Most large, traditional VCs prefer startups with a somewhat proven model that has clear "home run" exit potential. Our focus is different. We prefer startups that haven't achieved product-market fit and we're happy with "base hits".
At RSCM, we focus on funding startups in what we view as the most underserved segment of the ecosystem. We make 75 - 100 investments per year in companies that:
We strive to give entrepreneurs a firm YES or NO in less than 2 weeks.
We don't like deals where a $40M exit would be considered a failed investment and most of the money goes back to investors through liquidation preferences. We do like deals where a $40M exit is a life-changing financial event for the founders and investors realize great returns.
To ensure we reach a highly diverse population of founding teams, we work with a wide variety of high-quality channels such as TechStars, AngelHack, Founder Institute, angel groups across the country, and other thought leaders in the startup ecology.
Blog post summarizing our investment approach
Blog post that tracks current volume of seed dollars in the US
Blog post showing that data argues for targeting small M&A exits
Our review of the relevant academic research on volume
Shows job growth would be negative without startups
Reveals the impact of highly unlikely events