Our Investment Philosophy

At 412 Angels, we believe founders deserve clarity. Raising capital is one of the most time-consuming and demanding parts of building a startup. Too often, founders spend weeks preparing materials, scheduling meetings, and pitching investors whose investment strategy was never aligned with their company in the first place. Our goal is to be transparent about what we invest in, what we typically do not invest in, and why. While every opportunity is evaluated on its own merits, the principles below represent the investment philosophy that guides our investment decisions.

We Invest Where We Can Add the Most Value

Our philosophy is simple: capital alone is rarely enough. The best angel investors contribute introductions, experience, strategic guidance, and access to networks that help companies accelerate their growth. For that reason, we intentionally focus on opportunities where 412 Angels can be more than just another name on the cap table. As part of the Endeavor Heartland ecosystem, our primary investment geography includes:

• Northwest Arkansas

• North Texas

• Northeast Oklahoma

• Kansas City, Missouri

• Birmingham, Alabama

These are the regions where our team, relationships, mentors, investors, and broader Endeavor Heartland network are most active. Because we understand these ecosystems well, we invest across virtually any industry within these markets, provided the business meets our investment criteria.

Beyond Our Core Markets

Outside our primary geography, our investment thesis becomes more focused. We primarily invest in companies advancing the future of commerce and the broader retail ecosystem. These are industries where our investor network, strategic relationships, and regional expertise allow us to provide meaningful value beyond capital. Examples include, but are not limited to:

• Consumer Packaged Goods (CPG)

• Retail technology

• Supply chain and logistics

• E-commerce and commerce enablement

• Manufacturing technologies supporting consumer products

• Food and beverage innovation

• AgTech and FoodTech

• Packaging and sustainable materials

• Warehouse and fulfillment technologies

• Merchant and retail fintech

• B2B commerce platforms

• Consumer brands with significant growth potential

While we remain open-minded, our preference is to invest where our network can actively help founders grow their businesses.

We Invest in Venture-Scale Businesses

412 Angels backs companies capable of producing venture-scale outcomes. We are generally looking for businesses that can grow well beyond a local or regional footprint into national or global opportunities. While we greatly respect successful small businesses and lifestyle businesses, they typically fall outside our investment mandate. Scalability, market size, and long-term growth potential are central to every investment decision we make.

We Invest Early—But Not Too Early

Our primary focus is on Pre-Seed and Seed stage companies. In most cases, we invest in companies raising rounds at pre-money valuations of up to approximately $10 million. We may occasionally participate in later rounds through follow-on investments in existing portfolio companies. We generally do not invest in ideas alone. Today's startup environment rewards founders who validate demand before raising outside capital. We believe the strongest companies demonstrate meaningful execution before seeking angel investment.

We Invest in Companies with Meaningful Traction

At 412 Angels, we believe traction reduces risk. Our investment philosophy is centered around backing companies that have moved beyond the experimentation phase and have demonstrated genuine market demand. Before seeking outside capital, founders should have validated that customers are willing to pay for their product and that the business has established measurable momentum. As a minimum qualification, we generally look for:

Technology and Technology-Enabled Companies

• A working product

• Paying customers

• An annual recurring or annualized revenue run rate of at least $100,000

Consumer Packaged Goods (CPG) Companies

• Proven retail and/or direct-to-consumer traction

• Meaningful repeat purchase behavior

• An annual revenue run rate of at least $500,000

Meeting these revenue thresholds alone is not sufficient. We also look for companies demonstrating strong, consistent growth. While growth expectations vary by industry and business model, we seek founders who can show clear momentum, increasing customer adoption, and evidence that the business is scaling rather than simply maintaining its current level of revenue. Companies that have not yet reached these minimum revenue thresholds are generally not a fit for 412 Angels at this time. We encourage those founders to continue executing, growing the business, and reconnecting with us once they have achieved the traction necessary for venture investment.

We Back Exceptional Founders

At the earliest stages, we are investing as much in founders as we are in companies. We look for entrepreneurs who demonstrate:

• Exceptional execution

• Coachability

• Integrity

• Deep understanding of their market

• Capital efficiency

• Resourcefulness

• The ability to recruit talent and build strong teams

• Persistence through adversity

Markets evolve. Products change. Business models pivot. Strong founders consistently find ways to create value regardless of the obstacles they encounter.

We Invest Alongside Experienced Lead Investors

412 Angels currently participates as a co-investor rather than a lead investor. Founders approaching us should generally have an experienced lead investor, venture capital firm, angel group, family office, or established individual angel already participating in the round. Our members typically invest collectively through a syndicate alongside those lead investors.

Flexible Investment Structures

We recognize that not every high-growth company raises capital the same way. Depending on the opportunity, we may participate through:

• Priced equity rounds

• SAFE notes

• Convertible notes

• Revenue-based financing

• Inventory financing

• Other creative investment structures where appropriate.

More Than Capital

Our members include entrepreneurs, executives, operators, investors, and industry experts with experience across technology, retail, finance, healthcare, logistics, aviation, manufacturing, consumer products, and many other industries.Whenever possible, we seek to help founders through:

• Strategic introductions

• Customer and channel connections

• Hiring support

• Operational guidance

• Industry expertise

• Mentorship

• Future fundraising introductions

The companies that receive the greatest value from 412 Angels are often those that actively engage with our network after the investment closes.

Our Investment Process

We strive to make investment decisions efficiently and respectfully. Founders only need a brief introduction and a pitch deck to begin the conversation. If there is mutual interest, we conduct additional diligence, meet with the founding team, and present qualified opportunities to our investor network. While every investment is different, founders can generally expect an initial decision within a few weeks.

Connect With Us

If you believe your company aligns with our investment philosophy, we'd be happy to learn more. Please send a brief introduction and your pitch deck to:

Chris Erhardt
chris.erhardt@endeavor.org