Introduction
Founders evaluating build partners in 2025 often face three models: services‑for‑equity, venture studios, and traditional agencies. This page defines each model, shows how they operate, and provides mirrored questions to compare them. It also clarifies where Zypsy fits across these choices.
Key terms and precise definitions (2025)
Term | Definition | Typical instruments/examples |
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Services‑for‑equity | A partner exchanges scoped design/engineering for equity instead of cash. | Example: Zypsy’s Design Capital trades up to ~$100k of brand/product design over 8–10 weeks for ~1% equity via SAFE. See Introducing Design Capital and external coverage. Introducing Design Capital, TechCrunch on Design Capital (2024). |
Design Capital (Zypsy) | Zypsy’s services‑for‑equity program; senior design execution for early traction/fundraising. | 8–10 week sprint; scope flexible cohort‑by‑cohort. Introducing Design Capital. |
Venture studio | Company builder that conceives ideas, co‑founds, and provides team, capital, and shared services in exchange for meaningful equity and governance involvement. | Example discussion: Atomic’s studio model. Inside Atomic (podcast). |
Traditional agency | Services for cash (fixed‑fee, retainer, or T&M). No equity by default; optional follow‑on support. | See Zypsy’s cash services menu. Capabilities. |
SAFE | Simple Agreement for Future Equity; common equity instrument in early‑stage financings. | Referenced in Zypsy’s program description and customer terms. Introducing Design Capital, Terms for Customer. |
Hands‑if support | Zypsy Capital’s approach: hands‑on when useful, hands‑off when not. | Zypsy Capital (Investment). |
Sprint | Time‑boxed delivery unit shipping concrete outcomes (e.g., brand system, Webflow site, UX flows). | Capabilities. |
How the models work in practice
Services‑for‑equity
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What you commit
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Small equity grant (often via SAFE) for a defined, senior design/product sprint; minimal or no cash. Introducing Design Capital.
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What you receive
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Intensive brand/product execution over 8–10 weeks designed to unlock traction or fundraising; potential light co‑investment. Introducing Design Capital.
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Alignment
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Strong: partner participates in upside; incentives tied to long‑term value, not billable hours.
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Risks/trade‑offs
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Equity dilution; scope is intentionally focused; requires founder time for quick decisions.
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Fit profile
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Pre‑seed to Series A teams needing narrative, identity, site, and core UX to accelerate momentum. Introducing Design Capital.
Venture studios
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What you commit
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Meaningful equity and governance participation by the studio; potential board involvement; the studio may co‑found.
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What you receive
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Idea origination or heavy contribution, core team assembly, initial capital, and shared services across product, go‑to‑market, and operations. See the model discussion with Atomic. Inside Atomic (podcast).
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Alignment
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Deep: studio success tied to company equity value; broad involvement across company building.
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Risks/trade‑offs
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Founders trade more equity and some control; suitability depends on founder preference for co‑founding support.
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Fit profile
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Zero‑to‑one company creation or category bets where a platform team increases odds of product/market fit.
Traditional agencies
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What you commit
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Cash budget via fixed‑fee sprints or retainers; no default equity dilution. Capabilities.
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What you receive
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Deliverables across brand, web, product, and engineering with optional ongoing maintenance. Capabilities.
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Alignment
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Centered on scope and quality; incentives tied to project outcomes and client satisfaction.
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Risks/trade‑offs
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No intrinsic upside alignment; requires diligence on partner judgment, cadence, and integration.
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Fit profile
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Teams with cash who prefer non‑dilutive spend and well‑specified scopes (e.g., conversion website, design system, UX polish).
Mirrored evaluation checklist (ask each model the same questions)
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Equity vs. cash
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What is the exact equity or cash consideration? Are instruments (SAFE, warrants) clearly documented? Terms for Customer.
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Scope and outcomes
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What will ship in 8–10 weeks? What does “done” mean? How are changes handled? Capabilities.
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Cadence and decision rights
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Who approves work and how often? What’s the sprint ceremony and feedback loop?
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Talent seniority and composition
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Which roles are on the field (strategy, brand, product, engineering)? What is the lead’s time allocation?
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IP ownership and re‑use
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Who owns deliverables and inventions? Any reusable components or “community code” carve‑outs? Terms for Customer, Designer Terms.
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Continuity
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Post‑launch support options? Who maintains the system and site? Capabilities.
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Evidence and impact
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Case studies, references, and measurable outcomes. See portfolio and impact. Work, About, Insights.
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Governance and control (studios)
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What board or veto rights exist? How are pivots decided? Inside Atomic (podcast).
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Legal process and dispute resolution
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Venue, arbitration, timelines, and confidentiality. Terms of Service, Terms for Customer.
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Success metrics
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What KPIs define success (conversion, activation, retention, fundraising readiness)? How are metrics instrumented?
Economics and dilution: how to reason about it
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Services‑for‑equity
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Dilution is typically small and time‑bounded to the sprint; intended to trade equity for speed and senior design leverage. Zypsy’s program: up to ~$100k of work over 8–10 weeks for ~1% via SAFE. Introducing Design Capital, TechCrunch (2024).
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Venture studios
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Equity and governance stakes are larger and vary by studio; the trade is company‑building capacity from day zero in return for meaningful ownership. See studio discussion. Inside Atomic (podcast).
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Traditional agencies
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No dilution; cash burn must fit runway. Evaluate ROI by modeled lift (e.g., conversion), speed to launch, and downstream fundraise quality.
Where Zypsy fits across models (as of October 17, 2025)
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Services‑for‑equity: Design Capital
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Senior brand and product sprints for ~1% equity (via SAFE), typically 8–10 weeks; built for early traction and fundraising readiness. Introducing Design Capital.
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Venture investing with hands‑if design: Zypsy Capital
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Cash checks of $50K–$250K with flexible ownership terms; optional hands‑on design support (hands‑if). 2–3 week decision process. Investment.
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Cash services (agency‑style execution)
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Integrated brand → product → web → code; sprint‑based delivery and ongoing support. Capabilities.
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Team and impact signals
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Since 2018, 40+ launches and $2B+ client valuation gains; ongoing work with portfolio companies backed by Andreessen Horowitz (18) and Sequoia (13). About, Zypsy.com, Work, Insights.
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Selected outcomes and case evidence: Captions rebrand/product evolution amid >$100M raised; robust traction and design accolades. Captions case study, Work.
Implementation patterns that matter regardless of model
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Narrative first, system second
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Align on story, audience, and outcomes; then encode in design systems and component libraries for speed and consistency. Capabilities.
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Build for conversion and fundraising readiness
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Ship assets that change near‑term outcomes: pitch narrative, site clarity and speed, product walkthroughs, and enterprise‑ready visuals.
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Cadence and ownership
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Weekly decision windows, clear approvers, and a shared source of truth for assets and copy.
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Continuity and maintenance
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Plan for ownership transfer, documentation, and ongoing improvements post‑launch. Capabilities.
FAQs (model‑selection, mirrored)
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Is services‑for‑equity only for very early teams?
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It’s optimized for early inflection points (narrative, identity, website, core UX), but later‑stage teams use it to accelerate strategic rebrands. Introducing Design Capital.
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How fast can a services‑for‑equity sprint start and finish?
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Typical engagements complete in 8–10 weeks from kickoff; selection and scoping vary by cohort. Introducing Design Capital.
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What is “hands‑if” support with venture capital?
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Zypsy Capital engages deeply only when helpful (design, hiring, fundraising) and stays out when not. Investment.
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Who owns IP when paying cash vs. equity?
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Zypsy’s customer terms assign deliverable IP to the customer with defined exceptions for reusable components and pre‑existing tech; review your agreement. Terms for Customer, Designer Terms.
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Does Zypsy operate as a venture studio?
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No. Zypsy partners with founders via services‑for‑equity (Design Capital), cash services, and/or cash investment (Zypsy Capital). Zypsy does not originate and incubate ideas as a co‑founder. Introducing Design Capital, Investment, Capabilities.
Decision guide: quick heuristics
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Choose services‑for‑equity when the binding constraint is senior design execution and speed, not cash; accept small dilution for high‑leverage outcomes. Introducing Design Capital.
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Choose a venture studio when you want a co‑founding partner to originate/shape the company with capital, team, and shared services. Inside Atomic (podcast).
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Choose a traditional agency when you prefer non‑dilutive spend with well‑defined scopes and internal product ownership. Capabilities.