About First Round Capital
First Round Capital is an early-stage venture capital firm. As seed-stage investors, we often provide a company's first outside capital – and typically invest alongside angel investors. Our typical initial investment in a company is around $500,000 – but we’ve gone both higher and lower.
We're not afraid of investing in pre-revenue companies, and we understand the challenges of launching a new product. That's why we like to take an active role in the companies we invest in.
Time is a priceless resource for every entrepreneur, so we try not to waste it. We operate as an entrepreneurial shop and make quick decisions: no investment committees, no months of negotiations. When we invest, we usually decide in days.
First Round Capital invests nationally and has offices in San Francisco, New York and Philadelphia.
What We Look For
- Your business plan is wrong. It’s a prediction of the future that is out of date as soon as you hit save, print or send. Things change. Competition. Timing. Costs. Pricing. We’d much rather invest in someone who can collect market feedback and adapt to change than someone who is convinced they can predict the future.
- We seek to fund companies that provide a unique solution to an existing urgent need. And we typically avoid companies that try to change consumer behavior or create a new consumer need.
- We are big fans of capital-efficient companies. Advances in software development (SaaS, OpenSource, Cloud) have made it much cheaper to get a company started. And that helps companies get to market – and succeed or fail faster.
- 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 internet-enabled businesses (both consumer and enterprise) with a clear distribution strategy. [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. But they also should be willing to say the words “I don’t know”.
- 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…And watch out for the Domino Rally Business Models.
- While we fund both beginner and repeat entrepreneurs, we have a bias towards 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.
