Investment Focus
We invest in founders leveraging AI/LLM technologies to create outsized value in niche verticals that have been historically underserved by technology.
Investment Thesis
We believe the most compelling AI investment opportunities exist in vertical-specific applications that solve deep industry problems, not general-purpose tools.
While horizontal AI platforms capture headlines, we see greater potential in companies that apply AI/LLM technologies to transform specific industries with complex, knowledge-intensive workflows. These markets often have high willingness to pay for solutions that deliver clear ROI, less competition from well-funded startups, and domain-specific challenges that create defensible moats.
We focus on founders who combine technical AI expertise with deep domain knowledge, allowing them to identify unique opportunities where AI can create 10x improvements in efficiency, accuracy, or outcomes.
Why Vertical AI?
- Defensible position through domain-specific data and expertise
- Clear value proposition with measurable ROI for customers
- Capital-efficient growth in less competitive markets
- Higher margins due to specialized solutions and customer willingness to pay
- Multiple exit paths including strategic acquisitions and IPOs
Investment Criteria
What we look for in potential investments
01. AI-Native Solutions
We invest in companies where AI/LLM technology is central to the product, not just a feature. The solution should leverage AI to create capabilities or efficiencies that weren't previously possible.
02. Vertical Focus
We prefer companies targeting specific industries or workflows rather than building horizontal platforms. This focus enables deeper customer understanding and more defensible market positions.
03. Underserved Markets
We look for opportunities in industries that have been historically underserved by technology, where AI can create transformative value and face less competition from well-funded startups.
04. Clear ROI
The product should deliver measurable value with a clear return on investment for customers, ideally addressing mission-critical workflows or high-value problems.
05. Defensible Moats
We seek companies with potential for durable competitive advantages through proprietary data, domain-specific AI, network effects, or other defensible elements.
06. Capital Efficiency
We value founders who can build efficiently and have a clear path to profitability, rather than relying on endless fundraising rounds to sustain growth.
Target Company Profiles
Examples of the types of companies we seek to invest in
Industry-Specific LLM Applications
Companies building specialized LLM applications for industries with complex knowledge work, such as legal, healthcare, finance, or scientific research. These solutions often combine public LLMs with proprietary fine-tuning, domain-specific data, and custom workflows.
Example: An AI platform that helps specialized medical practitioners diagnose rare conditions by analyzing patient data and medical literature.
AI-Powered Decision Support
Tools that augment human decision-making in domains requiring expertise and judgment, such as underwriting, risk assessment, resource allocation, or complex planning scenarios.
Example: An AI system that helps commercial property underwriters assess risk factors and price policies more accurately.
Knowledge Work Automation
Solutions that automate routine aspects of knowledge work, freeing professionals to focus on higher-value activities requiring human judgment and creativity.
Example: An AI platform that automates regulatory compliance documentation for specialized industries.
Industry-Specific Data Intelligence
Platforms that extract insights from industry-specific data sources, combining AI with domain expertise to deliver actionable intelligence.
Example: An AI system that analyzes construction project data to predict delays, cost overruns, and quality issues.
Investment Parameters
Our investment size, stage preferences, and sector focus
Investment Size
We typically invest between $50,000 and $2 million in initial rounds, with reserves for follow-on investments in our most promising portfolio companies.
Stage Focus
We primarily invest at pre-seed, seed, and Series A stages, though we occasionally consider later-stage opportunities in companies that align exceptionally well with our thesis.
Geography
We focus primarily on North American companies, though we will consider exceptional opportunities globally, particularly in regions with strong AI talent pools.
Ownership Target
We typically target 5-15% ownership, though we're flexible based on company stage, capital needs, and alignment with other investors.
Sector Focus Areas
We are particularly excited by AI's potential to transform how these real-world businesses and service providers operate:
AI for drafting contracts, wills, leases, and filings from templated inputs.
AI for quote generation, job intake, customer messaging, and calendar integration.
AI for generating grant proposals, compliance reports, and donor communications.
AI for intake forms, coverage comparison, client Q&A, and renewal reminders.
AI for product FAQs, customer support, labeling compliance, and marketing copy.
AI for load paperwork, customs forms, dispatching instructions, and invoicing.
What We Look For in Founders
The founder qualities and team characteristics that excite us
Founder Qualities
- Technical proficiency — Deep understanding of AI/ML technologies and their practical applications
- Domain expertise — Firsthand experience in the industry or problem space being addressed
- Intellectual honesty — Ability to update beliefs based on evidence rather than ego
- Capital efficiency — Track record or mindset of doing more with less
- Contrarian thinking — Willingness to pursue opportunities others overlook
- Execution focus — Bias toward action and ability to ship products quickly
Team Characteristics
- Complementary skills — Balance of technical, product, and domain expertise
- Shared vision — Aligned understanding of the problem and solution approach
- Customer empathy — Deep understanding of customer pain points and workflows
- Learning velocity — Ability to quickly iterate based on feedback and data
- Resourcefulness — Capacity to overcome obstacles with limited resources
- Resilience — Determination to persist through inevitable challenges
"We back founders who combine technical AI expertise with domain knowledge to identify unique opportunities where AI can create 10x improvements in efficiency, accuracy, or outcomes."
Investment Process
Our streamlined approach to evaluating and funding companies
Initial Conversation
A focused 30-minute call to understand your vision, product, and market. We'll share our investment thesis and determine if there's potential alignment.
Deep Dive
If there's mutual interest, we'll schedule a 60-90 minute deep dive into your technology, business model, and market opportunity. We may request access to product demos or documentation.
Technical Evaluation
Our technical team will evaluate your AI/ML approach, architecture, and implementation. This is collaborative rather than adversarial—we aim to understand your technical decisions and potential.
Market & Customer Analysis
We'll assess your target market, customer acquisition strategy, and competitive landscape. We may speak with industry experts or potential customers to validate key assumptions.
Investment Decision
We make decisions quickly, typically within 2-3 weeks of our initial conversation. If we decide to invest, we'll provide a term sheet with clear, founder-friendly terms.
Ongoing Partnership
Post-investment, we work closely with portfolio companies to provide strategic guidance, technical support, industry connections, and assistance with future fundraising.