San Diego-based accelerator program LogicBoost Labs has developed a formula to help founders of companies that are just getting off the ground reach success.
“We believe top talent is an early-stage cheat code and a growth stage where most startups stumble,” said LogicBoost Labs founder and CEO Jonathan Cogley. “While traditional accelerators bring cash and education, we take that to the next level by bringing proven VP’s that roll up their sleeves and inject themselves into the business as experienced operators.”
Cogley founded the accelerator in 2019 while managing his own successful startup – cybersecurity SaaS firm Thycotic – through its exit and acquisition by TPG Capital for $1.4 billion, which was completed in 2021.
Thycotic began as a consulting company which later pivoted to SaaS and Cogley leveraged his knowledge in both to start LogicBoost to give founders of B2B SaaS companies advice on how to become successful faster.
After Washington D.C.-based Thycotic was acquired, Cogley moved to San Diego where he bases LogicBoost.
“San Diego truly has a place for everyone and an opportunity for every activity imaginable – hiking, surfing, biking, restaurants and music,” he said. “Although its traditionally a place known for biotech and marinetech, there is a huge wealth of untapped talent and entrepreneurship. The next big startup could as easily come out of San Diego rather than the Bay Area or L.A.”
For the next big startups in LogicBoost Labs’ accelerator program, there are some requirements.
“We focus on B2B SaaS. We’re not concerned with the vertical so whether it’s hospitality or cybersecurity or anything, but it must be B2B SaaS,” said Chris Staszak, LogicBoost Labs chief technology officer, adding that LogicBoost’s explicit expertise in areas like sales, marketing and growing revenue transfers to all SaaS verticals without having to bring in outside experts in various industries.
LogicBoost is also “very much on the accelerator side,” Staszak said and chooses companies at the pre-seed stage.
“So we’re usually the first serious money other than friends and family or self-funded,” he said, adding that those pre-seed companies must also have a minimum viable product “in hand” and be able to show some early signs of revenue or some validation from the market.
Founders of companies chosen by LogicBoost that meet the criteria are then funded with up to $300,000 in return for 20% equity in their business.
In addition to the funding, LogicBoost provides “seasoned expertise to get in the trenches with those founders and really accelerate it for the first six to nine months of our engagement with them,” Staszak said, adding that the engagement is also on a timeline with specific revenue targets.
“Our engagement is two years, and our thesis is we’re going to take you from your first dollar of revenue, wherever you ‘re at today, to about approximately $1 million ARR in that two-year journey,” he said.
After the two years, companies are expected to move on to the next level with early series funding rounds or other growth strategies.
Staszak said the LogicBoost formula “seems to be working so far.” Of the accelerator’s eight portfolio companies, two have “graduated” and hit their revenue goals within the two-year time frame and the “others that started later are tracking in that same trajectory,” he added.
Examples of companies in the LogicBoost portfolio include Barpay, a contactless ordering and payment platform for the service and hospitality industries; Some1, a digital check-in solution for businesses; Propel, a public relations management platform; and Information Shield, which validates cyber security readiness to customers, regulators and insurance providers.
In addition to expertise to drive revenues to around $1 million annually, LogicBoost companies also benefit from the accelerator’s deep pockets – roughly $10 million funds spread across four years. This allows LogicBoost to offer its own equity line of credit to companies for unexpected expenses like a sudden invite to a trade show that would be a good opportunity for the company, Staszak said, adding that traditional programs would have to raise money to help with those expenses.
“We’re our own funding source so we don’t have that need,” he said.
Headquarters: San Diego, Liberty Station
CEO: Jonathan Cogley
Business: Accelerator program for early-stage enterprise SaaS companies
Funding: $10 million across four-year time span
Notable: LogicBoost Labs CEO Jonathan Cogley founded Thcotic, which was sold to TPG Capital for $1.4 billion.