Homebrew is a seed stage investment fund based in San Francisco.
How we invest
While we always work with entrepreneurs to understand their specifics needs, we do have defined principles which guide our investing.
- We target, at most, 8-10 investments per year, because our goal is to be available to support founders with guidance when needed, not just capital. These companies usually have at least a working product or prototype, but we’ll often invest in stellar teams at the concept stage.
- We typically invest between $500k and $1m in a seed round financing for a company. Our preference is to lead or co-lead the round with a small syndicate of high quality angels and/or venture capital firms.
- We commit to serving on the company board because we believe that establishing board oversight early helps companies develop important disciplines and structures, which increase the likelihood of successfully raising additional capital.
- We support our companies over time by investing in later financing rounds when appropriate, so we generally reserve an additional $3 for every $1 of initial investment, with access to additional capital for unique opportunities.
- Our investment documents mirror the standard Series Seed documents, and we like to pay our own legal expenses (versus the weird industry standard of asking the startup to pay).
How we help
We invest in companies which are likely to succeed without our help. Our goal is to provide assistance that helps increase the probability, scale and pace of that success. Homebrew help comes from us directly, our Entrepreneur Advisors and the broader Homebrew network.
We focus our energies in three distinct areas critical to a company’s success throughout its existence:
- Product design boils down to assisting with everything needed to get to product-market fit: defining the problem, focusing the solution, acquiring customers, delivering a “wow” first experience, testing and iterating, and identifying how to scale customers and revenue.
- Organizational design, which tends to be where startups underinvest, includes establishing recruiting and onboarding processes, creating and modifying organizational structure and defining culture and core values.
- Business strategy encompasses the areas outside of product, engineering and design that are required for market success, including distribution, pricing, partnerships and fundraising.
What we seek
We invest in mission-driven founders who embrace big – big ideas, big impact, big risk. Most importantly, we invest in teams that we hope to spend time with and support now and again in the future. We look for founders that have a passion and unique insight into solving a specific problem. We appreciate an orientation towards data and using it to question and change assumptions. We value integrity, focus, flexibility and a relentless will to succeed. We want leaders who collaborate, inspire and take time to celebrate the small victories.
Where we invest
Given our focused model, the majority of our investments tend to be in the California and New York. We definitely consider investments in other locations in the United States and Canada on a case-by-case basis. Homebrew doesn’t currently invest outside of the North America.
How to reach us
The best way to reach us is via referral from someone we know and trust, ideally someone we have worked with in the past or a founder we’ve already backed. We also respond to emails sent to us (see Contact section).