We get involved early, invest early, and lean in hard.
FoundersPad is a seed stage venture fund with a mentorship program that drives enhanced value to entrepreneurs and deep due diligence for fund investors and partners. We are currently gearing up to invest out of our second fund.
Our investment thesis is to engage with a company in our formalized mentorship program and quickly follow-on with investment. We are often the first professional capital that is received by a company.
We are looking for opportunities that meet the following criteria:
Companies that can exhibit optimal metrics for capital efficiency, which often means they are realistically and effectively scale in 3 (or less) traunches of financing.
Realistically achievable revenues of at least $10 million within 3-5 years.
Emphasis on Pacific Northwest and West Coast at large.
Typical Engagement Timeline
Months 0-1: Initial due diligence, getting to know the founding team, the product and the market.
Months 1-2: Mentor team vetting and interviews. Creation and proposal of 18 month scope of work.
Months 3-18: Mentor team engages and kicks off. We typically see tweaks to financials, sources/uses of capital and strategy as the mentor team digs in. The mentor team works with the company on a weekly basis. A majority of the mentor team’s work is typically front loaded to the first 6-8 months.
Months 3-6: FoundersPad invests our first check.
Month 18: Official mentoring program ends, however mentors typically stay connected and involved in supporting the companies for the long term.
Months 18-36: FoundersPad can provide follow-on financing for subsequent rounds of capital.
Favorable Terms, High Value Engagements.
Our focus is on quality over quantity. We prioritize companies that our core team and mentor roster can make a meaningful difference in within 18 months or less. If we cannot create a mentor team with an extremely high value to the company, we will not engage.
Our mentor engagement and investments are on fair terms with total transparency (when your term sheets are clean, there’s nothing to hide). All companies are different. We are flexible on terms based on your needs. Mentor teams are incentivized and compensated for their 18 months of work with a warrant option, and we typically invest on a convertible note.
Current Focus Areas
- Machine Learning/Artificial Intelligence
- Bioanalytics/Healthcare IT
- Enterprise Software
- Consumer Technology
- Lifestyle Apparel and Products