Not all capital is equal.
Our entrepreneurial experience and operational involvement amplifies our investment's impact for founders.
B2B Enterprise Technology
Most of our investments reflect the background of the investment team: B2B software companies selling to enterprise customers. We're sector and vertical agnostic, and have invested in and scaled companies across a number of different domains including: healthcare, education, finance, and others.
Explosive Revenue Growth
After making an investment, our team's focus centers around turbo-charging our portfolio companies’ sales and marketing operations. We have a proven track record of successfully scaling B2B teams as entrepreneurs, and now aim to do so for our portfolio companies as investors.
Our goal is to provide targeted operational assistance in the areas founders feel they need the most help. We ask our founders to see us as an extension of their senior management or C-suite and hold us to certain expectations and responsibilities.
Pre-Seed through Series B
We invest in post-product, early-revenue companies and will write initial checks anywhere between $1M and $5M. We are often the first institutional investor and have the ability to continue investing through Series B and beyond.
US West Coast & Texas
Approximately 70% of our investments will be in companies headquartered in the US, based on the West Coast and in Texas, where our investment team is based. The remaining capital will be deployed opportunistically in deals that are strategic to the firm & our portfolio.
We invest broadly across technology and healthcare. Most of our investments reflect the background of the partner team: B2B Software and Enterprise Technology but thanks to a network of over 150 limited partners, other VCs, and ecosystem partners, all providing amazing deal flow, we've invested and scaled companies in healthcare, multiple technology verticals, and some tech-enabled services. We have both comfort and experience applying our experiences as entrepreneurs and investors in scaling B2B teams across industries.
Our team's focus (and strategic differentiation) is built around turbo-charging your company's sales and marketing machine directly following our investment. This usually means we'd like to see revenue generation of some kind. If you, as a founder, have managed to convince someone (or many someones) to buy your product or service, it means a market exists and the question then isn't if there is a market, but how big is it? That translates to having either existing revenue, paid pilots/POCs, or a large qualified pipeline backed up by data that stands up to scrutiny.
We like to invest early, usually before you raise a large Series A (though we'll look at those too). We will write initial checks anywhere between $500K and $5M depending on the round size, and aim to follow on (at least with our pro-rata) through your Series B.
While backing the right founders and companies is the goal, the (arguably) most important part of our thesis is what happens after the investment. Our goal is to provide very targeted operational assistance in the areas that founders feel they need the most help. We've seen past founders utilize our help in many ways, large and small. In some cases, we've gone as deep as hiring and spinning up the entire sales organization from 0 to 20 at various companies. We ask our founders to see us as an extension of their senior management or C-suite and hold us to certain expectations and responsibilities.
Our current $250M fund only plans to invest in 25 companies over its entire 12-year life, equating to just 5 companies per Partner based on our current team size. This means over 50% of each partner's time is spent helping founders grow and scale, as opposed to a hands-off or "show up to board meetings" approach. Because of this approach, we usually look to take higher ownership percentages in the companies we fund, to ensure our ROI is equitable based on time and money invested. A hands-on approach also means we look for more face-to-face work with our founders.
Given our team's home bases in California and Texas, we are looking to have 70% of our companies based between those states. In California, we typically look outside the SF Bay Area, candidly because there is plenty of capital waiting to be deployed there and valuation expectations reflect the excess capital and high cost of living. Why just 70%? Like any investor, we know we'll find exceptional deals outside our core thesis. We've invested in companies from India, Canada, Hong Kong, and other places around the globe (even San Francisco!), but the bar is much higher to get us comfortable with those deals.