
What We Look For
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Passionate & Experienced Founders
We look for passionate founders with deep experience in industries or verticals they are serving. Teams with full-time founders who have invested their own cash and have a track record of success are attractive. We want our founders and key-execs holding over 70% of the company equity before a series A investment.
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Large Total Addressable Market
The startup must have a significant market opportunity we assess the probability for the company value to increase 3X in 12-18 months and 100X during our holding period. This target often needs firms selling on a national and/or international scale.
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Tech Mega Trend Focus
80% of our investments are in media tech, 5G IoT, artificial intelligence, data analytics and business intelligence, B2B SaaS, proptech, edtech, adtech, and enterprise software.
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Significant Problem or Opportunity
We look for shark-bite rather than mosquito bite problems when we consider the impact on customer costs or revenue. How painful is the pain solved by the solution? We often focus on the tech trends with a potential of 300 deals annually from our network.
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Stage & Traction
We invest in early-stage SaaS companies (or companies with a similar margin/recurring revenue model) typically in Seed or Series A funding stages. We focus on companies that are generating $150K - $2M ARR.
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High Gross Margin
We invest in fast-growing tech companies that have compelling competitive advantages with gross margins above 75%. Because of these criteria, we prefer technology-focused businesses.
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Capital Efficient
After we invest, we expect our companies to have 12-18 months of sufficient runway before they need any additional capital.
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Valuation and Terms
We typically invest in companies valued in the range of $5M - $15M. We expect pro-rata rights & information rights even when signing SAFEs or convertible notes. QSBS reporting may also be required.
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Viable Exit Strategy
We expect an exit within 7-10 years via IPO, SPAC or acquisition.