Picks & Shovels

Picks and Shovels Research Investment Thesis Picks and Shovels is a solo-GP early-stage venture fund founded in 2022 by Josh Schlisserman. The firm's investment philosophy is rooted in a simple yet powerful metaphor: they invest in the picks and shovels (infrastructure and tools) that enable entrepreneurs to build and own vertical markets. Rather than betting on the gold miners themselves, Picks and Shovels focuses on funding the toolmakers and infrastructure providers that solve critical problems for developers, crypto enthusiasts, and digital entrepreneurs. The fund's thesis specifically targets companies that: Sell picks and shovels - Infrastructure, tools, and enabling technology Identify clear market gaps - Addressing unmet needs in their customer base Obsess over their customers - Founders with deep understanding of customer pain points Josh Schlisserman, the sole GP, brings invaluable operational experience as Chief of Staff at Series (employee #1), a picks-and-shovels enterprise software company. This hands-on experience directly informs his ability to evaluate founders and companies. He was recognized by Forbes as one of the 30 Under 30 in VC and participated in Recast Capital's Enablement Program for emerging managers. Sector and Market Focus The fund has a clear focus on crypto, fintech, and infrastructure sectors: Primary Sectors: Fintech & Payments Infrastructure : DeFi protocols (CDP platforms, MEV solutions), payment rails, financial tools Developer Tools & Infrastructure : Data platforms, error monitoring, observability, design tools, integration platforms Crypto & Blockchain Tools : Web3 security (Snyk for Web3), protocol infrastructure, blockchain-based solutions Adjacent Sectors: Enterprise Software : Data flows, business analytics platforms Specialized B2B : Supply chain integration, fraud detection, compliance tools, industry-specific infrastructure The portfolio reveals a strong emphasis on blockchain/crypto infrastructure (Ion Protocol, Skip Protocol, Olympix, Vaporware) balanced with enterprise and fintech picks-and-shovels companies. Stage Preference and Check Size Stage Focus: Pre-Seed, Seed, and Idea stage Josh explicitly states "The earlier, the better" Target profile: 1% founders building picks-and-shovels companies with clear market gaps and obsessive customer focus Positioning as the first fund these founders think of when raising Check Size: Primary check size: $100K Range: $100K-$5M (based on external sources) Focuses on conviction-driven investments with mapped base cases of 25X+ Investment Process and Decision Making Decision Process: Solo GP Josh makes all investment decisions independently Decision Timeline: Very fast ("moves VERY quickly") Criteria: Only total conviction with focus on multiples and 25X+ base cases Key Evaluation Factors: How does the founder think about and approach problem-market fit? Does the founder have expert-level understanding of their customer demographic? How will the founder get unfair access to their customers? How frequently is the founder talking to customers? Does the founder have specific people from their network to hire? Lead Tendency: Primarily leads as first-check investor Value Add to Portfolio Companies Josh offers three core value propositions: Fundraising : "Part time therapist, full time hype man" - helps subsequent fundraising while providing emotional support Recruiting : Hands-on recruiting support to help founders win over and sell talent Strategy : Operational expertise from ground-zero experience building picks-and-shovels company at Series These value-adds are specifically tailored to early-stage founders who benefit from operational guidance alongside capital. Portfolio Analysis As of February 2026, Picks and Shovels has invested in 20+ portfolio companies: Crypto/Blockchain Infrastructure: Ion Protocol - CDP (Collateralized Debt Position) platform for restaked assets Skip - Payment-based MEV (Maximum Extractable Value) solution for Cosmos blockchains (acquired by ICF) Olympix - Security scanning for Web3 (Snyk for Web3) Vaporware - Tools to make NFTs interactive and composable Anon - Multiplayer identity SDK for the internet Enterprise & B2B Tools: Assistiv Labs - Drata for accessibility (compliance/accessibility tools) Cedar - Digital asset management (Melio for digital assets) Concrete - Protection of non-stable collateral in DeFi lending Daydream - Programmatic SEO automation Eventual - AI for insurance accounting teams Glowstick - 3D IDE and design platform Openlytics - Data flow creation for business analysts Switchboard - Error monitoring and incident response platform Fintech & Specialized B2B: Masava - Alcohol beverage supply chain integration Morph AI - Stealth fintech project Litvue - Legal research tool for litigators Osiris - B2B fintech fraud consortium using ML Slingshot - Foundational data model for psychology Stell - Technical requirements platform for industrial base Portfolio Highlights: Skip Protocol's acquisition by the Interchain Foundation demonstrates successful exits Portfolio companies span pre-seed through series stages Heavy concentration on infrastructure and tools (true to thesis) Founder Profile & Preferences Based on Josh's stated criteria, Picks and Shovels looks for: Ideal Founder Profile: Expert-level understanding of customer demographic Obsessive customer focus (frequent customer conversations) Strong network for recruiting 1% founders with exceptional problem-market fit approach Technical founders with operator mentality Geographic Focus: US-based with emphasis on Silicon Valley/San Francisco Bay Area (Santa Monica headquarters, but focuses on crypto/fintech hubs) What They Avoid: Consumer applications without infrastructure positioning Founders without clear market gaps or customer obsession Non-picks-and-shovels business models Projects without technical founders Recent Activity and Fund Status Recent Timeline: Fund founded: 2022 As of Feb 2023: 14 companies invested Current portfolio: 20+ companies Last publicly announced activity: Q4 2025 (Ion Protocol $7M raise with Picks and Shovels as supporter) Current Status: Actively deploying Josh recently became stealth co-founder (September 2025), which may indicate shift in his time allocation Fund appears to be in active deployment phase No indication of between-funds status Geographic and Investment Scope Geographic Preference: Primarily US-based founders and teams Fund Characteristics: Solo-GP structure provides speed and flexibility Early-stage focus (pre-seed to seed) enables higher deployment frequency $100K primary check size allows for portfolio diversification Thesis-driven (picks-and-shovels methodology) creates strong conviction for investments Competitive Advantages Operator Pedigree : As Chief of Staff at Series, Josh brings authentic picks-and-shovels experience Speed : Solo decision-making allows rapid commitment Conviction : Explicit focus on 25X+ base cases means thoughtful thesis-driven approach Specialization : Deep expertise in infrastructure/tools space Founder-Friendly : Early checks, operational support, and hands-on recruiting help Investment Conviction Signals Lengthy portfolio of 20+ companies demonstrates active investing Skip Protocol exit (acquisition by ICF) validates thesis and founder quality Forbes 30 Under 30 recognition in VC (2022-2023 cohort) Recast Capital Enablement Program alumni (emerging manager program) CEO/founder investors backing Josh's fund: 776, Caffeinated Capital, Fin VC, Kleiner Perkins, Basis Set Ventures, Li Jin, Josh Buckley, Jason Warner Notable Backing Josh's early fund attracted impressive angel and micro-fund backing from notable ecosystem figures including: 776 Ventures Caffeinated Capital Fin VC Kleiner Perkins Basis Set Ventures Individual angels: Li Jin, Josh Buckley, Jason Warner This backing from established venture figures validates the thesis and adds credibility.