Our “lean in” investment approach has three stages:
In Stage One, we lean into a company with a small investment, sometimes only $10,000 to $15,000. These investments are typically designed to help the company overcome a specific, identifiable marketing or sales challenge, or to prove-out an opportunity.
If we determine that progress was made with the original investment–and the management team is coachable and the potential warrants it–we “lean in” further with a second investment is made. This investment might be in the range of $50,000. At this time, our growth team works closely with the company to unlock its full potential.
STAGE THREE AND BEYOND
It’s Angel Round time! At this point, we feel very comfortable with the company and its potential. We offer to lead the Angel Round, but never fully fund it ourselves. The willingness of others to invest along side of us is an important stamp of approval from the marketplace.
Beyond Stage Three, we look hard at investigating partners in foreign markets, and helping the management team execute the investment strategy and plan. Getting the portfolio company to $1 million in sales per month is an important milestone, but the real key is to get to break even so that the firm can be sustained without an expensive Venture Capital Round.
Throughout the process, we align our interests with our portfolio partners’ – We encourage the Founders to broadly distribute equity to their key team members.