StartUpNV is a non-profit business incubator and accelerator that supports early-stage and growing startups in Nevada by providing expert mentorship, structured business programs, and access to a network of affiliated venture capital funds. Pulse 2.0 interviewed StartUpNV Executive Director Jeff Saling to learn more.
Jeff Saling’s Background
Could you tell me more about your background? Saling said:
“I am an angel investor, start-up founder, and software company executive with more than 30 years’ experience in running worldwide sales, pro-services, SaaS operations, and product development. I was part of 4 successful exits between 1998 and 2016, before coming to Nevada and starting StartUpNV in 2017. Given my experience with startups throughout my career, I saw Nevada had a very business-friendly climate but needed a vehicle that could build its startup ecosystem by providing founders with entrepreneurial education and access to capital through a diverse, local investment community. Enter StartUpNV, which I co-founded as a 501(c) (3) nonprofit statewide accelerator and business incubator for scalable Nevada-based startups, providing expert mentorship and access to a network of capital partners.”
Evolution Of The Firm’s Thesis
How has your firm’s thesis evolved over time? Saling noted:
“We started with just one educational program and an affiliated venture capital fund, AngelNV. Now we have three affiliated funds, AngelNV, FundNV, and the 1864 Fund, that focus on investing in companies at different stages of their development with pre-seed, seed, and A round funding. Similarly, we have expanded our educational programs to be more tailored to the needs of startups at various stages of growth. In addition to the original AngelNV entrepreneur bootcamp program, which focuses on the needs of founders in the viability stage of development, we have added programs to help founders in the pre-revenue/feasibility stage and companies that have achieved more than $1 million in revenue and are looking to scale.”
“We have also evolved our partnerships with local government agencies. For example, in 2022, we announced that all StartUpNV-affiliated investments would be matched through Nevada’s State Small Business Credit Initiative (SSBCI) through our partnership with the Governor’s Office of Economic Development (GOED). We are also in our second year of working with GOED on a five-week Tribal Entrepreneur Development Program to support first-time entrepreneurs in these underserved communities. In addition, we have partnered with local governments, such as the city of Las Vegas and Clark County, on programs that serve those jurisdictions.”
Favorite Memory
What has been your favorite memory working for your firm so far? Saling reflected:
“It’s difficult to choose just one memory because we’ve seen many successes. Each one is a favorite memory. It could be hitting the $25 million mark in investments made or hitting the $100 million mark in AUM. Or the day that one of our portfolio companies became a unicorn or the days that two of our portfolio companies went public on Nasdaq.
“Some of my other favorite memories are:
“When our first portfolio company received a $10,000 pitch competition prize as part of the Donald W. Reynolds Governor’s Cup business plan competition in 2017, just 6 weeks after we started.
“The day(s) we heard about each of the 14 grants ranging from $1 million to $10,000 that our non-profit, StartUpNV, has received since our first in 2019. Taken together, the grants have totaled $4 million to support our various programs.
“The finales of each of the six AngelNV programs from 2021 to 2026.
“The day(s) we saw our Blue Sky (SB9 in 2021) and our Nevada Certified Investor (AB75 in 2023) bills pass in the legislature and are ultimately signed into law to support the development of the venture capital investment community in Nevada. The Blue Sky bill simplified and aligned Nevada venture capital laws with the most common practices in other states, while the Nevada Certified Investor law changed the qualifying levels for investment to meet the federal accredited investor standard, enabling more people to become intrastate angel investors.
“However, perhaps the most special memories are the faces of each of the dozens of founders on the days they received funding from our venture funds.”
Significant Milestones
What have been some of your firm’s most significant milestones? Saling cited:
“StartUpNV has seen significant success in supporting more founders by broadening the investor base in Nevada. One milestone in that regard is that we worked with state leaders to pass the intrastate Nevada Certified Investor (NCI) law, which has enabled more people to become intrastate angel investors by qualifying at levels easier to meet than the federal accredited investor standard.”
“Another significant milestone is that StartUpNV has fostered several affiliated venture capital funds, including FundNV, AngelNV, and the 1864 Fund, each focused on investing in startups at different stages of their business lifecycle. These funds have seen tremendous success, especially in the last four years. For example, where most venture capital funds average only 50 investors, the StartUpNV-affiliated funds have 475, which means venture capital is accessible to smaller investors, not just the ultra-wealthy – this is also thanks in part to the NCI law.”
Investment Success Stories
Would you like to share any specific investment success stories? Saling cited:
“Tensorwave is the most ‘famous’ of our investments. We gave the company its ‘first check’ in December of 2023 as part of its $43 million Simple Agreement for Future Equity (SAFE) funding round. Our affiliated funds added to the investment in each subsequent funding round, with the most recent round seeing the company’s valuation shoot well past $1 billion with many of the largest venture capital firms in the US participating.”
AUM & Other Metrics
Can you discuss total AUM or any other notable metrics (i.e. dollars returned or enterprise value created)? Saling revealed:
“FundNV, AngelNV, and 1864 Fund have had 475 investors invest $25 million in 27 startups since 2021. The current value of our investments is $101 million (4x MOIC), and we’ve returned 16% of investor capital in less than 5 years. The companies funded through StartUpNV’s affiliated venture capital funds are thriving, delivering positive returns, and averaging a 50-70% success rate, compared with the industry standard of less than 40%.”
“According to industry benchmarks from sources such as Cambridge Associates and PitchBook, most venture capital funds are barely breaking even. However, the StartUpNV-affiliated funds have more than tripled investor capital, which beats Silicon Valley venture capital standards by 264%.”
“In addition, while 90% of peer funds have returned no cash to investors, the three StartUpNV-affiliated funds have returned 16% of invested capital in just four years, totaling $4.3 million. Most seed funds take 7-10 years to return money. We’re doing it in four. Time is money, and our investors are seeing returns twice as fast.”
Industry Focus
What are some of the industries that your firm is focused on? Saling pointed out:
“The non-profit education programs are open to all types of companies, from local ‘main street’ businesses to consumer goods to hyper-scaling technology companies.”
“Our venture funds focus on B2B and enterprise-focused, AI native, technology solutions – software, hardware, or any combination thereof.”
Differentiation
What differentiates you from other firms? Saling emphasized:
“StartUpNV is a nonprofit organization focused on supporting startups in Nevada through education, mentorship, and access to capital. We offer a variety of programs to educate founders on business skills, scaling a company, and attracting venture capital. At the same time, we work with investors to bring them new opportunities to invest in Nevada-based startups and broaden the investor community in the state.”
Challenges Faced
What are some of the challenges you faced while working at the firm (and how did you overcome those obstacles)? Saling acknowledged:
“The single challenge that’s been the most frustrating is skepticism. And it’s not just in one area where that’s been the challenge; it’s been across all the places we work. Starting with ‘why is StartUpNV necessary?’ to ‘why economic development – doesn’t the government do that?’ to ‘why venture capital – can’t businesses just get capital from a bank or other sources?’”
“In addition to running our programs, we continuously advocate our mission to economic development groups, financiers, universities, national programs, elected officials, business leaders, and potential investors so these important partners understand the need for StartUpNV and the importance of fostering a diverse startup ecosystem. We worked through the ‘cold start’ problem of not having ‘investable startups’ and not having venture capital. We focused on building both – interested startups and a community of investors – to be self-sustaining, despite the skeptics.”
“The work is never done, but we’ve come a long way.”
Future Goals
What are some of your firm’s future goals? Saling concluded:
“With the success of the StartUpNV portfolio companies and the equity they donate to the non-profit, we can build a generational foundation to help entrepreneurs for decades. We want to see the companies we support succeed so they can return capital to the investors in FundNV, AngelNV, and the 1864 Fund. Continued success will foster new startups, spur further investment, and grow a robust startup ecosystem in Nevada. As a result, Nevada is proving to be a viable startup hub as the state continues to build its reputation as a great place to raise capital and start a successful company, while also enjoying a fulfilling life.”
