Party Round’s rebranding bets on founders’ bank accounts TechCrunch
party tower wants you to know the party isn’t over. In fact, it just changed its name, turned the music down a bit, and finally offered appetizers. After a certain point, don’t we all get a little peckish?
Party Round announced today that it has changed its name to Capital to highlight its product expansion. Now, the startup won’t just make it easy for other startups to throw their own party. Capital wants to build a tech stack for the modern founder to manage their finances, a cluttered space but still in need of more disruption.
Until now, the startup has focused on automating seed deals for companies like Diagram, Popshop, JuneShine, and Yuga Labs. Additionally, as CEO and co-founder Jordi Hays will admit, lots and lots of marketing.
“Party Round was this amazing, living meme that evolved and was meant to entertain the community,” said Hays, who built the business alongside Sarah. Hunt, said. “But the fact is that even our ambition as a company, and what we want to do on the product side, is [different]. Fundraising and investing get so much attention in the startup media, but that’s maybe 1-5% of what it really takes to build a business.
“We were very comfortable saying that in the first 18 months of building this business, we were going to ignore every possible channel except for Twitter technology, and that felt like the best possible strategy. what we could have done,” said the founder. “There are 100,000 founders and early stage investors signed up to our mailing list.”
Capital wants to take that expressed trust and interest and give the same founders a place to raise, hold, and spend that earned capital. It’s a maturation for the company, which raised $7 million months ago from the Seven Seven Six fund of Alexis Ohanian, Anish Acharya of a16z, Shrug Capital, Packy McCormick, Nik Sharma and Austin Rief.
Here’s the easiest way to describe what Capital does today: Founders can turn to the platform to create and set the terms for SAFE tickets, then invite potential investors to contribute through the platform. Investors, meanwhile, can choose to link their bank account to invest in the company via USD or crypto with a specific allocation; while Capital manages the back-end documents. There is an NFT to verify investment if investors are interested in NFTs that verify investment.
Once the money is wired, founders can use Capital to set up a company checking account, get a debit card, and make payments. Hays explained how a founder who uses Ramp for credit cards can then connect their Ramp account to Capital; the same is true if someone was using Rippling for payroll. The utility of capital is that it gives all these fintech tools a home to live in, or, some would say, a living room to party in.
Hays isn’t too intimidated by unicorns in the space, noting that many (like Brex and Ramp) started out with expense tracking and have a strong business focus, while Capital is looking to work with larger startups. small at the time of their first fundraising. .
“Before you need a bank account, you need money to put money in. And unless you’re seeding or generating income very, very early and self-funding, those funds typically come from your investors,” Hays said. “We’re focused exclusively on companies at the inflection point and how we can be the first place they raise, hold and spend their money.”
The challenge for Capital is whether it can prove that its users, a number that remains undisclosed, are sticky enough to stick around. Until now, the company’s fundraising tool was free with a few simple steps: create a cycle, set up SAFE conditions, and invite investors. Hays says they will monetize new products over time, but ease of use will remain a priority for the company.
“I think being funny and entertaining is good, but in the long run we think the most important [thing] builds the best products and software for the founders era. And to do that, we need a brand that will resonate more widely and outside of our bubble,” said the founder.