INVESTMENT SPECIFICS, IDEAL STAGE, & CRITERIA:
We invest in 4-5 up-and-coming SaaStr companies per year. Our typical check size ranges from $1m to $5m per deal, with some seed checks of $250k-$750k.
We only invest in founders that are part of the SaaStr.com community.
Generally speaking, our ideal investment is "late seed" stage -- with somewhere between $10k and $100k in MRR, a great CEO ... but often little more. We will take 100% management team risk. We are OK if you are just figuring out sales, and your lead conversion rate isn't great. We generally prefer if the CEO is located, or at least moving to, the SF Bay Area, but having the rest of the team anywhere else in the world is a geographic risk we like to take.
We do not seek out or require "social proof" when we invest. We are 100% fine being the only investor in the round, and the first investor ever. We enjoy co-investing with other great SaaS VCs, but we don't require any one else to validate our investment thesis.
50% of our bet is in the CEO, 50% is in the market and early traction. We only bet in CEOs we believe will go the distance, and take the company to $100m ARR and beyond ... or wherever the future leads us. We will not invest in any company where we don't 100% believe the CEO is simply amazing. We are betting on you.
N.b. on investment stage: Once you are seeking to raise $10m or more, it's generally too late for us. We are a Late Seed fund, not a "Series A" fund (these terms for stages of investing have gotten more and more confusing of late). If the company has not raised capital before, however, we may be a good investor for some of these rounds.
Board seats: We are "board agnostic". We do not enjoy sitting on boards or being professional board members. However, generally when a start-up raises millions (vs. hundreds of thousands), someone representing capital needs to be on the board. If we are the largest investor, that generally ends up being us and we are happy to do so. If we aren't the largest investor, we prefer the largest investor to play that role. Ideally, when we do serve on boards, we transition out by $10m in ARR to a role of an advisor and friend. By that point, the padawan has become the jedi. We are better off helping with PR, recruiting, promotion, etc. at that stage.