The Rockies Venture Club has made more than 200 investments over the past decade and while we can see some variation in the deals that have been done, there are definite themes that describe how the group makes decisions about the investments it makes.

Our thesis is divided into eighteen categories. Note that the reported objectives for each category are where the top of the bell curve falls for our investments. RVC is sometimes opportunistic and will make a Series H follow-on investment when the situation seems right,

even though this is a far cry from the pre-seed and seed stage deals we typically do.

Geography: Colorado and the West. Most of RVC’s deals are from Colorado or the Rocky Mountain West. Then, there are syndicate deals that are mostly from the western U.S. but can come from anywhere. Finally, we have done just a few international deals but expect to do more over time.

Stage: Seed/Pre-Seed. These stages are defined as post MVP (Minimum Viable Produce) but pre-PMF (Product Market Fit) RVC prefers early stage deals where we can lead the deal, influence the direction of the company (for the best), and seek outsized investment multiples

based on relatively lower initial valuations.

First Check Amount: $100,000 - $500,000

Concentration: Investments typically representing 20-50% of the funds being raised in a round and ownership of 5-20%. Note that concentration is not a primary strategy for RVC, but rather dollar on dollar returns..

Follow-on Strategy: A majority of RVC investments achieve follow-on rounds with a number of objectives including maintaining pro-rata ownership, avoiding cram-downs in pay-to-play situations, and benefitting from inside information to double down on winners. Total follow-on investment over a period of years can reach $2,500,000 or more.

Valuation: Market Rate Strategy averages $6-10 million in 2025 for first round investments. RVC seeks fair valuations that represent the company’s potential for returns at exit. First rounds of $10 million or more are rare, as are rounds of $4 million or less.

Capital Intensive Strategies: Companies that require extraordinary amounts of capital to succeed are generally avoided. Early stage investors see excessive dilution and exits need to be exceptionally high and far into the future in order to achieve desired returns.

Exit Strategies: Prefer companies with clear exit strategies including industry trends, recent comps, clear relationships being built with potential acquirers, multiple exit scenarios and an overall vision for understanding value creation by understanding the gaps in incumbent

companies' playbooks.

Strategic Advantages: Most deals require “Moats,” which represent barriers to entry by competitors. Moats could include network effect, proprietary data sets, strong existing market share, intellectual property and patents, strategic partnerships, and proprietary technology.

Target Returns: The target return is 10X over five years. Under appropriate circumstances, early exits of 2-3X and “power law” later-stage exits of 100x or more are also considered. In all cases we look for strategic validation of target returns and detailed tactics to get there.

Deal Structure: Preferred Equity investment in C-Corporations. RVC prefers equity investments due to tax advantages and more clearly defined terms and governance. Convertible Notes and SAFEs are considered for exceptional deals, or true “bridge” investment situations.

Tax Strategies: RVC considers tax strategies for federal and state taxes when structuring deals because they can impact cash returns significantly.. When possible, RVC will claim OEDIT

Advanced Industries Investment Tax Credits from the State of Colorado and IRS tax breaks for angel investors, known as QSBS Section 1202, 1244, 1045 tax breaks at exit.

Boards: Yes. RVC achieves board representation in about 40% of its deals, primarily because RVC leads many of its rounds and that can lead to board seats.

Observer positions when a board seat is not available or when later round investors take existing seats. In any case, RVC requires investor representation on the board even if it is not from our group.

Leading Deals: Yes. RVC prefers to lead deals, but will follow when an attractive deal is presented that has been negotiated and structured by syndicate partners. RVC leads deals because it does formal due diligence, it has a syndication network, and it prefers to guide deals

towards tax advantaged structures.

Industries: Agnostic. RVC is technically agnostic, but its deals tend to concentrate in life sciences, cleantech, CPG and tech deals.

Teams: RVC prefers teams of three people or more, ideally with venture-backed experience, strong strategic backgrounds, clarity of strategy and purpose, unique industry perspectives, a focus on building value through exit, demonstration of “grit,” or other uniquely qualifying characteristics.

Company Structure: RVC typically invests in companies organized as a Delaware C-Corp, sometimes after converting from an LLC.

Syndication: RVC actively creates syndication opportunities with our partners around the State and the U.S. in order to help startups fill their rounds. We also seek out the best investments from our syndicate partners around the country.