An Upstart representative presents the new company Thursday at Changemaker Central, located on the Tempe campus. The website is an innovative approach to investments for ASU students. (Photo by Marissa Krings)ASU seniors and recent graduates will have the opportunity to raise money this fall in exchange for a small percentage of their income spread over a decade.
Upstart, an investment company that launched in February, works by matching students with potential investors. The program has funded seven students in its pilot phase at other schools so far.
Upstart decided to expand its services to ASU students because of the University’s size, diversity and support of student entrepreneurship.
Upstart University Relations Manager Jeff Keltner said the company is unique in that it invests in students rather than other companies.
Students who are interested in raising money, for whatever cause, begin by signing up on upstart.com, Keltner said.
Once a student creates an account, Upstart sends an application for the student to fill out. The company then reviews it and gives the student a rate of how much money they can raise.
The amount of money students can raise varies and is determined by a combination of academic performance and past work experience, he said.
Students will then receive an initial offer from at least three different investors, but are not obligated to accept the offer, Keltner said.
Students must raise at least $10,000 to qualify and can use this money for whatever they want, he said.
Students tend to take jobs that provide them with financial security, but might not support their desire to start a business or go to graduate school, Keltner said.
He said they wanted to create a system that allowed students to get the support they need.
“Our investors are looking to giving other people the same opportunities they had,” Keltner said.
Many investors become mentors to the students they invest in, Keltner said.
“A lot of (investors) are looking to invest money and do something positive,” he said.
Upstart is also expanding to Dartmouth College, Rhode Island School of Design, University of Michigan and the University of Washington this year.
They include Harvard University, New York University, Stanford University, Yale University and University of California, Berkeley.
Economics senior Charles James Lesueur said he will apply with Upstart.
He said he had an internship at an investment bank over the summer, but disliked working more than 70 hours a week.
Lesueur said anyone who is going to put in that many hours might as well start his own company.
He said he wants to be a producer and make comedies.
“I grew up reading and I like stories,” he said.
Marketing and sustainability sophomore Danielle Jack said she might consider applying for Upstart.
“I’m in the middle of venture ideas of my own right now,” she said.
Jack said if she does end up raising money through Upstart, she would use it for graduate school.
She heard about Upstart through Changemaker Central, an on-campus resource center that provides students with tools they need to create their own businesses.
“What I want to do with my life is my own venturing,” she said.
Reach the reporter at mncosta1@asu.edu
