Sterling Road only invests in B2B startups at the pre-seed and seed stage. In most cases, the product is live with at least one customer at the time of Sterling Road’s investment.
Before investing, we meet every 2 weeks discussing: Goals, Recruiting and Fundraising. After about 3 months, and assuming mutual interest, the first investment would be made, usually $150k.
After the first investment we will continue meeting every 2 weeks for another ~9 months.
When you raise your next round, we have the option to buy 5% of the company. For example, if you're raising a $2M round on an $8M pre-money valuation, we will have the option to invest ~$500k. The investment can be larger if both sides agree.
Here is the latest version of the agreement, which we’d sign when the first investment is closing.