Six Point Ventures Places 92.5% Bet on Team in Pre/Seed Investments, De-emphasizing Early Revenue

Venture capitalist Trace Vertical Ai Cohen, General Partner at Six Point Ventures, recently unveiled a candid investment philosophy for pre/seed stage startups, prioritizing the founding team's potential over immediate financial performance. In a widely noted social media post, Cohen explicitly stated, > "At pre/seed I don’t really care about it - 92.5% of our bet is on the team," adding that "Making money and generating revenue usually gets in the way" at these very early stages. This transparent approach highlights a critical aspect of high-risk, high-reward early-stage venture capital.

Cohen, an experienced founder, operator, and angel investor, leads Six Point Ventures, a pre/seed fund specifically targeting Vertical AI opportunities in the US and Israel. His firm focuses on identifying and supporting nascent companies that align with his belief in nurturing foundational talent and innovative vision. This strategy is further supported by his consistent engagement with the startup ecosystem through a weekly newsletter on tech and venture capital.

The strong emphasis on the founding team is a cornerstone of early-stage venture capital. Industry experts and venture capitalists frequently affirm that at the pre-seed and seed stages, investors primarily evaluate the team's competence, vision, and adaptability, recognizing that established revenue streams are often non-existent. As highlighted in discussions on early-stage investments, traction can manifest through prototypes, active customer engagement, and a deep understanding of the problem a startup aims to solve, rather than solely financial metrics.

Cohen's acknowledgment that "Hopium drives most of the decision" offers insight into the inherent optimism and speculative belief in future potential that characterizes investments in unproven startups. This informal term encapsulates the conviction that a robust and capable team, even without immediate revenue, possesses the resilience and ingenuity to overcome challenges and achieve substantial growth. It represents a strategic gamble on the long-term trajectory and execution prowess of the founders.

The venture capital landscape, particularly within specialized sectors like Vertical AI, continues to evolve, with a growing trend towards niche funds. Six Point Ventures' concentrated focus on Vertical AI in key innovation hubs like the US and Israel positions it to capitalize on emerging technological breakthroughs. This targeted investment strategy further underscores the necessity of backing exceptional teams capable of developing and scaling complex, domain-specific AI solutions in a competitive market.