Beta Boom Research
Investment Thesis
Beta Boom is a pre-seed and seed venture capital fund founded in 2018 with a mission to invest in pattern-breaking founders overlooked by traditional Silicon Valley venture capital. Based in Salt Lake City, Utah, the fund was created by Kimmy and Sergio Paluch, both Bay Area veterans with immigrant backgrounds who discovered untapped potential beyond Silicon Valley's insular ecosystem.
The firm's core thesis is that "People Over Patterns" - they believe the best startups solve pressing problems, not passing fads, and that breakthrough solutions often come from overlooked founders in underestimated markets. Rather than relying on traditional venture capital pattern-matching (elite university pedigrees, Silicon Valley connections), Beta Boom evaluates founders on their grit, insight, and obsession with solving real problems.
Sector & Model Focus
Beta Boom is sector-agnostic, actively investing across:
- Enterprise Software - Manufacturing compliance, supply chain, enterprise platforms
- Healthcare & Digital Health - Clinical workflow, health tech, patient intake systems
- Fintech & Financial Services - Credit, lending, financial management tools
- Cybersecurity - Security alerts, threat detection, compliance automation
- EdTech & Future of Work - Talent acquisition, learning platforms, workforce development
- Climate & Sustainability - Climate solutions, sustainable manufacturing
What matters most is clear product differentiation, strong founder understanding of their customer, and deep insight into the problem being solved.
Stage & Check Size
Beta Boom focuses exclusively on early-stage investment:
- Primary Focus: Pre-seed ($250K-$500K average, range $150K-$500K)
- Secondary: Seed rounds (up to ~$3M)
- Valuations: Pre-seed caps typically up to ~$10M
They write the first institutional check and are comfortable being the lead or sole investor in a round. They explicitly focus on meaningful checks that allow founders to build real momentum.
Lead Tendency & Decision Process
Beta Boom leads rounds. They position themselves as first institutional investors and build ownership stakes of 15-20%. Their decision process is partnership-based with two GPs evaluating all deals together.
Decision Timeline: 4-6 weeks from initial meeting to "yes" or "no". They prioritize fast, honest decisions and work to say "no" quickly if not a good fit.
Founder Preferences & Anti-Patterns
Who They Back:
- 100% Silicon Valley outsiders - founders who defy the traditional mold
- 92% led by founders who did not attend top-10 universities
- 92% of portfolio companies led by women or people of color
- Single founders and non-technical founders (actively sought)
- Pre-revenue and low-traction startups (emphasis on founder insight over metrics)
- Founders outside the San Francisco Bay Area (this is a requirement - they explicitly do NOT invest in Bay Area-headquartered companies)
Geographic Restriction: Beta Boom invests in U.S.-based startups only, and they actively avoid Silicon Valley. They focus on founders across Sacramento, Southern California, Central Valley, and anywhere else in the United States outside the Bay Area.
What They Don't Do: No referral requirement - in fact, referred companies receive an internal penalty to ensure fair evaluation. No bias toward prestigious backgrounds.
Portfolio & Recent Activity
Beta Boom Fund II closed $14.5M in 2024 and is actively deploying. As of January 2025, Fund II has made 17 investments.
Recent Investments (2025):
- Alpha Level (January 2025) - cybersecurity startup
Notable Portfolio Companies (27+ companies across multiple categories):
Enterprise & Infrastructure:
- Guidepad - Low-code platform for building systems with reusable tools
- Elm AI - Supply chain compliance acceleration with AI
- Parakeet Risk - Risk and compliance for enterprise manufacturers
- NOMA AI - Digital health AI
Healthcare & Digital Health:
- Valhalla Healthcare - Clinical patient information intake
- CyrenCare - Healthcare technology
- Upside Health - Health tech solutions
- Attane Health - Healthcare services
- OK2StandUP - Digital health platform
- Canopie - Digital health solutions
- SureShow - Digital health technology
- Kalyan - Healthcare focused
- Good Glucos - Health technology
Cybersecurity:
- Alpha Level - Cyber security alert filtering
- drip7 - Cybersecurity solutions
- Pyramid Security - Security technology
EdTech & Future of Work:
- Making Space - Accessible talent acquisition and learning for disabled talent
- PopPD - EdTech and work solutions
- WEDEVX - Developer education platform
- Fiveable - EdTech platform
Fintech:
- Bolder Money - Fintech solution
Other/Diverse:
- Her Headquarters - Women entrepreneur support
- Geaux Network - Networking platform
- The List - Marketplace/community
- Nodat - Data/analytics
- Venulist - Venue technology
- WishYourPrice - Price negotiation platform
- WEDEVX - Development education
Support Model
Beta Boom positions itself as a hands-on investor focused on "working alongside founders from day one."
Support Framework:
- Collaboration over Lectures: Work through challenges in focused sessions rather than top-down advice
- Meeting Founders Where They Are: If teams are strong in engineering but weak in sales, Beta Boom focuses on sales support
- Focus on "How" Not "What": Founders set direction, Beta Boom helps with execution tactics (CRM setup for fundraising, marketing channel testing, sales lead generation, investor introductions)
- Vetted Expert Network: Extended network of specialists for support areas beyond core team
- Operational Support: Day-to-day guidance on product development, sales, marketing, and fundraising
Fund Status
Beta Boom Fund II ($14.5M) is actively deploying as of early 2025. The fund is on track and making regular investments. They are building a sustainable, repeatable investment model focused on founders who don't fit traditional VC patterns.
Team & Organization
Leadership:
- Kimmy Paluch (General Partner): Born and raised in Kingston, Jamaica as the youngest of five girls. Influenced by a mother who challenged glass ceilings and a father who championed women's exceptionalism. Passionate about feminist perspectives and overlooked founder support.
- Sergio Paluch (General Partner): Immigrated from small-town southern Poland in the late 1980s to Chelsea, Massachusetts (then hub of gang activity and drug trade). Those formative years shaped his vision for Beta Boom.
Organizational Structure: Boutique fund with two GPs making decisions as partners. Small team that aims to be personally involved with each portfolio company.
Founder Engagement Preferences
Application Process:
- No referral required (direct applications actually preferred)
- Simple online application form at betaboom.com/apply
- No warm introduction needed
- Explicit anti-bias in evaluation
Warm Intro Required: No, but note that Beta Boom actually penalizes referred companies internally to counteract referral bias.
Investment Philosophy
Beta Boom's investment model is built on closing access gaps for underrepresented founders. They believe:
- Diversity as Inevitability: Tomorrow's founders will be more diverse in every way (location, background, education, experience, age, gender, orientation, immigration status)
- Outdated Models: While entrepreneurship has evolved rapidly, investment models haven't changed since the 1960s (or even 1800s with whaling ship ventures)
- Pattern Breaking Goal: Efficiently find passionate, tenacious founders who don't fit traditional VC pattern matching, evaluate on potential not pedigree, and empower them to build massive, impactful global companies
Recent Strategic Focus
Beta Boom runs a 6+ month "startup academy" with specialist coaches to support overlooked geographies and founders. This hands-on support model differentiates them from traditional VCs and demonstrates their commitment to founder success beyond capital.
Notable Media Coverage
Beta Boom has received significant press attention for their unique approach:
- Featured in Utah Business as Women of the Year (2020)
- Part of initiatives addressing racial wealth gap in venture capital
- Recognized as helping diverse founders cross the "valley of death"
- Featured in discussions on how tech investment ecosystem is shifting toward inclusion