As early as possible! Anything pre-Series A is in-scope, whether that’s Pre-Seed, Seed, Post-Seed (or whatever else you are calling the round)
No! We are interested in EVERYTHING. Unlike other VC investors, we are not thesis-driven; we are people-driven. We put very little stock in our own crystal ball prognostications about the future. We want great founders and operators who can navigate the future for us and for their businesses. As such, there is no category, business model, technology (or lack thereof), or industry that is categorically out of scope. And we are interested in any business or idea that can generate VC returns, whether or however tech is involved
We focus on the US primarily, although from time to time we will look at entrepreneurs and businesses outside the US
Yes. Great entrepreneurs and operators can come from anywhere, from any background, and in any shape or size. We love first-time founders (and those who have been around the block too). We love solo founders (even if we think it’s nice to have a co-founder and someone in the trenches with you when starting a business). And we are not beholden to a silly rule and mythology that says only engineers can create big “unicorn” companies (more than 30% of “unicorn” companies have zero engineers on their founding team). We look first and foremost for great operators and entrepreneurs (or those who have the makings of great operators and entrepreneurs)
Yes, of course. If you’re pre-Series A, we want to talk, no matter how early you are. Product and revenue are proof points of your abilities as a great operator and entrepreneur, but they’re not always necessary for us to get conviction to invest
We look for great operators and entrepreneurs first and foremost, that is, business leaders who understand their business’ unit economics from day one, are looking to build big, lasting businesses, who have the capability to learn and grow, and who have the hustle and resilience necessary for the marathon that is ‘entrepreneurship’
We invest in businesses that have the potential to generate VC returns, that is, 10x or more on our invested capital. That’s a big hurdle and not every business has this potential. That said, here’s what this also means for us:
1) We do NOT only invest in tech: tech-enabled and non-tech businesses can also generate VC returns for early stage investors like us;
2) We do NOT have a silly rule about TAM’s that are ‘too small‘: we’ve learned over the years that great entrepreneurs can create huge businesses in markets considered ‘too small’ by typical VC investors, and we think that’s great;
3) We do NOT only invest in businesses that have the potential to become a ‘unicorn’: if your business has the potential to become a ‘unicorn’ (or even bigger), we are certainly not going to discourage you in that pursuit; however as early stage investors, we are just as interested in businesses that might not be ‘unicorns’ but still generate amazing returns for you, your team, and your investors
Our process is fast and focused on getting to know you and your business as deeply as possible. We start with a conversation first to gauge our mutual interest in moving forward. Diligence is a series of continuing conversations with you to better understand you as a person, a professional, a leader, an operator, and of course an entrepreneur.
We try to get you a ‘yes’ as quickly as possible and a ‘no’ as quickly as possible. Unlike many other VC’s, we believe in saying ‘no’ and giving constructive feedback (vs. ghosting you or giving a fabricated ‘no’). When we say ‘no’, it doesn’t mean you’re not going to be a huge success. We are often wrong. It only means we are not your ‘right-fit’ investors at that moment
We make decisions as a team. Investment decisions require full Partner agreement. Non-Partners, even Associates, participate fully in the decision-making process and all our discussions. Unlike other VC firms, our Associates’ voice does matter and does influence our decision.
Our check size can be anywhere from $250K to $2 million. Check size varies based on size of round
Unlike other VC investors, we are agnostic as to the form of investment (although we of course care about terms as you do too). If we decide to invest, we are going to make sure you get our capital as quickly as possible and in whatever mode is the fastest, best solution for you, the company and its investors
We rarely lead rounds, but we also rarely let the lack of a lead stop us from investing if we have conviction to invest. We like to be a big check (sometimes as big as or bigger than the lead) and a good partner. Where we have conviction and you need a lead, we will from time to time step in as lead, but we think of ourselves as the “lead of last resort”. And if we have conviction about you and your idea, the lack of a lead will not stop us from investing
Our philosophy overall is that your business is your business. Founders have the front row seats – they run the business. Investors are in the cheap seats – we invest, we get out of your way when you don’t need us, and we jump in when you do. We support our teams in the same way that our best investors have supported us when starting and running our own early-stage businesses:
1) On-demand advice, coaching, and emotional support: our Partners spent a part of their careers as partners at a big management consulting firm. In that role, our Partners used to provide advice and counseling to the CEO’s of Fortune 1000 companies, who in turn paid millions of dollars a month for this support. We offer this support for free to all our founders whenever it is needed. To be clear, we rarely have the answers, but we always have good questions, and we often know someone who does have an answer (if not ‘the answer’)
2) Introductions, introductions, introductions … and more introductions: we believe introductions and relationships are one of the most valuable resources for any early stage company scaling to a Series A (and beyond). We at Blue pride pride ourselves on not having grown up as investors. We also have a broad base of LP’s with senior roles and deep experience and expertise across industry. All this means we have large networks that do not look like a typical VC, i.e., relationships that span industry, geography, and company within and importantly, outside tech (from financial services to healthcare to industrials to apparel and more). We bring this extended network to bear for our founders
3) Community: we don’t try to load your calendar up with CEO forums, Digital Marketing presentations, best practices sessions, or anything else similar. We leave that to other VC investors. We do however connect you with our other Portfolio founders and let you use that connection however you want. And once a year, we do host our Blue Founders Retreat. This is a largely unstructured and paid-for retreat where we get out of the way and let you connect with other entrepreneurs facing similar challenges and on similar journeys
Ask any of our founders.
We will be there by your side if it works out or doesn’t work out. And we have a track record of investing in our founders on their second startup, third startup, and beyond. If we invest, we are investing in you and a long-term relationship
It’s easy. Just send us an email at blue@bluecollective.com or use the ‘Contact’ page here on the website. We respond to everyone (even if sometimes we might run a bit slow), and we rarely say ‘no’ to a conversation
For a ‘pitch’, we do want to see a pitch deck. But that’s it. Otherwise bring yourself and your excitement. And of course we are always here to offer advice in advance of a ‘pitch’ too
Same answer as above. Just email us at blue@bluecollective.com or use the ‘Contact’ page here on the website. We are happy to chat wherever you are in the process