$17 million, $12 million, $8 million — those are the annual run rates of my 3 most successful investments so far. This morning, I sat down to figure out what these incredible companies have in common.

Startup A

Startup A is doing so well I can barely believe it.

Revenue was around $500k ARR when I invested. Less than 2 years later, they cracked $17 million and raised a Series A from a top firm.

I’d love to tell you I knew it all along — but I didn’t.

What I could see was some awesome revenue growth and a tenacious founder. When I dug into his background, I found out that he once appealed a rejection from an entrepreneurship program and got in.

That’s a man who doesn’t give up.

I had no idea the company would do this well. But if I keep investing in great founders with growing businesses, I have a chance to hit a phenom like this once in a while.

Startup B

Like Startup A, these founders showed an incredible ability to stick it out during tough times. COVID nearly killed their business in its infancy, but they pivoted and made it through.

These guys also had strong growth and a ton of revenue for a seed stage company.

ARR was around $2.4 million, rare for a company raising at such a good price. Startups outside SF are often overlooked.

With a huge market, serious revenue and strong growth, this company had the kind of metrics I dream about. Add in founders who clearly refuse to give up, and no wonder it’s a winner.

Startup C

I actually passed on this company at first. But my decision was based on misunderstanding their business model. The founder asked to meet a 2nd time and showed me where I was getting confused.

He was right. I wrote the check.

To this day, I thank him for correcting me!

Clearly, this is a fella who doesn’t give up easily. And the performance of his company reflected that.

The growth at this startup was incredible — 60% month over month in the prior 4 months. They had passed a $1.5 million a year run rate and were raising a late-seed stage round.

Today, they’re at an $8 million a year run rate. I still can’t believe I almost passed on it.

Wrap-Up

What do these 3 startups have in common?

In every case, the founder showed incredible tenacity. They did that in different ways, but it was clear each time.

These startups also had far more revenue and growth than what’s typical for a seed stage company. The best startups have a way of jumping out early.

Today, I’m looking for investments like these: gritty founders with incredible growth.

Tomorrow, we’ll look at the 3 most challenged startups in my portfolio. What can we learn from these struggling companies?

More on tech:

Why Entry Price Matters

Why It’s Easier to Raise $3 Million Than $300,000

Small Investors Lead to Big Investors

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