Investment Criteria

We like to be one of the earliest checks in, generally at preseed and sometimes in an angel or friends & family round.

We prefer to write checks at around a $4M post-money valuation.

We shy away from valuations over $6M post-money.

We love to invest in companies that:

Are in the United States and are registered as Delaware C-corps (or plan to convert).

Are preseed tech or tech-enabled companies innovating in Wealth, Health or Resilience verticals. (We don’t invest in Class II or III medical devices.)

Have at least an MVP of their product and are working on the business full time.

Have defensible IP and a differentiated advantage.

Have leadership with expertise, experience, and/or identities that make them uniquely positioned to solve pain points for overlooked end-users and untapped markets. We encourage entrepreneurs who identify as BIPOC, women, non-binary, and LGBTQ+ to apply.

Are raising within our $2-6M (post-money) valuation sweet spot.

Geography Requirement

We’re a proud recipient of SSBCI funding from the state of Minnesota, which means our next investments must be headquartered in Minnesota.

We stay away from companies that:

Don’t fit our "love it” criteria (U.S. companies that don’t plan to convert to Delaware C-corps, companies that haven’t built anything yet, companies outside our target valuation, companies without leadership, companies without defensible IP, and companies that plan to exit as soon as possible)

Have valuations over $6M.

Are earning their revenue via ads (in aggressive ways).

Are in industries we don't feel comfortable in (Class II and Class III medtech, deep tech, most pure consumer (i.e., the next Snapchat), cannabis).

Tundra makes investments ranging between $100k and $600k. We seek at least 5% - 10% ownership at entry. The investment process generally looks like the following:

1. Founders should review our criteria and apply through our website.

2. Companies that meet our initial criteria will be invited to have an introductory Zoom call with one of the Tundra GPs for ~20 minutes and will be asked to complete a quick assessment. We are looking for a maximum 10-minute pitch during an introductory meeting.

3. If a GP wants to move a company forward, we will ask for a data room and a second call with all Tundra GPs for ~45 minutes. We’re looking for no more than a 12-minute pitch to have plenty of time for Q&A. The last 10 minutes are reserved for founder questions for our team, so please come ready to ask questions.

4. Tundra GPs will conduct a data room review and write a comprehensive internal deal memo. Partners will also ask for answers to questions raised during the deal memo analysis, references, and a background check We will often also consult with advisors with technical expertise in product, market, and/or industry.

5. At the end of the day, all three GPs must be excited about the company to move forward with an investment.

Team Tundra brings a wealth of experience and expertise to our portfolio companies. This is not an index fund; it is a coached capital fund. That means we want a deep relationship with our portfolio companies to ensure they have the greatest chance of getting to Series A and beyond as a cohort. We have a few expectations of our founders and companies once we invest:

1. (Bi-)monthly 30-minute check-in calls. This is your time as a founder to take advantage of the Tundra brain trust. We often use this time to hear what challenges you’re facing, where you could use support, answer questions you’re unsure who to ask, or discuss items your intuition flags (could be the product, an experience with another investor, founder dynamics, or more).

2. Portfolio Zoom Calls: in our experience, we see the greatest problem-solving for founders happen shoulder to shoulder with other founders. We invite our founders to join us for an informal Zoom call each quarter to hash out challenges, talk about opportunities, and connect.

3. After our initial investment, portfolio companies must provide information via quarterly and annual reporting cycles. This includes an annual report on revenue, employee count, and demographics of those employees. We will also request quarterly KPI data. We expect our entrepreneurs to submit data requested within two weeks of the request. We commit to only asking for what is truly necessary.