A resource for early stage businesses in and around the Tri-Cities

Generally, Fuse Fund does not fund concept stage investments – instead we focus on early stage businesses in and around the Tri-Cities of any kind that are established and generating revenue but need capital to achieve success at scale (e.g., Seed/Stage 1 funding).  Further, Fuse Fund has an expectation that co-investment will come from one or more additional sources beyond the founders.  These seed stage investments are up to $150,000 for an initial round. Fuse Fund may consider a second tranche of funding up to $100,000 if needed for success either as follow on Stage 1 investment or Stage 2 (where company value is established by external investor equity stake).  In all cases we expect at least a one-to-one co-investment from other investors on the same terms.

Our investments are structured on terms and conditions that have some accountability for achieving critical business goals and milestones.  Fuse Fund does not intend to be a control investor, meaning our investment in the company will result in a minority ownership position. However, we expect portfolio companies to engage best practices for corporate and board structures and governance, management responsibility, accountability, and monthly operational and financial reporting.  In some instances, to help ensure these outcomes. a Fuse Fund representative may become a member of the company’s board.

The due diligence process could take from two to six months and possibly more, depending on the progress already made by the company and decision informed data that is available.  It helps to think about investment due diligence as ongoing conversations between the entrepreneur/founding team and Fuse Fund as an investor. Sometimes investments are made independently by the fund to fill in gaps or answer specific questions about the technology, customers, or markets.

The company must have a nexus to the Tri-Cities region. The founders and management team agree to use best practices in running and growing the company. We must be able to agree on investment terms that—if the company is successful—will generate market returns for Fuse Fund investors. We do not provide grants, subsidies, or below market financings.

Fuse Fund is indifferent to the type of business we will consider for investment.  The only explicit criteria is a nexus to the Tri-Cities region.  However, we are partial to businesses that have a product or service that addresses untapped market potential and or may be disruptive in the current market.  Besides the skill and expertise of the management team Fuse Fund will focus on the potential market and credible (conservative) forecasts of market potential and capture. Validation on the potential of the business by other external investment is also a major factor in our consideration.