How much do you invest?
We will invest as little as $10,000 and as much as $250,000. We don’t have any set in stone rules for minimums. We invest in companies all over the country, whether you’re in Boulder, New York or right here in Indianapolis. We like to partner with good people. The stage of investment or need drives the dollar. But we don’t invest in huge salaries, vacations and benefits.
How much of my company will I have to give up?
We don’t want control of your company, and every deal is a little different. So we lay out a simple structure with no bells or whistles. If you can explain it to your grandmother and it makes sense to her you have the right structure and value. We are economically motivated too. So we will be tough, ruthless, take no prisoners negotiators. Or not. We realize that a few percentage points of ownership on the front end could mean a lot. And if you are sitting and stewing about how we suck and you don’t like the deal then its not a good partnership.
Can you help me find key people?
We have relationships that will allow you to find the right people when you need them. While the venture capital industry seems ginormous it really is pretty small. The relationships we have in the startup community opens doors and will be there to help you grow.
I need an NDA before I will show you my business.
Well, we don’t sign them. If you are not comfortable showing your business to us – don’t. We aren’t in the business of stealing business ideas and then competing. The reputation of xCap is our primary asset.
What if we need more money?
We love to add additional capital. If a larger round is needed we have relationships with follow on investors that want to see new, profitable growth stories. They know us and if we are sending them an opportunity it’s real and ready for their investment dollars.
What types of business do you invest in?
Scalable technology businesses or web services with a dedicated, passionate, burn-the-ships type founder and team. It has to have some sort of logical exit in 3-5 years too. Not a magic timeline by any means, but we do invest in early stage companies with the intent to make money. And sometimes we invest in things that are outside the box.