When we reach out to new companies, we often don’t know much about them: just signals that indicate they’re on a good path. And they have strong founders. There are many ways to build a business, and whatever path a company takes is fine by us. But there are certain characteristics that indicate a reasonable ‘fit’ for what we’re seeking when we get in touch with you.
Here’s our attempt to articulate what a fit might look like.
| Preferred Profile… 🌟 | Less preferred…. 😕 | |
|---|---|---|
| Growth | 🚀 80% + annual growth 💰 $5k+ monthly new MRR | 🐌 ~30% annual growth 📉 $1-3k monthly MRR |
| Efficiency | 📈 75%+ gross margin | 📉 Low gross margin |
| Product | 😍 Loved by customers 🔑 Mission-critical 🔄 100%+ NRR | 🤷 “Nice-to-have” 🚪 High churn (5%+ pm) |
| Revenue | 🔁 80%+ recurring revenue 🚫 Minimal services | 🛠️ Service-heavy 🎭 One-off transactions |
| Other | 💎 Minimal debt 📊 Clean cap tables 👑 Large founder ownership 📈 Natural acceleration 🤝 High-integrity founders | 💸 Capital intensive 🔥 High burn ($400k+ pm) |
We don’t need all these things, and we’re infinitely inquisitive. But this should provide a sense of what we’re looking for when reaching out to you and should be a good place for you to assess if there’s likely to be a fit.
One last thing, as a fund we only invest in a limited number of startups each year. While we want to get to know you and your business, it’s not possible for us to invest in every great company we see.
Look forward to hearing from you.
Zac & Matt