BOSTON, July 27, 2016 /PRNewswire/ -- The new SaaS-based startup incubator, dedicated to turning the concept of conventional angel funding entirely on its head, has achieved its first major milestone. Run by startup veteran Tan Kabra, LaunchByte was founded last April and, just over a year later, has surpassed $1 million in revenue and led a number of clients through rounds of funding, even one to acquisition.
LaunchByte sets itself apart by being one-part startup incubator, one-part micro-fund; what one might call a reverse angel fund. With a full suite of services offered, the company invests in promising companies using their resources in exchange for a mixture of cash and equity. By rendering services that range from IT platform development to web design and digital advertising, the company then guides startups through rounds of funding, and eventually leading them to acquisition.
In order to help those promising, early-stage companies secure the next (or first) round of funding, LaunchByte offers a line of credit for the variety of services. This resource-based investment is dedicated to helping the companies achieve goals required in order to begin discussions with investors. Services include, but are not limited to, minimum viable product (MVP) development or modification and strengthening of an existing MVP, business plan development, financial projections, & pitch deck creation, marketing, recruiting and legal services.
Early-stage tech companies comprise LaunchByte's core. The company focuses on early-stage startups and pre-seed startups that may have experienced a negative outcome from outsourcing development of their platforms, as well as companies that are in the very early stages and have yet to begin platform development.
Founder and CEO Tan Kabra has an extensive background in the startup industry. He is a three-time entrepreneur and has served as a Founder, CEO, VP, Advisor, and Investor to a number of startups. He recently launched his app VetX, a platform that connects pet owners to veterinarians on demand.
Tan created LaunchByte after personally experiencing the problems that startup founders face, across all industries. The vision was to create something that would help first-time founders avoid common hurdles in order to achieve success.
Put simply, Tan advocates that the reverse-angel model just works. "The fact, alone, that we were able to reach one million in revenue with zero dollars in funding in such a short period of time proves that this concept works," said Kabra in a radio interview. Thus far, LaunchByte has relied primarily on word-of-mouth, referrals and direct inquiry submission through their website. When asked about future plans, the team tells us that LaunchByte plans on building on their current momentum, "innovating Boston," as well as ramping up internal digital efforts in order to increase brand visibility. LaunchByte is also just began raising a round of $2m, of which $1m has already been committed, to expand operations to stretch their reach outside of the New England region.