Backstage Capital Invests in Upsie, a Welcome Disruption to Warranties
After paying hundreds of dollars for the latest and greatest smart device, we’re asked to shell out another couple hundred for an extended warranty.
We picture all the worst possible scenarios:
Your smart phone comes face to face with a stiletto heel in a crowded bar.
Your Roomba eats every piece of your son’s homework (or so he says).
Or, in the midst of a ferocious battle with zombies, your VR system scares itself to death and you can’t turn it back on.
Reluctantly, many of us will pay the additional cost for peace of mind, because we know that it can be life-altering when you lose access to an important piece of technology. I saw this first hand when I worked the retail frontlines at Verizon.
But that extended warranty often involves a long day or two of digging through old receipts, trying to reach a customer representative, and figuring out how to get your device repaired. As devices become even more integrated into our daily lives, it is critical that we have affordable options for warranty and replacement.
Upsie: You’ll Actually Enjoy Filing a Claim
Our increasing reliance on technology means that we need to take better care of our appliances. And there has to be a better way to do that, too.
Upsie takes the hassle (and the price gouging) out of warranties. While most retailers offer poor service while marking up prices upwards of 900%, founder and CEO Clarence Bethea wants to deliver an accessible, enjoyable experience in those moments of stress.
The app serves as an all-in-one marketplace that stores receipts, tracks claims, and offers a variety of warranties at affordable prices. From TVs to smartphones, vacuums to Pelotons, and almost everything in between, Upsie helps customers extend the lifespan of the appliances that make their lives easier.
After his own mishap with his laptop, Clarence wanted to improve the warranty options for all consumers. Upsie has been operating since 2015, but it hasn’t been an easy road.
Why Backstage Capital Invested
Like many Black founders, Clarence faced a steep uphill battle during his initial fundraising rounds.
When VCs discovered his misdemeanor at age 15, it seemed to be reason enough to turn down the deal. But Clarence feels the hesitancy to invest started with him being a Black man that didn’t pattern match the rest of their investments. He didn’t graduate from the “preferred” universities, and he wasn’t located in California, New York, or Massachusetts.
And when barely 1% of venture capital was going to Black founders in 2015, grit was the primary fuel for his business. “The way he has navigated those ups and downs tells me that he is ready for the big time,” says Arlan.
At that time, Backstage Capital didn’t have the funds to invest in Upsie’s fundraising round. And by the time we did have it, Upsie had closed their raise. But regardless, we have always been cheering for each other from the sidelines.
“He found something that was a huge pain point,” Arlan says, “something that people need and want and that doesn’t go out of style. It’s always a necessity.”
And now, when the opportunity opened up, Backstage jumped on that chance to invest.
Backstage Capital is a venture capital fund created to invest competitively into startups whose founders are underrepresented in tech & venture, and therefore underestimated. Since 2015, we have invested in ~180 startups, investing in just 2% of what we see. We now syndicate some of our deals with new and established angel investors (like you), via BackstageCrowd.com. Join more than 3,000 investors who have been investing with us since June 2020, + See our documentary at BackstageCapital.com.
