Question 1

Where are you located?

Accepted Answer

Our primary office is in Houghton, Michigan, with a presence in Marquette, Michigan and Southeast Michigan.

Question 2

What stage do you invest at?

Accepted Answer

We call it Seed+ or Seed-Strapping. In practice, that means the company is roughly twelve months from a Series A — or twelve months from profitability. Either way, product-market fit is already established, and the team is optimizing go-to-market, not searching for it.

Question 3

What does that look like concretely?

Accepted Answer

Typical signals we look for: ARR in the order of $250,000 through $1M, growing at 15%+ month-over-month, sales/pilot velocity picking up, referencable customers that love your product and a founder who has already iterated the product beyond an MVP. None of these are hard gates — they're shorthand for "product-market fit exists."

Question 4

What is your typical check size?

Accepted Answer

Our first check is usually $100,000 - $500,000.

Question 5

What is the relationship with Michigan Technological University

Accepted Answer

1885 Capital a private for-profit entity that is fully independent from Michigan Tech from a legal and financial standpoint.  The fund enjoys a strong collaborative relationship with the university to leverage its research capabilities, infrastructure, and student talent to our collective and mutual benefit.

Question 6

What instruments do you use? And what are 'alternative investment vehicles?'

Accepted Answer

We invest in both traditional venture capital vehicles (Preferred Equity, Convertible Notes, SAFE's); however, part of our thesis is that venture is not one-size-fits all, so we offer other options as well. These include:

-Revenue-share agreements - This acts as a debt instrument where the Company gets a grace period, followed by a repayment period in which quarterly payments are tied to revenue. We also ask for a small equity warrant coverage. For capital-efficient businesses with real revenue, without forcing a premature valuation.

-Venture debt - Similar to our revenue-share agreements, the Company is allowed a grace period, followed by amortized payments. Warrant coverage is also attached to this instrument. For hard-asset and advanced-manufacturing companies where senior-secured debt is the honest instrument.

-Redeemable equity - Equity that founders can repay. For founders who want venture-speed capital without a binary-outcome exit dependency.

Question 7

Who picks the instrument — you or us?

Accepted Answer

We treat this as a conversation. We listen to how the founder wants to finance the business, then we come back with a proposal shaped by what we heard and what we think actually fits and is mutually beneficial.

Question 8

Do you follow-on?

Accepted Answer

Yes, our fund's strategy is heavily dependent on following-on in our companies that are continually hitting commercial and technological milestones.

Question 9

Do you lead or follow?

Accepted Answer

If we are investing in an equity round, we will look to follow, participating as a syndicate partner vs. leading and setting the terms.

If we are investing in an alternative investment vehicle, we will typically lead and set terms.

Question 10

Do you only invest in the Great Lakes?

Accepted Answer

While we primarily focus on Great Lakes-headquartered companies, we will consider opportunities outside the region if they have a strong tie to one of our core industries, the region at-large, and/or our ecosystem partners.

Question 11

Do you require a manufacturing, materials, or industrial tie-in?

Accepted Answer

Our primary thesis revolves around these industries, so we look for companies that are commercializing technology in these industries, or for the benefit of these industries.

Question 12

Do you back first-time founders?

Accepted Answer

Yes — when there's evidence the founder has the grit, the ingenuity, and the domain immersion to compensate for missed reps.

Question 13

What don't you invest in?

Accepted Answer

Anything outside our stage window — if the company needs pure pre-product funding, is in search of its first customer, or is already at Series B, we're not the right fit.

From an industry standpoint: Consumer, crypto, pure content/media, and companies that are dependent on a single coastal geography for customer acquisition and funding.

Question 14

What is the best way to get in touch?

Accepted Answer

The fastest way to get in touch is to fill out the founder form on our website.

Question 15

What happens after I fill out a form?

Accepted Answer

Our team will review and will strive to get back to you within a week. We will either let you know if it is not a fit off the bat, or if we would like more information.

Question 16

What do I need for next steps?

Accepted Answer

If we determine that you are a fit, we will typically ask for access to a data room and schedule a first meeting. A good data room, at a minimum, will contain:

-Pitch Deck and Executive Summary
-Historic and pro-forma financial statements
-Cap Table
-Terms of the round (if a term sheet has been issued)
-Corporate Documents
-Founder/customer references
-Customer metrics/KPI's

Frequently Asked Questions