6
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

CNET News Video: Upstart.com: A kind of Kickstarter for college grads

About Video Transcript

CNET News Video: Upstart.com: A kind of Kickstarter for college grads

2:21 /

In this tough job market, one Silicon Valley startup wants to give recent graduates money so they're not looking for jobs, instead they're creating jobs. As CNET's Sumi Das explains, the idea behind Upstart.com is for investors to invest in a person instead of a company.

-One day, a huge amount of money just was deposited into my personal bank account. -Stanford Business School grad, Ian Shaquille, received that stash of cash. Thanks to Upstart, a new crowd funding platform which he used to share his dream of creating a medical lab. -And now I feel ready to set out on my own and found my own company. -Upstart is similar to Kickstarter, but instead of funding projects, backers fund people. -We actually need more people early in their career taking risk and trying to create jobs rather than just take jobs. -Former Google employee, Dave Girard co founded Upstart to connect investors and recent graduates in fields from Engineering to Art. -If you back somebody in Upstart, you actually receive and return a very small share of their personal income over 10 years. We actually have created the algorithms that will statistically predict somebody's income. -How does Upstart spot a potentially good investment? -We look at signals in someone's history as to their potential. So we look at the schools that they went to and we look at what they studied, what their grades were, their standardized test scores. We see what other job offers or internships they had. -There's no guarantee of funding. Graduates have 60 days to raise a minimum of $10,000. Half of the 80 individuals on the site have been successfully funded. Fewer than 10 have failed. So what convinced people to back Shaquille? It might have had something to do with his plans to create a health care app for Google Glass. -Magnetics-- -I have 32 angel investors through Upstart.com and I wouldn't wanna have the same background checks and conversations with each one of them. Upstart sort of serves in the clearing house. -With the funding, Ian's company has grown to 10 employees. But that's not the sole benefit. -We've been, you know, heavenly calling upon our Upstart backers to make sure that we can learn from their lessons and get things right, and legally another [unk]. -Shaquille says investors are keen to investing musicians and artist, not just techies. -And it just opens doors to say that this folks have our back, our mentors. It gives us a lot of credibility. -And yes Shaquille says, it also adds some pressure but that may just motivate him further. In Palo Alto, California, I'm Sumi Das, CNET.com for CBS News.

New releases

The tiny Samsung Portable SSD T1 pack a crazy punch
1:59 January 23, 2015
CNET editor Dong Ngo shares some of his inspiring thoughts with the one-of-a-kind and totally awesome Samsung Portable SSD T1 driv...
Play video
'Star Wars' supercut shows every GUI in the 1977 film, Ep. 189
4:24 January 23, 2015
This week on Crave get a glimpse of the future with drug-trafficking drones, a solar-powered plane circling the globe and Russia's...
Play video
This costly cooker is a culinary master
1:48 January 23, 2015
Replace your current stash of small appliances with the $299 Instant Pot Smart.
Play video
You built a time machine... out of a rice maker?
1:47 January 23, 2015
It won't send you back to the future, but the Tim3 Machin3 from 3 Squares will cook rice and quinoa quickly and automatically.
Play video
Netpicks: What to watch this weekend
1:53 January 23, 2015
For a really, really limited time Amazon is giving away its award-winning show, Transparent.
Play video
Panic sweeps nerd nation over Apple Watch battery life
3:00 January 23, 2015
The Apple Watch battery may not be as magical as some hope, T-Mobile will look past customers' bad credit scores, and more electric...
Play video
Wink Relay smart home control pad falls short of its potential
2:28 January 23, 2015
The benefits of an in-wall smart home control panel seem obvious, but too many limitations and still in-development features hold this...
Play video
NHT SuperBuds: $99 in-ear headphones won't get you high, but they go low
1:39 January 23, 2015
The cannabis-themed SuperBuds are a well-designed and affordable earphone geared toward those who listen to bass-centric music
Play video