Description
Launch Factory is a venture studio and early-stage investment organization based in San Diego, California, United States that builds, funds, and accelerates technology startups. Rather than functioning as a traditional accelerator that invests in externally founded companies only, Launch Factory creates companies from ideas, recruits founders to lead them, and then provides capital, advisors, and operational support to help them scale.
Specific Funding & Program Stage
Idea → Pre-Seed / Seed (Core Focus)
- Launch Factory operates at the earliest stages of company formation, helping to ideate, validate, and found new ventures and then providing initial seed capital and support once founders are attached and the concepts are ready for build-out.
- This includes programs like the Builder-in-Residence cohort, where selected founders collaborate with the Launch Factory team on venture development and early execution.
Investment Model & Equity (Company-Level)
Capital / Check Size
- Launch Factory typically supports ventures with seed capital, and external sources suggest initial checks often range from approximately $100,000 up to $500,000 to help get startups off the ground, though exact check sizes and stage terms are not universally standardized and may vary by company and fund cycle.
- The organization has raised dedicated capital for its venture studio operations, including multi-million dollar funds aimed at specific technology verticals (e.g., AI companies).
Equity Taken
- Launch Factory does not publicly disclose a fixed equity percentage it takes in every venture. As with most early-stage investment models, equity terms are negotiated on a per-deal basis depending on the stage, capital provided, and company structure at formation — typical for venture capital / studio deals.
- Because Launch Factory often builds companies before or as they raise their first external capital, its ownership position tends to reflect its foundational and operational contribution rather than a uniform accelerator percentage.
Equity & Funding Structure
- Launch Factory uses venture capital instruments (e.g., priced equity or early-stage SAFE/convertibles) as part of its investments after venture formation and founder placement.
- As a venture studio, it blends capital deployment with operational involvement — often participating in supporting the structure and team of the startup as it launches and scales.
Application / Submission Method
How to Engage
- Founders can engage with Launch Factory through application to programs like the Builder-in-Residence or via direct outreach with pitch materials and team bios through the official Launch Factory website.
- Because it functions as a venture studio rather than a traditional accelerator, Launch Factory’s recruitment process puts emphasis on alignment with internal startup themes and network-sourced ideas, rather than standardized quarterly application cycles.
Interaction Model
- Selected founders often work closely with Launch Factory’s team as part of an embedded cohort, gaining access to mentorship, workspace (in some cases), strategic guidance, and introductions to follow-on capital.
Eligibility
Sector Focus
- Launch Factory is industry-agnostic but tech-centric, creating and investing in ventures across technology sectors — often including AI, SaaS, data platforms, and other scalable tech domains.
Stage
-
Idea stage through pre-seed/seed: Founders often join at or near the point of company creation.
Geography
- Based in San Diego, California (USA), with a focus on companies that can benefit from both local venture support and wider U.S. market access.
Founder Profile
- Founders with strong technical or market vision, ability to co-lead a startup from inception, and alignment with Launch Factory’s studio model and portfolio strategy.
Process
Idea & Founder Identification: Launch Factory evaluates market opportunities and founder fit, often recruiting founders to lead vetted ideas or review external submissions.
Selection & Onboarding: Teams are selected into programs like Builder-in-Residence or similar cohorts.
Venture Formation: Founders and the Launch Factory team work together to refine the business model, design MVP, and establish go-to-market strategy.
Initial Funding & Launch: Capital is deployed around company formation, operational setup, and early execution.
Growth & Fundraising Readiness: As milestones are met, Launch Factory assists in preparing founders for broader seed and Series A fundraising.
What an Applicant can Obtain
Seed Capital: Early funding support through Launch Factory’s studio and investment resources — often in the mid-five- to low-six-figure range depending on the venture.
Founder Placement / Program Support: Participation in structured initiatives like Builder-in-Residence, where founders work with advisors and Launch Factory partners on company formation, strategy, and product development.
Operational Guidance: Advice and tactical assistance from a team of seasoned entrepreneurs, investors, and executives throughout early company building.
Network & Investor Access: Introductions and connections to external investors and partners as startups reach milestones and begin institutional fundraising.
