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Seed Round Capital makes early-stage venture capital investments of $50k-$150k into fast-growing pre-seed and seed-stage startups that have found product-market fit and initial traction. We share deal flow and often co-invest with our network of Angel investors, and Venture Capital firms.
SRC has over 65 LPs and we are organized as an Angle Group that makes investments through an LLC as one name on the Cap table. We are organized as a fund-less investor, allowing our LPs to select and choose in which deals they would like to invest. Our group's average check size is $100k, and we have made over 30 investments since organizing in 2021.
We have 650+ VCs and accredited investors that subscribe to our deal flow updates. We collaborate and co-invest with a number of these small to mid-sized, and micro Venture Capital firms. We send monthly emails to these VCs to showcase the companies in which we plan to invest. We encourage direct investments from our co-investor community.
We evaluate over 100 companies a month any typically select 2-3 that we invest in and share with our LPs. We invest via a special purpose entity (SPE), structured as an LLC. We hold the securities issued in the SPE. The structure of the SPE is such that capital gains and any passthrough income flows directly to the LPs.
Member LPs pay an annual fee which covers the group's legal and accounting fees for filings, K1s, etc. Our typical carry is 5% (after investor capital is returned) which is shared with the person that sources the deal and assists with diligence.
Seed Round Capital is a member of the Angel Capital Association. The ACA offers resources including investor development tools for every skill level, collaboration and networking, the most current verified and validated angel investment data in the market today and ongoing advocacy efforts on behalf of the angel investment community. Each member of Seed Round Capital's Angel Network is invited to take full advantage of their ACA member access and stay on the forefront of the early stage investing trends.
If you are an accredited investor and would like more information about joining our investment network please email invest@seedroundcapital.com.
We typically invest in companies that meet the following criteria:
- A Product in Market: We like to see three months of revenue or user growth.
- Current Traction: $5k+ in monthly recurring revenue, or +/-$100k in annual revenue, and 3+ paying customers.
- Current Round Size: $500k - $2.5M total. (We focus on pre-seed and seed round investments with occasional Series A rounds.)
- Post-Money Valuation: $8M or less. (Above $8M requires demonstrated traction and growth.)
- Prior Funding: Less than $750k in prior outside investment.
- Startup Categories: We focus on tech and tech-enabled businesses, and avoid highly regulated industries that have a long sales cycle or are capital intensive. (We target startups that are doing real engineering and are capital efficient.)
- Founder and Team: We like to see at least one full-time founder working in the business, with other full-time employees or contractors on the team. Two or more full-time founders is preferred. (We like teams.)
- Growth Opportunity: We target business models that can scale to $100M+ in value.
- Location: Although we are based in Houston, we work with startups throughout the USA, mainly between the coasts. (We require a US C-Corp.)
- Monthly Stakeholder Updates: We love to see at least two to three monthly stakeholder updates before we invest. We like to see companies executing on their plan over time.