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. Ie, there wasn't a (big enough) market for their product. We want to help entrepreneurs validate the market before they invest large amounts of time and money potentially creating the wrong product for the wrong market. At the end of a successful test, we will have helped the startup prove its market by capturing actual paying customers. At that point, with revenue and an additional investment in hand, the startup will have the recipe and the capital needed for a successful launch.
What is ATO Ventures definition of validated?
There are actual paying customers in scalable, reachable markets.
Why Puerto Rico?