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Series A
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Tomasz Tunguz on Venture Capital - The Intercom Blog
Tomasz Tunguz, a partner at Redpoint Ventures, discusses the key metrics he looks for in potential investments, including sustainable competitive differentiators and revenue benchmarks. He identifies three types of sustainable competitive advantage: a founder’s market discovery, difficult-to-replicate technology, or a new distribution mechanism. For Series A investments, he typically partners with companies at $50,000-100,000 MRR, but also invests in pre-revenue ideas, noting that 27% of Series A rounds had no revenue. He looks for short sale cycles under 45 days and negative net churn as signs of product-market fit, and advises founders to always have a plan to reach profitability on current cash. Investors view businesses as collections of risk, and founders should address how they will mitigate major risks in their pitch.
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