Excited to see the announcement about Jeff Clavier and SoftTech VC's new $55MM fund. Their track record has been impressive by any standard. Companies invested in include Mint, FitBIt, Get Satisfaction, EventBrite, Fab, SendGrid, and many more. Their companies have been acquired by AOL (3x), Groupon, Twitter, Intuit, and others.
Recently I sat down with Jeff and we talked about the steps required to get an investment with SoftTech VC. Here are some notes and boxes to check off if you're trying to get some of that hot new money:
*They only make 1-2 investment each month. Considering they see tens of thousands of companies each year, odds to start aren't great.
*They have never invested in a cold email. With 7-years under their belt, that's pretty telling. All of their investments come through people they trust. Ideally it's a highly respected product-centric entrepreneur they have invested in, or another angel or VC that has a great track record.
*If they get interested in your company you will go through an interview process that will include Jeff, Charles (other partner), Stephanie (Senior Associate), and several entrepreneurs or market leaders that give their opinion on the team and the product.
*As they progress through due diligence, they review on Fridays which companies they have been meeting with and how it's progressing.
*At the end of each month, if ALL the partners agree on who are the best 1 or 2 companies that they saw they will invest. They must have 100% partner acceptance on the companies or they do not invest.
*They can invest very quickly. Investments can be made as quickly as under a week from start to finish if the deal is hot or they're really interested and are compatible.
*They invest for at least 5% of the company, or if they lead the funding round they will invest 10% into the company.
*If SoftTech VC extends a term sheet, almost every startup ends up taking the investment. They have 1-2 companies every year that pass on their investment. If you were dating, that ratio would put you into the Don Juan category of investors.
*While this might not surprise you, they have never paid the investment an entrepreneur in cash or unmarked bills. (see the funny exchange at the 34 minute mark).
Our full interview from last November is below. Overall we're excited to see what products come out of this next fund.