We typically build our position over several rounds, with a bigger percentage geared toward a company’s first and second rounds. Percent allocation is dependent upon many factors, although we usually target an initial investment range of 1-5% of the Company. First round investments are mostly driven by 1) How innovative is the idea 2) How big is the idea and what is the company’s potential over the next 5 years 3) How impressive is the founding team and what is their ability to execute and manifest 4) What does the overall team look like 5) Valuation and deal specifics of the round 6) How much future capital will it take to get to escape velocity
Second rounds and beyond: 1) At this point, has the company found product market fit and how is the market responding 2) How is the company executing and manifesting 3) How close is the company to break-even cash flow 4) What is the projected revenue ramp and is it reasonable and achievable 5) Valuation and deal specifics of the round
How we like to help:
From our experience, the last thing any founder wants is overly demanding investors. We try to make every effort to stay out of the way and let the team manifest. Nevertheless, if the team needs our help our door is always open. We can be most helpful in helping founders think about deal structure, investor introductions and overall strategic thinking.