Our Investment Criteria
We partner with entrepreneurs who truly stand out as business builders, bringing deep domain expertise, an innate understanding of the problem they are trying to solve, and the potential to credibly scale a business to $20 million or $50 million or $100 million of revenue – or beyond.
We are in our fourth fund committed to early stage investing because we believe this is where we can make a difference. We partner with post-revenue companies (typically with a revenue run rate of $500,000 to $3,000,000) and prefer to invest in the first institutional round.
We target business-to-business (B2B) software, data, and technology enabled services companies.
We believe the Eastern U.S. is a great place to build a B2B software company given the depth of talent and concentration of potential customers across all major industry segments.
We look for businesses that bring disruptive innovation, rather than step change improvements, to sizeable markets in excess of $500 million, with an opportunity to build a long-term competitive advantage.
We prefer businesses with product-based recurring revenue models and are especially attracted to companies where differentiation extends beyond a short-term technology advantage.
We tend to partner with entrepreneurs who treat every dollar as if it’s their own and who think carefully about raising capital – both the timing and the amount – to optimize for success.
We prefer to lead or co-lead a company’s first institutional round and will typically invest $1-4 million initially as part of $2–7 million capital raises. We typically reserve 1-2x our initial investment to support future rounds of financing.