Underdog Labs
UNDERDOG LABS IS A BOUTIQUE STARTUP STUDIO LOCATED IN THE SF BAY AREA AND NEW ENGLAND.
ActiveVenture Capital
Updated: ·
Financial History
Total Raised
N/A
Valuation
N/A
Leadership Team
Key people at Underdog Labs.
UNDERDOG LABS IS A BOUTIQUE STARTUP STUDIO LOCATED IN THE SF BAY AREA AND NEW ENGLAND.
Key people at Underdog Labs.
Key people at Underdog Labs.
Underdog Labs operates as a boutique early-stage investment firm and startup studio with dual headquarters in the SF Bay Area and New England[1][3]. The firm functions as a pre-seed fund and accelerator, positioning itself as a hands-on partner for mission-driven founders at the earliest stages of company formation[2][4]. Rather than adopting a passive capital deployment model, Underdog Labs embodies an active startup studio approach—the firm doesn't simply write checks but actively collaborates with founders to de-risk ventures and accelerate growth trajectories[4].
The firm's investment philosophy centers on identifying founders with "piercing vision" and long-term mission alignment, typically investing in pre-seed and seed-stage rounds[4]. Their portfolio spans diverse verticals including healthcare AI, edge computing, consumer marketplaces, and B2B food production optimization, reflecting a sector-agnostic approach grounded in founder quality rather than industry thesis[4]. Within the broader startup ecosystem, Underdog Labs functions as a bridge between raw entrepreneurial ambition and institutional capital, serving as often the first institutional investor for their portfolio companies[2].
Underdog Labs was founded by David Hehman and Alex Chang, serial entrepreneurs with deep roots in the internet economy dating back to 1997[4]. The two co-founded GetawayZone at the dawn of the commercial internet era, merged it with a category leader, and successfully exited to Expedia in 2000[4]. This early success established a foundation for decades of subsequent ventures and investments. Beyond the founding partners, Howard Love—an experienced investor with 150+ company investments and 40+ PE/VC fund investments across 25+ years—serves as a significant LP and strategic advisor, bringing additional credibility and network depth[4].
The firm's evolution reflects a deliberate transition from operating companies to building an investment platform. The general partners have demonstrated their playbook across more than 100 investments over 25 years, with a 25-year relationship built on trust and shared entrepreneurial experience[4]. This longevity and track record distinguish Underdog Labs from newer entrants to the pre-seed space, positioning the firm as a seasoned operator rather than a first-time fund manager.
Unlike traditional venture firms that maintain arm's-length relationships with portfolio companies, Underdog Labs explicitly "rolls up our sleeves" to help founders de-risk and accelerate their ventures[4]. This startup studio model means the firm doesn't just provide capital—it provides operational muscle, founder expertise, and active problem-solving alongside capital deployment.
The firm prioritizes founding teams motivated by long-term mission alignment and founders who have identified a "winnable chapter 1"[4]. This contrasts with venture firms that chase market size or technology trends; Underdog Labs invests in belief-driven founders with conviction about their specific problem domain.
The involvement of Howard Love and the general partners' 25-year collaborative history creates a differentiated network advantage[4]. This isn't a young fund relying on brand-new relationships; it's a platform built on decades of trust and demonstrated exits.
By focusing exclusively on pre-seed and seed rounds, Underdog Labs occupies a specific niche where founder support and operational guidance create outsized value[4]. At this stage, capital is often less scarce than experienced guidance and network access.
The portfolio spans health, AI, consumer, and B2B verticals, suggesting the firm maintains a thesis-agnostic approach focused on founder quality and mission clarity rather than sector concentration[4].
Underdog Labs operates within a critical gap in the venture ecosystem: the pre-seed and seed stage where most institutional capital remains scarce and founder support is most impactful. The rise of startup studios and hands-on accelerators reflects a broader market recognition that early-stage founders benefit more from operational guidance than from passive capital allocation.
The firm's dual geographic footprint—SF Bay Area and New England—positions it to capture opportunities across two distinct startup hubs. While the Bay Area remains the epicenter of venture capital and technology entrepreneurship, New England has emerged as a secondary hub with distinct strengths in healthcare, biotech, and enterprise software. This geographic diversification allows Underdog Labs to identify opportunities that might be overlooked by Bay Area-centric funds while maintaining proximity to the primary venture ecosystem.
The timing of Underdog Labs' model aligns with broader market trends: the democratization of startup formation (lower infrastructure costs, cloud computing, open-source tools), the rise of mission-driven founders, and the recognition that founder quality matters more than market size at the earliest stages. The firm's emphasis on "piercing vision" and long-term mission reflects a shift away from pure venture returns optimization toward impact-aligned investing.
Underdog Labs represents a maturing approach to early-stage investing—one that recognizes pre-seed capital is abundant relative to founder support and operational guidance. The firm's track record (19 investments with recent activity in February 2025, including a $6M seed investment in Keebler Health)[1] demonstrates sustained deployment and active portfolio management.
Looking forward, several trends will likely shape the firm's trajectory. First, the continued fragmentation of venture capital into specialized niches means boutique studios with deep expertise will outperform generalist mega-funds at the earliest stages. Second, the increasing importance of AI and deep tech will reward firms with technical founder networks and operational experience in complex domains. Third, the geographic expansion of startup ecosystems beyond Silicon Valley will benefit firms with multi-hub presence like Underdog Labs.
The firm's future influence will likely grow as founder-friendly, hands-on models gain credibility relative to traditional venture approaches. If Underdog Labs can continue converting early-stage bets into successful exits, the firm will become a template for how pre-seed investing should function—less about capital allocation and more about founder partnership and operational value creation. The 25-year relationship between the general partners and their demonstrated ability to build and scale companies positions them well to capitalize on this shift.
