Frequently asked questions

 

 

What is your investment focus?

Our focus is on Pre-Seed / Angel and Seed stage investments in fast growing and highly scalable software startups.

 

Do you need a business plan?

Please don't send us a written business plan! All we need to get started is the information provided in the contact form and your current pitch deck and we'll get back to you as quickly as possible. The most important part of the process is getting to know the team personally.    

 

Do you sign NDAs?

No, we don't. But rest assured we won't steal your idea either! Potential founders trusting us is the biggest asset we as a brand can try to establish. Even if we wanted to (which of course we don't) actually stealing ideas would backfire to us pretty nastily, making sure no entrepreneur would come to us if he had the option of working with somebody else. On top of that, and following Bred Feld's thoughts on this topic, signing NDAs is just not practicable. 

 

How much do you invest?

We typically make an initial investment of €50-350k and follow-on with up to €2m. We evaluate each startup on a case by case basis. 

 

How about follow-on funding?

We try being part of your next follow-on round(s) as well, but also provide a vast network of investors aside of that who might be willing to join the party.

 

What's the assumption behind your operations-driven approach?

At Cavalry we strongly believe that the two main reasons for failure in early stage tech startups (provided that the company is based on a solid idea and sufficient funding is in place) are an execution gap (known unknowns that the team can't properly cover due to either limited resources or insufficient execution) and an experience gap (unknown unknowns within the startup that aren't being recognized, properly addressed or exploited at all due to limited experience of the team).

 

This is why when you call in the Cavalry we're having your back not just financially but particularly in operations, keeping your team close to proven industry professionals, making sure you have the right people in place when you need them, identifying and eliminating the risks you don't have on the radar and revealing hidden opportunities to help your team win. 

 

Why should I care as a founder?

We strongly believe that you as an entrepreneur should try finding an investor who not just has a clue about the products and services you build but who has the same operational experience you would hope to hire into your company. And while everybody claims to provide smart money these days and a lot of experienced investors, startup incubators and VCs are undeniably able to provide valuable network access and strategic advice due to all the deals and company insights they see, it is often questionable whether they actually have the motivation and resources to do so outside of board meetings and how they can help addressing a potential execution or experience gap without being full-time operational experts in any specific field themselves. 

Why do we think we are any different? Get in touch and find out yourself!

 

What is your investment decision based on?

Our analysis and due diligence will take many factors into consideration. For example:

- Team
- Problem
- Business model
- Market & size
- Unique selling proposition
- Vision
- Marketing and sales plan
- Competition
- KPIs/ traction
- Exit opportunities
- User feedback

In an early stage startup we are mostly looking at the team: dedicated entrepreneurs that are passionate about what they are doing. Among the most important questions to ask is always "Does the product solve a real problem for the user?". We like founders who already got their hands dirty by developing a product and getting first traction.

 

Can I call in the Cavalry without moving to Berlin?

If you want to unleash the full power of the Cavalry, we're afraid you'll have to be somewhat close by as we can't fully live up to our promise of actual hands-on support via Skype. We might still come aboard as a co-investor though.