What We Invest In

Asif Khan

What We Invest In

What We Invest In

At Las Olas Venture Capital, we often speak with founders and investors that ask us what we look for in the companies we invest in and how we structure those deals. The purpose behind this post is to clarify the initial framework that we benchmark potential investments against and share details on how we invest.

Investment Criteria

1. Business Model: We invest in companies with B2B business models. We’ll occasionally invest in B2B2C business models as well, but only when the B2B component drives sales. Our reasoning for focusing exclusively on B2B businesses stems from our deep operational expertise in scaling these types of companies and our conviction that there exists a unique market opportunity for innovation within the enterprise.

2. Stage: We are early-stage investors, laser-focused on investing at the seed stage. Not only do we find excitement in working with founders with new and unique asymmetrical insights into specific industry problems, but we find that our strongest value-add comes from working with founders early on in their company-building process.

3. Sector: As software-focused investors, we target investments in vertical SaaS, software-enabled marketplaces, and knowledge worker tools. That means that in addition to not investing into consumer-facing technology, we won’t invest in hardware or service-based businesses. We also won’t invest in certain industries, like biotech, that require a deep technical background and expertise to develop strong conviction.

4. Traction: Our seed investments typically have early signs of product-market fit, which may manifest as strong early revenue figures ($15K-$75K MRR is our sweet spot), consistent user growth, expanding accounts (net revenue retention exceeding 100%), or a variety of other ways.

5. Geography: We target investments in US-based companies outside of the West Coast. With the digitization of work and the growing proof that entrepreneurial and technical talent exists everywhere, we believe that there is a growing opportunity for disruption beyond traditional tech hubs.

Investment Structure

With Fund II, Las Olas Venture Capital seeks to initially allocate anywhere up to $2MM into our investments, with another $2MM reserved per company for follow-on financing into subsequent funding rounds. As low frequency and high-conviction investors, we usually lead or co-lead rounds and take board seats in order to work closely with founders as they scale their companies.

To Summarize:

LOVC is a seed-stage lead investor VC firm. We typically invest up to $2M in seed rounds of B2B software companies and then work closely with the founders to get them to the next level. We believe there is a new generation of B2B companies that are emerging out of places that are largely ignored by traditional venture capital, and that this is a global phenomenon driven by the mass digitization of industries. We aim to be the partner of choice for those founders.

How To Connect

While a referral from someone we know may expedite the investment process, we welcome the opportunity to hear from founders that are building a company that fits within our scope. We also enjoy building relationships with founders before we invest. Feel free to reach out to us at buildthefuture@lasolasvc.com and check out our website for more detailed information about our investment thesis and values.


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