Making an investment decision is an inexact science and some say the earlier the investment the more inexact the science. However, there are a number of key questions we ask to inform our decision:
- What problem are you solving?
- How does your solution and technology work? Is it innovative and difficult to replicate?
- Why is your team best positioned to build this company and why now?
- Who are your competitors or likely competitors? What are your competitive advantages and barriers to entry?
- How big is the market?
- How do you make money?
- What is your go-to-market strategy?
- Who will buy your company and for what reason?
- How much money are you raising and what are the questions you are looking to answer for your next investors?
We prefer technology-centric Internet start-ups but they can be across a variety of sectors.
- Digital media
- Online advertising
- Software as a service (SaaS)
- Web X.0
In some sectors we are less able to add value and thus are less interesting for us:
- Green technology
- Original content businesses
- Service businesses
We use these criteria to determine if a start-up is a good fit for our fund:
- Funding stage: Seed- or early-stage. First or second money invested. Will lead or co-invest with Angel investors and other VCs.
- Investment: up to $1,000,000. Total round sizes up to $1,500,000. Participate in follow-on rounds.
- Funding mode: Preferred stock only. No convertible debt.
- Geography: Northeastern United States, preferably along the Boston to Washington, DC corridor. (This isn't completely arbitrary as we believe there is a correlation between proximity and value add, especially at the early stages.)