SaaStr Fund invests in 4-5 awesome B2B start-ups a year, generally in the $0.1m to $2m ARR range.

We are focused on AI-driven next-generation B2B leaders.

• $100k - $2m in ARR is our sweet spot. Before $10k MRR is usually a bit too early for us, and after $2m ARR or so is usually a bit late. Most Series A rounds are a bit too late for us, unless you’ve been capital efficient.

• We write first checks from $500k-$5000k.  Tiny checks are tough to do.  Checks larger than $5m generally require a co-investor of some form, but we can lead it.  We prefer to lead than follow.  Round sizes larger than $10m are tough for us to participate in.

• We prefer / are OK being the only investor in the round or even the company and do not require any social proof or any co-investors whatsoever.  We are also thrilled to be your first investor ever.  We make fewer, bigger, better bets.

• We don’t do small checks.  We prefer to lead or co-lead seed and late seed rounds, 2-4 a year ideally.  We don’t write $50k-$250k checks and we’re not looking for a high volume of investments.  Rather, we aim for a very high success rate of a smaller number of concentrated investments.

• We prefer Outsiders + Outliers.  Folks that didn’t go to Those Schools, or Work at That Hot Tech Company.  The ones that did it on their own, that earned it, and got to 10+ Unaffiliated Customers on their own.

• We prefer founders from more diverse backgrounds.  We’ve invested in founders from 12+ countries and prefer founding teams with significant gender and cultural diversity.  We believe this builds stronger unicorns.

• We are pretty good investors.  Our investments are at 10x+ over history, and 5/6 of our first seed investments become unicorns and decacorns .  🦄🦄🦄🦄🦄.  So we don’t sweat the small stuff.  And we want you to go big, the way you think is right.

• We aren’t a great fit if you’ve already raised a ton of money.  It’s hard for us to invest if you’ve already raised much more than $3m-$4m.  Not impossible, but harder.

• We want the founder/CEO to be the CEO forever.  We want to invest in founder-CEOs than want to run their companies forever.  50% of our bet is there.  

• We only do B2B/B2D/AI.  I.e., only business software, AI, APIs and tools that enable the building of software.  We don’t invest in consumer start-ups, or subscription services that have elements of recurring revenue but are not primarily software products.

• Pre-revenue is too early.  We can only invest if you have at least 10 Unaffiliated Customers, and ideally, $10k+ or more in MRR.

• We are happy to invest with startups based anywhere in the world (everything has flattened), but prefer folks that come to Bay Area at least a few times a year.  It does make it easier to meet, recruit, fundraise, partner, etc.  Even now.

  It’s your company.  

  When we invest, it’s up to you.  We hope you IPO and build a decacorn.  But wherever it takes us, as long as you do your best-est, we are there for you.  

  How we add value:

  • Find, attract and help build your first management team, especially VP of Sales and Marketing

  • Promote your company across the SaaStr ecosystem (1m+ followers, #1 in B2B, mega-events for 50,000+)

  • Find your next round investor for you (assuming you deliver the results).  If you hit your numbers, we will get you funded.  

  • Be your mentor and advisor forever.  This is half the fun.  Then, the day comes when you know more about B2B that we do, and that’s a good day.

  • Be someone you can trust.  Sometimes, that may mean the only one to share the truth.  But always honestly, and to help you do great things.