Graduation
What graduation means
Graduation means your business is ready for a bigger check from investors in our network. Investors in our network include outside investors and private equity firms (groups that invest in businesses that are already working). To graduate, your business needs to show the same things those investors look for before they invest. There are two paths, because a tech startup and a neighborhood business grow in different ways. The numbers below are goals we work toward together, not promises of investment.
Track A
Tech startups.
Track A: Tech startups
For apps, software, online platforms and other businesses built to grow fast through technology.
A1
Revenue level
Goal: about $10,000 to $25,000 or more in monthly recurring revenue (MRR: money customers pay you on a regular plan every month).
Why investors care: It shows people will pay for what you've built, and gives investors a number to grow from.
A2
Steady, growing revenue
At least 6 months in a row of revenue, growing on average over those 6 months.
Why investors care: One good month can be luck; six months of growth shows a pattern.
A3
Customer traction
At least 50 paying customers, or at least 3 business customers on signed contracts. Fewer than about 5% of customers leave each month (this is called churn).
Why investors care: Customers who stay show the product solves a real problem.
A4
Know your numbers
You can show what it costs to win a customer and how much a customer pays you over time, and the second number is bigger.
Why investors care: Investors want each new customer to add money to the business, not drain it.
A5
Clean financial records
At least the last 6 months of books kept in accounting software and matched to bank statements every month. A separate business bank account. A profit and loss statement (money in, money out, what's left) and a balance sheet (what the business owns and owes) ready to share.
Why investors care: Investors can't invest in numbers they can't check.
A6
Legal structure in place
A registered corporation (in the US, usually a Delaware C corporation; elsewhere, the local equivalent). A written record of who owns what share of the company (called a cap table). Founder agreements signed. All code, brand and other work owned by the company, not by individuals.
Why investors care: Investors need to know exactly what they're buying a piece of.
A7
A plan for the money
A written plan for the next 12 to 18 months showing what the investment will be spent on, about how much in each area, and the goals it should reach (for example, customers or monthly revenue).
Why investors care: It shows you'll use the money to grow, and lets investors track progress.
A8
Founder commitment
At least one founder works on the business full-time, or has a written plan to go full-time within 90 days of investment.
Why investors care: Investors back people as much as ideas, and want someone fully focused on making it work.
Track B
Main-street businesses.
Track B: Main-street businesses
For restaurants, shops, services, trades and other businesses that serve customers directly, in person or locally.
B1
Revenue level
Goal: about $150,000 to $500,000 or more in yearly sales (roughly $12,500 to $40,000 a month).
Why investors care: Investors need a business big enough that their check can make a real difference.
B2
Steady revenue
At least 12 months in a row of sales, with records that show and explain seasonal ups and downs.
Why investors care: A full year shows the business can get through slow seasons.
B3
Profit
Positive EBITDA (your profit before taxes, interest, and accounting adjustments) in at least 6 of the last 12 months, including the most recent 3 months.
Why investors care: Profit shows the business can pay back investors and keep running without constant new money.
B4
Customer traction
Customers who come back: a goal of at least 30% of sales from repeat customers or ongoing contracts. Where online reviews apply, an average of 4 stars or higher.
Why investors care: Loyal customers make future sales much easier to count on.
B5
Clean financial records
At least the last 12 months of books kept in accounting software and matched to bank statements every month. A separate business bank account. A profit and loss statement and a balance sheet ready to share. Sales tax and payroll taxes paid up to date. Most recent business tax return filed.
Why investors care: Clean books and paid-up taxes mean no surprises after investors write a check.
B6
Legal structure in place
A registered LLC or corporation (or the local equivalent). All required licenses and permits current. Business insurance in place. Any lease or location agreement signed in the business's name.
Why investors care: Investors need the business protected and allowed to operate.
B7
A plan for the money
A written plan showing what the investment will buy (equipment, a second location, staff, inventory), real price quotes where possible, and how it should increase sales or profit.
Why investors care: A specific plan shows the money goes into growth, not just covering gaps.
B8
Founder commitment
The founder runs the business full-time, or has a written plan plus a trusted manager in place to run daily operations.
Why investors care: Investors need to know someone dependable is running the business every day.
Then what
How a business graduates.
- 01
Meet every criterion on your track. Your program advisor checks each one with you.
- 02
Share your records and plan for a final review by our team.
- 03
Once you've passed review, we introduce you to investors in our network who fit your business. Each investor makes their own decision and sets their own terms. Investment is never guaranteed.
We review these standards with our investor partners regularly and may update them as their needs change. Founders already in the program will always be told about any change and given fair time to meet it.