Too many people are unable to make the best decisions for their careers because they lack the necessary funding. What if “upstarts” could borrow from their future selves, with their earning potential effectively serving as collateral? We’ve built a funding marketplace designed to provide people early in their careers with a slice of economic freedom so they can start a business, learn a new skill, or just pay off their student loans. The money comes from backers, who can also provide career advice, introductions or just the occasional cheer from the sidelines.
Upstart agreements are often called “Income Share Agreements” or ISAs, where repayment is defined as a small and pre-determined fraction of earned income, rather than a fixed monthly dollar amount. ISAs aren’t new - and their popularity is growing. There’s even a bill in congress to make ISAs the standard for federal student loans. The reason is obvious: income share agreements are designed to be affordable at all times. When you earn less, you pay less, and when you earn more, you pay more. And with Upstart, your funding comes from experienced backers who are motivated to help you succeed on whatever path you choose.
Upstart is the first platform that enables you to literally invest in a person and their future earning potential. Investing in startups is risky because most of them fail. But talented people tend to succeed over time. And historically, wages are very sticky despite macroeconomic conditions - making them an appealing asset class. Investing on Upstart is about more than earning a return on your money - it’s about making an impact on someone’s career and engaging in their personal journey.