How Union Labs Bridges VC and Corporate Expertise to Fuel Hard Tech Startups
The Genesis of Union Labs
Founded by Chris Kim and Nate Williams, Union Labs emerged from a shared belief that investors and corporations need deeper collaboration to drive startup success—especially in the challenging realm of hard tech.
- Chris Kim: Former CTO and co-founder of smart lock company August Home.
- Nate Williams: Joined August to lead go-to-market strategies, later becoming an Entrepreneur in Residence at Kleiner Perkins.
Their partnership solidified after August’s 2017 acquisition, as they refined their thesis: uniting stakeholders is critical for scaling complex technologies.
A $50M Fund Focused on Applied Deep Tech
Union Labs has raised \(29 million toward its \)50 million target, aiming to bridge the gap between traditional VC and corporate expertise.
- Investment Thesis: Focus on “applied deep tech”—startups that require hardware and industry-specific knowledge rather than pure SaaS models.
- Portfolio Strategy: 20 planned investments (15 direct, 3–5 incubated), with checks ranging from \(500K to \)1.5M for 11% average equity.
Why Hard Tech Needs a New Approach
“Educating SaaS-focused VCs about hard tech is incredibly difficult,” says Williams. Union Labs prioritizes:
- Operator-Led Guidance: Leveraging expertise from hardware and industrial sectors.
- Corporate Partnerships: Tapping into Williams’ IoT consortium (telecom, utilities, insurance, and consumer electronics).
Spotlight: Portfolio Companies Solving Real-World Problems
Union Labs backs startups tackling tangible challenges:
- Strella Biotechnology: Ethylene gas sensors to monitor produce freshness.
- Carnect: AI-driven car rental optimization.
- Encircle Labs: Home safety toolkits (details under wraps).
- Stealth Startup: Field service management training solutions.
The Hybrid Advantage: Blending VC and Corporate Strengths
Williams highlights the rise of corporate venture arms but argues Union Labs offers a unique hybrid model:
- Kleiner Perkins & GV: Key investors providing traditional VC support.
- Corporate Backers: Access to industry networks for pilot programs and scaling.
“We’re not just writing checks—we’re building ecosystems,” says Kim.
The Road Ahead
Can Union Labs turn its collaborative vision into measurable success? With a focus on hard tech’s unique demands and a network spanning startups to Fortune 500s, the firm is betting on unity as the ultimate competitive edge.
