Why we backed Upside Ventures Fund I LP

At Thema, we back first-time and emerging fund managers with a clear, defensible edge. Our recent commitment to Upside Ventures Fund I LP reflects this, as we view the fund as having a distinct competitive advantage. 

The fund’s strategy is focused on a highly differentiated value-add model that systematically reduces customer acquisition costs for early-stage consumer startups across the UK, Europe and the US.

‍The distribution advantage

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Validation by the broader VC market

Upside’s model reflects a broader shift in VC, particularly in consumer investing. Leading firms have increasingly referenced the value of creator-led distribution as a defensible edge:

• Marc Andreesen of a16z outlined that he believes creator-led brands represent the future of consumer product relationships. Reflecting a belief that influencers and creators can dramatically reduce customer acquisition costs by leveraging their own followings and cultural influence.
• Forerunner Ventures has recognised the power of creator-driven brands and identified the opportunity to invest in companies whose consumer strategy can be accelerated by creator-enabled promotion.
• Bessemer Venture Partners also identified that they believe creators, curators, community leaders, and co-owners are the ones to build the future around. They created the Creator Collaborative to help accelerate the next wave of consumer companies.

What differentiates Upside is that they’ve operationalised this creator strategy. While many GPs are exploring how to leverage creators, Upside has built the firm around this model, creating dedicated infrastructure and an aligned economic structure to ensure that creators and portfolio companies are working towards a shared outcome.

Emerging from stealth and early momentum

Upside Ventures Fund I LP emerged from stealth on May 15, 2025, having closed the majority of its target $25 million debut fund. It looks highly likely that the fund will hold an oversubscribed final close in the coming months. Sam, our CIO, has worked with Upside Ventures over the past 12 months to provide an institutional lens and maximise the Thema value-add proposition.

To date, Upside have invested in 12 companies, co-investing alongside firms such as Sequoia, Left Lane and 20VC.

Wider than the Creator network LPs include those across tech, finance, and media, including exited founders from Twitch, Unity, and Major League Gaming, as well as senior investors from KKR, UBS, BlackRock, and other VC funds such as Felix Capital’s Sunrise Fund and Venrex.

Our conviction in Upside Venture’s potential to outperform is driven by several key factors:

• A clear edge in distribution. In an increasingly saturated consumer market, access to scalable and cost-effective distribution is no longer optional; it is essential. Upside is at the forefront of this shift, offering a highly differentiated model.
• Deep alignment with their creator network. Unlike other funds where creators and celebrities are peripheral, Upside’s network is integral to the model. Creators are significant LPs and are properly incentivised to contribute to portfolio success.
• Early signs of traction. The fund has already secured allocations in hard-to-access rounds alongside tier 1 VCs, with multiple portfolio companies having already raised follow-on rounds.
• A long-term vision. Upside is not just focused on Fund I; they are laying the foundations that will lead to outperformance and create a long-term, next-generation venture platform.

At Thema, we look to partner with GPs who are building the next generation of venture franchise which can outperform. With Upside Ventures Fund I LP, we believe we’ve backed a team doing precisely that.

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