As serial entrepreneur-turned-startup investor Joe Colopy looks to deploy Jurassic Capital’s $20 million growth fund, he’s not looking for fancy pitch decks and the next “new shiny thing.”
He’s looking for bootstrapped B2B entrepreneurs that are “kind of stuck,” too small for big venture capital, too big for seed funders.
But they have to be willing to learn.
In an interview shortly after announcing the close of the firm’s first fund, Colopy walked through how to get on his radar and what he’s looking for in a pitch.
Colopy, who bootstrapped Durham software firm Bronto and then sold it for $200 million to Netsuite (now Oracle) in 2015, said that while cold queries through the firm’s website will be read, the best way to make a connection is through a shared contact. Most of Jurassic Capital’s prospects come through introductions made by other Triangle investors, or service providers such as attorneys.
One way to get off his radar? To fill his inbox without reading what Jurassic Capital is actually looking for. It’s specifically targeting B2B entrepreneurs. Colopy said to make sure you fit the bill before hitting send – and that knowing the parameters is critical.
“It’s a relationship with an investor,” he said. “It’s not a transaction. They need to understand the differences between investors … versus blasting some pitch out there. I don’t invest on pitches. I invest in the reputation of the company, the reputation of the entrepreneur. It’s much more a relationship game than a transactional game.”
He said he’s less focused on the pitch deck than some investors.
“The number one thing we ask is, can we add value to this company?” he said.
Colopy said he’s looking for founders who may want to transition out of their companies, or founders who just need more guidance.
“I’m not looking for new, shiny things,” he said. “I’m looking for companies that have been running, that have good operations, they’re looking to scale what they’re doing from a sales perspective and do more of what they’re already doing.”
As opposed to some bigger venture capitalists, he said he’s not as interested in the market or buzzy products, but rather “how do we accelerate what you’re already doing?”
Colopy said the firm is trying to fill a gap. It targets firms with between $1 million and $5 million in annual recurring revenue that aren’t just looking for cash, but also the operational expertise Jurassic Capital can provide.
Since Jurassic Capital started investing in 2019, its portfolio has grown to include firms such as AddShoppers, Corevist and Performance Culture. The new fund does include capital for Performance Culture, as well as another startup to be announced soon, Colopy said.