What the business is
Tech community company selling paid fellowship programs that help founders, angels and executives find co-founders, capital and advice.
The bet
A narrower, founder-focused set of paid programs and a small fund can sustain On Deck better than a broad community platform and accelerator.
Starting capital
Tens of millions in venture funding; a $40M Series B led by Tiger Global at a reported $650M valuation, up from $175M at Series A.
How it started
On Deck grew by launching communities that served more than ten thousand founders and career professionals in two years of hyper-growth, which its founders said fractured its focus and brand.
What happened
After Tiger led the Series B, sources said On Deck advertised Tiger's fund commitment and planned a $100M fund for its accelerator, but Tiger told the startup its commitment was in legal due diligence and then pulled it. On Deck cut a quarter of staff in May and a third in August.
How it ended up
In September 2022 On Deck made David Booth sole CEO, with Torenberg back as chairman, sunset several communities and spun off its career arm. Its fund shrank to $23M, a quarter of the original vision, and accelerator terms fell from $125,000 for 7% to $25,000 for 1% to 2.5%.
What has to be true
Serving several user groups and building flywheels between them, the founders said, fractured On Deck's focus and brand.
Sources said Tiger Global's pulled commitment to the planned $100M fund left only nine months of runway, forcing layoffs.
Revenue-generating paid programs gave On Deck a base that did not depend on closing fund LPs.
What can be applied
A community business that tried to serve every group fractured its brand; when the fund that was meant to turn it into an investor fell through, narrowing to one audience was the survivable move.
Aftermath
As of 22 September 2022, On Deck was running a smaller set of paid programs, led by David Booth, with a $23M fund, no formal accelerator, and an unnamed spun-out career business expected to launch by October. On Deck declined to comment on Tiger's role; Tiger reportedly returned with $5M.
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