E151: The Rise of Asset-Backed Credit w/Billy Libby

Apr 1, 2025

Billy Libby, Co-Founder and CEO of Upper90, discusses the revolutionary hybrid investment model combining equity and credit that empowers founders to scale their businesses without giving up control. He shares insights on the evolving venture capital landscape and the strategic importance of aligning incentives between investors and entrepreneurs. From innovative credit solutions for tech startups to navigating market cycles and real-world success stories, Libby offers valuable lessons on alternative financing and optimizing financial partnerships for sustainable growth.

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ANECDOTE

Grubhub & Seamless Merger

Grubhub and Seamless, similar in size, merged in 2013.
Seamless's team owned a larger stake due to their strategic use of credit over equity.

ADVICE

Credit for Startups

Startups can utilize credit for various purposes beyond fintech, such as equipment financing.
Look for emerging asset classes like NVIDIA GPUs for financing opportunities.

ADVICE

Structuring Investments

When structuring investments in new theses, prioritize fast payback periods and shorter duration facilities.
Focus on mitigating risk by understanding the asset's lifespan and competitive landscape.

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In this episode of How I Invest, Billy Libby, Co-Founder and CEO of Upper90, discusses how his firm is redefining venture capital through a hybrid investment model that combines equity and credit. He shares how Upper90 empowers founders to scale without excessive dilution and offers insights into navigating today’s venture landscape. Billy’s approach to alternative financing provides valuable lessons for entrepreneurs and investors alike.

Highlights: Alternative Financing: How Upper90's unique blend of equity and credit helps founders grow without giving up control.

Venture Capital Insights: Billy's perspective on the changing dynamics of the VC world.

Supporting Founders: The importance of aligning incentives between investors and entrepreneurs.

Navigating Market Cycles: Lessons from managing capital through different economic environments.

Growth Stories: Real-world examples of companies that benefited from Upper90's approach.

Guest Bio: Billy Libby is the Co-Founder and CEO of Upper90, a leading hybrid investment firm providing both equity and credit to high-growth companies. With a background in trading and risk management, Billy leverages data-driven strategies to support founders in building successful, sustainable businesses. Upper90 has backed numerous successful startups and continues to innovate in the venture capital landscape.

Our podcast now receives more than 300,000 downloads a month. Are you interested in sponsoring an episode? Please email David Weisburd at dweisburd@gmail.com.

Stay Connected: X / Twitter: David Weisburd: @dweisburd

LinkedIn: David Weisburd: https://www.linkedin.com/in/dweisburd/ Billy Libby: https://www.linkedin.com/in/billy-libby-76464b1/

Links: Upper90: https://upper90.io/

Questions or topics you want us to discuss on How I Invest? Email us at dweisburd@gmail.com.

(0:00) Episode preview (2:37) Startups' perception of credit usage and structuring investments in new theses like NVIDIA chips (6:27) When startups should consider credit versus equity and the financial metrics required (9:22) Seasoning process for financial instruments and capital availability (12:12) Impact of macroeconomic cycles on capital deployment (17:36) Network-driven fundraising, time management, and investor relations (20:23) Institutional practices for transitioning between funds (24:05) Equity flavor in private credit and catalysts for institutional investors (26:17) Hiring strategy, rationale for early hiring, and diversification (29:56) Consistency in returns and addressing lack of diversification (31:14) Closing remarks