Craft Ventures is a U.S.-centric software investor that backs companies from Pre-Seed through Growth, with a strong concentration in B2B SaaS, infrastructure, security, fintech, and enterprise marketplaces. The firm is unusually explicit about its operating thresholds, using a public metrics framework centered on growth, sales efficiency, capital efficiency, and engagement to identify companies that can become durable category leaders.
Craft Ventures makes investment decisions through a data‑driven, metrics‑focused framework that treats growth as the primary proof of product‑market fit. At the Series‑A level the firm looks for a Magic Number greater than 1, a CAC payback period that is reasonable, and a Burn Multiple under 2 (under 1 is considered exceptional). Engagement metrics such as DAU/MAU around 40% for freemium products are also required. Early‑stage (seed) investments are evaluated during the "Wilderness Period" – the phase between MVP launch and the first repeatable sales, which Craft calls crossing the "Penny Gap." The firm expects month‑over‑month growth of roughly 20% below $1M ARR and 10% above it as a signal of strong traction. While Craft emphasizes outstanding founders and a bias toward strong teams, traction and efficiency metrics are gating; deal‑breakers include low gross margins (non‑software businesses), weak sales efficiency (low Magic Number, high CAC), high churn, or a Burn Multiple that signals uncontrolled burn. The combination of quantitative thresholds and a preference for teams that can execute in high‑margin B2B SaaS shapes every investment decision.
See the rest of how Craft Ventures decides.
Evaluation framework, investment themes, pitch guidance and the partner map. One email, no password — we send a link and you land right back here.