A Startup Investor Makes Founders Work Together for Weeks Before Writing Any Checks
Antler watches founders work side by side for six weeks in the U.S., then funds a few and keeps the rest as community.
Inside Startup Funding · Building Community in Startups: The Antler ApproachAt Antler, a startup investment firm, the check comes after weeks of watching people work.
Jeff Becker, a senior partner at Antler in the United States, says more than 100 founders gather for a residency and collaborate on early work ahead of any investment, before any ownership changes hands, and even before companies are legally formed. In the United States, that shared tryout lasts six weeks.
The point is to answer the hardest questions first. Founders learn whether the relentless pace of venture-backed startups suits them, whether they work well together, and what they want to build and how they want to live. Some conclude their idea is not a fit for venture money and might be better built with a loan or other financing. Others conclude they would rather be a co-founder or early employee than the chief executive. Becker says it takes the risk out of the next 10 years of a founder's life.
Only then does Antler write checks, and it backs far fewer teams than it hosts. For those it funds, the firm helps decide how to spend the money, how to think about hiring, and how to find product-market fit, meaning enough customers who want what the company makes that it can grow, and then helps them get ready to raise more money.
Many who do not get funded stay in the orbit as alumni and community members. Some may become early employees at other startups. Others might keep building and get backed later.
The setup requires founders to work in the same office in person. Antler runs a separate investment fund for each region where it operates, and the United States operates as one unit across San Francisco, New York, and Austin, with the residency running in all three cities at the same time. Becker says community and culture are treated as the product that sets the firm apart, while details such as how many weeks the program runs and the deal terms are adjusted to local needs.
The idea is to judge people by watching them work, before there is much else to judge.
Questions people ask
Do founders give up ownership in exchange for joining the residency?
No. The residency happens before any ownership changes hands or companies are even formed. Antler only takes an ownership stake later, in the much smaller group of teams it chooses to fund.
Why do it in person instead of over video calls?
Working in the same office lets investors watch how people communicate, build, sell, and recruit teammates under pressure. Those daily behaviors are harder to fake over weeks together than a polished pitch over video.
What does it mean for a business to be venture-backable?
It means the company has a chance to grow very large, very fast, enough to justify high-risk startup investment. Many solid businesses grow too slowly or stay too small for that model, and are better financed with loans, profits, or other capital.