals that act as mentors for startups in key business areas such as: technology strategy, strategic planning, sales and marketing, HR and Finance, and IT, while creating alignment with their objectives and exit strategies.  More information is available at: www.qstartlabs.com