We prefer to begin investing in a startup at pre-seed stage. These are some of the characteristics of a pre-seed tech startup:

  • Team has built a prototype-stage product almost ready for customers, or a beta-stage product in hands of early test customers
  • Business is earning early revenues or pre-revenue
  • Small team, not yet drawing market salary
  • Simple cap table with founders and friends/family
  • Accepted into an accelerator program or a great candidate for an accelerator program
  • Seeking capital to continue product development, key team recruitment, testing sales and marketing channels

After making a pre-seed stage investment, if the startup meets its goals, we like to make follow-on investments at seed stage and at Series A stage.