Ideas stage

Execution >>> Ideas

We do not generally invest at this stage. We believe ideas are overrated. We believe execution is everything. We believe an average person will quit at the idea stage. If you are a founder - form a team, build a product and launch. Once you have a product, you will get a much better valuation and less dilution in the market.

Seed-stage and Series A Investments

Venture Capital = Human Capital

We like to take risks with founders at the seed-stage. With bets up to $100,000 per investment with other investors. At this stage we like to see a strong founding team, ideally 3 co-founders specialized in technology, product design and growth marketing. We are looking for initial traction, typically $5k to 10k MRR for SaaS. Our terms for the investment requires information and pro-rata rights. Information rights allow us to monitor the evolution of the business model, and validate product-market fit. Pro-rata rights allow us to maintain a certain percentage of ownership in follow-up investments in our winners.

We move fast and generally hands-off unless you need advise or resources from us. We see ourselves as the mission control centre. As the founders, you are the pilots that need to make the minute-to-minute decisions.

Seriers B + Investments

Power law = Risk Adjusted Returns

At this stage the typical investments are typically $1-2.5m at a $50-100m valuation. We will either be part of a syndicated deal with other investors or sit back and watch the company fire its second stage rockets and leave for orbit.

Early Exit

Predictable profit = Net Present Value

Vest majority of technology start-ups exits before going public. Either growth has plateaued after a few years or the company is bought or sold (yes there is a big difference). It’s not what we hope for but that’s ok. First stage booster can now have safe re-entry and salvage some value.

If  your company has 3-5+ years of operating history, minimum $250k/year in annual profit, and a high quality team in place, we’ll put an offer to buy your company only if you want. We like simple internet businesses that have high margins, runs on off-the-shelf technology platforms, and have loyal customer based.

IPO

Time = Opportunity Cost 

We expect all our investments to reach orbit and go become unicorns. However, we know < 1% will make it. Recently successful companies are going public earlier via SPAC. This is both good news for investors to have quicker exits and move on to the exit big thing. It is also good news for founders reaching this level of success and take some life changing chips off the table. You earned it.