Investment philosophy

Venture capital has generated outstanding returns relative to public markets (link). We see this trend continuing and accelerating as software continues to revolutionize industry after industry. The global economy is in a continuous cycle of technology adoption, driving efficiency and access, and creating value for billions of people. Within this trend, we invest at the pre-seed/seed stage because we see this as the greatest opportunity for value and outsized returns.

We look for extraordinary founders and teams, and sweep the floors together to win. We are investors, but we also contribute technical, operational, finance, and other experience—and a collaborative co-founder attitude. Active support at the earliest stages creates better portfolio company outcomes, and an opportunity for a sharpe ratio that pushes the efficient frontier “up and to the left”.

We think about portfolio construction carefully, grounded in fundamental value, discounted cash flows, and scenario modeling. We expect disruption, with continued technology adoption and innovation, so we think long-term to target businesses aligned with the forces of innovation. In a market as dynamic as modern software, it is best to be a fast learner and a flexible, opportunistic investor. And in a market characterized by power-law outcome distributions, we apply strategies to optimize how we diversify and concentrate capital.

Broom is built to “sweep the floors” for founders, support their missions, and participate in the growth of extraordinary early stage technology companies.