Join us for the 25madison summer rooftop mixer on May 20 (request an invite)
In a startup ecosystem increasingly bifurcated between builders and backers, 25madison is doing both.
Founded five years ago as a venture studio, 25madison has since evolved into a hybrid platform—part company incubator, part institutional venture fund. The firm is carving out a distinctive niche by targeting overlooked, "archaic" markets and partnering with founders to bring software and AI-driven solutions to industries that have been historically slow to digitize.
We sat down with Sanford Spivey, who leads the firm's Evolve Studio, and Jaja Liao, who invests in early stage companies for the 25madison Ventures Fund to unpack how this model works—and why it's producing breakout startups on both sides of the table.
A Studio Born for Archaic Markets
At the heart of 25madison’s studio strategy is a focused thesis: build venture-scale businesses in sectors other investors often ignore—manufacturing, franchising, restoration, professional services. These are markets with outdated workflows, untapped data, and high human-labor costs.
“We’re looking for overlooked customer sets, unique datasets, and manual processes that are ripe for AI transformation,” says Sanford. “We partner with founders early—sometimes before the idea exists—and co-build alongside them.”
The studio team is composed of product builders, AI engineers, and designers who help launch startups in under a year. A standout example: Rebuild, a home restoration platform born from a studio team member’s field research with a PE-backed services company. From idea to revenue in 9 months, Rebuild has since raised a $2M pre-seed and is scaling fast.
A Venture Fund with a Distribution Advantage
In 2022, 25madison launched a separate fund to invest in pre-seed startups outside the studio. This wasn’t just a natural evolution—it was strategic.
“As our studio-born companies matured, we wanted to double down on winners,” says Jaja. “But we also started seeing high-quality external startups we wanted to back.”
Today, the fund invests $500K to $2M in pre-seed B2B SaaS companies across fintech, healthcare, and supply chain—categories where 25madison’s LP base, often tied to private equity firms, creates a unique go-to-market advantage.
A prime example: Paxton.ai, a legal AI assistant for small law firms. The fund backed the company when it was still an MVP. Within months, Paxton hit $2M ARR, raised a seed and Series A, and is now aiming to transform legal ops for SMBs.
A Thesis That Bridges Builders, Backers, and Distribution
What makes 25madison different isn’t just the dual structure—it’s how both sides are aligned around the same playbook:
Focus on archaic markets that others overlook
Tap into PE networks for distribution and early enterprise customers
Support founders with deep product and AI ambition
Help portfolio companies land first enterprise contracts via PE partners and portcos
This integrated approach has also shaped their LP base, which includes investors with private equity roots who open up channels to legacy industries—often the exact customers these startups aim to disrupt.
Want to meet the 25madison team? Lynx Collective is hosting an open house rooftop mixer with the 25madison team on May 20 (request an invite here)
Upcoming Lynx Collective Events
$50k AI Pitch Day - Apply to Pitch -> Application link - Deadline to apply: May 15
Note: Early applications will be prioritized for consideration.
May 15 - AI Builders Lunch w/ Next Wave NYC
May 20 - Rooftop Mixer with 25Madison: Founders, Builders & Fresh Ideas
May 22 - NY Vertical AI Summit
June 2 - $50k - AI Startup Pitch Day - NYTechWeek
June 12 - Inside: Union Square Ventures
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