We are early investors, often providing the company’s first outside capital, and are not afraid of investing in pre-revenue companies.
Companies must provide a unique solution to an existing urgent need. We don't invest in companies which try to change consumer behavior or create a new consumer need.
We look for companies that are able to leverage advances in distribution, technology or marketing to change industry economics or invent a new business model.
We tend to focus on companies and markets where we have a strong experience base and ability to add value. Speaking broadly, this tends to focus us around technology-based, marketing focused companies – with an emphasis on consumer-facing business. [Note: We reject more deals for this reason than any other. We only invest in what we know -- and a rejection from us doesn't mean your business won't succeed...it just means we can't help it succeed].
Entrepreneurs must know what they are talking about – and have a clear understanding of their marketplace, their competitors and the financial dynamics of the industry.
We value simplicity and clarity – if it takes more than 5 minutes to get us excited about your business, you might be trying to do too many things…
Beginners make a lot of mistakes. We look for proven management, with emphasis on repeat entrepreneurs who are strong executors.
Too many companies treat marketing and sales as a tactical afterthought. We believe marketing is strategic and seek companies that are marketing focused – with marketing requirements driving product development.
We love investing in technologies and business models that are able to shrink existing markets. If your company can take $5 of revenue from a competitor for every $1 you earn – let's talk!
We tend to be active investors. We believe our insight and expertise are far more valuable than our capital – and we look for entrepreneurs who feel the same and want our help.
First Round Capital Invests In These Industries
• Business Products and Services
• Marketing / Advertising
• Clean Technology
• Media and Entertainment
• Computers and Peripherals
• Medical Devices and Equipment
• Consumer Products and Services
• Electronics / Instrumentation
• Networking and Equipment
• Financial Services
• Food / Drink
• Retailing / Distribution
• Healthcare Services
• Internet / Web Services
• IT Services
First Round Capital Invests In Companies That Have Reached The Following Milestones
Concept Only - $10M in Trailing 12 Mo. Revenue
Concept OnlyProduct In DevelopmentPrototype ReadyFull Product Ready$500K in Trailing 12 Mo. Revenue$1M in Trailing 12 Mo. Revenue$3M in Trailing 12 Mo. Revenue$5M in Trailing 12 Mo. Revenue$10M in Trailing 12 Mo. Revenue$20M in Trailing 12 Mo. Revenue$50M in Trailing 12 Mo. RevenueMore than $50M in Trailing 12 Mo. RevenueMore than $50M in Trailing 12 Mo. Revenue ►◄ Concept Only
First Round Capital Invests In Companies With These Funding Needs
Pre-money Valuation: USD3,000,000 - USD20,000,000
Capital Seeking: USD400,000 - USD20,000,000
Previously Raised: USD500,000 - USD1,000,000
First Round Capital Expects Their Investments To Generate
Expected Revenue By Year 5: USD50,000,000 - USD250,000,000