Portland, Oregon-based software solutions provider Prospus LLC has established a $2mn fund for innovative startups. As a pioneer in building and launching web and mobile products since 2008, Prospus has been part of many startup stories. Marc Ragsdale, the company’s President, and Founder, is himself an entrepreneur. “I have a tender spot for startups. I love being part of a new idea, and watching entrepreneurs work through the process”, he said.
After six stellar years in which revenue at Prospus has doubled every year, Prospus decided to offer an innovative service to companies seeking solutions. Prospus has been part of many success stories but has also seen its fair share of companies who had to stop operations due to a lack of funding. “With an initial investment $1mn, Prospus will not only provide angel funding, but also business opportunities, industry contacts, mentorship, and technology services”, the company said in a statement.
The Prospus Fund will invest in early-stage startups targeting any industry, however, those industries where Prospus focuses will be preferred. “So long as the company creates real value, we would be interested in reviewing an application”, Ragsdale said. Prospus is also particularly interested in India-based startups, however, President and Founder Marc Ragsdale, who leads the fund, is uncertain what percentage of the fund will be invested there. “The investment climate in India is a little unpredictable, and good investments will require a broader level of diligence than we are prepared to provide right now”.
The Prospus Fund proposition is unique in that Prospus is offering both cash and services to startups. The amount offered to each company will be determined after going through an evaluation process. Startups that make it past the first round will be required to submit their plans for a more thorough diligence process. If a company makes it through the diligence process, Prospus will make an offer in cash or services, as well as advise on the development and product direction.
Ragsdale said the company has been building this platform over the last few months. “We have already vetted four business ideas and I expect the first round of investments to be completed within the first half of 2014”. With the launch of this fund, Prospus will bring technical expertise, knowledge, and resources, things that many startups lack. “We are looking forward to announcing our first round of investments in Q1 2014”, Ragsdale said.