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Lateral Capital Management

Located in Sarasota, Florida, Lateral Capital is a Micro Venture Capital Limited Partnership. We have invested in more than 100 Early Stage companies across the U.S. since 2003.

Sarasota, FL, USA

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Description

Lateral Capital (also known as Lateral Capital Management) is a micro-venture capital firm headquartered in Sarasota, Florida. Founded in 2003, the firm specializes in providing early-stage capital to technology-enabled companies across the United States. 
  • Early Stage (Seed): The firm focuses on seed and early-stage companies.
  • Maturity: They look for companies with a completed product or service, proprietary technology (patents issued or filed), and business models that can achieve cash flow breakeven while awaiting an exit (typically within 5-7 years). 
  • Method: The firm sources deals through its extensive network of partner angel groups across the U.S.
  • Materials: A business plan highlighting compelling benefits, proprietary technology, a clear exit strategy, and a plan for achieving cash flow breakeven.
  • Exclusions: They do not invest in lifestyle businesses, distribution-driven categories like food and beverage, or location-dependent businesses like restaurants.
  • Rolling Basis: Lateral Capital evaluates and invests on a rolling basis year-round.
  • 2026 Status: The firm launched its fourth syndicated fund, the Lateral Capital Opportunity Fund (LCOF), in March 2024, and it is actively investing into 2026. 

Eligibility

  • Geography: Primarily U.S.-based companies.
  • Sectors: Industry-agnostic, with investments in healthcare, industrial products, and B2B software companies.
  • Founder Profile: They look for "paranoid optimists of impeccable character" as founders.
  • Social Impact: A preference for businesses that contribute to the "greater good" profitably. 

Process

  1. Syndication Sourcing: The majority of investments are made in conjunction with partner angel groups (e.g., Band of Angels, Golden Seeds, Gopher Angels).
  2. Due Diligence: The firm relies heavily on the due diligence conducted by these partner groups.
  3. Investment Decision: Members make individual decisions to invest in the opportunity. 

What an Applicant can Obtain

  1. Capital: Access to early-stage capital from a seasoned micro-VC firm.
  2. Network Access: Connections to a broad network of U.S. angel investors and events (BIO, SXSW, ACA).
  3. Strategic Guidance: Insight from an experienced management team, including a former Pillsbury Company CEO.