Former Amazon leaders are leveraging their experience at the tech giant to help launch new companies at Jelly Collective, a startup studio in Seattle. Founded by Stacy Saal, an Amazon veteran, Jelly aims to support early-stage startups and reduce risk for entrepreneurs by testing different startup ideas before spinning out full-fledged companies. With a small internal team, Jelly embodies Amazon’s customer-centric approach, emphasizing problem-solving and product development. The studio’s staff, including Lauren Cappell, Garth Mader, and Sara Otepka, bring a deep understanding of Amazon’s culture and values to their work at Jelly.
Jelly’s network of advisors, many of whom are current or former Amazon employees, adds further value to the studio and its spinouts. The company’s first spinout, Para Home Services, recently appointed Ben Spencer, another ex-Amazon leader, as its CEO. Saal’s experience at Amazon and subsequent roles at various companies inspired her to create Jelly to support women and non-traditional entrepreneurs in the startup ecosystem. The studio plans to recruit both outside entrepreneurs and its own staff to run spinoffs across industries such as consumer tech, health/wellness, and enterprise software.
While startup studios like Jelly provide valuable support to early-stage companies, some critics argue that they take too much equity in their spinoffs. Saal did not disclose the specific equity breakdown for Jelly’s spinoffs but mentioned that equity distribution would likely be split equally between external investors, employees, and Jelly itself if a spinoff raises outside investment. With a focus on building durable, high-performing companies that prioritize customer satisfaction, Jelly aims to create long-term value for its spinoffs and their stakeholders by being capital efficient and fast-moving.
As a self-funded organization, Jelly has not sought external investors for its operations or spinoffs. Instead, the studio recently launched a rolling fund on AngelList to raise capital as needed. Saal emphasized the importance of building quickly and efficiently, reflecting Jelly’s disciplined approach to company building. The studio’s roster of advisors includes former Amazon executives, as well as industry veterans from companies like eBay and Staples, who bring a wealth of knowledge and experience to support Jelly’s mission and the success of its spinoffs.
In conclusion, Jelly Collective represents a new wave of startup studios in Seattle that leverage the expertise of former Amazon leaders to support the next generation of entrepreneurs. By embodying Amazon’s customer-centric values and problem-solving approach, Jelly provides a unique opportunity for early-stage companies to thrive in a competitive market. Through a combination of internal talent and external advisors, Jelly is well-positioned to incubate successful spinoffs across various industries while prioritizing customer satisfaction and long-term value creation. With a focus on being capital efficient and building fast, Jelly aims to create a supportive ecosystem for startups and entrepreneurs to thrive and succeed in today’s dynamic business landscape.
