What does ATO Ventures mean?

Against The Odds. You can read about how we got our name here.

What industries does ATO Ventures cover?

Our primary areas of focus are Health, Fitness & Wellness and Digital Media & Entertainment, although, in rare cases, we will invest in other sectors as well.

In what stage does ATO Ventures invest?

Our preferred stage is a startup that has completed "Lean Startup" steps, but is Pre-Launch and Pre-Funding.

How much money do you invest?

We have a two-stage investment model. Our first investment is used to cover the cost of Market Validation Testing, which is completed by an outside firm in collaboration with the startup and ATO Ventures. Testing typically costs around $25,000 to $50,000. If the testing is successful, we then invest another $250,000. If the startup needs more capital, we syndicate the round with our Limited Partners (LP) and other co-investors. For example, we raised about $2M for a startup that we recently invested in.

Why Market Validation Testing?

The number one reason startups fail is lack of product-market fit. Put simply, they launch, and not enough people buy their product to create a sustainable, let alone scalable, business. In other words, there wasn't a (big enough) market for their product.  Market Validation Testing is the process of making sure there are paying customers before spending time and money launching into a specific market.

At the end of a successful Market Validation test, we will have helped the startup prove its market-fit by capturing its first customers in a market that is both scalable and reachable. At that point, the startup will have revenue, the correct formula for a successful launch and additional capital from ATO Ventures to finish their MVP and go to market.

What is ATO Ventures definition of validated?

There are actual paying customers in scalable, reachable markets.

Why Puerto Rico?

You can read about some of the benefits of locating in PR here, and hear a bit about our founder, Jennifer Hopp’s, journey to PR, here.