Criteria
Forerunner Ventures focuses primarily on growth-stage funding. We employ a disciplined investment process and invest in accordance with pre-established investment theses based on thorough industry research. Once a potential investment is identified, it is scored through an established investment matrix which details what we identify as key attributes for success.
In summary, critical investment criteria include the following:
Company Criteria:
- Exceptional management team with relevant experience
- Growth stage beyond proof of concept; revenue threshold of $5MM
- Value-based proposition/practices embedded in the business model
- Brand/product innovation and proprietary angle
- Scalable business with significant market opportunity
- Attractive financial model
Investment Structure:
- Investment level starting at $3-5MM
- Preferred equity
- Aligned interests between management/founders and FV
- Board representation
- Will both lead and co-invest alongside other likeminded investors
“This is a call-to-action for companies. It’s an opportunity for innovation in product design, packaging, and distribution. Companies ultimately need to engage consumers and effectively communicate the impact their business practices and products have on the environment. Consumers are listening.”
— Julia Hobbs Kivistik, EVP of Cause Branding(sm), Cone LLC. Americans Report Increased Environmental Consciousness and Expectation That Companies Will Take Action, Cone Inc., 4/19/07