Flashpoint Venture Capital invests in Western Tech Companies founded by expats from Emerging Europe & Israel. By combining our capital and expertise with the vision and talent of tech founders we are always pushing for the next flashpoint.
Our sweet spot is business-to-business software-as-a-service solutions and business-to-consumer applications in the initial revenues stage (late seed-round “A”).
We are happy to learn about any innovative software solutions, even in pre-revenue stages.
Strategy
- Focus on late-seed and Series A stage companies, however could consider seed investments in areas of our sector expertise or with co-investors we know.
- The sweet spot is business-to-business software-as-a-service solutions, however, we also invest in compelling business-to-consumer applications.
- Our focus is on software or software enabled companies, but we could also consider “software-first” hardware businesses.
- Initial check size of US$1-4m, following up to US$15m over the life of our investment.
- We are seeking 10-20% stakes with Board roles to enable our value-add.
- We are sector and business model agnostic.
Investment criteria
- A team of expert founders having achieved good initial traction (US$50-200k MRR) and tackling a sizable problem.
- Compelling product with sticky customers and low/negative churn.
- Business models with solid economics and LTV/CACs above 3x.
- Scalable sales/marketing channels, either inbound or outbound.
- First-mover or other lasting competitive advantage.
- Time horizon to potential exit is not a major consideration.
Investment process
- We like meeting companies early on in their development. Even at that stage before we invest, we could be helpful with our network or professional advice.
- We apply a structured analytical approach to evaluating the company. We are always interested in learning more about financial and operating metrics.
- Our investment terms are company friendly and could be tailored to particular needs and situations.
- Post term sheet signing we have a standardised due diligence process across main business areas – business, tech/intellectual property, finance, legal, tax, and others.
- From term sheet signing to closing a transaction the process can take one or two months depending on the speed of the company in assisting in the due diligence process.