Investment Criteria

We like to be one of the earliest checks at the Friends and Family or Pre-Seed Rounds

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

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

We love to invest in companies that:

Are in the US and registered as Delaware C-corps (or plan to convert)

Are in the tech, CPG, or healthcare space (not Class II or III medical devices)

Have an MVP of their product and are full time

Have defensible IP and a differentiated advantage (this includes CPG companies; we’re looking for startups with a “moat”)

Have leadership with identities that make them uniquely positioned to solve the customer’s pain point; we encourage entrepreneurs who identify as BIPOC, women, and LGBTQ+ to apply

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

Consumer Companies: please note that we seek companies with a differentiated twist, such as using advanced manufacturing, supply chain innovation, community platform, or other defensible moat; essentially, IP > trade secret

We stay away from companies that:

Don’t fit our "love it” criteria (US 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. In our Fund I, we anticipate 40 total investments and seek 5% - 10% ownership at entry. The investment process generally looks like the following:

1. Founders should review our criteria and apply on our [site](http://tundravc.com/pitch)

2. Companies that meet our initial criteria will be invited to have an introductory Zoom call with one of the General Partners 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 the GP wants to move a company forward, we will ask for a data room and a second call with all of the Tundra Partners 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. Partners will conduct a data room review and write a deal memo. Partners will also ask for references and consult advisors with technical expertise in product, market, and/or industry. Any questions on the data room will likely be asked via email or a quick phone call.

5. All three Partners vote, and the decision must be unanimous for us to invest.

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, questions you’re unsure who to ask, or things your intuition flags (could be the product, an experience with another investor, founder dynamics, or more).

2. Quarterly 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.