Why we backed Upside Ventures Fund I LP

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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

We believe consumer is undergoing a structural shift, with creators playing an increasing role in shaping purchasing decisions and defining culture. For early-stage consumer startups, customer acquisition remains the most persistent challenge. Paid marketing is competitive, costly, and increasingly oversaturated, while organic reach is becoming increasingly complex to achieve.

In fact, funds that deliver built‑in reach are winning access to top founders. This model is gaining traction: Mantis VC recently closed a $100 million Fund III, anchored on celebrity-led distribution via The Chainsmokers, showing how powerful a reach-first strategy can be for fundraising, dealflow and value-add.

Upside Ventures Fund I LP directly addresses the customer acquisition challenge by offering built-in distribution support, providing startups with access to millions of potential customers and offering the fund a highly attractive value-add proposition for founders and other VC co-investors.

At the core of this strategy is the ability to leverage a unique distribution network, the fund’s Limited Partners. The fund has several creators with tens of millions of followers, adding reach and diversification to the distribution power that Upside can harness to benefit portfolio companies. Most notably, the fund counts the Sidemen – Europe’s largest creator collective as Limited Partners. With over 150 million followers globally and an engagement rate of more than three times the creator industry average, we believe that the Sidemen, amongst other creator LPs, can drive commercial outcomes for consumer brands.

We believe Upside is distinct in its ability to provide scalable, cost-effective distribution as a core part of its strategy. Unlike many funds that offer light touch strategic support, Upside’s creators are deeply aligned with the fund’s success through meaningful LP commitments, rather than being advisors or venture partners. This model creates an aligned incentive structure that we believe can drive material value for portfolio companies and, by extension, LPs.

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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