Pre-Seed Progress Report
Q3 2024
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The core activity of PHX Ventures is leading seed rounds with a $1m-$3m check into high-growth, early-revenue, B2B software companies.
What may not be as obvious is our efforts to write $50k-$250k pre-seed checks from our PHX Launch Fund into pre-revenue B2B software companies in AZ.
The pre-seed companies we invest in from the PHX Launch Fund always have an obsessed founder with a great idea, clarity about the market problem, and some working code, but they are still wrenching on their MVP and searching for their first paying customer.
Unlike the larger seed rounds we lead in post-revenue companies, these pre-seed companies don't have much to diligence before we invest. We are truly betting on the heroic efforts of obsessed founders to turn their product concepts into real companies.
We are still learning how to best source, select, and support these pre-seed founders but I'm excited about the three investments the PHX Launch Fund has made so far in 2024.
1. Legix, founded by Josh Hsu. We invested because we believe that AI-driven workflow automation will make bookkeepers >10X more productive. There are almost 1 million bookkeepers in the US today.
2. Sail, founded by Danny Friday. We invested because we believe automating the identification of qualifying healthcare expenses will substantially increase HSA/FSA adoption.
3. HypergameAI, founded by Philip A. Dursey. We invested because we believe using AI for autonomous threat detection and engagement will soon be part of every company's cybersecurity strategy.
For a complete list of the PHX Ventures portfolio across funds, please visit our website: https://lnkd.in/gBwHe643.
If you are an early-stage B2B software founder in PHX and you have ambitions to build a venture-scale software company, we'd love to meet you.
If you refer an ambitious, PHX-based, B2B software founder to us, we will buy you tacos and love you forever.
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PS - I hope you will join our community of ambitious software founders at PHX FWD where you can learn from other founders, perfect your pitch, and participate in valuable workshops. All for free.