How It Works

Startup.ai manages a large portfolio of domain names valued at over $100 million and collaborates with external domain holders to monetize these assets. Instead of passively holding domains, Startup.ai structures deals combining cash, equity, and licensing fees, enabling top-tier founders to leverage premium domains for their ventures.
In addition to its portfolio, Startup.ai also works with third-party domain holders, managing the entire process of structuring and closing deals in exchange for a 5-10% success fee at closing.
Third-party domain holders must be accredited investors to participate in Startup.ai’s platform, ensuring a high standard of professionalism and alignment with Startup.ai’s selective process.

Low Risk for Third-Party Domain Holders

Startup.ai’s model is designed to minimize risk for third-party domain holders. Each deal includes a clawback option and release mechanism to protect domain holders if the startup company purchasing the domain is unable to fulfill its obligations. This ensures that the domain holder retains control and can re-engage with other opportunities if the transaction does not progress as planned.

Deal Structure

A typical deal involves a 50/50 split between cash and equity, with the equity offered at a 20% discount to the next funding round valuation.
Deferred Payment Structure: Buyers are not required to pay upfront other than a monthly licensing fee equal to 6% of the cash portion. This fee grants DNS access while they raise funds, typically over a 6-month period.
Ownership of the domain remains with Startup.ai or the external domain holder until the funding round closes, and the full payment (cash and equity) is completed.

Selective Program

Startup.ai is extremely selective in accepting founders into this program. The criteria favor founders who:

Have a proven track record with successful exits.
Are clear winners with demonstrated leadership, execution capabilities, and scalable business ideas.

Access to Top Investors

Startup.ai doesn’t just provide premium domains—it connects founders to a powerful network of investors and influencers. The Startup.ai team has been:

Followed on by a16z and other tier-1 investors.
Supported by strategic investors, influencers, and high-value networks, enabling founders to secure funding and scale faster.

Venture Studio and Fund

Startup.ai is not just a domain monetization platform. It is both a venture studio and a fund. The company plans to raise a fund from limited partners to acquire more intellectual property, expanding its portfolio of high-value domains and other assets to drive innovation and deal flow.

Example Deal

A $1M domain deal is structured for a carefully vetted founder:

The buyer agrees to $500K in cash and $500K in equity at a 20% discount to their next funding round valuation.
No upfront payment is required other than a $6K/month licensing fee (6% of $500K), granting DNS access while they raise funds.
The founder has 6 months to secure funding. Once the funding round closes, the $500K cash is paid, and the $500K equity is formalized. Ownership of the domain then transfers.

By combining a proprietary domain portfolio, partnerships with external domain holders, strict founder selection criteria, access to top-tier investors, low-risk safeguards for domain holders, and plans to raise a fund to expand its intellectual property holdings, Startup.ai positions itself as a unique and powerful combination of a venture studio and a fund for scalable success.