Prefcap

What is Prefcap?

Prefcap is a venture capital firm that specializes in providing investment to B2B software companies. Positioned to bridge the critical gap between Seed and Series A financing rounds, Prefcap seeks out promising startups that demonstrate more than $50,000 in monthly recurring revenue (MRR).

They offer targeted financial support with a minimum investment of $500,000 and a maximum of $1,500,000. Their investment approach is designed to be quick, passive, and non-intrusive, enabling founders to proceed to their next funding stage with minimal disturbance to their operational plans.

By conducting due diligence in-house and boasting an average completion time of six weeks from the initial meeting, Prefcap positions itself as an efficient and agile financial partner.

Prefcap values the concept of 'bitesized' funding, which allows founders to either close out their current investment round swiftly or extend their runway before seeking the next round, hence reducing equity dilution. With a focus on simplicity and flexibility, they do not impose layered fees and emphasize backing management teams to fulfill their business strategies.

The firm is also keen on supporting growth without unnecessarily expanding the shareholder base, presenting a potential 'win-win' for both the investors and the founders. Prefcap, trading as ADG Prefcap LLP, is authorized and regulated by the Financial Conduct Authority in the UK. Established in 2019 with headquarters in London, Prefcap reinforces its commitment to the software sector by providing not just capital, but also endorsement for the management's vision and execution plan.

What they say:

We invest in B2B software companies with >$50k MRR. We tend to back businesses between Seed and Series A with quick, passive capital to get founders to the next funding round.