Keyhorse Capital
Based in: Lexington, Kentucky
Year it began investing: 2022
Key companies that you’ve invested in: Can be viewed at keyhorse.vc/companies
Executive: Kelby Price, managing partner, provided answers below:
What kind of deals are you interested in? Keyhorse Capital invests early-stage venture capital to create returns for Kentucky. We invest in idea to growth-stage companies and technologies across industries and sectors, supporting exceptional founders with a vision to go the distance. To learn more about our investment criteria, you can visit keyhorse.vc/#Criteria.
What’s been your strategy on investing in startups as many VCs have pulled back in 2023? Crisis brings opportunity and we believe that supporting entrepreneurs pursuing ambitious and scalable businesses is crucial to the prosperity of our community. Our strategy has been to partner with these startups, working with founders and their teams to help them achieve early success and significant growth, and — in the face of pullback — we continue to collaborate with a network of investors, advisers, strategic partners, the Kentucky Science & Technology Corporation, the KY Innovation hubs and the Kentucky Cabinet for Economic Development to provide startups with resources as best we can.
What’s one thing you always look for in a pitch? When evaluating a startup pitch, we places a strong emphasis on the company’s ability to demonstrate meaningful traction and validation, including the ability to articulate and relate this progress to the problem they are solving, the complexities they face, specific industry/domain expertise, and what talent, time and resources they have been able to attract with this traction and validation.
Young companies pursuing scalable innovation won’t have all the answers, so a grasp — especially for first time founders — of experimentation, measurement and proof or redirection is key as they gather feedback, develop minimum viability and pursue product-market fit.
Best piece of advice for startups that are fundraising right now? For startups currently in the fundraising process, we recommend a deep understanding of your market and the dynamics of venture capital. It’s essential to know what venture capital investing entails, understand when it’s appropriate to seek [venture capital] funding and be aware of a VC’s investment thesis and criteria.
Before approaching potential investors, ensure your startup aligns with their objectives and focus areas. This alignment will greatly increase your chances of securing the right investment partners and support for your venture’s success.
