Three quantitative thresholds that filter for proven, durable, capital-efficient venture-backed businesses. Every company in the Earlyasset Capital portfolio must meet all three — no exceptions.
Each threshold tests a different dimension of business quality. A company that hits two but misses the third is not eligible for the portfolio.
$30M+ in annual revenue confirms real market demand and a business that has moved decisively past early-stage survival risk. This is a non-negotiable floor.
3030%+ year-over-year revenue growth signals continued market expansion and product-market fit. We want companies that are still accelerating, not coasting.
3030%+ gross margins demonstrate a business model with structural leverage. High-growth, low-margin businesses often burn cash to grow — we want companies where growth creates value.
30In addition to the Law of 30, portfolio companies must be at Series B stage or later. This ensures institutional validation and a credible path toward a liquidity event — IPO, strategic acquisition, or otherwise — that creates a clear return pathway for fund investors.
Secondary market opportunities are abundant. The hard part is filtering — most companies that look interesting on the surface fail under fundamental scrutiny. The Law of 30 is the first filter we apply to every potential position.
By committing publicly to a fixed framework, we make our underwriting transparent to LPs and counterparties. There is no "we made an exception" in our investment memos.
LPs know precisely what kind of company will be in the portfolio. The framework is the same for every commitment, every cycle.
Markets cycle through narratives. A consistent framework prevents capital allocation drift toward whatever sector is hottest in a given quarter.
The Law of 30 is a one-page filter we can apply to any opportunity in minutes. Companies that don't meet it don't enter the diligence queue.
Learn the broader investment thesis, fund structure, and how to begin a conversation about an LP commitment.
For Limited Partners →If you own shares in a company that meets the Law of 30, we may be a direct buyer. Submit a confidential inquiry.
For Shareholders →