If you are a startup looking for mentorship and funding or you are an established business looking for that extra help to boost your business, LogicBoost Labs is here to help. The CEO Jonathan Cogley shares more details with us in his exclusive interview with TechBullion.
Please tell us more about yourself?
I am Jonathan Cogley, CEO, and founder of LogicBoost Labs. A couple of years ago when I moved to San Diego I became a startup mentor. Coming on the heels of my success with my first company, Thycotic, I was eager to just do something that I was really passionate about. I volunteered at startup incubators to share my passion for problem-solving and helping entrepreneurs. I spoke to hundreds of startup founders. What I quickly noticed is that all these startups had something in common – they needed money and help!
I became an angel investor for some of these startups but money wasn’t enough. These startups needed proper leadership in critical areas like sales, marketing and customer success. But they didn’t have the ability to hire the right people. My idea with my startup accelerator, LogicBoost Labs, is to offer mentoring, investment, and fractional executives to startups that wouldn’t otherwise be able to get access to these experts.
What is LogicBoost Labs and who are the brains behind the company?
LogicBoost Labs is a startup accelerator for B2B SaaS startups. I, Jonathan Cogley, a serial entrepreneur with a billion dollar exit from my last cybersecurity startup – Thycotic, decided to tackle this problem. I drew on local community experts in San Diego and my rolodex connections to build a team of seasoned experts in B2B SaaS. We offer a very comprehensive mentoring and investment package to the startup in exchange for equity.
What are Portfolio companies, tell us more about the companies already working with LogicBoost Labs and what makes them special?
Portfolio companies are the startups that we invest in to help them get to $1 million in annual recurring revenue! One of our clients, Barpay, located in Los Angeles, is a B2B software business. They originally provided a software solution for handling high-volume bars, which was great until COVID hit, and most bars were closed or restricted in capacity. However, when the pandemic started there was an increase in demand for restaurants to have contactless ordering and payment. Accordingly, we were able to help Barpay pivot to restaurants and they now have over 10,000 venues using their solution. It’s amazing what they’ve been able to accomplish and how much they’ve been able to grow despite COVID-19.
Could you give us a list of the unique services you provide for these portfolio companies at LogicBoost Labs and how these services can help businesses post-covid?
We know that startups encounter challenges every day, and it’s almost impossible to know the answers to so many questions. We provide:
- Mentoring/advice to navigate unexpected obstacles
- Investment capital to fund their growth
- Seasoned experts to work in their company to build out sales, marketing, tech, and customer success as part of our investment
- Opportunities for future funding so they can focus on the customer and product rather than an endless effort on fundraising
What kind of technology or company do you look out for when selecting a qualified portfolio company?
We’re not particular about any specific vertical but we do expect them to be subject matter experts in their industry. It’s very common that I see someone who has been working in a specific industry for a while and they know the pain points and problems in their industry. As a result, they think about using technology to solve these problems. Those are the types of startups we typically look for. We also only focus on B2B SaaS startups as that is our team’s core skillset.
What opportunities and benefits do Portfolio companies get from your mentoring services at LogicBoost Labs?
Unlike a consulting firm that charges hourly rates, We focus on true investment and partnership with our portfolio companies. As these companies continue to grow they have access to funds from us in addition to mentoring and Leadership like a VP of Sales or a CTO for a number of months.
Tell us more about the angel investment you provide to startups and the requirements to qualify for these investments?
This is where we are different compared to other accelerators and incubators. Usually, incubators will take a small Equity stake up to 7% but only provide about $50,000 in financing and a 6-month runway. At LogicBoost Labs we provide a $300,000 investment deal with a line of credit for further investment if needed. But we do require a minimum of 20% equity stake and partner with our startups for a 2-year engagement.
Subsequently, we are a lot more hands-on with our investment and we’re going to give the startup a better chance of short and long-term success.
To qualify a startup must be B2B SaaS, have a sellable MVP, a founder who will be full-time for minimal pay, and a few early customers paying $5-10k per year to validate the market.
Beyond investment and mentoring, how does LogicBoost Labs assist these portfolio companies with sales and marketing?
Imagine if you’re a startup and you need specific people in leadership positions to help really get your company off the ground. You’d want to hire a CTO and a VP of Sales but you don’t have the funding or stability to hire these kinds of folks.
A B2B SaaS startup needs really qualified leaders in tech, sales, marketing, and customer success. Unfortunately, the people with the right skills and experience are widely sought after and can easily earn great pay with larger businesses. They are very unlikely to take the risk of a startup. LogicBoost Labs hires these experts as employees and then makes them available to our portfolio companies.
What current opportunities do you have available at LogicBoost Labs and what is next on your roadmap?
Currently, we are in the process of looking for two new portfolio companies to join our next cohort. We plan on adding 2 new portfolio companies each quarter. We currently have $10M allocated over the next 4 years for investments.