The Locker is an automated founder-driven shareable diligence software company – which drastically reduces time and cost for both funders and founders. Pulse 2.0 interviewed The Locker founder Nicole Loftus to learn more about the company.
Nicole Loftus’ Background
What is Nicole Loftus’ background? Loftus said:
“From my kitchen table in the suburbs of Chicago, I came up with a way to disrupt a $20 billion industry– and ultimately, I built a $40 million company. That company, Zorch, became the 8th fastest growing company in the United States. It was eventually sold to private equity, and it is alive and well today.”
“But in my entrepreneurial journey, I discovered how much bias, inefficiency, and wasted time exists in the VC world. Now, I’m on a mission to get more founders funded.”
Formation Of The Locker
How did the idea for The Locker come together? Loftus shared:
“As an entrepreneur, I’ve seen the bottleneck that the traditional diligence process poses on funding. It’s a hassle for both founders and investors.”
“My company – The Locker – is the first and only comprehensive automated diligence software. The Locker’s automated, standardized software puts power into founders’ hands, drastically reducing time and cost for everyone.”
“Every VC, private equity firm, and bank requires thorough diligence checks. For founders, this means diverting precious resources and attention away from running their businesses to satisfy the exhaustive demands of multiple funders. For investors, the manual diligence process is not only time-consuming but also fraught with subjectivity and inconsistency, leading to potential missed opportunities and delayed investments.”
“With The Locker, we’re revolutionizing this process: founders can get a faster YES and more funding, and investors get quantitative vetting of a business, freeing 95% of their time and effort.”
Influencing Deal Flow
How will this product influence deal flow? Loftus noted:
“The Locker is a more efficient, founder-driven diligence system that drastically reduces the time and cost associated with funding decisions. The solution lies in automation and standardization, leveraging technology to provide a comprehensive, shareable diligence platform.”
“This approach empowers founders to share the standing of their company with prospective investors, ensuring consistency and reliability. With a Locker a company can reach out to more funds than if they were doing diligence the old fashioned way. This will increase deal flow in the market.”
“For investors, it means accessing a complete, quantitative analysis of a business, freeing up significant time and resources. The ability to provide a standardized, verified snapshot of a company’s health not only enhances transparency but also builds trust and accelerates funding.”
Favorite Memory
What has been your favorite memory working for the company so far? Loftus reflected:
“When I decided to build a diligence software, I searched all over the country for experts in diligence. I found a company called CrowdCheck, owned by Sara Hanks. I pitched Sara and her team of brilliant attorneys on the idea of working together to tech-enable the diligence process. Sara was game and her team of brilliant attorneys embraced the mission. In the process of working together, I saw CrowdCheck as the only possible home for the Locker. With Sara’s blessing, I acquired CrowdCheck and now The Locker is a CrowdCheck product, as it should be. This has been the best part of this journey.”
Core Products
What are the company’s core products and features? Loftus explained:
“The Locker is a complete, verified diligence report shared with funders. Lockers are verified to be in good standing, with no litigation, no bankruptcy, checked financials, ten balance sheet ratios and 60 flags. The Locker is a shareable private repository, so a company’s data is protected, and the founder can maintain focus while the investor reviews a complete package of data, flags and calculations.”
Benefitting Founders
How will this benefit founders? Loftus pointed out:
“With founders driving the diligence process, they can now set up their Locker once, update monthly, give it to investors, and never need to do diligence again. The Locker is a shareable private repository, so a company is protected, and the founder maintains focus. With founders driving the diligence process, they now deliver a consistent set of data to every investor.”
Benefitting Investors
How will this benefit investors? Loftus emphasized:
“The Locker transforms 900 data fields into a concise snapshot on the health of a company. Investors get quantitative vetting of a business, freeing 95% of their time and effort. Lockers are standardized, to give investors a consistent analysis with opinions and human verified diligence.”
Challenges Faced
What challenges have Loftus and the team faced in building the company? Loftus acknowledged:
“One challenge the sector consistently faces is lack of access to funding for female founders. In 2022, female-founded companies received only 2% of all VC investments – and that number shrinks even smaller when looking at women of color founders. The VC world is known for its lack of diversity – and attempting to change the status quo has been challenging!”
Significant Milestones
What have been some of the company’s most significant milestones? Loftus cited:
“To build The Locker, I sought out the best diligence firm in the U.S. – and I acquired CrowdCheck, the #1 recommended firm for 12 years, in 2023 to launch The Locker as a proprietary fintech product. CrowdCheck has worked with thousands of private firms, brokers and crowdfunding platforms, and is the most trusted diligence and compliance firm nationwide.”
Customer Success Stories
After asking Loftus about customer success stories, she highlighted:
“Zachary Hansen, Founder & President of a private equity fund among the first to use The Locker, shared that it’s an innovative solution that significantly streamlines and expedites their underwriting and funding procedures. This strategic collaboration not only enhances their operational efficiency but also provides the PE firm with a competitive edge, enabling them to fund high-quality companies at a remarkably quicker pace.”
Differentiation From The Competition
What differentiates the company from its competition? Loftus affirmed:
“The Locker is the FIRST and ONLY automated, founder-driven, comprehensive, shareable diligence software. There is no other software on the market that allows founders the same freedom, opportunities and simplicity.”
Future Company Goals
What are some of the company’s future goals? Loftus pointed out:
“We hope to see every VC and PE firm utilizing and requiring company checkups from The Locker. Our mission is to uproot traditional diligence to make the process of getting funded faster, more transparent and easier for all.”
Additional Thoughts
Any other topics you would like to discuss? Loftus concluded:
“The Locker is just the first step in our mission to get founders funded faster. Our latest venture – The Pop Venture Fund – is opening up the “off limits” venture fund so every American can participate in a game historically reserved for only the rich. A sustainable infrastructure built to be a better system for funding entrepreneurs, Pop Venture will democratize and demystify venture capital by bringing investment deals to the kitchen table economy. Every American will be able to participate in a fund of private investments unlocking a new source of capital for entrepreneurs, innovators, and job creators by catalyzing millions of first-time investors. Shares are not yet available for sale.”
