Intro: DVC is currently backed by 95+ investors, including many active unicorn founders, GPs of VC firms, and angel investors. Most of us have a tech background, some of us also bring finance, artistic or content creator experience. Active and most value-added investors in our community become Deal Advisors, Deal Captains, or Venture Partners in the fund and share the carried interest.
Investment Focus: early-stage tech startups in the US founded by repeat founders.
Target Areas: AI/ML/Robotics, Future of Work, Future of FinTech, Enterprise 4.0, EdTech, Creator Economy, Food/AG tech (IT/ML-enabled), Biotech (IT/ML-enabled).
Target Models: software, SaaS, platforms, managed marketplaces, focus on recurring revenue models.
Target Stages: Inception to Series A.
Target Check Size: $50-200k per deal as the first check, co-invest with larger reputable US VC firms. Larger checks for follow-ons within the portfolio.
Investment strategy: Make a large number of small early-stage deals (25-30 per year), identify winners, and follow on with larger checks increasing our shareholding above pro-rata in subsequent rounds.
Pipeline origin: 50% Focused research (Review of key growth areas, identify key value-creating elements, find the best teams in there, get in), 50% inbound from the existing professional network.
Portfolio management: Focus on creating maximum value per % ownership for portfolio founders through the community of investors, partners, and advisors of Davidovs VC.
Additional details and fees: Each quarterly fund = a separate 10-year fund (Delaware-based limited partnership) with a 3 months investment period managed by Angel List. Every fund charges 2% of contributed capital as an annual management fee. Returns above the total sum (across all quarters) of the investment are subject to a standard 20% carried interest. AngelList provides software and back-office (accounting, legal, admin, and compliance). ND and MD are responsible for all other organizational and legal costs of the funds.
Target Quarterly Fund Size: $1.5M per quarter in the first year, accept more capital to ramp up to $2.5M per quarter after 1st year (up to 50% of each quarterly fund after 1st year to be invested in follow-on deals). Additional remaining pro-rata (after the fund invests its maximum) in portfolio companies is offered to active investors of the fund on a “first-come-first-serve” basis.
Proposed individual investor subscription amount: $30-50k per quarter.
DVC Snapshot and Plans (1) (1).pdf