Question 1

Do you lead rounds?

Accepted Answer

No, we invest alongside other VC funds and angel investors. Once we commit to founders we make introductions to other potential investors.

Question 2

What stage do you invest?

Accepted Answer

We are early-stage investors and mostly invest out of our fund in pre-seed, seed and series A rounds.

Question 3

How much do you invest?

Accepted Answer

Our typical intial fund check is $25k-50k and we often follow on with $50k-100k checks in the following round. We also have one of the leading syndicates on AngelList with over 1200 LPs, and will create special purpose vehicles (SPVs) for portfolio companies where we invest an additional $50k-$1M per deal, with our average check around $150k.
We invest primarily in US-based companies, but are open to investing in Candian, Israeli, and UK incorporated startups, and European and Latin American startups providing they are C-corps incorporated in Delaware.
 
Feel free to DM us on Twitter or Linkedin, or even better, get an email introduction from someone in our network (ie one of our founders or friends in the venture capital or angel investor community).

Question 4

Do you invest internationally?

Accepted Answer

We invest primarily in US-based companies, but are open to investing in Canadian, Israeli, and UK incorporated startups, and in European and Latin American startups providing they are C-corps incorporated in Delaware.

Question 5

How do I pitch Founders First?

Accepted Answer

Feel free to DM us on Twitter or Linkedin, or even better, set an email introduction from someone in our network (i.e. one of our founders or friends in the venture capital or angel investor community).

Question 6

What does Founders First look for?

Accepted Answer

We are primarily focused on finding incredible founders who are high-capacity, relentless, creative, and team-oriented. We look for demonstrated qualities in the founders' previous startups and/or work/life experiences. Because we don't lead rounds, we care a lot about round construction (co-investors and price) and will dive into your product, market and traction to date. Above all, we want to feel that this "could be big" and that the founders are people we believe in, and with whom we'd like to build long-term relationships.

Question 7

What VC firms does Founders First co-invest with?

Accepted Answer

Too many to list here, but some of the better known funds include: A16Z, AVP, Benchmark, Coatue, Founder Collective, General Catalyst, Greycroft, Kleiner Perkins, Left Lane, NEA, Primary, Resolute, SV Angel, Sequoia, Upfront.

Question 8

How long is your investment process?

Accepted Answer

We know firsthand how frustrating fundraising can be, so we try to be extremely direct, and to move quickly on making an investment decision. We are set up for speed: we have no partner meetings, and generally make commitments to invest or not within a week (if not days) of your initial pitch.

Question 9

Does Founders First take board seats?

Accepted Answer

No, we don't require board seats. However, we want to help at key points in your startup's journey, and aspire to be your first call when you set out to raise a new round, make a key hire, engage in M&A, or just need friendly advice or a pep talk.

Question 10

How does Founders First create alignment with Founders?

Accepted Answer

We are very intentionally constructed to maximize alignment with our founders and our limited partners. On the founder side, we create alignment by: 1. investing very early (so we are happy with modest outcomes if our founders want to sell early), 2. investing by small checks ($25k-$100k) to enable our founders to make room for other helpful investors, 3. by having a follow-on SPV to invest larger amounts, up to $1M, if helpful for the company, 4. by not taking board seats, 5. by always putting founders first.

Question 11

How does Founders First create alignment with Limited Partners?

Accepted Answer

We believe that putting founders first in all our decisions is not only the right thing to do, but also "good business."  By earning our reputation as an incredibly loyal, supportive, and helpful partner to our founders, our LPs benefit through us receiving tremendous deal flow from founder referrals and access to initial rounds when our founders start their 2nd and 3rd companies. In addition, we are set up to create maximum alignment with our LPs by 1. having our GP commitment be among our funds largest investments, (we have skin in the game), 2. by having no fees (we only make money if LPs do, by taking 20% of the profits we make for them) and 3. by providing our fund LPs with priority allocation in our follow-on SPVs.

Frequently asked Questions