How We Work

What is Tandem?

Tandem is a collection of entrepreneurs who have founded companies from scratch and taken them to liquidity. We love nothing more than building businesses, and now make it possible for like-minded people to take the entrepreneurial journey by funding their companies with both our time and money.

Are we a VC firm?

We do not consider ourselves a VC firm. There are three primary types of capital that are required to make a startup successful – Financial Capital (money), Human Capital (sweat) and Social Capital (friends). VCs bring mainly financial capital, some social capital and limited sweat. We bring value in the reverse order – sweat, friends and money (much more like entrepreneurs).

What types of companies do we fund?

Startups traditionally have required teams of 20 or more people, millions of dollars in investment and multiple years of operation to get credible market traction. Tandem, however, works on businesses that can be built with fewer resources (5 or less) and reach market traction in less time. Most of these are software and Internet companies, but we consider other opportunities if they fit our criteria.

Traditional venture capital investors have a list of evaluation criteria that do not fit many startups in today’s environment. They require a complete team of seasoned entrepreneurs with a proven track record of success. They demand a deal that enables them to place a large amount of investment dollars. They look for the potential of a $100M+ liquidity event even if it takes six or more years to get there. Angel investors can be more lenient, but they often cannot provide the direct support necessary to complement founding teams and drive success. Tandem, on the other hand, is set up to back less established teams and fill any gaps that exist.

How much does Tandem invest in a company?

We typically invest $850,000 in a company over three stages.

Do you need a team or an idea?

We fund existing businesses and teams, but you don’t need either to work with us. We look to place strong candidates as founders of our companies even if they don’t come with an operating business or team. If you would like to be a founder of a Tandem-backed startup, just apply to work with us.

What does Tandem do for entrepreneurs?

Being a founder, though incredibly fun, can be quite a challenge as you juggle the many hats you’re required to wear. You’re the visionary who must constantly inspire, the product manager who must refine the underlying idea, the organizer who must handle various legal and financial logistics, the recruiter who must build the team, the leader who must raise capital and manage the burn, the chief engineer who must ensure the product gets built, and the marketer who drives adoption.

With Tandem, all this gets a lot simpler and your probability of success rises. We work closely with you (and your team if you already have one) helping directly on much of the above. We roll up our sleeves and serve as the extended team for a startup. You, the entrepreneur, are then free to focus on what you do best – understanding your users’ needs and offering services to meet them.

How does being a Tandem Founder lower your risk?

There are three risks to consider when building a startup – missing the window of opportunity, not executing, and ending up without a path to liquidity. At Tandem you don’t waste any time raising money or hiring the extended team. This gets you off to a quick start and reduces time risk. We also augment your team with world class talent that contributes directly to your business. This reduces execution risk. And finally, we help keep your burn low with our resources and infrastructure. This enables you to achieve considerable returns even in more modest exits, increasing your odds of success substantially.

When is Tandem not right for you?

If your founding team has the talent and expertise it needs and you're looking for funding only, then many sources of early capital are available to you. Tandem is not one of them. We only work with teams where we add value as entrepreneurs.