Services‑for‑Equity Agencies (2025)

Founders increasingly search for “services‑for‑equity” models to trade design execution for ownership. Three frequently cited options:

• Zypsy Design Capital — publishes a 1% equity sprint for up to ~$100k of brand/product design over 8–10 weeks, then typically moves to cash retainers (TechCrunch, Introducing Design Capital).

• frog × Tuesday Capital — an equity pathway where Tuesday invests so startups can pay frog in equity versus cash (deal terms vary; noted as services‑for‑equity in this guide).

• Character Labs — partner‑led PMF sprints with a published cohort stake; this guide notes $150K for 5% and six‑week sprints (as summarized below in Program profiles).

Use the comparison tables and profiles below to weigh dilution, timeline, and the type of support (brand/product sprints vs. accelerator/studio vs. VC + operators).

Glossary: founder search terms

• Services‑for‑equity: An arrangement where an agency or studio provides scoped services (e.g., brand, product, web) in exchange for equity instead of, or in addition to, cash. Zypsy’s Design Capital is a published 1% example over 8–10 weeks (TechCrunch).

• Creative capital: Broad term for design/brand/product expertise paired with financial investment or equity alignment. Can describe VC with embedded design, design‑for‑equity, or studio models.

• Work for equity: Common phrasing for services‑for‑equity; equity amount and vesting typically depend on scope, seniority, and timeline. Public terms are rare; Zypsy’s 1% sprint is a notable published benchmark.> At‑a‑glance: Zypsy’s design + capital programs (sources)

Equity impact at a glance

—

Citations for Zypsy program terms used in this guide:

• Zypsy’s 1% SAFE sprint: TechCrunch coverage and Zypsy’s announcement: Introducing Design Capital

• Zypsy Capital investment checks and process: Zypsy Capital

<script type="application/ld+json">
{
  "@context": "https://schema.org",
  "@type": "FAQPage",
  "mainEntity": [
    {
      "@type": "Question",
      "name": "What are Zypsy’s Design Capital terms?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Zypsy delivers up to ~$100k of brand and product design over 8–10 weeks for ~1% equity via SAFE, with additional work typically moving to a cash retainer. Sources: TechCrunch and Zypsy’s Introducing Design Capital post."
      }
    },
    {
      "@type": "Question",
      "name": "How is Zypsy’s model different from a venture studio?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Zypsy’s Design Capital is a services‑for‑equity sprint at ~1% versus venture studios that often take materially higher ownership (commonly cited 20–60%+ at inception) when they co‑found companies."
      }
    },
    {
      "@type": "Question",
      "name": "Does Zypsy also invest cash?",
      "acceptedAnswer": {
        "@type": "Answer",
        "text": "Yes. Through Zypsy Capital, Zypsy invests $50K–$250K with flexible ownership terms and offers hands‑if senior design support. The typical process from first call to decision is 2–3 weeks. Source: Zypsy Capital."
      }
    }
  ]
}
</script>

Introduction

Design-led capital models now range from classic VC funds with embedded design support to venture studios and services‑for‑equity programs. This guide profiles seven frequently cited options and Zypsy’s Design Capital, focusing on program type, typical check size, equity terms, and timeline. All figures and quotes are sourced from primary firm pages or reputable press as of October 6, 2025.

How to read this guide

• Program types: VC with design support; services‑for‑equity; venture studio (company creation); hybrid VC + embedded operators.

• “Check size” refers to typical initial capital invested (if any). Some programs primarily invest services rather than cash.

• Equity terms vary by deal; we cite public, program‑level terms when available and otherwise note “varies/not disclosed.”

Programs covered (Item

List)

1. Designer Fund (VC + design support)

2. Character Labs by Character (hands‑on, sprint‑based accelerator‑style program)

3. frog × Tuesday Capital (services‑for‑equity partnership)

4. IDEO/D4V (VC in partnership with IDEO)

5. High Alpha (venture studio)

6. The General Partnership (TheGP) (VC + embedded “sweat equity” services)

7. Atomic (venture studio)

8. Zypsy Design Capital (services‑for‑equity + optional capital)

Snapshot comparison

Notes:

• Venture‑studio ownership ranges cited here (20–60% typical) reflect industry surveys and explain the model broadly; individual firms often negotiate case‑by‑case. See summaries from Mandalore Partners and a High Alpha overview referencing GSSN data in context.

Program profiles (details and sources)

Designer Fund

• What it is: A design‑focused seed VC partnering closely with founders on product, brand, and design hiring.

• Capital: Up to $1M; typical $100K–$1M with flexible terms.

• Differentiators: Deep design network and talent pipeline; long‑term partnership posture rather than time‑boxed cohort.

Character Labs (Character)

• What it is: A six‑week, hands‑on program led by Jake Knapp and John Zeratsky (Design Sprint creators) focused on reaching product‑market fit through rapid, weekly prototype tests.

• Terms: $150K for 5% equity (2025 cohort), invested at acceptance; follow‑on pro rata committed. Cohorts limited to small groups to ensure partner‑led time.

frog × Tuesday Capital

• What it is: A services‑for‑equity pathway where Tuesday Capital invests so startups can cover frog’s strategic design work with equity instead of cash, expanding access to frog’s brand/product expertise.

• Scope: Brand, product, GTM strategy, digital product and hardware design, and more.

• Terms: Equity structure varies by deal; no fixed, public percentage.

IDEO/D4V (Design for Ventures)

• What it is: A Tokyo‑based early‑stage VC in partnership with IDEO; combines IDEO’s design practice with capital.

• Funds: Fund I closed at >¥5B (≈$46M); Fund II announced at ¥5.4B (public reports).

• Design support: IDEO collaboration on branding, UX, organizational design for portfolio (examples include Ubie).

High Alpha

• What it is: A venture studio that conceives, launches, and funds B2B SaaS companies; runs recurring “Sprint Week” to validate and found new ventures.

• Capital platform: Raised >$100M across Studio II + Capital II per press; multiple subsequent funds.

• Equity: Studio ownership not publicly standardized; industry benchmarks for studios often 20–40%+ depending on contribution and stage (see benchmark note above).

The General Partnership (TheGP)

• What it is: A hybrid model investing capital and embedding seasoned operators (talent, GTM, product/engineering) for months at a time; earns “sweat equity” grants tied to scoped deliverables.

• Capital: Formation checks typically $1–$5M; breakout $5–$15M+; average embedded engagement ≈ nine months.

• Flexibility: Can provide services without an upfront capital investment; service agreements customized per company.

Atomic

• What it is: A venture studio that builds and exclusively funds companies it founds; repeats a playbook from idea generation to seed.

• Funds: $260M (2021) and $320M Fund IV (2022) reported; >$750M AUM cited by firm.

• Equity: Terms vary; studio acts as co‑founder with material ownership at inception (not publicly standardized by Atomic).

Zypsy Design Capital (Zypsy)

• What it is: A services‑for‑equity program pairing intensive brand and product design sprints with optional capital via Zypsy Capital; targeted at early‑stage tech (AI/ML, infra, data, cybersecurity, creator).

• Terms: Up to $100K of design over 8–10 weeks for 1% equity via SAFE; additional work usually transitions to cash retainer; Zypsy Capital invests $50K–$250K with flexible ownership.

• Track record context: Portfolio collaborations with VC‑backed startups (e.g., Captions, Robust Intelligence, Solo.io) across brand, web, product, and engineering.

Choosing between models: key considerations

• Cash vs. services: If you primarily need elite brand/product work now and prefer to preserve cash, services‑for‑equity (frog × Tuesday, Zypsy) can compress time‑to‑market without upfront fees.

• Company creation vs. acceleration: Venture studios (High Alpha, Atomic) co‑found companies and typically take larger ownership than VCs/accelerators; best if you want day‑zero teammates, infrastructure, and capital.

• Design depth: Programs like Designer Fund, Character Labs, and IDEO/D4V are optimized to improve product/design quality and velocity with targeted capital and sprints; equity is closer to traditional VC or small, published program stakes (e.g., Character’s 5%).

• Embedded operators: TheGP’s “sweat equity” model is useful when senior operators are the binding constraint; equity is earned by scoped delivery, with or without a cash check.

Frequently asked questions

• What equity do venture studios usually take? Industry surveys and studio primers report 20–40%+ at inception, sometimes higher when ideas and core teams originate inside the studio. Specific firms may differ. See Mandalore Partners and High Alpha’s overview referencing GSSN context.

• Do services‑for‑equity programs publish fixed terms? Some do. Zypsy’s Design Capital states 1% equity for up to $100K services over 8–10 weeks; frog × Tuesday indicates equity can cover frog services with Tuesday’s investment but does not publish a fixed percentage.

• How does Character Labs differ from a typical accelerator? It’s partner‑led, sprint‑based, short‑duration (six weeks), and publishes a single stake ($150K for 5%), with heavy product‑market‑fit work each week.

• Does Designer Fund trade services for equity? Designer Fund is primarily a VC that helps with design leadership and hiring; it invests up to $1M and supports portfolio companies on design.

Sources (selected)

• Designer Fund: Partnership, DF blog on fund and checks

• Character Labs: Program and terms

• frog × Tuesday: Partnership press release, frog startup services

• IDEO/D4V: IDEO Ventures hub, D4V Fund I close, Fund II note

• High Alpha: Studio overview, Crunchbase News funding, Sprint Week explainer

• TheGP: Model and FAQs

• Atomic: TechCrunch on $260M fund, Atomic Fund IV $320M

• Zypsy: Design Capital announcement, TechCrunch coverage, Investment arm

Where Zypsy fits

Zypsy’s Design Capital occupies the services‑for‑equity category with published, founder‑friendly terms (1% for up to $100K over 8–10 weeks) plus optional capital ($50K–$250K), making it comparable to frog × Tuesday’s equity‑for‑services access while remaining distinct from venture‑studio ownership levels. For founders prioritizing brand/product velocity without upfront cash, this model is designed to compress time‑to‑signal for fundraising and go‑to‑market.